Democracy

insights

A 2021 qualitative analysis finds that codetermination is an effective strategy for curbing corporate political power. Countries that switch from non-democracy to democracy achieve about a 20% increase in GDP per capita over the following 30 years. Democracy may encourage growth through: economic reforms, increasing human capital (especially through primary schooling), increasing investment, and reducing social unrest. The impact of democracy on growth does not seem to depend on the level of development. There is an economically and statistically significant positive correlation between democracy and future GDP per capita. Codetermination could jiu-jitsu the problem of corporate political speech (e.g. Citizens United) into a feature, rather than bug, by making corporate interests democratically representative.

sources

Codetermination and the Democratic State The Codetermination Difference The Stakeholder Strategy Democracy Does Cause Growth

authors

Horst Eudenmueller Jens Dammann George Tyler Kent Greenfield James A. Robinson Pascual Restrepo Suresh Naidu Daron Acemoglu

reports

Codetermination