http://www.bti-project.org/en/index/methodology/
Various non-democratic elements that they include in the methodology are "No interference of religious dogmas", "market based competition", "anti-monopoly policy", "anti-inflation policy", "social safety nets", "equal opportunity" (under welfare regime), "GNI cc PPP rescaled", "education index", and all sorts of other things.
I'm all in favor of market based competition and anti-inflation, but you can totally have a democracy that lacks these things - Greece, for example. Voters might be influenced by religious dogmas and vote against market competition and equal opportunity; this is a feature of democracy.