surveyed by Berggren (2003). In particular, while the results show that increased economic freedom exerts a positive influence on the development of economic wealth, there is no evidence of any study showing that economic freedom hampers growth or is associated with lower GDP per capita.

**2.2 Development as civil and political liberties** Economic freedom is only one dimension of individual freedom. Other dimensions, such as those related to civil rights and political liberties, are equally fundamental. All three dimensions of freedom essentially aim at freeing human beings from various types of state and non-state violence and unfreedoms.<sup>14</sup> A number of theoretical arguments have been advanced to make the case that civil and political freedom and economic freedom are mutually reinforcing. Civil and political freedom is expected to facilitate the functioning of the market economy by developing a more predictable and stable institutional framework for engaging in productive transactions, including better protection of property rights (Friedman 1962). This has a positive influence on economic growth through higher savings and investment rates, and lower rents associated with corruption, government controls, and the non-respect of the rule of law. Also, Friedman (1962) points out that political rights and civil liberties are conducive to faster economic growth because of the need for political legitimacy of the government undertaking painful economic reforms with possible short term costs, the need for independent judicial system to carry out a successful economic liberalization and the fact that respect for property rights is most often achieved in societies with civil liberties and political rights guaranteed. Sen (1999) is of the view that securing economic rights will not achieve the expected economic benefits in case of violation of civil and political rights. When the state does not refrain from physically harming its citizens (from arbitrary imprisonment to politically motivated killings), the resulting climate of fear and anxiety is unlikely to be conducive to investment and growth. Rodrik (2000) conjectures that democratic countries would favor higher-quality growth, that is, a more predictable long-term growth rate, greater short-term stability, better resilience to adverse shocks, and a more equitable distribution of wealth. Civil and political liberties would also usually associated with greater gender equality, higher levels of female education, lower reproduction and infant mortality; all factors contributing to foster economic growth.

However, other scholars (e.g., De Schweinitz 1959, Huntington 1968, Rao 1984, and Vega-Gordillo and Alvarez 2003) have questioned the economic effects of civil and political rights, highlighting in particular the possible growth-hindering aspects of democracy. In particular, majority suffrage tends to redistribute income and therefore reduce efficiency. Representative legislatures allow well-organized interest groups to lobby and legally appropriate resources at the expense of other groups and society as a whole. Democratic governments that try to maximize tenure tend to respond to popular demands for greater immediate consumption and spending at the expense of future growth. This line of argument echoes Hayek’s (1960) insights that while basic human rights and property rights have a positive impact on welfare and growth, a high degree of entitlement rights could become economically counterproductive, even when democratically decided.

> 14 According to Freedom House definition, freedom is “the opportunity to act spontaneously in a variety of fields outside the control of the government and other centers of potential domination.”

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