The citizens exercise their political rights and they have the right to make amendments on specific clauses within the laws that govern them. The suggested amendments are forwarded to the parliament or the right body for debates and approved before being enacted into law for the benefit of the citizens. The democratic political systems advocate for good governance and transparent policies in which the services are devolved to the people which eliminates the bureaucracies involved in the service delivery. The devolved system of government ensures an equal distribution of resources and a reasonable collaboration between the government and the private sector partners which attracts more investments.

Democratic political systems empower the citizens and they become vocal on issues that affect the society and their concerns are addressed. The existence of the community-based organizations and the civil society organizations advocate for the rights of the citizens and push the government among other duty bearers to deliver the essential services such as the infrastructure which attracts investments. The independence of the judicial system that is separated from the interest of a few people provides a stable system which ensures that the right legal framework is in place for enacting friendly rules and regulation and delivering fair rulings to all.

The democratic system gives power to the people by exercising their voting rights to elect leaders into office who have the people's mandate and do not serve a few people with vested interests and ensures that there is gender equality and representation of the minorities which therefore brings stability and confidence in the government. Stability of the government is important to foreign...

Switzerland is the most democratic nation in the world where the citizens are given extraordinary participatory rights in the political processes; it is referred to as a direct democracy which is a stable environment for international companies to venture into (Democracy-Building.Info, 2004).
Australia is also one of the most democratic nations due to its stable political environment and excellent economic policies which encourage investments. The government is transparent and very efficient in delivering the services to the citizens; it has in place flexible financial practices and both the domestic and foreign companies are equal before the law. Investors look for environments which can safeguard their interest and offer the stability they require for the long-term sustainability of their operations and a fair ground for all. This has raised the level of confidence among the investors hence it is a destination for investment offering a high degree of certainty. (Australian Trade Commission, 2012).