Democratic Economics and Improved Governance: Development Policies for the G20

Abstract

Democratic economics and improved governance can be guiding principles for the newly formed G20, representing two thirds of the world’s population and 88 percent of the world’s economy. A discussion of basic economic principles shows that for economies to work for the majorities it is necessary to balance free market policies with global and national governance. The discussion includes reference to the high concentration of production and to the impact of transnational profits and power on economic events, democracy and policy. Global governance capable of regulating and taxing transnational corporations is essential for funding education, health, urban development, infrastructure, technological adoption and innovation, These investments can play a crucial role in revitalizing the global economy. Improving global governance is impossible without promoting national governance quality as well. For example, infrastructure investments could be paid for directly by firms as a form of tax payment, reducing government administrative costs and corruption.

Keywords: Globalization, Democracy, Governance, Economic Crisis, Transnational Corporations

JEL Classification: F01, F02, F42, F44, F55