64. Is democracy unlawful in Islam?

Democracy is completely Islamic. Let me share two references. According to the Quran, believers are those

who conduct their affairs by mutual consultation. (Quran 42:38)

According to a hadith:

As you (society) are, so would your rulers be. (Shuab al-Iman, hadith no. 7006)

These are the premises of democracy. Democracy is government of the people, for the people and by the people. Unlike dictatorship or monarchy, in a democracy it is the society which dictates the events.