ARISTOTLE'S FORMS OF GOVERNMENT

Aristotle, a Greek philosopher and student of Plato, classified government into three. They are:

1. government based on rule by the one,
2. government based on rule by the few, and
3. government based on rule by the many.

Government based on rule by the one. 

Monarchy (or royalty) is a form of government in which only a single ruler governs. The monarch rules for the benefit of the people. His concern is for good law, order and social justice.

The perverse form of monarchy is called tyranny. He rules for his own benefits and ego, accumulates wealth and satisfies his lust for power. Such a ruler is not legitimate and the people has the right and the duty to remove him in power.

Government based on rule by the few.

Aristocracy is a form of government where only quite a few people participates in governance. The number ranges from ten to twenty, and they are considered the wisest, the most just and the most honest people in the state. They are more contemplative and careful in their actions. Together, they make governmental decisions.

The perverse form of aristocracy is oligarchy where the few people, again perhaps ten to twenty, collectively take over the power of government not for the welfare of the people, but rather for their own material and vainglory. This form of government is more difficult to be overthrown as compared with tyranny.

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Government based on rule by the many.
The best form of government but probably the most difficult to achieve is polity. A polity occurs when all relevant citizens of the state participate in the decision making through open discussion, compromise, and conciliation. Of course, this is only possible in the small city-states that Aristotle knew so well. Again, the characteristics of this government are just, the highest form of wisdom is compromise and conciliation, and government that generally works for the benefit of all.
The perverse form of polity was labeled as democracy. Democracy is a form of government where people would go into the chambers of government not to do social justice but rather seek for their own ends. No one is willing to compromise inorder to achieve solutions to problems. This causes a breakdown in the process of government and eventually a collapse of government.

Over the years, the Aristotle's polity became synonymous with representative government or democracy and his perverse form of polity was renamed as mob rule or anarchy.