Do we need a tweak to Democracy when it comes to economic policy?

Democracy is great for providing transparency and accountability and thus helping to fight corruption and promoting rule of law.  And also private proprietary ownership is well respected and thus helping the stability and growth of market economy.

 However, there are downsides with how democratic political system has effects on economic policy. For example, whenever an executive power incumbent is changed, there is a likelihood of divided or discontinuous economic policy, thus hampering long-term economic planning. Elected governments are often forced to pay more attention to short-term to satisfy the needs and concerns of the voters as soon as possible
 while it might be a sound economic policy in long-term. Partisanship and special interest groups might prevent the government from choosing situation-wise right economic policy over dogma and ideologies.
 Limited government role in market economy can lead to its inability to foresee and prevent market crash. Often economic advisers’ policy might have to be turned down while it might not be politically correct. For those reasons, we have to give a thought how we can mitigate adverse effects of democracy on economic policy.
Citizens in a country choose or design a government not just for economic prosperity but there are also other purposes such as getting their voices heard, freedom and liberty.
Therefore, we still want to keep democracy and its good parts. Then, the question is how we can tweak democratic system to formulate better economic policies, without losing
democratic values most of us cherish and enjoy.

1 thought on “Do we need a tweak to Democracy when it comes to economic policy?

  1. Important topic, but the topic suggested in this draft is a Book topic.

    Political stability and economic growth (or long-term economic planning) is a great topic to explore further. In your case, how about exploring the Myanmar case. For instance, in the 1950s and 1960s, Myanmar was a relatively rich country in Asia. Why did it decline (or suffered from long economic decline), despite its political stability (military dictatorship): why? You can answer this question directly based on your own view on economic development and democracy or political regime type.

    Of course, it’s your decision which topic you want to study further in the paper.
    But, you may need to narrow down your research topic ASAP.

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