Democracy in a country ensures political stability and reduces tension which may affect the state negatively. Besides, it is true that capitalism promotes high rates of economic growth in a country because it enhances predictability in the country. Therefore, the country tends to implement only policies which are sufficient to all citizens in the country. It is evident that democracy brings a lot of benefits in the state which ensures gradual development in the country. It ensures that more public goods are produced in the country which is meant to benefit everybody. It also provides that all the citizens in the country have a right to make their own decisions without any form of restriction. The rule of law in the country is also maintained, and people get to respect the constitution. Besides, it ensures that private property is protected without interference from the government. Large scale redistribution is enhanced when democracy is maintained in the country through the promotion of innovation and promoting competition which encourages new inventions without any form of barriers. People get a chance to express their ideas freely, and political interest is well represented in the national government. Economic growth is enhanced by the private decisions which are made by the private investors in the country without any form of intervention from the government. The total factors of production are increased through the advancement of technology in the country. In addition, elements of production such as labor and capital are accumulated in the production market thus improving efficiency. Furthermore, democracy ensures that accountability in the government institutions is made public to ensure a peaceful transition of power and to ensure the protection of the minorities.
Haggard, S., & Kaufman, R. R. (2018). The political economy of democratic transitions. Princeton University Press.
Diamond, L. (2015). Facing up to the democratic recession. Journal of Democracy, 26(1), 141-155.