"Democracy" refers to WHO holds power in the way the country is governed, not WHERE the power is distributed. A democracy is rule by the people, through their voting and civic participation. But a democratic nation can choose where to locate structures of authority within the government. A unitary system locates all power in one place, at the central or national level. A confederate (or confederal) system locates power at the state or provincial level. A federal system is one in which power is shared between authorities at the national level and those at the state level.</span>
