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 democracy is more likely when resources are fairly distributed, regardless of the level of development. However, if resources are highly unequal, democracy may not be sustainable. Changes in inequality due to factors like technology, immigration, or demographics can also impact the stability of democracy. The research is based on historical events in Germany after its unification in 1871.