Modernization theory is the concept that all countries will go through a set of stages where economies grow and industrial capacity increases. It is the transition from primal states to modern ones. Another tenet of the theory is that during these stages, new social institutions will form and dictatorship will have a harder time sustaining themselves. As industries modernize, there is a sweet spot where production effort and profit are inverted (less work and decent profit margin). This allows for individuals to spend less time working and more time doing other things, and allows the capital to be invested in other things such as education. This graph shows a sweet spot where people's needs are being met, they are making okay money, and do not feel the need to go after more. When the people start making more money they invest it in social institutions which is why the graph trends upwards towards more democratic as people start making more money. Venezuela is a great example of a country that [had] a relatively GDP and is not a democracy. Venezuela had the unfortunate fate of having a democracy overthrown by a dictator. The only reason their GDP is as high