Thursday, July 27, 2023

But the cases of dictatorships destroying their economies are even more common.

From Globalization and Its Discontents by Joseph E. Stiglitz

The “transition” from the authoritarianism of the ruling Communist Party in China, however, is a more difficult problem. Economic growth and development do not automatically confer personal freedom and civil rights. The interplay between politics and economics is complex. Fifty years ago, there was a widespread view that there was a trade-off between growth and democracy. Russia, it was thought, might be able to grow faster than America, but it paid a high price. We now know that the Russians gave up their freedom but did not gain economically. There are cases of successful reforms done under dictatorship—Pinochet in Chile is one example. But the cases of dictatorships destroying their economies are even more common.

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