Page 277 - kpi377

•

problem as the more commonly discussed challenge of "growth with equity" (on which there

is such a large literature in development economics).
The problem of sudden destitution can have a very different nature and demand a
distinct institutional structure from that needed to tackle persistent deprivation and endemic
poverty. For example. the fact that South Korea has had economic growth with relatively
egalitarian income distribution has been extensively and rightly recognized. This. however. was
no guarantee of equitable influence in a crisis situation. In particular. South Korea did not
have. when the crisis hit it. a proper system of social safety nets. nor any rapidly responding
system of compensatory protection. The emergence of fress inequality and unchallenged

destitution can coexist with a very distinguished past record of "growth with equity." Different
problems call for distinct analyses and different institutional response.

Functions of Democracy
The deficiency with respect to social security is reinforced by the absence of a
functioning democracy. This is a different issue from the offten repeated belief that authori-
tarian regimes are better in fostering economic growth. That claim (most powerfully formu-

lated by the distinguished statesmen. Lee Kuan Yew) has received considerable support, but
on further examination it turns out that the empirical case for the thesis is largely based on
very selective evidence. Indeed. as a general thesis. rather than as an interesting observation
about a few selected countries. it has not received any significant empirical support in exten-
1o
sive inter country comparisions. Indeed. two decades of empirical work bring out very clearly
that the success of a market economy is facilitated by a supportive economic environment.
rather than by the harshness of the political climate. But the connection between democracy
and human security goes beyond that.

How does the issue of democracy relate to the problems of deprivation. security
and crises? The fIrst and the most immediate-connection lies. of course. in the fact that a
denial of basic political freedom and civil right is itself a deprivation. We human being have
reason to value liberty and freedom of expression and action in our lives. This can be central
to our creativity as well as dignity. And it is not unreasonable for human beings the social
creatures that we are to value participation in political and social activities without restraint.
Second. informed and unregimented formation of our values requires openness of

communication and arguments. and political freedoms and civil rights can be central to this
process. Furthermore. to express publicly what we value and to demand that attention be paid
to it. we need free speech and democratic choice. What counts as social needs or as parts of
the demands of social justice depends on that is feasible and also on how stroungly we
respectively feel about different and competing objectives. To ascertain each. we need to be able

IOSee for example Adam Przeworski et al. Sustainable Democra~L(Cambridge : Cambridge University. Press,
1995)' Robert]. Barro, Getting It Right: Markets and Choices in a Free society (Cambridge, MA : MIT Press, 1996). See also
the rather vast literature cited there.