Discuss the pros and cons of democracy. What drives economic development?
Ans) Democracy is a form of government in which members are elected by the people through Universal adult franchise and the government is responsible for the welfare of peoples of the country. Examples are India the largest democracy in the world and America ,Britain etc .From the point of Economics the pros and cons of democracy are 1. The benifts are ,the Monarchy form of government in which the head is king or queen is proven to be less concern for the benefit of the people as they are interested more in terms of tariff and leviving duties on trade here democratic government is elected by the people hence ,they are responsible for the people and the government is elected for a specified term unlike monarchy .2 .Democratic government reduces the concentration of power in few hands ,whereas in Dictatorship results in the power to be handed in few hands and results in exploitation similarly the damage in terms of Economics are low production of consumer goods and only production of goods which the monarch wants and increased Tariff explore the business man and farmers results in low production in economy. But the disadvantages of democracy are the decision making is slow because of the level in the government's ministries as the project is to be approved by the various departments also the rise of corruption which badly hamper the the economy.The major factors which derives economic development are 1.) A stable and responsible government which ensures the efficiency in the economic development of the country ,the efficient uses of its scarce resources and it ensures a right balance between the production ,level of employment and inflation as well as interest rates the economic development through a sound democratic government can be understood with the fiscal and monetary policy, the fiscal policy deals with taxes and public debt as well as the government expenditure and the monetary policy includes the policy which aims at reducing the inflation and connected with controllngthe supply of money in the economy through various policies 2, Technological advancement is the other factor for the economic development is required as better technology results in decrease in the cost of production which make one country product attractive in the world market. 3 The advance human resource is a must for the development of a country ,here it means the people should be educated and should have skills to do the work with high productivity.
Discuss the pros and cons of democracy. What drives economic development?
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