Can Military Governments be a good thing (for a while)?

[TheCurmudgeon]

Somehow I have m' doubts that a serving or retired Egyptian soldier has excellent commercial acumen, more likely via the state apparatus he'd have an "insider's track" on investments, such as a property development.

Perhaps, but there is something out there called the Dictatorial or Autocratic Advantage. It basically states that a central government that is actively involved in creating wealth for the nation through nationalistic policies does a better job of raising the economic standings of all citizens then do democratic governments. It is common now to attack this idea and you will find dozens of papers that claim that no such advantage exists or that it is vastly over-stated, but none-the-less Nazi Germany and China both gained prosperity over a limited periods of time with a combination of private enterprise and state participation.

In addition there are many countries where the military funds itself through private endeavors (I believe the Philippines is one). That means that they have an understanding of business and profits, something most democratic governments do not ... and failing economics is oft cited as a reason for rebellion.

So I would still argue that, under the right conditions, a properly motivated military may be better able to right a failing economic ship then a fledgling democracy.

[ganulv]

So I would still argue that, under the right conditions, a properly motivated military may be better able to right a failing economic ship then a fledgling democracy.

I understand, though do not necessarily endorse, the argument that the Pinochet-led junta was a necessary remedy to the economic situation Chile found itself in as the Allende administration wore on. Like I said, I don’t necessarily endorse that argument, but it does make logical sense to say that what was needed was a sea change. But however much the Morsi government may have deepened the Egyptian economic crisis, the fact is that it was inherited from the same military government now headed by Sisi. I don’t know the workings of Egyptian politics, but I have to suspect that Mubarak and Sisi might both be being used as scapegoats.

[Fuchs]

Perhaps, but there is something out there called the Dictatorial or Autocratic Advantage. It basically states that a central government that is actively involved in creating wealth for the nation through nationalistic policies does a better job of raising the economic standings of all citizens then do democratic governments. It is common now to attack this idea and you will find dozens of papers that claim that no such advantage exists or that it is vastly over-stated, but none-the-less Nazi Germany and China both gained prosperity over a limited periods of time with a combination of private enterprise and state participation.

As an economist who studied this for five years and majored about quite exactly this I tell you:
Nazi Germany had a disappointing economic performance pre-WW2 given the circumstances. The Nazi economic policy was an outright disaster and unsustainable any way. The Federal Republic of Germany is still cleaning of the crappy regulations done by Nazis in the 30's of struggling with their legacy of effects.
China's economic growth is perfectly explainable without any bonus from state-owned industries (which are in fact a huge problem because of their inefficiency).

Strong central governments are quite good at creating national infrastructure, but they are substandard performers when it comes to creating "wealth".
A country with rigged markets* such as Egypt is not going to go forward at a useful pace any time soon.



*: Not to be confused with impartially regulated markets.

[TheCurmudgeon]

Fuchs,

So, as an economist, for a country that is having financial problems, would you prefer an autocratic system or a fledgling democratic one?

[Fuchs]

Fuchs,

So, as an economist, for a country that is having financial problems, would you prefer an autocratic system or a fledgling democratic one?

Financial problems? Do you men fiscal problems?
What kind of fiscal problems? Why not compare a fledgling autocratic system with a fledgling democratic system?

How could I possibly choose autocracy over democracy because of such a petty topic as money?

[carl]

Financial problems? Do you men fiscal problems?
What kind of fiscal problems? Why not compare a fledgling autocratic system with a fledgling democratic system?

How could I possibly choose autocracy over democracy because of such a petty topic as money?

Now Fuchs, don't evade the question. Just give it a shot.

[TheCurmudgeon]

He answered the question: There can be no bad Democracy or good Autocracy.

Fiscal (or financial) status, corruption, or any other qualifier is irrelevant.

[Fuchs]

I already answered it.
I'm not going to be lured into supporting autocracy by such a feeble thing as a myopic look at financial matters.

In fact, no-one is going to get me to support autocracy, even if aliens from space told us they will invade in a year and everyone was suddenly convinced that our mobilization would require authoritarian regime.
I am not easily scared or duped.

Besides; autocratic regimes have a horrible track record in economic affairs anyway. An autocratic regime looking good on the economic front is either existing under very lucky circumstances or the observer is merely looking at one side of the coin.

[carl]

I already answered it.
I'm not going to be lured into supporting autocracy by such a feeble thing as a myopic look at financial matters.

In fact, no-one is going to get me to support autocracy, even if aliens from space told us they will invade in a year and everyone was suddenly convinced that our mobilization would require authoritarian regime.
I am not easily scared or duped.

Besides; autocratic regimes have a horrible track record in economic affairs anyway. An autocratic regime looking good on the economic front is either existing under very lucky circumstances or the observer is merely looking at one side of the coin.

Financial matters can be a very big deal, the difference between living and dying even.

Lee Kuan Yew was a bit of an autocrat and Singapore is doing quite well. Red China is rather more than autocratic and they seem to be doing ok. Chile did quite well as did Turkey despite (because of) autocratic military regimes. So maybe it depends sometimes.