This paper argues that democracy can better facilitate and promote development when it is transformed from the institutional level, where it was at the time of transition, to the substantive level, where it is more likely to yield the ‘dividends of democracy’ and become more relevant to the lives of ordinary citizens. This transformative process at a minimum requires the institutionalisation of participation/citizen empowerment, accountability and legitimacy. After making the point that democracy and development are mutually reinforcing, the paper examines how human rights and elections can be strengthened to serve thesenpurposes.