I am going to compare Germany and Iran.
In Germany, the power is with the people (=it's a democracy) which are represented by the members of the parliament: it's a representative democracy. It's also a federation of 16 states.
Iran, on the other hand is a theocracy: a country ruled by the members of the clergy. It can also be named an oligarchy: the power is with a few members of the society.
Two most important factors were the development of industry and industrialization, and the slave trade. People started accumulating large amounts of wealth due to these two and started investing them in businesses, both personal and by other people. This led to the development of capitalism not only in Europe, but other places too.
D
Because there was a lot of things that went wrong.
