A government is a group of people that have the power to rule in a territory, according to the law. This territory may be a country, a state or province within a country, or a region. Governments make laws, rules, and regulations, collect taxes and print money.
Democracy, meaning "rule of the people", is a system of government in which the citizens exercise power directly or elect representatives from among themselves to form a governing body, such as a parliament. Democracy is sometimes referred to as "rule of the majority".