Political Regimes, Economic Management and Inequality: A Comparative Analysis

Abstract

The paper examines the relationship between political regimes, economic management, and inequalities, focusing specifically on wage and income disparities. It highlights noteworthy findings regarding the impact of democracy and autocracy on various forms of inequality, as well as the role of political stability and accountability in shaping societal equality. Firstly, the study underscores the positive association between democracy and reduced levels of wage and income inequality. Democratically governed countries tend to exhibit lower levels of inequality, particularly in terms of wages and overall income distribution. This suggests that democratic governance structures facilitate more equitable outcomes, aligning with principles of fairness and social justice. Conversely, the paper identifies autocracy as being linked to higher levels of wage inequality, although its impact on income inequality is found to be insignificant. Despite occasional instances of income redistribution in autocratic regimes, the overarching pattern suggests that autocracies tend to perpetuate wage disparities, potentially exacerbating social divisions. Moreover, the study highlights the importance of economic management in mitigating inequalities within autocratic regimes. While some autocratic governments may enact policies aimed at redistributing income, the inherent lack of accountability and adherence to the median voter hypothesis often undermines these efforts. As a result, political stability and accountability emerge as critical factors in fostering more equal societies. Interestingly, the findings indicate that political stability and accountability exert a more pronounced influence on inequalities compared to the specific form of governance (democracy or autocracy). Countries characterized by political stability and robust mechanisms of accountability tend to exhibit lower levels of inequality across various dimensions. Overall, the paper offers valuable insights into the complex relationship between political regimes, economic management, and societal inequalities. By highlighting the differential impacts of democracy and autocracy on wage and income disparities, as well as the broader significance of political stability and accountability, the study contributes to our understanding of the factors shaping social equity and justice in contemporary societies.