DEMOCRACY PART I is not about a new theory of democracy but rather a selected compilation of its evolution, challenges, and the creativity of people, elected leaders of Western Europe and North America, to maintain democracy, the governance system coveted by the rest of the world. The examples range over history and geography with particular emphasis on the city-state of Athens. A compendium of each chapter follows.

Chapter I starts with a review of the origin and understanding of democracy. It is generally believed that democracy has its roots in the Greek and Roman civilizations around the 6th century BC. However, this assertion must be taken with a grain of salt because the practice of democracy goes back to even the first social formation in the band polity. Furthermore, many Greek philosophers of the 6th century did not have a fond opinion of democracy. It is of utmost importance to stand, as complex as it is, on solid ground on the concept of democracy, considering the cultural diversity around the globe. Moreover, from a practical point of view, it is easier to fix a problem if its components are known. A checklist could then be established to identify where the mark is missed and apply the appropriate corrective measures. Unfortunately, this is easier said than done. However, the main components of democracy will be established, but at the implementation level, the equality concept for each stratum of a society must be understood and accepted. An appeal to the people cannot spell out any specific entities’ inclusion or exclusion.

Chapter II considers the adoption, transition, and expansion of democracy, shortened to democratization. At the end of World War II, only 260 million people lived in a democracy. By 1974, this number had increased to 1.42 billion. Between 1974 and 1990, at least 30 countries with a population totalling 2.56 billion made transitions to democracy. Samuel Huntington has characterized this period as “The third wave of democracy”. Since the collapse of the Soviet Union in 1991, a surge of democracy has led to almost double the preceding number. At the end of 2017, of 167 countries with a population greater than 500,000, 57% were democracies of at least some sort. A common case of democratization is the reversal from an authoritarian regime to a full democracy, but the real cause of this change is often difficult to substantiate. It is known that democracy finds a fertile ground in countries with good economic performance. Consequently, a democratic country with a deteriorating economic performance is predisposed to a regime change. This situation, in the last few decades, is the case has enhanced populism. The factors driving this regime change are analyzed in this chapter.

Chapter III focuses on the state of democracy in the free world. Despite its popularity, certain political movements and events weigh heavily in the maintenance of democracy. Among them, the rise of populism and authoritarianism can be considered impediments to democracy. As noted in the preceding summary, at the minimum, certain basic elements known as the pillars of democracy must be in place in one form or another to ensure its functioning. But there is also sometimes the repulsive effect that democracy confronts with capitalism, a fundamental tension with each other comparable to the repelling action of two magnets of the same poles, and this suspicion goes back to the 19th century. On the one hand, the elite or, more generally, the right-wing political parties are concerned that the majority encompassing the middle, and the lowest classes would substantially alter private property and free markets, key pillars of capitalism. On the other hand, this latter political consolidated mass of the left not only represents a threat to democracy but, more importantly, may implement economic redistribution policies. This perspective surely adds more complexity to the overall working of the political system, particularly in a potential implementation of solutions to economic crisis.

Chapter IV concentrates on non-economic factors impacting democracy. These factors can be seen in some circumstances as the by-products of democracy itself. However, more importantly, cultural factors such as commitment to the rule of law, peaceful conflict resolution, and respect for others’ opinions play a major role in the implementation of democracy. People may feel that their concerns were not addressed. Others are unique and difficult to contain because they are part of democracy’s pillars, such as the acceptance of free and fair election results. Admittedly, there are many variants of democracy. In addition, the influence of governmental policies such as the neoliberalism followed by globalization supported by the aristocracy have created a challenge for governability.

Chapter V, contrary to a common practice in textbooks focusing on sociopolitical doctrines, this chapter does not address the possible alternate future of democracy but rather the impact of potential events or internal/external policy changes that could profoundly alter the current path of this mode of governance. Among them are potential challenges in the international world order caused by China, Iran, and Russia on the free world, environmental and pandemic catastrophes recently observed around the globe, and accommodation with the cultural factors of democracy. In other words, democracy must respond to legal challenges, political uncertainty, and socioeconomic upheavals and adjust accordingly. However, democracy is an evolutionary phenomenon, meaning that it must be understood in terms of its purpose rather than the cause by which it has arisen, always surviving the greater challenge to perfection. I have debated on this moot point, taking into consideration the phenomenon of evolution not entirely from a Darwinian perspective, which is aimless and opportunistic.

