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Democracy is a system of government, in which the people of country or area can exercise power by voting. Most countries are a democracy, for example the United States, France and Germany. Other countries aren't a democracy, but a absolute monarchy (Saudi-Arabia) or dictatorship (North Korea).
Democracy is invented in Classical Athens. Athens was a direct democracy, meaning that the Athenians could vote directly on each matter. Later on the Roman Republic was a direct democracy as well. In both nations, not all inhabitants could vote. For example, women and slaves couldn't. During the Age of Enlightenment, democracy was re-invented, which resulted in the modern day democracy; the representative democracy. In a representative democracy inhabitants vote for a politician or political party during elections. In western democracies, there are certain rights as the freedom of speech and the protections of minorities.
When a country is a democracy, it doesn't have to been a good democracy. Corruption and the gaining of power by a president can decrease the amount of democracy in a country. Elections in these countries aren't always fair and free. In some countries with less democracy or no democracy at all, revolutions and protests can take place.
A democracy haven't always to be a republic. Most monarchies are very democratic, like Norway, Sweden, the United Kingdom, the Netherlands and Spain. Also, republics aren't always democratic, like China.