The relationship between democracy and economic development has been a central focus of scholarly inquiry for several decades. This paper contributes to this unending debate by critically examining the relationship between democratisation and economic development in Ghana. Despite notable advances in democratic consolidation since the early 1990s, Ghana‘s economic transformation remains sluggish, with persistent structural challenges and limited improvements in socio-economic welfare. Drawing on a desktop review of scholarly literature, and policy reports, the study explores how democratic institutions-namely the legislature, executive, judiciary, civil society and the media- have contributed to sustainable economic development and poverty reduction. The findings reveal a complex paradox: while democratic processes have deepened, economic development has been characterized by stagnation and structural decays, notably in industrial capacity and value addition. Furthermore, political contestation, institutional weaknesses and resource mismanagement have constrained the translation of democratic gains into inclusive growth. The paper recommends the strengthening of institutional frameworks to foster policy continuity in order to pursue strategic economic reforms to harness development potential of democratization.