Does Democracy lead to Economic Growth?
Explore the evidence.
The Scenario
Country A: Authoritarian
GDP per capita: $10000
Country B: Democracy
GDP per capita: $10000
Key Finding
Over the long term, democratic nations tend to have a higher GDP per capita than non-democratic nations.
Factors Contributing to Growth in Democracies:
- Increased Investment
- Better Education & Human Capital Development
- Stronger Institutions & Rule of Law
- More Innovation
- Greater Political Stability (in the long run)