Democracy and economic growth

Democracy and economic growth and development have had a strong correlative and interactive relationship throughout history. While evidence of this relationship's existence is irrefutable,[1] economists' and historians' opinions of its exact nature have been sharply split, hence the latter has been the subject of many debates and studies.

Ancient beginnings and correlation

The period of Ancient Greece 4th century B.C. and later of the Roman Empire marks the beginning not only of democracy, but as well as its connection to economic growth.[citation needed] All throughout history, up until the present they have stayed intertwined.[citation needed] While there is no doubt of their existing relationship, whether it being in favor of economic development or democracy, there is no evidence to claim that it is in fact a causal relationship.[2]

In other words, a country that undergoes democratization does not have to necessarily experience economic growth, most often measured in income per capita, or vice versa. For every such case there exists a counter example. What this means is that there are multiple factors, such as political stability and political institutions, social insurance, government capacity, religion and many other which influence the outcome. In two similar countries, almost identical democratic regimes can yield completely different results.[3] However, the concepts highly complement each other, and in cases through history where they were separated there has been great difficulty.