Democracy and capitalism work if the goal is innovation, profit, physical ownership, climbing up the social ladder, and magnifying individuality. But are those the best goals for a species to reach for? Communism, for example, works for ants; monarchy works for bees; fascism works for lions. If the goal of humanity is enlightenment, transcendence, or reaching a higher plane of understanding, then an Eastern philosophical and political stance, such as Nepal endorses, works better. If physical truth and laws “rule,” then the scientific epistemological method works better than the “my opinion is as valuable as yours” system of democracy (and we have all questioned, if only silently, why our “vote” should count the same as that “stupid” person we all know). And capitalism has so many flaws, the most glaring one being that “money makes money,” demonstrated by the scary divide between the 1% of the “haves” owning as much as the 99% of the “have-nots.” So to answer your question directly, it's the only one with momentum right now, but there were other, wiser choices to be had earlier in our "Western" development.
No, think of a society like Japan. After the bombing of Hiroshima, the country exploded in population and they saw a massive economic growth.