> I did not say 'democracy' -- this is an economic discussion of how capitalism, and not communism, creates prosperity.

You're right on this one. I shouldn't have put words into your mouth by mentioning it.

> Can you name a single modern large scale society at all that experiences prosperity without market economy?

I think you does have a point. Though I would agree with a bit conservation. If we are talking about market economy itself, I consider it a necessary but not sufficient condition for economical prosperity.