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CHAPTERI
incomes,handedovertothelaborforceinregulatedsectorsofeconomywill
becomesmaller(BanerjiandGhanem,1997).
Thereisnodoubtthatitiseasierforwealthyratherthanpoorsocietiesto
choosedemocracy(Helliwel,1992).Sincethosewealthiersocietiesatthesame
timehaveatendencytoabiggeropenness,thedirectionofcause-resultevents
mayrunfromtheopennessofsocietytothepoliticalsystem,andnot,aswas
suggestedearlier,intheoppositedirection.Theresearchshowedalsothatthe
levelofeducationplaysanimportantroleinthisrespect.Thecountrieswith
ahigherlevelofeducationoflaborforcearemoreopen.
Onthebasisoftheearlierconsiderations,onecancometotheconclusion
thatauthoritariansystemshaveatendencytowardsabroaderapplicationof
protectionismthandemocraticsystems,andthat,inturn,thetraderestrictions
accompanysignificantdeformationsofwagesonthelabormarket.Thisopinion
maybejustifiedonthebasisoftheobservationsofthesituationinanumber
ofcountries.
Freedomofassociationisoneoftheelementsofgoodmanagementand
thenecessaryconditionfordevelopment.Theauthoritariangovernmentsdo
notrespect,however,thefreedomofassociation,whichisconnectedwiththe
policyoftraderestrictionsandwiththedeformationsonthelabormarkets.
Onecannotstate,however,thatimproperorineffectivepolicyonthelabor
marketbelongedexclusivelytoauthoritarianregimesorthatauthoritarianism
automaticallygeneratesthiskindofpolicy.Thereisanumberofexamplesof
authoritariancountrieswhichdonotconductpoliciesofthatkind.Theworksof
suchauthorsasFieldsorFreemanshowthattherepressionsagainstthelabor
forcearenotnecessary,ifonewantstoachievearequiredeconomicgrowth
(Fields,1994;seealsoFreeman,1993).
Finally,itshouldbepointedoutthatthereexistsacloserelationbetween
democracyandaneconomicgrowth,Therearewellknownexamplesofopen
societiesthatstimulatetheeconomicgrowth.Thisistruemainlyincaseofhighly
developedandstronglyurbanizedcountries.Inthecountrieswithadeveloped
democracy,thepressuregroupshaveabiggeropportunityforacting.Theresearch
showsthatthepresenceoftradeunionshelpstoacceleratetheeconomicreforms
(Devarajan,Ghanem,Thierfelder,1997).Thebenefitsresultingfromliberalization
oftheinternationaltradearebiggerwhenthetradeunionsexistinthesector
oftheeconomyunderprotection.Thegrowthofimportabilitiesleadstothe
decreaseofwagepressures,andwhenthetradeunionsagreetothat,such
asituationallowsforabetterallocationoflaborforceintheeconomy.Thisis
truebothinthecaseofactiveandpassivetradeunions,althoughtheeffects
arebetterincaseofactivetradeunions.
Thetradeunionsactiveonanurbanizedlabormarkethadasignificant
influenceonthedecisionsofgovernments,inthecourseofmultilateraltrade
