Democracy is a system of government in a nation-state (or an organization) where every citizen has equal voting rights in policy-making or election of government representatives. In a democracy, all citizens have an equal opportunity to participate in proposing , formulating and drafting laws , either directly or through elected representatives. Although the term is generally applied to a political state, it also applies to other organizations , such as universities , trade unions , state-owned enterprises, and so on. Socialism is a social and economic system characterized by social ownership of the means of production and a cooperative management of the economy , as well as a political ideology and movement aimed at establishing such a system. Socio-economic system where ownership of wealth and money is under social or state control i.e. no private ownership. In a socialist system, products are produced according to the needs of the people. In a socialist economy, factories , mines , lands, etc. of a country are considered as social or state property.