Is Democracy Compatible with Islam? 

The rise of the heated debate surrounding political Islam in the West after 9/11 has lead to many conflicting opinions from scholars and leaders alike, and created confusion amongst Muslims regarding the way in which Islam views democracy, and whether modern Western democratic principles are compatible with Islamic values. Polls have shown that majorities in the Muslim world desire a political model where democratic institutions and values can coexist with the values and principles of Islam, seeing no contradiction between the two. However, even within the Islamic framework, there are many opposing views on the matter, ranging from absolutist to moderate when it comes to the subject of democracy. So, is it possible for a democracy to exist within the bounds of Islamic law?  

Firstly, it must be established that in Islam, laws are ordained by God, not man. That said, we must go back to the time of the Prophet Muhammad (SAW) and the time following his passing in order to examine the principles and ideals that were present in early Islamic governing bodies. Western democracy, as it is defined in the modern day, was not present in Arabia 1400 years ago, where there was a strong emphasis on tribalism that Islam aimed to dissolve, promoting instead the brotherhood of all Muslims regardless of race, creed, wealth, or tribe. The system of elections and voting rights had not yet evolved at the time, however, there is an emphasis in Islam on including the principle of shura (consultation with others) in an Islamic governing body. This can be seen in the way that the Prophet (SAW) made decisions in consultation with his followers regarding political and societal matters, unless it was a direct order from God that had to be obeyed. It was a common practice amongst his companions to inquire whether a certain decree was from God or himself, and if it was his own view, they felt free to give their opinions on the matter, which he often accepted. An example of this is when he changed his opinion to accept that of his companions, by deciding to defend the city of Madinah by going out of the city in Uhud instead of from within the city. 

As well as this, there are several verses in the Quran that encourage the use of shura when making decisions, both personal and political in nature. In fact, there is a whole chapter in the Quran named after this principle of seeking counsel from others before making decisions, called Surah Al-Shura. 
'Those who respond to their Lord, establish prayer, conduct their affairs by mutual consultation, and donate from what We have provided for them;' - 42:38

In addition to this, 

'Thus it is due to mercy from God that you (O Prophet) deal with them gently, and had you been rough, hard hearted, they would certainly have dispersed from around you; pardon them therefore and ask pardon for them, and take counsel with them in the affairs; so when you have decided, then place your trust in God; surely God loves those who trust (in Him).' - 3:159

Therefore, this rejects the notion that Islam promotes despotism or totalitarian rule - a notion that is often believed due to the monarchic structure in most modern Arab states, as well as the misconceptions regarding Shariah law. Instead, Islam encourages leaders to consult and seek others people's advice under the principle of shura, while still adhering to all the fundamental rules given to us by God. Monarchy is not promoted by Islam, though kings and sultans have existed throughout centuries of Islamic history, from the Ummayids to the Ottoman sultans - which many consider to be deviations from the preferred way of ruling in Islam. The criteria for leadership in Islam is virtue and piety, rather than wealth or hereditary power. This can be seen in the way that the earliest Caliphs were appointed after the passing of the Prophet (SAW), with Uthman (RA), the third Caliph after Omar (RA), being selected by the majority opinion of a committee of the best of the Prophet's companions. Some sources even state that this committee, appointed by Omar (RA), initially included his brother-in-law, but he was removed by Omar (RA) due to his familial relationship/connection to himself - a testament to the caution encouraged by Islam and exercised by earlier Muslim rulers about tribal favoritism and nepotism in selecting positions of leadership. 

However, this is not to say that Islam promotes the ideals of modern liberal and secular Western democracies, where religion is separated entirely from state dealings, and rendered a somewhat obscure institution to be practiced only in the privacy of one's home. Considering divine laws as irrelevant to the way that we form our governments, is not acceptable in an ideal Islamic society, where we rely on the rulings given to us by God, trusting in the wisdom behind them, rather than inventing our own flawed principles of governance. However, that is not to say that there isn't any leeway or flexibility that can be used when implementing laws, according to the nature and context of that society. The clear-cut principles highlighted in the Quran and Sunnah must be implemented, but there are many occasions where rulers and governing bodies might have to use discussion and consultation (including processes like referendums, etc. to use the opinion popular amongst the public) in order to come to the right conclusion for that society, in that specific period of time. For instance, (example)

Therefore, it can be said that whatever the form of governance, it should include the principles of shura (consultation), within the boundaries of what is halal (permissible). Since early Islamic societies were much simpler than the complicated structures of government found today, it is not a simple matter of categorically rejecting or embracing every aspect of the modern democracy, but is instead much more nuanced than that. Some rules and regulations cannot be compromised on; others must be determined using religious guidelines and the majority's consensus. 
In addition: 

- Modern Western democracy includes politicians being required to raise a lot of money for their election campaigns, which is often done in the form of bribes and donations from lobbyist organizations. Islam rejects this way of rising to power, that places personal interests above public good. 

- In Islam, one cannot ask for or demand oneself to be promoted to a higher position of authority or power. Leaders must be nominated or selected by others, based on two main important qualities: trustworthiness and competence. In modern democracies, there are no such checks and balances that stop incompetent or dishonest people from taking leadership roles. Many even have charges of corruption or sexual misconduct against them, some have served jailtime for their crimes. These are not people that Islam would deem fit to rule a nation. In addition, campaigning about yourself and boasting about your achievements or qualities does not fit the spirit of Islam, where a leader must be as humble as he is competent. This is demonstrated by a verse from the Quran: 
"Indeed, Allah commands you to return trusts to their rightful owners; and when you judge between people, judge with fairness. What a noble commandment from Allah to you! Surely Allah is All-Hearing, All-Seeing." -4:58 

- In an Islamic democracy, the opinion of the public does not trump the commands given to us by God and his Prophet (SAW). Public opinion cannot always be the absolute priority, as God's commands will come first, after which all the things that are left up to us can be decided based on popular sentiment or consultation.