In Saudi Arabia, Mohammed bin Salman has consolidated power, allowing for the implementation of large-scale reforms without the need for elections or negotiation with opponents. His Vision 2030 plan involves investing hundreds of billions of dollars to diversify the economy and reduce reliance on oil. The plan includes mega-projects such as artificial islands, world-class resorts, new industrial zones, and electric vehicle production.
This approach, where economic growth becomes the source of regime legitimacy, is mirrored in other autocratic systems. Similar models are found among Gulf monarchs, African leaders, and notable figures in semi-democratic nations, looking to China and Singapore for inspiration. Autocracy allows for quick decision-making and the attraction of investment, but brings risks of excessive centralization and weak competition.
In Africa, Rwanda and Ethiopia have seen their authoritarian regimes actively pursue economic reforms. Rwanda, under President Paul Kagame, maintains a tightly controlled state investing in infrastructure and opening the economy to investors. Ethiopian Prime Minister Abiy Ahmed has liberalized the currency market and launched reforms with IMF and World Bank support, aiming for financial transparency and stability. Similarly, Vietnam’s leadership has boosted support for private business and made it easier for foreign investors, cutting excessive regulation under the new leadership of Dang Thanh Lam.
Research shows that, in the long term, economic growth in autocracies lags behind democracies by an average of 0.75-1%. While autocracies can experience an initial burst of growth, their pace slows as resources concentrate among elites and competition weakens. State-controlled companies often dominate the private sector, and official statistics may overestimate success.
Saudi Arabia, Rwanda, and Ethiopia illustrate that large-scale investments and centralized management can rapidly mobilize resources and realize national projects. However, these are often offset by a lack of private investment, reform slowdowns, increased public debt, and pressure on social infrastructure.
Ultimately, countries with autocratic economic models now frequently balance centralization with selective liberalization, aiming for sustainable growth amid demographic change and global competition.
