Impact of Democracy on Economic Development Research Paper - 1

Impact of Democracy on Economic Development - Research Paper Example is that of the negative impact democracy has on the economy as noted by Przeworski & Fernando (1993).The pro-dictatorial stand taken by their article argues strongly against the public choice theory (Przeworski & Fernando, 1993, p.8). The public choice theory which advocates for minimal government questions the true existence of democracy by arguing that bureaucrats, states, politicians and citizens act solely from a perspective of self interest. Such encourages acts of corruption from the above parties which in turn diminishes economic development. Governments exercise authorities and powers designed for selfish needs of their own. Politicians use resources of the government to maintain and consolidate positions of authority and power. States employ powers to confiscate individuals’ private properties. Citizens use influence from politicians to attain exceptional benefits. Bureaucrats extract bribes from citizens seeking for the benefits and protect their businesses (Przewors ki & Fernando, 1993, p.8). The same theory however, proposes an opposing hypothesis where minimal government justifies freedom for all where the government liberates its citizens to participate in economic development and this in turn would translate into a higher GDP and per capita rates thus positive development of the economy. The theory may also assume a null hypothesis where the levels of democracy have neither positive nor negative relation to the economic development. Such is when the natural circumstances of a country are protagonist to economic activity. (Przeworski & Fernando, 1993, p.8) Wickrama and Mulford (1996) generate a hypothesis in which the levels of democracy is said to lead to the achievement of proportional levels of economic development. Their restrictive model of real GDP growth per capita supports the concept that the highest growing nations have a relatively high democracy level. A research carried out between the years 1960 and 2010 has findings on the same