In this paper, we will investigate the relationship between wisdom and democracy and public choice, which considers government’s role, and while reviewing government’s role across economy, and related theories which had been there since Phsiocrates and Adam Smith until , critically, we also express the controversies and controversial ideas of various economic schools and the main idea of their words using plain language. Then, we will use these theories studying political and elections, functionally.
First of all, we will go through public sector economy and rationality’s role across it. After that we will introduce the problem of market breakage and governmental intervention.
Government’s failure is a platform for introducing some political economy schools, which suggest the novel neoliberal path for solving the development knot. Then we will discuss the reasons of their failure. The public choice can be applied, truly, through the developing countries’ political environment, which we will perform against the Iran’s political economy and economic development plans.
And finally, we will point to the East-Asia’s third path, which was considered as a successful experiment, and from which we will exploit political lessons. We , according to the conflict of the classes , will bring these political lessons through the economic development.
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