Liberal democracy thrives best in a multi-party system. In a multi-party system, there are various political parties that compete with each other in free and fair elections. This provides citizens with a greater choice of candidates and policies, and allows for a more diverse representation of views in the government. This also ensures that no single political party dominates the political landscape, which prevents the concentration of power in the hands of a few individuals or groups. Therefore, a multi-party system provides the ideal environment for the functioning of a liberal democracy.