Especially during the rule of the Prophet Muhammad and first four caliphs (632-661) who followed him, the fundamental principles of government mentioned above — including free elections — were fully observed. Important essentials of a just and free society such as rule of law, freedom of speech and religion, equal opportunity for all and guaranteeing minority rights were all realised at the time of the Prophet and during the decades after him.

There are many examples from this early period to illustrate these claims. The second caliph Omar, for example, had to withdraw a government decision after he announced it publicly in the mosque^[31] when a woman objected to it citing proof from the Qur'an. This example shows that there was absolute freedom of speech in that an average citizen could freely oppose the leader of the Muslim state^[32] without the fear of retribution. What is more, a simple but rightful argument of a woman is sufficient to reverse a decision of the government. This example also shows that women could enter and speak within a mosque – a right that women in many other societies did not have.

There is also the example of the fourth Caliph Ali, who took a Jewish citizen to court with the accusation of theft, but lost the trial. All of these astonishing behaviours and a high level of civil empowerment were revolutionary for the world of 7^th century CE and even more advanced than today's standards.

After the fourth Caliph, Ali, the political system lapsed into the hands of a dynasty, which was the global norm at the time. Unlike in the Caliphate, power in the dynasties was passed on through the caliph's family. Perhaps, as Islam grew rapidly in the world, for the majority of new people who were not used to such democratic ways of electing a leader, monarchy provided greater stability at the top. Even though free elections were no longer held, government and society maintained other principles that are at the core of today's liberal democracy.

Considering the discussion so far and the status of countries where there are majority Muslim populations, one could easily conclude that the ideal principles of government stipulated by Islam are not fully functional. The countries with an 'Islamic' label in their name do not really deserve to have such an attribute as they are far from implementing the key principles of Islam pertaining to social organisation. In fact, at no time in Muslim history a label such as 'Islamic' or 'Muslim' were used in the name of a state. Therefore, there is no country on earth, at the moment, which can be shown to be a good example of an ideal Muslim state.

A country can not be labelled 'Islamic' only through the application of certain laws based on the Qur'an or declaring that they are implementing the Sharia. When a certain group, usually an extreme one such as the Taliban, comes into power, they feel pressured to show that they have implemented Islam and hence some of the laws are put into implementation immediately. In actual fact, the society described by the Qur'an and the successful one established by the Prophet with all of its key institutions and maturity of people can only develop progressively over time following in a carefully planned strategy. Putting the external interferences aside, trials to form an 'Islamic' state such as the Taliban rule in Afghanistan or Shiite theocratic rule in Iran were almost doomed to fail from the start not because of Islam but because of rulers incompetence and flaws in their implementation.

So, if democracy and democratic principles are in the spirit of Islam, why do some Muslims object to it and why are Muslims unable to establish proper states? The answer to this question lies in recent world and Muslim history, which I will discuss in the next chapter.

[31] In the early Muslim society of Medina, the mosque was the only public building. Since most people attended the daily prayers, it was convenient to make public consultations and announcements at the mosque.

[32] At the time of Caliph Omar, the Muslim State was one of the largest and most powerful in the world. It spanned across all of Middle East from Egypt to Iran and Syria to Indian Ocean coast of the Arabian Peninsula.