9 Core Elements of Capitalism
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Capital Market Sophistication
Refers to the advancement, depth, and efficiency of a financial system. It measures how effectively a market connects investors with capital-seeking businesses.
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Development of a Banking System
There is a functioning non-corrupt banking system open for all.
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Labor Market Openness
It is easy for people to work, find work, and leave their work without huge consequences.
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Market Competitiveness
The market is not dominated by one company or individual — it is free and competitive.
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Market-Supporting Policy
Policy passed helps the markets exist freely and transparently.
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New Business Formation
People can start new businesses and have access to markets and infrastructure.
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Openness to Trade
There is a free flow of goods and capital between different countries.
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Private Ownership
There are opportunities for private companies — the state does not own everything.
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Protection of Private Property
All private property is protected by the law.
7 Core Elements of Democracy
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Consensual
The majority includes the political minorities; there is value in including diverse perspectives.
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Deliberative
Decisions are made with reason for the public good, not emotions.
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Egalitarian
All should be able to participate because all experience equal living conditions.
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Electoral
Rulers are responsive to citizens through elections.
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Liberal
It protects individual and majority rights.
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Majoritarian
The majority of people can rule and make their values heard through policy.
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Participatory
Citizens can participate in all political processes.