Political governance, law, and economic development

Political stability is an important precondition for economic development. While political stability cannot be created by laws alone, an effective legal framework for political governance, such as a constitution, can facilitate political stability. It is noted that political stability is not synonymous with democracy; while civil liberty has been considered a key ingredient for prosperity, it has been historically observed that promotion of democracy, while an important value, does not necessarily lead to economic development. Successful economic development in South Korea from the 60s to the 80s and in contemporary China shows the importance of political stability albeit with certain democratic deficits. The system of political governance that creates political stability may differ from one place to another, depending upon political needs, cultural priorities, historical contexts, and popular aspirations. This chapter considers these elements and also examines, based on local conditions and priorities, examples of political leadership which successfully fostered political stability and economic development, the question of democracy, and the legal frameworks conducive to sustaining political stability.