Democracy is defined as a government ruled by the people, either directly or through elected representatives. It comes from the Greek words "demos" meaning people and "kratos" meaning power. There are two main types: direct democracy, where citizens vote directly on policies, and indirect democracy, where citizens elect representatives to make policies on their behalf through periodic elections. Constitutional democracies are based on a written constitution that protects citizens' rights and outlines the government structure. While democracy aims to promote participation, development, and peaceful change, it also has potential downsides like majority rule overriding minorities, corruption, and expensive elections.