Democracy and socialism have nothing in common but one word, equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude. Alexis de Tocqueville
As a libertarian I think its important for us to look at what is democracy. A good place to start is the Harrogate Agenda which has started in Britain where the people are wanting the power removed from the political elite and returned to them. As such they have come up with 6 basic points for democracy. EUreferendum lists democracy requirements as follows;
We demand that:
1. the people are sovereign: the sovereignty of the peoples of England, Wales, Scotland and Northern Ireland shall be recognised by the Crown and the governments of our nations, the people in their collective form comprising the ultimate authority of their nations and the source of all political power;
2. local democracy: the fundamental building blocks of our democracy shall be the counties (or other local units as may be defined), which shall be constitutional bodies exercising under the control of their peoples all powers of legislation, taxation and administration not specifically granted by the people to national governments;
3.elected prime ministers: prime ministers shall be elected by popular vote; with the approval of parliament, they shall appoint their own ministers to assist in the exercise of such powers as may be granted to them by the sovereign peoples of England, Wales, Scotland and Northern Ireland; no prime ministers or their ministers shall be members of parliament or any legislative assembly;
4. no laws, etc., without consent: no treaty, law or regulation shall take effect without the direct consent of the majority of the people, by positive vote if so demanded, and that no treaty, law or regulation shall continue in effect whence that consent is withdrawn by the majority of the people;
5. no taxes or spending without consent: no tax, charge or levy shall be imposed, nor any public spending authorised, nor any sum borrowed by any national or local government except with the express permission of the majority of the people, renewed annually on presentation of a properly authenticated budget which shall first have been approved by their respective legislatures;
6. a constitutional convention: Parliament, once members of the executive are excluded, convenes a constitutional convention with a view to drawing up definitive constitutions for the peoples of England, Wales, Scotland and Northern Ireland, which shall, inter alia, recognise their sovereign status and their inherent rights.
I would add as with the American system there should be no taxation without representation and that civil rights must be focused on above the rights of minority groups. In Australia with a republic the above would be essential, especial for the people to decide who the PM is.
It is noteworthy that there has been ongoing discussion on the removal of one tier of government which would make government more efficient.
This could be the removal of local councils (which arnt constitutionally recognized as government anyway) and then the multiplication of states across the country into geographic zones (watershed boundaries dictating state boundaries). Part of the problem that currently exists with local Councils is they have become the mouthpiece of the UN & Agenda 21 no longer representing their communities.
Alternatively the removal of state governments and the enlargement/amalgamation of councils into citywide areas.
Either way we need to look at optimum community size insofar as democracy and efficient running of government.
Let us never forget that government is ourselves and not an alien power over us. The ultimate rulers of our democracy are not a President and senators and congressmen and government officials, but the voters of this country. Franklin D. Roosevelt