The Enigmatic Connection Between Ideological Approaches and Economic Conditions: Does Democracy Breed Economic Prosperity

Abstract

Mapping the Journey: A Guide to the Structure of the Thesis In this bachelor thesis, we will examine the relationship between the political ideological approach of a society and its economic prosperity on an individual level. More specifically, we will ponder the question if democracy breeds economic prosperity. By analysing the relevant data we have collected, this thesis will assess the correlation and causality between these components while discussing the possible underlying reasons for the outcomes of our calculations. The thesis is divided into four parts. The first part will provide a general overarching foundation for the comprehension of the complexities that are discussed. In this part, we will look at the interplay between trade, ideology, and society, before narrowing it down to the complex relationship between democracy and economic prosperity. If the reader already comprehends this subject, it is unproblematic to bypass this part. In the second part, we will be acquainted with the two principal theories used as a basis for our analysis, namely Modernization Theory and Human Capital Theory. The last chapter of this part will introduce the complication of causality between democracy and prosperity, and thus the concomitant challenges inherent in determining the order of the two. The third part of the thesis will consist of the data analysation we have conducted. Initially, this section aims to provide a comprehensive description and explanation of the data utilised in this study. The objective is to elucidate the variables and indicators, in addition to highlighting the sources of data and their reliability. Subsequently, we will proceed to scrutinise the various observations we have collected in relation to the central theories of our thesis. In the fourth and final segment of our thesis, we will present our conclusion on whether democracy breeds economic prosperity. Our aspiration is that this thesis will provide a valuable contribution to the existing body of research in this field.