Final answer:
Democracies ensure basic rights for citizens and provide stable and predictable taxation rules, which can encourage private investment.
Step-by-step explanation:
Democracies, in general, ensure certain basic rights for their citizens. First and foremost, citizens are free to organize political parties and hold elections. Leaders, once elected, must abide by the terms of the given nation's constitution and are limited in the powers they can exercise, as well as in the length of the duration of their terms. Most democratic societies also champion freedom of individual speech, the press, and assembly, and they prohibit unlawful imprisonment.
The guarantee of the rule of law and protection of property rights in democracies provides stability and predictability for businesses and investors. When leaders are held accountable to voters, taxation rules are more transparent and predictable, creating a favorable environment for private investment. This can lead to greater economic growth and development.