In today's world, most rich countries are democratic and most dictatorships are poor. In the developed countries, democracy goes hand-in-hand with political institutions that promote economic freedom - an environment characterised by the protection of private property and the ability of individuals to engage in voluntary exchange of goods and services.
Economic growth is primarily a consequence of the accumulation of both physical and human capital. The accumulation of capital is sensitive to the choice of public policies, which, in turn, depend on the political institutions in place.
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