The Entrepreneurial Agenda by Robb Mandelbaum
Recent Entries
September 22, 2005
Exporting Entrepreneurship
Posted by Carl Schramm and Robert Litan at 3:10 PM
Why democracy is America's second most valuable export
The classic formula for helping troubled nations become part of the free world is to institute democracy first, then try to bring the economy up to speed. That has been the U.S. policy in Iraq, where the first elections were seen as pivotal. It has been the policy of the European Union, which requires new members to have functioning democracies before they integrate economically. And it was the implicit message sent by all Western countries after last year's elections in Ukraine, which were universally hailed as a sign that the nation was on the right track--even though its citizens have an average per capita income of less than $1,000.
To be fair, there are good reasons for trying to establish democracy early. But there is also evidence to suggest that the process works better the other way around: that democracy--a system for political freedom--may take root best when it is preceded or at least accompanied by economic freedom.
Indeed, the American experience suggests that starting a business develops precisely the traits that make democracy work. It requires independence, much effort, and self-discipline—but also the ability to collaborate and the recognition that one can only succeed by serving the needs of others.


