If you want to break an economy, democracy is the solution you’re looking for. The crucial reference is to this paper (via Cowan), dedicated to the The $42 Trillion Question: Will Rapid Growth in China and India Persist? The economic consequences of socio-political ‘progress’ are spelled out about as clearly as anyone could want:

… nearly every country that experienced a large democratic transition after a period of above-average growth (more than the cross-country average of 2 percent) experienced a sharp deceleration in growth in the 10 years following the democratizing transition. Among 22 countries in which episodes of large democratic transition coincided with above-average growth, all but one (Korea in 1987 with an acceleration of only 0.22 percent) experienced a growth deceleration. The combination of high initial growth and democratic transition seems to make some deceleration all but inevitable. The magnitude of the decelerations was very large: The median deceleration across the 22 countries was 2.99 percent and the average deceleration was 3.53 percent.

The phenomenon of demosclerosis is already theoretically well-grounded. It appears to be a more rapidly-acting poison than even its fiercest critics have acknowledged.

October 20, 2014admin 7 Comments »
FILED UNDER :Democracy


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