Theocracy
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Government ruled by a 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 democratically-elected leaders like Mahmoud Ahmadinejad but in clerics within the government.
The Islamic Republic of Iran is widely considered to be a modern-day theocracy under the second definition provided above, as most commentators believe that the real power in its government lies not in democratically-elected leaders like Mahmoud Ahmadinejad, but in clerics within the government.