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Tanzi Gill

UnderGraduate - BBA,

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Do you think Political Freedom = Economic Prosperity ?

Definitely politics play an important role in an economy. A lot of people argue that political freedom is better for the economy. Well that was the most "agreed upon" belief. But for the most part of 21st Century, it can be seen that it is not entirely true. China despite oppressing political opponents has performed a lot better as compared to democratic countries like USA, Ireland etc. {Yes China is a small and simple example.} Even IMF has also observed that politically repressed countries are performing a lot better than politically free in terms of GDP.

Note: The intention here is not to make any country look bad. Each country has got different factors and reasons affecting its economy. But generally do you guys think political freedom = economic prosperity?


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    Dec 6 2011: Tanzi, Economic prosperity is a very confusing term.
    Prosperity to whom? to the country and its resources, to the giants of the markets, or the common people as well? Free market policy with democracy was proved to be impotent with providing property to all of the countries residents. However, China as a country became very reach but most of their citizens are not enjoying western living standards.
    Sweden, with a social -democratic policy has its economic problems for the country, but it managed to provide property to most of its citizens.
    Therefore democracy or totalitarian regimes are not enough factors to decide on economic property. The social and economic policy of each regime is the one who decides it.

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