CAPITALISM

Part II, Capitalism exemplifies the challenges of keeping a political and economic leadership position in the race to meet the demand of a population's material needs. A production system based on supply goes against Keynesian economics, meaning that in the free world, demand drives the supply of goods and services. We are so accustomed to this practice that the successful producers are the ones who can anticipate our choices and provide goods and services in a competitive environment.

Chapter VI covers the challenging tasks of explaining the concept, definition, origin, and development of capitalism, the stand-alone economic system on the planet. This implies reviewing events in a not-too-distant past because of demographic, transportation, and economic development. During the Renaissance, the European economy substantially grew through rudimentary agricultural implements and trade. Subsequently, developments such as population growth enhanced by migration, such as Asian and African, during the Age of Exploration facilitated economic growth. Then, compared with democracy, capitalism is relatively recent, about 500 years old, beginning in the Middle Ages. The Scottish political economist, Adam Smith, published An Inquiry into the Nature and Causes of the Wealth of Nations in the 16th century. By the early 16th century, 1000 printing presses were in operation throughout Western Europe and had produced 8 million books. Like democracy, capitalism will remain a contested concept, and so will its definition. Therefore, the review of the origin and development of capitalism rests on the following retained articulation of capitalism as an indirect system of governance for economic relationships. This concept suggests using a multi-disciplinary approach encompassing political science, sociology, and political economy to fully expose the capitalist system. more than market in terms of supply and demand, the economics portion of this system of governance, but also the institutions that underpin the market and the political authority that manage the overall system.

Chapter VII, I will consider the contributing factors to the emergence of capitalism, a political economic system that needs at least a thin democratic environment. Such a system includes property rights, markets, money, and enough freedom for citizen to pursue their own economic goals without undue state interference. This system consists of all forms of legal entities and institutions to achieve the members' goals and their protection in the economic environment, hence, political and economic attributes of capitalism. In this chapter, institutions, the interface of the state with the public in the capitalist system, are covered. 

Chapter VIII reviews the crisis of capitalism and its potential future occurrences. Crisis (political, social, and economic) can erupt at any time, and this chapter will consider their causality in space and time. In doing so, this chapter reconsiders the foundation of capitalism and its participants in this political and economic system. Some lessons will also be exposed about reviewing market fundamentals before making any investment decision, like the case of tulipomania. * 

Chapter IX, capitalism is defined, inter alia, as a political and economic system. Its assessment requires consideration of financial markets, national economies, and their governance in this system. In this context, it is also common practice to review how labour, growth, the market, and the phenomenon of crises are inherent in the system as part of pursuing business opportunities. This chapter will review the nature, frequency, timespan, and ramifications of crises to find out whether they are systemic to capitalism.

Chapter X A renewed capitalism is the future of capitalism. This chapter addresses the complex and complicated issues facing humanity in the years ahead if nothing is done. Democracy has evolved to become the most coveted political form of governance; likewise, Capitalism, despite its unfairness to certain strata of societies in the free world, has raised the standard of living of humanity to an unprecedented level. Moreover, although this latter governance system can function alone, in tandem with democracy, the interests of all the layers of society must be considered, which provides a better opportunity to change their financial position. However, many surveys have shown some ambivalence of opinion in the case of democracy, with severe verdicts about capitalism regardless of whether, in fact, they need each other for optimal results as a governance system. Dissension between the Spirit of Davos and Porto Alegre, the rise of inequality, and internal misalignment of economic initiatives and policies must be addressed. In this chapter, I have taken the position that the future of capitalism is Ordo Capitalism, which is a strong emphasis on maintaining economic and social order and stability while allowing the free market to operate. The required changes cannot be implemented overnight, but better late than never. *Tulipomania The tulip mania, also known as tulipomania, was a period during the Dutch Golden Age when contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels. The significant acceleration started in 1634 and then dramatically collapsed in February 1637. With the wisdom of time, Tulipomania has been considered a forerunner of the 2007 housing bubble. Both the buyer and the financing firm became victims of their irrational exuberance, a term recently used by Alan Greenspan to describe the cause of the housing crisis.