The second reason why a country 's democratic institutions benefiting from these institutions manage to collect social capital essential factor for the development of a country . Achieving this level of democracy is necessary to have a very well educated population , which is able to gear the public interest and act simultaneously with. It remains the duty of a healthy democracy to encourage the participation of its people in civil society and public debate . According to these authors this is achieved through continued public investment , holding lighted camera motivational citizens . By doing this the economic development of a country is always in the UML & l ; forth movement .
In summary of this idea can be said that democracy serves to reduce the economic and social interchanges within a country , which decreases and the degree of economic uncertainty . A market economy to function no need for security . Very notion of economic rationality based on security , the economy, a subject very uncertain is unable to take economic decisions as to do this there needs to be a prospect . The heart of capitalist dynamics is " destructive creativity " by Schumpeter . This leads to many uncertainties . This is why the implementation of state ëelfare viewed as a creation that has allowed the economic system to be more competitive which basically brings as stone .
In fact the countries of Northern Europe nowadays have economic systems based on a very strong competition , and countries are spending more to meet personal needs . Investment in social services create the premise for the development of institutions capable to cope with social conflicts and promote free enterprise even though it is more prone to risk . However all this increases the overall productivity of the system .