INSTITUTIONS, DEMOCRACY AND DEVELOPMENT

Abstract

The institutional capital of a country affects the economic performance and development level of the country. However, most developing countries do not have the will and capability to choose efficient economic/political institutions. In addition, developing countries can not realize a high quality development due to the democratic deficits present in the country. It is shown that the quality of development increases with democratic governments. Democratic countries are even more successful in combating poverty and achieve a high quality develoment. However, there is democratic governments in most developing countries today, income inequality and poverty have reached incredible proportions. The most important reason for this is the democratis deficits and the failures in the implementation of democratic responsibility. In these developing countries, since the rulers are not always sensitive to the demands of ordinary citizens, high levels of corruption, limited freedoms,violations of human rights, children labour, gender inequality and violations of women's rights are observed. In this study, the relationship between the choice of efficient institutions, the democracy and development tried to be illuminated by referancing from important development sources.