The article explores how different types of governments like democracy, oligarchy, and dictatorship emerge in societies with unequal resources and weak political institutions. The type of government depends on how resources are distributed and the level of economic development. The study shows that there is a specific distribution of resources that leads to democracy, regardless of the development level, as long as the poor have a significant income share. However, certain resource distributions make democracy impossible, regardless of development level. Changes in inequality due to technological advancements, immigration, or demographic shifts can impact the stability of democracy. The findings align with the political changes seen in Germany after its unification in 1871.