Democracy and development

Off the top of my head, every advanced nation in the world has Western-style democracy. Many people say that for other nations to fully develop, they too will need to adopt democracy at some point.
Is this true? In the case of China, federalism has already made significant contributions by itself, and it might be the case that some changes in the legal system (i.e. more consistent enforcement, independence from politics) are all that is now required. Does anyone here know much about this? How crucial is democracy to development?
Feel free to use examples other than China.
Is this true? In the case of China, federalism has already made significant contributions by itself, and it might be the case that some changes in the legal system (i.e. more consistent enforcement, independence from politics) are all that is now required. Does anyone here know much about this? How crucial is democracy to development?
Feel free to use examples other than China.