A myth and the reality: Does democratization bring investment?

Abstract

With the collapse of the Soviet Union and all it symbolized in 1991 especially the seeming triumph of neo
liberalism, the democratization project became a bestseller and the tool of interference in the politics of nations.
The platform of relationship is the implementation of the Washington Consensus by most countries. But the real
bogey is the one that linked improvement in standard of living, investments, jobs and stock market reaction to
democratization. Embarking on political reform, it has been argued, would lead to inflow of investments. Since it
is the only way to survive most developing countries have been hitching a ride. But it is a ride that is fraught with
difficulties as expectation far outweighs the benefit. Is it really the case that democratization brings jobs and
improvement in living standards? With most democratizing countries waiting for so little an investment, is there
enough to go round? Considering Africa’s economic rating in the global investment scale and the attraction of
the Eastern European and Asian economies, how many investment resources is left for the continent? Is this not
hype, in the many,