In matters of economic development, not all the democracies get developed because of various factors like population, lack of basic infrastructure, etc. If you consider all democracies and all dictatorships for the fifty years between 1950 and 2000, dictatorships have slightly higher rate of economic growth. The inability of democracy to achieve higher economic development worries us. However, the difference in the rates of economic development between less developed countries with dictatorships and democracies is negligible. Overall, we cannot say that democracy is a guarantee of economic development.
Economic development depends on several factors:
(i) Country’* population size
(ii) Global situation
(iii) Cooperation from other countries
(iv) Economic priorities adopted by the country
Democracy does not appear to be successful in reducing economic inequalities. A small number of ultra rich enjoy a highly disproportionate share of wealth and income. Their share in total income is increasing. People at the bottom of society have very little to depend on.
