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Democracy is the name given to a number of forms of government and procedures which have legitimacy because they have the consent of the people they govern. The two main criteria for a democracy are, firstly that the officials exercising power have legitimate authority because they have been elected, as opposed to inheriting that authority or holding it by force; and secondly, the mechanism for changing the government is through peaceful and regular elections, as opposed to revolts, coups, or civil war. Democracy is not a theory about what the aims or content of government or law should be, only that those aims should be guided by the opinion of the majority, as opposed to a single ruler (as with an absolute monarchy, dictatorship, or oligarchy). Just because a government has been democratically elected does not mean it will be a good, just, or competent government. Thus, some polities have used the democratic process to secure liberty while others have used it to promote equality, nationalism, or other values.

Democracy is also a peaceful way for a group of any size to settle arguments or make decisions. Everyone has a vote and is committed to respecting the decision that wins. This does not mean the decision will be the best one, or even a good one. It is simply a mechanism for enabling everyone to be involved in the decision making process, which gives the decisions binding legitimacy.

Most of the procedures used by modern democracies are very old. Almost all cultures have at some time had their new leaders approved, or at least accepted, by the people; and have changed the laws only after consultation with the assembly of the people or their leaders. Such institutions existed since before written records, as well as being referred to in ancient texts, and modern democracies are often derived or inspired by them.

Democracy in the modern world evolved in Britain and France and then spread to other nations. The main reason for the development of democracy was a dissatisfaction with the corruption, incompetence, abuse of power, and lack of accountability of the existing polity, which was often an absolute monarchy whose legitimacy was based on the doctrine of the divine right of kings. Instead of defending their country, kings were often engaging in ruinously expensive wars against other countries. Instead of using their power to enforce the rule of law and justice, they were often using this power to oppress their subjects and stifle opposition. People thought that if they could have a say in how they were governed, these abuses could come to an end.

There is a tension in democracy between the rule of law limiting government and protecting individual liberties, and the rule of the people being able to override individual liberties. In modern history this has led to two competing versions of democracy. One emphasizes the purpose of the whole, but when it became atheistic has tended to slip into totalitarianism and the suppression of individual liberty. The other emphasizes individual liberty, but with the decline of its Christian underpinnings has tended to slide into social disintegration.

There are many different types of democracy, from the minimalist direct democracy of Switzerland to the totalitarian democracy of communist states such as North Korea, as well as mixed systems such as the blending of monarchy, oligarchy, and democracy in the United Kingdom. As democracy is now regarded by many as the highest, or even only, form of legitimate authority, many states claim to be democratic even if they do not appear to be. One of the most damaging accusations in today's international arena is that a group or process is "undemocratic." In the Islamic world, there are democracies such as Turkey, Egypt, Iran, and Pakistan, although there are also Muslims who believe democracy is un-Islamic. Though the term democracy is typically used in the context of a political state, the principles are also applicable to other groups and organizations.

In the past, philosophers from Plato and Aristotle to Thomas Aquinas and Hobbes have considered democracy to be among the worst forms of government because it could easily be corrupted and result in injustice. The chief danger is that a majority can impose its will upon a minority in a way that violates their liberties. Thus during the twentieth century, besides liberal democracies, there were also dictators such as Hitler who came to power through the democratic process and totalitarian democracies like the Soviet Union, where the populace gave strong support to the regime at various times.

To function properly, democracies require a high level of education and maturity among the people who vote. If not, the process can be captured by demagogues if too many vote in a self-centered way, as happened in Wiemar Germany. It can also be very claustrophobic or oppressive as majorities can use their position to intimidate minority opinions. Modern democracy has benefited from the mass education of citizens, the free press, and most especially the Protestant Reformation, which encouraged self-restraint and public-mindedness and trained people in self-government.

The word "democracy" derives from the ancient Greek demokratia (). It combines the elements demos (which means "people") and kratos ("force, power"). Kratos is an unexpectedly brutish word. In the words "monarchy" and "oligarchy," the second element, "arche," means rule, leading, or being first. The Athenian democracy developed in the Greek city-state of Athens (comprising the central city-state of Athens and the surrounding territory of Attica). Athens was one of the very first known democracies and probably the most important in ancient times. Every adult male citizen was by right a member of the Assembly and had a duty to participate and vote on legislation and executive bills. The officials of the democracy were elected by lot, except generals (strategoi) and financial officials, who were elected by the Assembly. Election was seen as less democratic and open to corruption because it would favor the rich (who could buy votes) and the eloquent, whereas a lottery gave everyone an equal chance to participate and experience, in Aristotle's words, "ruling and being ruled in turn" (Politics 1317b2830). Participation was not open to all the inhabitants of Attica, but the in-group of participants was constituted with no reference to economic class and they participated on a scale that was truly phenomenal. Never before had so many people spent so much of their time in governing themselves. However, they only had the time to do this because of the huge number of slaves that underpinned the Athenian economy. Political rights and citizenship were not granted to women, slaves, or metics (aliens). Of the 250-300,000 inhabitants, about one third were from citizen families and about 30,000 were citizens. Of those 30,000 perhaps 5,000 might regularly attend one or more meetings of the popular Assembly.

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