Critical Reflective Writing on "LEVEL OF DEMOCRACY AFFECTS ON ECONOMIC DEVELOPMENT"

      I would like to reflect the experience of Myanmar and the level of democracy affects on its economic development. A 1998 Nobel Prize economist Amartya Sen argues that an Economic development and democracy are contingent upon each other with achieving economic freedom, and growth in long run, help citizens to secure more political freedom and vice versa. There is also a strong correlation between good governance and human development as people under bad governance are deprived of political rights and civil liberties, and can result in such economic disasters as famine and poverty.

        Myanmar was under dictatorship for almost half of the century, and corruption, rampant black markets, economic and political restrictions combined with a failed education system, and imposed economic sanction have impacted on economy. New government after 2010 election with the promise of democracy, and economic opening up bring hopes with significant potential for country to grow if there is right reforms although it is under-developed and poor but being endowed in natural resources and situated in the fastest growing region of the world.

          Foreign investors are less inclined to make substantial investment in the country with instability, rampant corruption and inefficient command economy. And with the new hope, the significant influx of foreign investment has been seen then. In this realization political stability and economic freedom have driven the improvements in corruption and business freedom that outweighs a decline in monetary freedom.

       There is a significant to see strong correlation between education and human development in both short and long run, as education is central to economic and social capital development. The failed education in country has becomes a major challenge for development in term of human development. Moreover, gender equality is one fundamental aspect of human rights, and increase women participation in politics can have immediate effect on the level of democracy which can further lead to political stability.  

      This reflection indicates that country needs to adopt policies which ensure democracy with political stability, address corruption for economic growth. There is also needs to increase education investment and improve gender equality for achieving higher economic growth through labor growth, efficiency and thereby total factor productivity.

 References: 

1) Acemoglu, Daron. (2008). Root causes: A historical approach to assessing the role of institutions in economic development. In G. Secondi (Ed.), The development economics reader pp. 73-78). New York: Routledge. 

2) Barrow, Robert J. (2008). Democracy and grwth. In G. Secondi (Ed.), The development economics reader (pp. 92 - 98). New York: Routledge.

3) Jose Tavares, Jose., Wacziarg, Romain., How democracy affects growth, (2001), European Economic Review 45(1341-1378), University of California, Los Angeles, Graduate School of Business, Standford Universty, Standford, USA.

4) http://www.heritage.org/index/country/burma