The modernization theory was wrong in arguing that a pro-business dictatorship is the best way towards a modern, affluent democracy in the third world. In fact, the authoritarian regimes are no more likely to generate growth, as the time series analysis shows, nor are they likely to give way to democracies in the long run. On the other hand, the poverty trap does indeed exist the lack of democracy and development tend to sustain each other and the consolidation does not democracies are likely to die at any age. The only institutions and policies associated positively with the survival of democracy are parliamentarism, declining inequality and growth with moderate inflation.