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Noah Smith

Democracy Is Good for Business

New research shows that democracy is the best system for promoting economic growth.
I'm thinking of a word -- and it's not democracy.

I'm thinking of a word -- and it's not democracy.

Photographer: Georges Gobet/AFP/Getty Images

As China and Russia have surged in power during the past 15 years, more and more people have started to wonder if democracy is really the best economic system. For example, consider Hungarian President Viktor Orban's comments in a Bloomberg News article last July:

He’s not alone. Countries such as Turkey and Thailand are also questioning democracy’s usefulness. And a few business leaders have been challenging the concept as well. To cite just one example, venture capitalist Tom Perkins suggested that votes should be based on how much tax people pay, not on one person, one vote. Some have also argued that democracy is the reason India’s growth has been slower than China’s.