1. Some persons have to take decisions on how to go about governmental activities. Others have to implement these decisions. If disputes arise on these decisions or in their implementation, there should be some one to determine what is right and what is wrong.
2. To attend to all these tasks, several arrangements are made in all modern democracies. Such arrangements are called institutions.
3. Governing a country involves various such activities. For example, the government is responsible for ensuring security to the citizens and providing facilities for education and health to all. It collects taxes and spends the money thus raised on administration, defense and development programmes. It formulates and implements several welfare schemes.