The rise of China over the last three decades has prompted renewed discussion about whether dictator-run governments are more efficient than democracies. You would think history has amply answered that question in the negative, but it keeps rising up. What China has done that was smart was allow some version of free-market economics to exist, including the ability of individuals to get wealthy, combined with massive state subsidies of various industries. What many people don’t realize is that as a result China has a massive debt problem, one that is hard to manage, and it has angered almost every other country in the world by undermining those countries domestic businesses.
A new article examines whether it is true that authoritarian regimes are more efficient. They might be in the sense that decision-making is concentrated in one or a few persons who can force quick decisions and rapid implementation. The flip side is that the “wisdom” of crowds is missed; what most people may want is ignored; and those in power tend to exaggerate their own knowledge and the correctness of their decisions. The authors marshall the research on the topic and show fairly unambiguous facts and evidence about the superior performance of democracies, whether economically or in armed conflict. Americans may be concerned about China’s rise, but it is illusory in many ways and has rottenness at its core. I would bet on the US and other democracies in the long run. But unlike Trump, future presidents need to build a very, very strong economic and military alliance of those democracies. (Auth. Article)
