A third reason for promoting democracy is that democracies tend to enjoy greater prosperity over long periods of time. Why do democracies perform better than autocracies over the long run? It is because democracies that embrace liberal principles of government are likely to create a stable foundation for long-term economic growth. Individuals will only make long-term investments when they are confident that their investments will not be expropriated. These and other economic decisions require assurances that private property will be respected and that contracts will be enforced.