Government determines the economic policy. As a matter of fact, the decision is very much influenced by the political process, such as the budget provision, budget execution, law formulation, and many others. As the consequences, improvement in the decision making process (at the micro level) and quality of institution (at a macro level) is undoubtedly important.
I second Pak Jusuf Kalla’s notion, that the size of a country, the type of its political system, its geography doesn’t matter to the development of a country. A big country like US can be a developed country, so is a tiny country like Singapore. A democratic country like US, UK, Germany can be a developed so is an authoritarian country like China, or semi-authoritarian countries like Malaysia and Singapore. A country that is far away from equatorial line can be a developed country, such as Scandinavian countries, so are countries in equatorial line. In the end, what matter most is the top leadership. A good leader would be able to set-up a good governmental institution and create mutual understanding with other stakeholders to achieve common prosperity. I’m aware that it’s easy to say but might be very difficult to be implemented.
May our leader always be guided by Allah SWT. Let us also, as a good citizen to do our part, i.e. continue to excel in our field and able to give significant value added to the society. Wish you the very best.