section_path: Justification/Economic success
section_name: Economic success
paragraph_text: Economic success
  
  In Why Nations Fail, economists Daron Acemoglu and James A. Robinson argue that democracies are more economically successful because undemocratic political systems tend to limit markets and favor monopolies at the expense of the creative destruction which is necessary for sustained economic growth.
  
  A 2019 study by Acemoglu and others estimated that countries switching to democratic from authoritarian rule had on average a 20% higher GDP after 25 years than if they had remained authoritarian. The study examined 122 transitions to democracy and 71 transitions to authoritarian rule, occurring from 1960 to 2010. Acemoglu said this was because democracies tended to invest more in health care and human capital, and reduce special treatment of regime allies.
  
  A 2023 study analyzed the long-term effects of democracy on economic prosperity using new data on GDP per capita and democracy for a dataset between 1789 and 2019. The results indicate that democracy substantially increases economic development.