Capitalism is a system in which many scarce resources are owned privately, and decisions about allocating them are a private prerogative. Democracy i… - Adam Przeworski

If a Martian were asked to pick the most efficient and humane economic systems on earth, it would certainly not choose the countries which rely most on markets. The United States is a stagnant economy in which real wages have been constant for more than a decade and the real income of the bottom 40 percent of the population declined. It is an inhumane society in which 11.5 percent of the population, some 32 million people, including 20 percent of all children, live in absolute poverty. It is the oldest democracy on earth but also one with the lowest voting rates among democracies and the highest per capita prison population in the world. The fastest developing countries in the world today are among those where the state pursues active industrial and trade policies; the few countries in the world in which almost no one is poor today are those in which the state has been engaged in massive social welfare and labor market policies.

Since in this view dictatorships generate development while development leads to democracy, the best way to democracy was said to be a circuitous one. Yet common sense would indicate that in order to strengthen democracy we should strengthen democracy, not support dictatorships. And, even if G. B. Shaw warned that "common sense is that which tells us that the world is flat," the lesson of our analysis is that this time it is the best guide. With development, democracy can flourish in poor countries.

In general dictators have not done better at [economic] policies than democrats—far from it. Most dictators have ravaged their countries for personal gain. Scholars have asked whether democracy helps or hurts the economic growth of poor countries and despite many surveys, have come to no conclusive answer.