This chapter discusses the distinction between democratic and undemocratic states, noting that it is not only about whether there are elections: it is about whether or not it there is the rule of law. When both conditions are met, elections are free and fair and the government is accountable to the electorate. When laws can be bent or broken, unfair elections represent the will of governors more than that of the governed. The chapter first defines democratic states and outlines the characteristics of a democratic state before assessing the state of states today. It then considers three kinds of undemocratic states, namely: constitutional oligarchy, plebiscitarian autocracy, and unaccountable autocracy. It also examines how democratization has more often come about by trial and error rather than through gradual evolution and concludes by analysing the dynamics of democratic and undemocratic states.