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Unformatted text preview: y, rural areas that may foster more sustainable and equitable growth. Does democracy helps or hinder market-oriented reform? market-oriented However, democracy may also lead to non­market and anti­development solutions in resource allocation. For example, politicians may succumb to sectorial pressures. Moreover, if liberal democracy leads to a minimal role for the state, that too may be harmful to development. Sustainability of democracy Sustainability As Karl (1991) notes the democratic transition is characterized by a very high degree of uncertainty. ­ In most Latin American countries and in some countries in Asia such as Pakistan and Thailand the bargaining takes place between the military and institutions of civil society, mostly political parties. ­In Africa, frequently, it is essentially between ethnic or tribal groups. Sustainability of Democracy Sust...
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