A true democracy is a correct division of society into the "head" and the "body." The head (leader) knows what is better for the body (the nation) and makes decisions based on this. Equality is when everybody gives to and receives from the society whatever he or she has to. Those who belong to the head shouldn't have any personal interest (the property of Bina, GE, absolute bestowal, Hafetz Hesed) but should only consider the desires of the body. The head is merely the intentions of how to benefit the body, how to fill it. (Note how opposite it is to our leaders!)
The head has to relate to the body as parents relate to their children. Parents clarify a child's needs and how to fulfill them for the child's maximum benefit. The government, too, needs to consider the nation's desires and aspire to correct and fulfill them.
Exactly like we concern ourselves with giving developmentally beneficial toys to our children, the leaders need to give desirable "toys" to the nation. These toys should serve the ends of the nation's development program.
So it follows that only the spiritual individuals can be the leaders of a nation. That's why it is said that those who aspire to the Creator (Isra-El) and possess the property of bestowal can be society's Head and rule the masses (body) correctly. Thus "Isra-El" also means "Li Rosh"-I am a Head.