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By George C. Bitros, Anastasios D Karayiannis

Developments around the millennia recommend that, although democracies and unfastened industry economies are consistently challenged through crises and disturbances, resembling ordinary failures, wars, or technological revolutions, within the nations the place they take roots civil liberties deepen and in step with capita prosperity raises. to confirm this declare analytically, the authors emphasize the rules that make loose markets a sine qua non for democracy and learn the character of the connection among loose marketplace associations and financial progress. by way of interpreting the working ideas, results and demanding situations skilled by means of modern democracies, many classes are drawn in regards to how governments may still act with a purpose to keep away from the pitfalls inherently linked to consultant democracy. to demonstrate the risks of deviating from those ideas, the authors observe their findings to the Greek democracy and economic climate because the moment global War.

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The top judicial authority is the Federal Supreme Court. It corresponds to the Heliaia in ancient Athens. The legislative authority is exercised by the Congress of the United States, which is divided into two legislative 8 The separation of powers into executive, legislative and judicial was suggested and analysed in detail by Montesquieu (1748, 173–83). 28 2 The Classical Democracy bodies: The Senate and the House of Representatives. 9 Finally, the head of the executive, the President, governs with the assistance of Secretaries (Ministers) that he selects and are appointed after due confirmation of their moral standing and experience by the Senate.

4 The Causes of the Wealth of Nations 33 done. Unfortunately, in the context of representative democracy, it will continue to create all the problems about which classic and contemporary philosophers and political thinkers have talked about. To minimise these challenges, Wallis and Dollery (1999, 120–3) recommend the following procedures: (a) apply meritocratic assessment to government officers and public managers to determine whether they possess the necessary knowledge and skills to decide on complex issues, (b) narrow the margins of arbitrary decisions and actions on the part of government officers and (c) insulate the public administration from politics so that civil servants may focus on the implementation of the laws and the running of public services, whereas politicians may take the lead in setting objectives and embedding them into policies.

However, various hurdles inhibited the adoption of direct democracy,4 and for this reason countries adopted systems of representative democracy. 5 In the United Kingdom, continental Europe and other countries, systems of democratic governance were established containing more or less elements of direct democracy, at the local level. Below we present fundamental principles on which representative democracy was founded. 1 Delimiting the Power of Rulers In ancient Athens, democracy was based essentially on a social contract, where citizens decided collectively on all significant issues that concerned their city.

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