ECONOMIC ASPECTS OF DEMOCRACY

Author
, associate professor, Kharkiv, Pushinska, 77

In heading

 Economic theory of law;

Signed print

 25.11.2016

Issues number

 2016 - № 4 (27)

Page

 87-96

Type of articles

 Scientific article

Code UDK

 310.16

ISSN print

 2411-5584

Abstract

 Problem setting. The article devoted some economic aspects of democracy. Economic theory and its methodological arsenal make it possible to look at this communications, and make our understanding of democracy more volumetric and objective.
Recent research and publication analysis. The meanings of economic factor in transformation of political regimes in democracy remember such scientists as D. North, B. Vaynhast, John. Wallis, F. Fukuyama, F. Zakaria. We use these and other works, but are not intended to represent the whole range of economic problems of democracy. The format of the article enables us to focus only on some of them.
Paper objective. We strive to raise the question and, as far as we can, to give an answer about the economic conditions of the nascence of democracy and democratic communications between government and certain economic system.
Paper main body. In full democracies, the government is accountable to the people as the source of state power. Plebiscitary democracy ensures the holding of fair elections, but cannot guarantee the accountability of government. Moreover, accountability is missing in most authoritarian regimes. How can this be explained from an economic point of view? In our opinion, oligarchic state of the economy, corruption, significant social inequality and poverty are negative impact on accountability.
Oligarchy destroys free competition and harms the economic and technological development. The separate source and condition of existence of oligarchy is corruption, when corrupt officials are based on their own interest in public-government decision.
The oligarchic economy also provokes substantial property and social stratification of society, where the majority of the population are very poor and a small part are excessively rich. On the basis of statistical data we show a dramatic difference in the incomes of the poor and the rich Ukrainians. Limitations of social inequality is important in order to accountable democracy could emerge, take place.
So where is the line that will allow to democracy survive? In our opinion, it is hardly possible to speak about absolutely certain economic indicators. Probably worth it to talk about specific economic conditions that help make the transition to democracy more likely: (1) relatively low corruption and market economy; (2) relatively little social inequality; (3) the development of the economy, which allows you to create a query to democracy, in particular, to form the middle class.
Conclusions of the research. Today Ukraine can be characterized as plebiscitary democracy, which accountable management remains a goal, but not reality. In Ukraine there is a high level of corruption. The above shows that there are no economic prerequisites for the formation of sustainable accountable democracy in Ukraine. This does not mean that our chance at democracy lost. This only means that our path to democracy has understandable intermediate goals: the development of the economy, the destruction of the oligarchic system, the reduction of social inequality. Without achieving these goals Ukraine as a full-fledged democracy will not take place.
Short Abstract for an article
Аbstract. The article considers some economic aspects of democracy. The impact of phenomena such as oligarchy, corruption, free competition, economic development, social inequality is investigated. The author shows the conditions under which the transition to a democratic regime becomes possible. The situation in Ukraine is viewed through the prism of these conditions.

Keywords

 Еconomy, democracy, oligarchy, corruption, economic growth, social inequality.

Reviewer

External reviewer

Article in PDF

 4 87-96

Bibliography

 none

Code DOI

This post is also available in: Ukrainian

11.10.2016