I'm Canadian so we're in a parliamentary democracy. Its a pretty similar system provincially and federally. Basically the country is divided up into ridings ba<x>sed mostly on population, partially on geography to ensure fair representation. On election day, you vote for a Member of Parliament (MP) to represent your riding and get to choose from various political parties or independents. The party with the most votes forms the government and its leader is appointed Prime Minister. Laws are passed through the House of Commons, which requires majority vote from its members. Generally the winning party has a majority, but when they do not they form a minority government which requires cooperation from the other parties to get anything done. <br />
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As for if its fair... not really. I'm an anarchist so my crazy ideas about democracy will be ignored and I'll put on my social democrat hat. The biggest problems come from us effectively electing a dictator for five to six years, how popular vote does not factor into selecting a leader (it can work out so you get the most votes in the country but another party still forms the government), unaccountability of elected officials, and the problem of every political party being in corporate pockets to some extent or another.

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The Senate in Canada is appointed not elected...I believe in the US they are elected

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I didn't mention the senate since their involvement in the process of governing the country is pretty slim. They have the power to defeat bills through their 'sober second thought' which is rarely used.
They're a remnant of the House of Lords - an insurance that the aristocracy retain some control over us peasants. It's a very different system from the US.

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The people vote for their local and senate representatives. The local representatives choose the party leaders by voting. The leader of the winning team is Prime Minister.

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