• Governments create laws.us government sign image by Tom Oliveira from Fotolia.com
  
  Miriam-Webster online dictionary defines government as "the organization, machinery or agency through which a political unit exercises authority and performs functions and which is usually classified according to the distribution of power within it." Despite sharing this common definition, government types worldwide operate in different ways.
  
  

Capitalist

• Countries ruled by capitalist governments are known as free-market countries. People are allowed to own their own properties and businesses. Capitalist countries provide their own services, such as health care and education, but these services can be sold and bought for private use.
  
  

Communist

• A communist government is the opposite of a capitalist one. The government owns the land and the businesses. It provides welfare, health care and education for its people. The country is ruled or dominated by a single political party. All people in a communist country are said to be equal, but this may not be true.
  
  

Dictatorship and Military Dictatorship

• In a dictatorship, one individual serves as the single ruler in the country, and they have absolute authority. That person, called a dictator, usually rules by force and is not elected. In a military dictatorship, the military acts as the dictator and has complete power over a country. Dictators are known to treat their subjects harshly and force their ideology upon the people.
  
  

Monarchy

• A monarchy is marked by the presence of a royal family in the country. Usually that family has a historical presence in the country going back for years. In the past, the king or queen had absolute power. Most modern monarchies, though, couple a royal family member with a democratic government. Neither party has absolute power.
  
  

Democracy

• A democratic government boasts rule by the people as everyone in the country is entitled to participate. The people elect government officials by voting. They also vote on laws and legislation. Votes are tallied and majority rules. Every citizen has some kind of vote and say in government proceedings.
  
  

Anarchy

• Anarchy, the absence of government, is usually marked by chaos. Anarchists believe that government hinders people from running their own lives.