Economic Growth and Development


 
 
Concept Explanation
 

Economic Growth and Development

Economic Outcomes: Economic growth, development, reduction of poverty and inequality are the prominent economic outcomes of democracy.

  • Economic Growth: Democracy provides a conducive environment for sustained economic growth by fostering stability, promoting entrepreneurship, and encouraging investment. Through transparent institutions, accountable governance, and the rule of law, democracies create a level playing field for businesses, which stimulates innovation, productivity, and economic activity. As a result, democracies often experience higher rates of GDP growth, job creation, and overall economic expansion compared to non-democratic regimes.

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