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Life in liberal countries is more free and prosperous than in autocratic regimes

Updated post about institutions and prosperity.

In a previous post I showed how a future EU membership gave the Baltic countries, and East European countries incentives to reform their economic and political institutions which shape the behaviour of households, firms and politicians.

This post takes the relationship between institutions and growth beyond the EU.

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Why the EU really matters

Spoilers. The EU is a success with the perhaps most obvious example being the Single Market which has led to increasing living standards in the EU. But the most important reason for people from the Baltics and Eastern European Countries to join the EU were the EU values of respect for freedom, democracy and human rights. But the EU is not perfect. Once inside the EU, governments with autocratic ambitions as Orban’s Hungary can demount their citizens rights and violate EU fundamental values. 

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