Is authoritarianism bad for the economy? Ask Venezuela – or Hungary or Turkey
Source:The Conversation Date:04Feb2019
Authoritarianism isn’t always bad for the economy. Autocratic China and Singapore are both economic success stories, growing at double digits – a pace largely unseen in Western democracies.
But these countries were never set up to be democracies.
When a one-time democracy turns toward authoritarianism, however, the economic effect is often negative. That’s because, in a democracy, economic policy is meant to be made jointly, by various elected officials from the executive and legislative branches. Other independent government agencies, like the U.S. Federal Reserve or central bank, help decide economic policy, too.