Precursor To Economic Growth

p IntroductionEconomic evolution implies the efficient use of available and rare resources . The old debate between those who support a centralise planned every last(predicate)ocation of resources versus those who believe in the market to expeditiously allocate resources goes on . Coase (1960 ) had argued in his famous transaction court analysis , that thither is a social cost to every regulation that the g everywherenment comes up with and that this leads to inefficiency . Hardin (1968 ) percentage points to the tragedy of the commons , where the absence of clearly defined property rights leads to free rider problems and over exploitation of resources . There have been other critics that have argued that democracies cheer a consumption climate while dictatorships enable investments . It is besides believed by some that democratic institutions are futile to see strict regulatory regimes and can only exist where material property rights are enforced The question in that respectfore is whether markets should be left free to correct themselves or to have a stringent regulatory mechanism in place that ensures consumer offbeat through controlling dominance and capture Economic independence however is something that most people today argue is a pillar of economic addition . The moot point is of hightail it whether economic independence should be accompanied by governmental freedomPolitical freedomDemocracy , as a form of governance that guarantees political freedom has long been viewed with suspicion in certain quarters . It is seen as a system that is inefficient , prone to market failures and unable to ensure redistribution of wealth . Lipset (1959 ) was among the first to analyze this thesis . Sen (1999 ) took this blood line further . Their argument was that it is indeed democracy that fosters economic growth Critics of democracy often quote the Lee paradigm that goes in the name of a former President in capital of Singapore .

Haizheng and Zhenhui (2007 ) have examined the paradigm to check whether authoritarian regimes have fostered greater growth and development than have democratic structures The authors show that there are a few examples of countries like Singapore and conspiracy Korea that have shown impressive growth under authoritarian regimesHowever the correlation between authoritarianism and economic growth is not strong . There are counter examples like Botswana and India where economic growth has been spectacular within democratic frameworks . Sen (1982 ) goes further to argue that there are enough examples of countries where authoritarianism or the lack of a democratic structure has actually resulted in economic chasten . In countries like Niger Ethiopia , Sudan and even in China , shortage and hunger took hundreds of lives and an authoritarian regime could do little to forestall the crises He states further that democratic institutions such as a free press , a vigilant opposition and rhythmic elections ensure that the democratic process keeps the political economy expeditious . Lobbies do exist , interest groups try to steer the political economy in certain ways , but the interplay of all stakeholders ensures that democracies throw up issues that are of common concern . Howlett and Ramesh (2003 ) point out that it is often seen that individuals , groups , classes , and states...If you want to get a teeming essay, order it on our website: Ordercustompaper.com

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