A Democratic Political System Is An Essential Condition For Sustained Economic Progress

A democratic political system is an essential condition for sustained economic
Progress.
I fully go in support of this statement. It is declared that private possessions always embrace
dynamic rivalry as well as enhanced economic efficiency. Entrepreneurs always get better
returns through private ownership as they strive through creativity and innovation to maximize
their profits. This gives rise to increasing economic growth through implementation of enhanced
productions. Details of both the economic systems are discussed below based on this primary
thinking.
Free Market Economy is acknowledged as an economy where all business and productions are
owned privately, as opposed to state directed economy. In this system all productions of products
and services takes place freely based on market demands and hence amount produced are not just
planned by an entity on top rather they are all set through the market forces (Bremmer, 2012).
Production is truly dependent on just market’s supply and demand through a well-established
pricing system. There are held no constraints on supply when working under this free market
economy. Monopoly is the only situation in which the supply of the market can be manipulated
and controlled. Monopoly is the only situation in free market which presents disadvantage. This
competition is bad for the health of the society, and there arise a need for the role of government
to enhance the dynamic competition among private businesses and owners. Hence, enhanced
competition in the free market and private possessions support enthusiastic rivalry and in urn
enhanced economic growth and efficiency (Schuman, 2011).
On the other hand, an economic system is state directed where the decisions relating economy
are based on resource allocations, pricing, investments, and production which are truly under the
control of the state government or some other authoritative entity (Bremmer, 2012). Traditionally
it was believed that the economy which is planned centrally would enhance the trade compared
to an economy which if free and unplanned. A directed economy is under the control of the
government and hence holds controls on all production possessions although business are
private. A state directed economy is a more strict form of a planned economy and hence the state
owns and controls all production means and properties. It is believed that the choices that are
necessary for economic planning are considered to be time taken and no exact in a free market
state because of many people holding interests which are always opposing (Schuman, 2011).
It is declared through past examples that state directed economies or dictatorships are always
leading to economic disturbances and misbalanced and now economies are moving towards free
market to enhance their economic growth. Even though it can be considered as a critical ideal, a
system which is built on the idea of asking individuals to only work for welfare and health of
society in contrast to offering them possessions of wealth and economies is no longer an
impressive idea. Free market economies offer the immense motivations for the business people
and other working individuals to enhance productions and build in efficiencies to enhance their
personal growth which in turn will enhance economic growth. In conclusion it is stated that the
state directed economies as contrast to free market economies are typically generating slow
economic growth as well as less efficiencies because of lower motivations and enhanced control.
A democratic political system is an essential condition for sustained economic
progress.
Research shows that debate on economic growth and democracy linkage is very old. From very
old time, the opinions regarding the existence of association among economic development and
democracy are changing and diverting. Many researchers declare that democracy is not at all
related to the context of economic growth through any dimension. It was believed that,
democracy totally depends on the context of situation that sometimes can be positive and along
with that sometimes negative when related to the economic growth (Begovic, 2013). It is argued
that democracy only enhanced the economic growth at times of political stability as well as its
policy alignment. Democracy on the other hand can be a totally mess and leads to economic
recession when there is political instability and policies also are not supportive for the economic
uplift as opposed to public interests.
In contemporary times, it is seen that the political system focusing on democracy is leading to
enhanced economic growth. The major reason behind this system is the possessions and
ownership of property by the public (Conner, 2009). Also people own the liberty and have entire
freedom of practicing their property rights along with the civil rights. In contrast to this system,
people in communist economy have no motivations and productivity because of no ownership of
wealth and property although they are putting in all efforts and hard work. People in democratic
state have ownership and hence have desire for growth which leads to sustainable economic
growth as well through enhanced overall productivity and productions in the nation. Economic
development and sustainability rests on the large numbers of equally autonomous decisions that
are processed by the entrepreneurs regarding their investments and returns to successfully
operate the business activities (Begovic, 2013). The possession of property and profits provide
motivations to people to make investments which in turn earn elevating returns which in turn
causes the enhanced and sustainable economic growth. Hence, every individual put in efforts to
protect his property which in turn summed up to the economic development.
In conclusion, democracy gives rise to highest economic growth rates when considered in long
run for the reason that democracy consists of enhanced as well as established institutions along
with policy implementation that are favorable to private endeavors. The institutions are also
answerable to the community rather than to privileged class and government, hence, democracies
are building on enhanced public interests, as well as are investing more in human capital, along
with protecting the rights of private property (Conner, 2009). Hence, democracy is leading to
enhanced economic stability and growth.

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