Role of political system in promoting economic growth, the Case of China - Essay Example

? SHOULD THE EXPERIENCE OF CHINA SILENCE THOSE WHO THINK THAT DEMOCRACY IS GOOD FOR ECONOMIC GROWTH? Introduction Whether the Chinese experience should be a lesson to the nations that think that democracy is an option for economic growth has been a heated debate in the economic circles, with some people arguing that democracy is a prerequisite for economic development and others thinking that democracy lead to economic slowdown. In a democratic government system, the entire population or the chosen member of a nation have a voice in governance through the chosen representatives. Discussion Democratic government system allows optimum liberty for all human life aspects such as economic, sociocultural and political aspects, and economic growth reflects the permanent sustained GDP increase, (Kynge, 2006, p.234). Therefore, the controversy remains, is democracy a requirement for growth in economy? The solution is clear that democracy and its aspects including speech liberty, religious freedom and others is unnecessary for growth of economy - that is a measure of a certain human development, the economic aspect. Chinese economic performance data and economic background The economic liberty of china is 51.9, making it the one of the hundred and thirty freest economies in the index of 2013. The GDP has increased to 1.60% in 2013 and GDP rate of growth has been reported in the last few months, (Feng, 2003, p.23). Historically, from 2010 up to date, the growth rate of the GDP has increased to about 2.02% in June 2010 and reduced to 1.5%in the first quarter of 2012. The increase rate of the GDP indicates the transformation in the seasonally fixed Chinese economy products and services value during the 2012 quarter. The regulatory systems and well as legal system is bound to political interference, the ultimate power of the Communist Party directives all over the system of economy controls the rule of law, and contracts respect, (Knack, 2003, p.56). Bribery is rampant, cronyism is pervasive and institutionalized, and even though leaders in some regularly embrace principles of market that could increase the effectiveness and ensure permanent competitive advantage, significantly economic reforms liberalization has extensively stalled. Lack of political will to perform increasing significant economic restructuring has resulted to prolonged dependence on public investment. State regulation and various enterprises ownership has hindered productivity and sector of finance is majorly the critical control of the state via manipulation of credit and subsidies, (Midlarsky, 1997, p.90). Chinese experience The Chinese experience in the last 30 years or more is increasingly illusive. Deng Peng reforms in the earlier years were strictly restricted to entirely certain economic initiative freedom when certain private ownership, such as sector of agriculture, was realized and economy of the market was introduced, (Simha, 1999, p.87). Moreover, in some aspects, the government of China has maintained its authoritarian policy and critical restrictions to politics, culture, social, and religious liberty. It is clear that increase in the Chinese economy in the past has been significant. Ten to twelve percent growth per year liberated some 3-4 hundred million Chinese populations from devastating poverty. It is true that democracy, in the Chinese case, was not a requirement for the growth in the economy. In this regard, experts agree that China does not fit in a democratic nation category, although it is a rapidly developing and nation of the globe and in second phase of industrial revolution, (Lijphart, 1999, p.56). Thus, the claim that democracy is the key reason for growth in economy does not hold more water, because a combination of factors rather than the Chinese political state that fueled economic growth of China. Therefore, people can believe that China is planned economic nation although, in the real sense, though limited, regional powers have inadequate democracy. China is a prominent global exporter that would show the prosperity of China because it indicate to its revolution of industry, and this is because China has various cheap labor pools, extensive land scopes that can full accommodate manufacturing. Similarly, China has, in large scale, a prolonged border sea that promotes exporting activities, (Maung, 2008, p.45). These factors and many other factors give a crucial indication to the main idea of extensive economic growth that is exclusive of political reasoning. Additionally, the economic growth in china naturally existed in Chinese land even before the democratic government system. Therefore, it could be assumed that the Chinese political system has enabled that government to guide its population to work sectors where growth of economy is more evident and thus allowing maximum efficiency of labor. Experts agree that democracy hinder growth in economy in third world nations because it generally leads in economic decision-making diffusion across the population that resultantly exposes local enterprises to extensive, increasingly efficient, external competitors, (Dahl, Shapiro and Cheibub, 2003). Therefore, many believe that centrally organized economic policy control promotes increased permanent growth and politic climate increasingly better for this is an authoritarian political condition. For instance, most of the Asian Tigers attained prosperity in their economies via the protectionist economic policies implementation that were organized through a centralized power. Additionally, nearly most of such nations democratized development of their economies. Literature reviews that most of the wealthiest global nations are non-democratic nations. For instance, in Russia, democracy is linked with conflicts that dominated Russian land because of failed transition of economy of 1990s, (Boix, 2003, p.23). Similarly, as the nation engaged on a political and economic transition form a communist political leadership, an economic shock policy therapy led to diverse inequalities leading to population impoverishment. Similarly, China has not yet attained its economic stability, having experienced a gradual economic transition since 1979, (Todaro, and Smith, 2006, p.82). The consequence of this market economy transitions lead to the extensive industrial revolution managed mainly through the policy of the government in pursuit of five-year strategy. Therefore, the government has managed to attain year growth in economy at approximately 10%, and sustain its legitimacy through live improvement of nearly all its population. Conclusion In conclusion, therefore, in its fullest form, democratic system of government is not a economic growth requirement. Actually, under in some cases when a country is poor, democracy acts as an obstacle to the growth of the economy. In China, presently, following the 30 years of increased prosperity, there are current critical threats of how prolonged growth is currently challenged by social anxiety from years of other freedoms repression.  The right approach to follow in an attempt to achieve economic growth remains a mystery as many nations are experiencing the dilemma of the relationship between democracy and economic growth. Therefore, the Chinese democracy experiences should be a lesson for those nations that think that democracy is necessary for growth in economy.   References Boix, C. (2003). Democracy and redistribution. Cambridge, UK, Cambridge University Press. Dahl, R. A., Shapiro, I., & Cheibub, J. A. (2003). The democracy sourcebook. Cambridge, Mass, MIT Press. Feng, Y. (2003). Democracy, governance, and economic performance: theory and evidence. Cambridge, Mass, MIT Press. Knack, S. F. (2003). Democracy, governance, and growth. Ann Arbor, University of Michigan Press. Kynge, J. (2006). China shakes the world: a titan's rise and troubled future and the challenge for America. Boston, Houghton Mifflin. Lijphart, A. (1999). Patterns of democracy: government forms and performance in thirty-six countries. New Haven, Yale University Press. Maung, M. (2008). The Burma road to capitalism: economic growth versus democracy. Westport, CT, Praeger. Midlarsky, M. I. (1997). Inequality, democracy, and economic development. Cambridge, UK, Cambridge University Press. Simha, S. L. N. (1999). Democracy and economic growth. New Delhi, Deep & Deep Publications. Todaro, M. P., & Smith, S. C. (2006). Economic development. Boston, Pearson Addison Wesley. Read More