Summary: Hc5_Buildingprosperity

Read the summary and the most important questions on HC5_BuildingProsperity

• 2 Democracy and economic growth

• 2.1 Democracy and rule-of-law-index

• Why does modernization expedite economic growth?

  Modernization:
  

  • Democracy --> rule of law --> property rights --> investments --> economic growth!

• Does more democracy always mean more rule of law?

  In general:  yes;
  
  Yet: there is a lot of variety among countries with similar levels of democracy, particularly at lower levels of the democracy index.

• 2.3.1 Partisanship-biased economic voting

• Explain partisanship-biased economic voting?

  Whilst non-party affiliated people have more objective factors on evaluating the economy. Partisan-affiliated people skew these evaluation through their own partisan-view.

• 2.4 Political budget cycle

• Explain the political budget cycle?

  Starting from two years before election year GDP grows begins to rise, because governments want to - at least look like - they were accountable for economic growth. This goes on until two years after the elections.

• 3 Democracy and the quality of life

• 3.1 Material wellbeing and media scrutiny

• Democracy gives the poor an equal chance to vote, what can be the consequence of this?

  That they will vote more economic and social policymakers into office.

• 3.2 Autocracies and quality of life: how large is the winning coalition?

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• What is the relationship between democracies and autocracies in the provision of public goods?

  Whilst democracies are generally delivering high public goods, some autocracies perform also well in this regard.

• Which two factors do determine whether autocracies keep on delivering public goods?

  • Winning coalition?
  • Group that keeps leader in power
  • Loyalty Norm
  • Likelihood that someone will be in the winning coalition

• What will autocratic leaders do when the loyalty norm is high?

  When the loyalty norm is high, a small group of people is benefited with certain amounts of very influential benefits

• What will autocratic leaders do when the loyalty norm is weak?

  They need to broaden their provision of public goods, just like democracies have to. This can be seen in more "developmental" autocracies.

• 3.3 Democracies and different autocratic regimes in the provision of public goods

• We have seen: personalist dictatorships, dominant party-regimes, military juntas and monarchies.Which two autocratic regimes are the best at providing public goods?

  Military juntas and monarchies are the best at providing public goods, since they do rely on support from a medium-sized group. Defection is thereby easy.
  
  ==> personality dictatorships and dominant party-regimes need support from only a handful of people, and thus deliver only private goods to their selectorate.