How democracies have been able to …

Democracy, being based on the principle of equality is likely to promote greater social justice. Democratic laws work for the betterment of the people as a whole.
The ways in which democracies have been able to reduce inequality and poverty are
(i) Women have been given equal rights-like those of men in most of the democratic countries like India.
(ii) Special efforts have been made to uplift the weaker sections of the society (like the Scheduled Castes and Scheduled Tribes), so that they could live with dignity and honour.
(iii) Democracies everywhere try to provide a fair share to every citizen in the natural resources of the country.
(iv) In almost all democratic countries of the world, poor people are given many concessions but richer classes are made to pay more income tax.
(v) Gives equal voting rights to all the citizens.