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valina [46]
4 years ago
7

How does democracy and a market economy work together

History
1 answer:
VARVARA [1.3K]4 years ago
8 0

Answer:

A free market economy requires less state intervention. Concurrently, it often requires a degree of democratisation of its institutions which- to a certain extent- facilitates economic activity. This is at least partially true as far as a significant number of countries in Africa, the Middle East and Asia are concerned. Thus, it seems that a democratic climate seems to favour a free market economy. At the same time, a free market economy appears to be reliant on democracy for its functioning. This reciprocal relationship presents an interesting research ground that has probably been explored in insufficient depth. What are your kind responses to this empirical observation?

Explanation:

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