Why should emerging economies choose a democratic model of government?
A while back I was at the UK Institute of Directors Annual Convention where I heard a talk by Dr Dambisa Moyo, a Global Economist, who a very engaging speech about all the things that should scare the shit out of us currently. Trump. Brexit. Nuff Said.
I am paraphrasing something she said. I am repeating it from memory so I might be a tad out on the numbers but the principal behind what she said should still make sense:
‘’If we look at the two largest economies in the world first place goes to America and second place goes to China. America, as we all know, has a capitalist system based on a system of democratic governance. China has a socialist market economy in which democracy has played no part. America has a GDP of 72.5 Trillion with China having a GDP of 70 Trillion. China has caught America up in a very short time span and even though the Chinese economy is slowing down it is predicted that it will take over America as the world largest economy, potentially as soon as next year. Think about that for a minute, the democratic and capitalist principals of Americas economic model are about to be overtaken by a socialist market non-democratic economy. Now imagine you are an emerging economy. You want your economy to grow, for your country to be successful, so which model of governance would you choose? Would you choose the democratic model, with its shrinking share of GDP? Or the non-democratic model with its growing share of GDP? Why would an emerging economy choose the model that is performing least well?’’
If you were an emerging economy, with a limited experience of democracy, which would you choose? It is an interesting question.
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