The economy is defined as a state of a country or a region by making and trading things of value. It may be physical things or services as done by people. It may also define as careful management of sources which are natural reservoirs or human skill development of a country. Basically it is used to measure how states use their resources in order to fulfill their commodities and how they trade them to other states or societies.
And politics is all types of activities associated with the governance of a country or organization. It involves all the debates, decisions that have to be implied in a country.
The interdependence of Economy and Politics
An economy involves export, import of goods and exchange of services. If a state or country has strong and fine politics then the economy of that country will automatically grow up. Good decisions and good governance lead to strong economic power.
“The Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. … in the field of economic and political philosophy, there are not many who are influenced by new theories after they are twenty-five or thirty years of age so that the ideas which civil servants and politicians and even agitators apply to current events are not likely to be the newest.”John Maynard Keynes
It is also obvious from history that the economy and politics are co-related.
Example of the United States
A domestic program of Franklin D. Roosevelt is also referred to as the First New Deal. He was the 32nd president of America. He brought political reforms in order to improve the economy of the US. This policy involved a series of public welfare projects and financial reforms. So good politics brought revolutionary reforms to the economy of a state.
Third World Countries
Bad governance is the main reason for the worst economy in underdeveloped countries. Poor political setup and the feudal role plays a great role in disturbing the economy.
Role of Democracy in building Economy
Democracy can be defined as the government elected by the majority of the people of a state. People may run it directly or by the elective representatives. In a democratic government, there is a higher GDP rate due to civil liberties and a very reduced social conflict. Democracy also helps in eradicating various programs that are not beneficial for the people of a state or country and the most important advantage is that it is responsive, legitimate, and there will be accountability for every action of the government. There will be a reduced poverty rate and unemployment. When people are satisfied with the government then the economy will eventually boost up.
The Supremacy of Law
All people have equal rights according to the constitution of 1973, article no.25. It ensures that all are equal before the law and there shall be no discrimination on the basis of sex alone. So if law practiced on every level from poor to the middle class and middle class to elite class then there will be no air of injustice and people will be aware of the rules and regulations of law.
International relations are the relations of a country with other countries or states of the world. It includes cooperation, sharing of resources and technology while also helping each other in pandemics, terrorism, etc.
So a country should develop good relations with neighbors and also with the whole world. Good International relations help in the growth of the economy. It is the need for a country to have good international relations. A country cannot be isolated from other countries. The whole world is dependent on each other for the sharing of resources.
It is very important for a country to market on a global level in order to grow its economy. National branding can be done in various ways is marketing the products of a country on the international level, presence on social media presenting the culture and heritage in vlogs, good governance, a better trading system, and improving tourist attractions and showing it to the world. All these factors if presented well on the global level then more nations, societies, and people would attract that specific state. It also helps in improving the image of a state or country to the whole world. And also a major factor in economic growth.
Politicians run many campaigns in order to win elections. If the politicians are loyal and sincere to the state then these agendas urge the nation to support the politicians. The promises during campaigns turn into reality one time and which in turn improves the economic conditions of the state. The economy grows by increasing employment opportunities, business, and academic facilities, improving international trade, etc.
Elimination of Poverty
Different employment opportunities will be created When politicians play their roles very well. Poverty can be eliminated by improving the education system, providing jobs to people, improving fiscal conditions and also having good governance. These following factors help in eliminating poverty which in turn will improve the economic conditions of the state.
End of Terrorism
A strong political setup is needed to deal with chaos, civil war, and terrorism. Nations have won the war on the table. Terrorism exploits the economic state of a country very badly. Sound political conditions can overcome the war of terrorism.
Eventually, the economic conditions of the state can be improved.
It is true to say that not the economy but politics is the key to success. The economic condition of a state depends on political stability. The dream of economic development cannot be materialized without powerful and farsighted politics. If resources management is not carefully taken and observed due to weak political leadership then the economy, a country will automatically lose its economical development.
Good governance ensures accountability and transparency in institutions.
The lesson of history is that you can’t get your economy right if you don’t get your politics right.Stephen Cohen