Short Answer 
An oligarchy is a government system where power is concentrated in a small elite group, leading to limited public representation and decisions that favor the few. In contrast, democracy promotes collective decision-making by empowering all citizens to participate and ensuring their interests are considered through a system of laws and majority rule.
Step 1: Understanding Governance Structures
An oligarchy is a system of government where power is held by a small group of individuals or elites. This limited group makes decisions largely in their own favor, often without input from the general population. In contrast, a democracy empowers all citizens to participate in governance, promoting collective decision-making through a system of laws that ensure each person has a voice.
Step 2: Power Distribution and Representation
In an oligarchical system, the concentration of power leads to a lack of representation for the majority, as decisions benefit the few in power. Consequently, citizens have little to no influence over major political decisions. On the flip side, democracy emphasizes popular sovereignty, enabling citizens to elect representatives and participate in governance, ensuring their interests and concerns are addressed.
Step 3: Decision-Making Processes
Decision-making in an oligarchy often favors the ruling class, leading to policies that exclude many from the political process. Key aspects include:
- Limited participation of the populace
- Focus on benefits for the few
- Exclusionary practices in policy-setting