The Political Economy of Democratic Governance and Economic Development
Pure mainstream economics, based on methodological and sociological individualism usually ignores politics; development economics, on the contrary frequently integrates social and political factors in order to explain economic progress. Within this branch of economics, politics can mainly be dealt in two different approaches. The classical and neoclassical approach takes politics essentially as an obstacle to the expression of agents? rationality, and, therefore considers it a disturbance. A more heterodox approach of development, on the contrary, puts politics at the heart of the process, development being an economic as much as a political process. Those, like A. Sen, that take human rights, both as a means and an end to development do not separate the two processes as well. Be that as it may, and despite the opposed ways in which these approaches take politics, all consider governance, and its democratic or authoritarian character, a key factor in the development process. The main purpose of this paper is to discuss the importance of the issue of democratic governance within the development process. In the first part of the paper I will make a review of the main literature concerning the impacts of democracy on economic development and the importance of promoting democracy. In the second part of the paper the analysis will focus on the political economy of democratization, namely on the obstacles standing before democracy, and on the economic policies and reforms needed to facilitate democratization. The diagnosis states that democratization needs to deal with inequality of income distribution, with institutional design in order to overcome cultural divisions within the nations, with diversification of the sources of income and with a new economic order characterized by an erased debt burden and a more equitable distribution of the benefits of international trade.
|Date of creation:||2006|
|Contact details of provider:|| Postal: Largo dos Colegiais 2, 7000 - 803ÉVORA|
Phone: + 351 266 74 08 94
Fax: + 351 266 74 24 94
Web page: http://www.decon.uevora.pt
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maurice Obstfeld, 1998.
"The Global Capital Market: Benefactor or Menace?,"
Journal of Economic Perspectives,
American Economic Association, vol. 12(4), pages 9-30, Fall.
- Maurice Obstfeld, 1998. "The Global Capital Market: Benefactor or Menace?," NBER Working Papers 6559, National Bureau of Economic Research, Inc.
- Maurice Obstfeld, 2000. "The Global Capital Market: Benefactor or Menace?," International Finance 0004001, EconWPA.
- Maurice Obstfeld., 1998. "The Global Capital Market: Benefactor or Menace?," Center for International and Development Economics Research (CIDER) Working Papers C98-098, University of California at Berkeley.
- Obstfeld, Maurice, 1998. "The Global Capital Market: Benefactor or Menace?," Center for International and Development Economics Research, Working Paper Series qt3kn3n2s8, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
- Barro, Robert J, 1996. "Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
- Adam Przeworski & Fernando Limongi, 1993. "Political Regimes and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 51-69, Summer.
- James A. Robinson, 1998. "Theories of “bad policy”," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 2(1), pages 1-46.
- Benno J. Ndulu & Stephen A. O'Connell, 1999. "Governance and Growth in Sub-Saharan Africa," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 41-66, Summer.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
- Pastor, Manuel Jr. & Hilt, Eric, 1993. "Private investment and democracy in Latin America," World Development, Elsevier, vol. 21(4), pages 489-507, April.
- Alesina, Alberto & Perotti, Roberto, 1994. "The Political Economy of Growth: A Critical Survey of the Recent Literature," World Bank Economic Review, World Bank Group, vol. 8(3), pages 351-371, September.
- Archer, Robin, 1995. "Economic Democracy: The Politics of Feasible Socialism," OUP Catalogue, Oxford University Press, number 9780198278917, April.
- Paul Collier & Jan Willem Gunning, 1999. "Why Has Africa Grown Slowly?," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 3-22, Summer. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:evo:wpecon:12_2006. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Aurora Murcho Galego)
If references are entirely missing, you can add them using this form.