ABSTRACT
Morally and analytically, there is no more vexing phenomenon than the persistence of mass poverty. This chapter explores a theory of failed development, which is to say, persistent poverty, based on the nature of governance. It discusses the ambiguous relationship between democracy and development, explaining why democracy 'in principle' should help empower the poor and promote development. The chapter reviews two priorities for achieving democracy at the national level: free and fair elections, and democratization of political parties. The empirical evidence about the relationship between democracy and development is ambiguous. To understand the relationship, people need to disaggregate countries and time periods. Countries that have failed to realize their development potential in the past half century have invariably suffered yawning deficits of good governance. There are several reasons why democracy often fails to do much to empower the poor. Electoral democracy may be diminished in several respects that impede its potential for poverty alleviation and empowerment.
