It is certainly true that some autocratic regimes, particularly in Asia, have produced impressive economic gains, but the current Asian economic crisis underlines the need for greater transparency and openness in these societies as a bulwark against corruption and economic mismanagement. Political pluralism, including a free press and a political opposition, generates more and better information for use in economic decision-making. Consider, for example, economist Amartya Sen's research on government responses to economic calamities such as drought. According to Sen, democratic governments are better than autocratic governments at mitigating the effects of drought because they are open to receiving negative information and political pressure to respond with appropriate policies. One need only compare the modest economic effect of the recent drought in democratic Botswana with the famines that occurred under similar circumstances in Sudan and North Korea to verify this observation.
Democratic competition can also increase the incentive for officials to resist corruption.
Facing regular elections, an organized opposition, and a free media, political leaders in democratizing societies have less room for wheeling and dealing. In addition, the legitimacy that elected leaders gain through the democratic process enables them to appeal to the electorate to endure the temporary hardships brought by economic reform. Many of the current economic problems in East Asian countries stem from a lack of government accountability and transparency in the management of banks and other financial institutions. Not surprisingly, Thailand and the Republic of Korea, with their increasingly democratic cultures, have begun to embrace the reforms needed to address these problems. Indonesia, with one of the least open political systems in the region, was initially reluctant to reform.