# Curse of Democracy: Evidence from the 21st Century

**Authors:** Yusuke Narita, Ayumi Sudo  
**arXiv:** [2104.07617](https://arxiv.org/abs/2104.07617)  
**Date:** 2021-04-15  
**Summary page:** https://www.summarizepaper.com/en/paper/2104.07617v3/

## Key points

- Study challenges conventional wisdom on democracy and economic growth
- Democracy linked to slower GDP growth due to reduced investment and trade
- Trend towards convergence among countries since 2000
- Policy outcomes in developing countries have improved since late 1990s
- Democracy associated with higher death rates from Covid-19 in 2020

## Summary

The study "Curse of Democracy: Evidence from the 21st Century" challenges the conventional wisdom that democracy contributes to economic growth and public health. Conducted by Yusuke Narita and Ayumi Sudo, the research focuses on the period from 2001 to 2020 and finds persistent negative impacts of democracy on GDP growth. This finding is supported by five different instrumental variable strategies, indicating that democracies lead to slower growth due to reduced investment and trade. Contrary to previous studies highlighting democracy's positive effects on economic growth and health in the 20th century, this research suggests a shift in the role of democracy in the 21st century. The authors note a trend towards convergence since 2000, with poorer countries catching up with richer nations. Additionally, policy outcomes in developing countries have shown improvement since the late 1990s. The analysis also reveals that democracy is associated with higher death rates from Covid-19 in 2020. This finding adds to a growing body of evidence challenging traditional beliefs about economic growth and democratic governance. Overall, the study highlights the need for a nuanced understanding of the relationship between democracy, economic development, and public health in contemporary times.