A sound economy depends on a sound political system and fair laws and regulations. The Indian economist Amartya Sen places great importance on democratic government. Political parties that are effective, and a news media that is independent and unbiased. Elections need to genuinely reflect the public voice. I don't believe such an open system exists anywhere in the world.
Good government ensures that people are free from injustice and exploitation. That makes people free to be productive, to buy and to sell, to seek opportunity, and to openly participate in competitive markets. Good government will ensure high levels of literacy, quality public services, the development of infrastructure, including successful land reforms. Good government will be capable of collecting fair taxes and controlling fair trade.
Good government will stand strongly against racial or religious or sexual discrimination. There will be a free and open debate about how the society can best govern and develop itself. There will be protection both for people and for the environment in which those people live. Good governemt would live by economic principles.
The world is plagued by bad government. Although most countries claim to be "democratic" that's usually not the case. Typically the political powerful elite own land and wealth, provide first sons to be businessmen or politicians, and second sons to be soldiers. They work hard to increase family wealth and influence. The law and the taxation system is written to favour people like themselves. Very old rules operate here.