Saturday, May 07, 2005

Institutions for Development

Reading through Freakonomics I got an idea and posted it onto my blog. However, I wanted to report the inquiry here.

Considering this :

Acemoglu and co-authors challenge the conventional wisdom that democracy causes strong economic performance. They argue that although democracy and income are positively correlated, it is actually that they are both caused by long ago implemented institutions that fostered both democracy and strong economies. If this result holds up, it is really a remarkable finding.

What about this?:

Amartya Sen has always maintained that Freedom of Speech is as important Economic freedom and that ‘developemt’ would encompass both of them. Now, if India as we know is the largest dmocracy in the world. Does the institutions which hold India’s democracy in place may also generate the required economic development and the more interesting one, will China’s institutions for economic development take it towards “democracy".


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