Government and Economic Performance

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The following paper compares government type and economic performance among sixteen countries in the eight regions of the world. Generally, it is believed that democratic countries are likelier to have better economic growth and performance. It is important to note that there are specific countries that are exceptions to the rule, but for the most part, government and economic performance have a reciprocal effect on each other. The relationship is more of an interdependence than a direct result of the government’s sole influence on the economy.
Beginning with the European Region, Belgium’s form of government is a Federal Parliamentary Democracy under a Constitutional Monarchy. This form of government is considered a democracy, in that the people elect officials in their government. The King, however, is appointed for life and is “hereditary and constitutional” (Central Intelligence Agency, 2013). According to the Index of Economic Freedom (2014), Belgium scores a 69.9 on economic freedom, making it the 35th freest economy in the world. Although Belgium is ranked 17th among the 43 countries in the Europe region, and its overall score is above the regional and global averages, its economic freedom has remained economically stagnant over the years. In the latter half of the 2000’s, Belgium’s economy was considered “mostly free”, but since 2011, has moved to “moderately free”. The CIA World Factbook addresses this change as a result of Belgium’s lack of natural resources, causing them to import substantial quantities of raw materials and export a large volume of manufactures. This, unfortunately, leaves the economy of Belgium extremely vulnerable to the instability of world markets (Central Intelligence Agency, 2013).
Italy, also i...

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...that government form is extremely influential on economic performance. Though some countries are exceptions to the rule, there is a general sense of predictability between democratic-like governments and better economic performance.

Works Cited

Central Intelligence Agency, U. S. (2013). The World Factbook. Retrieved from: https://www.cia.gov/index.html, 03 Feb. 2014.
Freedom House, Regions, Retrieved from: http://www.freedomhouse.org/regions, 03 Feb. 2014
The Heritage Foundation, 2014 Index of Economic Freedom, Country’s Rankings, Retrieved from: http://www.heritage.org/index/ranking, 03 Feb. 2014
Michigan State University, Global Edge, Global Insights by Country, Retrieved from: http://globaledge.msu.edu/global-insights/by/country, 03 Feb. 2014
This Nation, Is the United States a Democracy?, Retrieved from: http://thisnation.com/question/011.html, 03 Feb. 2014
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