Liberal democracy is a system of democracy that combines parliamentary institutions, such as free and fair elections, representative government, and the rule of law, with a commitment to the protection of individual rights and freedoms, coupled with a free market system in the area of economic production. In a liberal democracy, the government's power is limited by a constitution and the separation of powers, and citizens have fundamental rights such as freedom of speech, assembly, and religion. The economic aspect of liberal democracy typically involves a capitalist system with private ownership of property and the means of production, although there may be varying degrees of government regulation and social welfare provisions. This form of government is prevalent in many Western industrialised nations and is characterised by a balance between individual liberties and democratic governance.