An oligarchy is a form of government where a small group of individuals holds significant power and influence, often based on wealth, family ties, or military control. This contrasts with a democracy, where power is meant to rest with the general populace, allowing for broader participation in governance. In an oligarchy, decision-making is typically concentrated among a few, leading to policies favoring elite interests rather than the majority. The lack of widespread governance can result in limited political freedoms and unequal access to decision-making processes, raising concerns about equality and citizen representation.