"Basically, in a democracy the head of state is usually a president and the supreme power rests in the body of citizens entitled to vote (which is then exercised by representatives chosen directly or indirectly by them). Capitalism is part of democracies (not communist or socialist countries). The community as a whole does not own all of the property and wealth in a democracy."
You are forgetting that western democracy is not the only form of democracy.
consensus democracy, direct democracy, and hundreds of other systems work better.
Also communism doesn't need a state