A Number of Commentators Have Suggested a Connection Between Democracy

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The Answer is A number of commentators have indeed suggested a connection between democracy and economic development. Amartya Sen, a Nobel Prize-winning economist and philosopher, has argued that democracy and political freedoms are not only valuable in themselves, but also instrumental in promoting economic development. Sen's argument is based on the idea that democratic institutions provide a platform for citizens to voice their concerns and participate in decision-making processes, which in turn leads to better economic policies and more inclusive development.

On the other hand, Hernando de Soto, a Peruvian economist, in his book "The Mystery of Capital," argues that the lack of formal property rights and legal recognition of assets in many developing countries hinders economic development. De Soto contends that without secure property rights, individuals are unable to use their assets as collateral for loans or investment, which limits their ability to participate in the formal economy and access credit. He suggests that establishing formal property rights and legal recognition of assets is crucial for economic development, and that this can be achieved through democratic processes and the rule of law.

While both Sen and de Soto emphasize the importance of democracy and economic development, their views differ in their focus. Sen highlights the role of democratic institutions in promoting inclusive development and better economic policies, while de Soto emphasizes the need for formal property rights and legal recognition of assets to enable individuals to participate in the formal economy. However, both perspectives ultimately point to the idea that democracy and economic development are interconnected, and that promoting democratic institutions and legal recognition of assets can contribute to sustainable economic growth and development.

A Number of Commentators Have Suggested a Connection Between Democracy

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