Democracy is a government of the people, by the people and for the people. In this type of government people are supreme because it is they who give the government power. The government has to explain its actions and defend its decisions to the people.In a monarchy, it is the King or queen who has the power to make decisions and run the government. The monarch may have a small group of people to discuss matters with, but the final decision-making power remains with the monarch. Unlike in a democracy, kings and queens do not have to explain their actions or defend the decisions they take.