For democracy to really work, there should be a high degree of literacy and prosperity in the society. It's possible but hard for democracy to create a prosperous nation from a poor one. Most of the successful democracy now had some degree of autocracy that brought them prosperity that enabled them to create a working democracy.
Democracy doesn't work when the people are poor and uneducated. The political leader becomes corrupt and tries to keep the population in misery so that they can easily manipulate the vote either with money or with threat. They create fake enemies and fake events to deviate the focus of the population and their politics depends upon keeping the population in poverty.
I do not completely agree with your explanation on democracy and the conditions which are necessary for it to thrive in a country. It may be dependant rather on the historical context and the cultural context in which democracy is trying to exist in the long term.
Look as Germany for example, after the defeat of the First Reich, Germany became a very poor country (when compared to the European standards), inflation was so high people rathered to burn money instead using the money to buy lumber for the winter, among other horrible experiences.
Even though the situation of the Weimar Republic was dire and many people felt hopeless, it was a relatively good functioning democracy, the same democracy which allowed the National socialist party to climb onto power in the first place, from there all what followed was a dismantling of democracy and the building of good times for the german people, in detriment of foreigners and the Jewish people.
Democracy was exist in many situations and it is supposed to be the tool for the people to vote out bad leaders and keep those who are worthy of the position, if that does not happen, then democracy is being vulnerated or altered in some indirect way.