Theocracy is a form of government ruled by divine means or by leaders considered to be divinely guided. Israel was a theocracy before King Saul. The Islamic Republic of Iran is a modern-day theocracy, as many commentators believe that the real power in its government lies not in allegedly "democratically-elected" leaders like Mahmoud Ahmadinejad but in clerics within the government since Iranian law requires Presidential candidates to be approved by the Guardian Council  and some Iranian laws on homosexuality and adultery come from the Sharia . The Vatican is a formal Christian theocracy, with the Pope as head of both church and state.
Only two democracies reserve places in their legislature specifically for representatives of the state religion, these are the aforementioned Islamic Republic of Iran and the United Kingdom where Bishops of the Church of England sit in the upper chamber, the House of Lords under the designation of Lords Spiritual. By technicality, Vatican City is a theocracy, as it is ruled by the Pope, placed by a divine election.
Theocracy as tyranny
C.S. Lewis wrote:
- Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. 
Theocracy may also describe any government which seeks to impose religious principles or law, such as the Sharia, or the Hindu laws of Manu Smriti  on its population, even if the government is formally secular.
Theocracy and the Kingdom of Heaven
In a society where most people are centered on God, and really in touch with His love and His will, the formal system of laws and courts will probably be less necessary. Rev. Moon said, "Eventually we will not need elections. If people go back to their hometowns and serve they will be asked to take public offices, become a king or queen, whoever becomes the center of their hometown does not need to be elected." (unofficial sermon notes, Nov. 23, 2010)
This idea is in contrast to the a forcible theocracy, in which theocratic law is imposed with penalties.
Arguments against theocracy
- Stifling of speech. In a theocracy, it would be counterlogical to allow the citizens to know, or accept other religions or ideologies. Presumably, some mechanism will be placed to prevent dangerous speech, or make the ideas within artificially unwanted.
- Thought is severely engineered, to prevent "dangerous" thoughts (Atheism, etc).
- Unaccountable government. Because the government is supposedly an extension of a deity, they cannot be held accountable.
- ↑ Access Denied: Iran’s Exclusionary Elections Human Rights Watch 
- ↑ Netherlands, Sweden: Bar Deportations to Torture in Iran - Officials Must Not Return Gay and Lesbian Asylum Seekers to Iran Human Rights Watch 
- ↑ The laws of Manu George Buhler, translated by 
- ↑ Saudi Arabia - The Legal System U.S. Library Of Congress