The Argentine Legislature at work.
Among the benefits of democracy, some of the most pleasing are the open exchange of ideas, the encouragement of creativity and citizenship, and of course freedom. These all have intrinsic value in addition to supporting social and economic development. Yet there are other benefits, as the Economist points out, that don’t always catch attention despite their tremendous importance: “Crying for Freedom.”
Democracies do a superior job of averting disasters, such as famines (Sen). They don’t always have higher growth rates but they have less volatile growth (Rodrik). Controlling volatility matters because an economy can be destroyed faster than it can be built, as the sad example of Zimbabwe most recently shows us.
Democracies do better at controlling corruption. They are certainly not immune, and corruption scandals become very visible in the presence of free media and other mechanisms of accountability. Authoritarian governments are arguably more dependent on corruption to retain power, but do a better job of sweeping it under the rug.
Finally, democracies are better for political stability, as they provide an orderly mechanism for the transfer of power. Building on this point, one can think of democracy as fundamentally a system for handling conflicts. Conflicts, though rarely pleasant, are best handled through honest, open methods in the context of individual rights, rule of law, and good governance – all hallmarks of functioning democracies.
My colleague Alex Shkolnikov and make some of the same points in our paper “Democratic Governance and the Quality of Growth,” where we acknowledge that democracy does not always provide the quickest route to the most efficient economic policies. Democracies, however, are remarkably adaptable. Through accountability and the open exchange of information, they are more likely to arrive at effective, legitimate, and sustainable economic policies.
“Democratic Governance and the Quality of Growth” clarifies the sometimes perplexing relationships between democratization, economic reform, and growth. Other related questions are explored in the wealth of video presentations and readings at www.democracythatdelivers.com.
Published Date: February 09, 2010