So you are suggesting that we should have literacy rate of X **and **Y amount of people achieve personal wealth of **Z **thousand/hundred-thousand dollars as minimal until we get democracy?
What I mean is that democracy is not everything. Democracy is way of electing/selecting people to govern the country. Purpose of government is betterment of people and same method is not answer for all conditions. In one condition (where country is feudal, tribal, poor and uneducated), only a good dictator from amongst the people can change things and bring good for the people. But if country is educated, not tribal, people are not dependent for their livelihood on land, than democracy is better. A country needs good dictatorial rule (or good monarchy) to get to state where democracy can come and flourish. This happened in almost all world countries where democracy is flourishing and is not sham democracy (like India and Pakistan).
It means there is basic flaw in the democratic structure that we have or do not have strong institutions, correct?
Institution is nothing to do with nor depends on democracy, dictatorship or monarchy. Institution depends on state of governance. If governance is good it would seem that institutions are working but if governance is bad than it would seem that institutions are not working. The biggest guarantor of institution is laws based on equality (for every citizen regardless of colour, race, religion or sect) and armed forces that protect the country and the laws.