Democracy and Economic Development* Democracies and Dictatorships Economic Development and Regime Dynamics Political Regimes and Economic Development Introduction

I examine the mutual relation between political regimes and economic development. An analysis of regime dynamics shows that while the paths to democracy are varied, once established for whatever reasons, democracies survive in developed countries. Contrary to long-standing arguments, political regimes do not affect the rate of investment and of the growth of total income. But since population grows faster under dictatorships, per capita incomes increase more rapidly under democracies. In the end, there is not a single reason to sacrifice democracy at the altar of development.