Szandy:
You have some good observations. The leaders in many countries profess to have a democratic form of government, but in practice, under closer scrutiny, it is corrupted. The corruption can take on many forms, for example, having only one political party with exclusive membership and only one person standing for an elected office, and "selling" of political offices. What results is one person (or small group) remaining in power for decades, being for all practical purposes, a dictatorship or oligarchy. That is why the United Nations puts a lot of emphasis on monitoring "free and fair" elections. It does not always work, either!
Democracy in its true form, cannot survive in the presence of corruption or the lack of social "freedoms" (freedom of speech, press, assembly, etc.), an educated population and a universal franchise. The US has over the last 100 years has actually become more democratic - with the women's suffarage granted in 1921 and the courts' declaring unconsitiutional certain local laws and practices which in effect closed the elections to the minority voters. Democracy works best with an organisational system balancing powers between the legislative, executive, and judicial branches. According to George Owell, that absolute power corrupts absolutely. If
too much power (economic, legal, legislative, executive) is combined
into one office, corruption is inevitable. Just read "Animal Farm"....
By the way, there seems to be a confusion between systems of government and economic systems. Communism and capitalism are economic systems.
Definitions:
Capitalism: An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.
Communism: An economic system characterized by the collective ownership
of property and by the organization of labor for the common advantage
of all members.
Socialism: An economic system in which the production and distribution of goods are controlled substantially by the government rather than by private enterprise, and in which cooperation rather than competition guides economic activity. In practice, there are many varieties of socialism. Some socialists tolerate capitalism, as long as the government maintains the dominant influence over the economy; others insist on an abolition of private enterprise. All communists are socialists, but not all socialists are communists.
In theory, you can have a number of combinations - a communist democracy, a communist oligarchy, a capitalist democracy, etc. Political parties name themselves after the economic system they advocate - so in a democracy (or constitutional monarchy), there are communist political parties, and socialistic political parties, etc.
In the former Soviet Union, there were elections, and a "representative" parliament, etc. so you could assert that they had a democratic system of government that endorsed and pursued a communist / socialist economic system. After many decades, the economic system proved to be unsustainable, and led to economic collapse and breakup of the union in 1990.
In China, for years there was a dictatorship / oligarchy which endorsed a communist / socialist economic system. In recent years, the Chinese leadership has changed its economic policies and become more capitalist. Pundits claim that the Chinese were forced to change because the economic system became untenable.