Every society–whether it be the U.S., Great Britain, North Korea, or a more tribal society like those found in Africa–there is some kind of government that rules over it. There are democracies, republics, dictatorships, monarchies, and even theocracies, but what kind of government you want to put in your world is entirely up to you.
For instance, in my novel Kingslayer there is an evil dictator that is in control; however, 24 years prior to this, there was a government in control that was a hybrid of a democracy and a monarchy (I call it a democratic monarchy). This is something neat that you can do in fantasy. You can take different ideas for governmental systems and mix them to get new types of systems.
You could have a monarchy where the kings are chosen by the church, and therefore have a hybrid of a theocracy and a monarchy, or you can just have the regular types of government and put a new spin on it. There really is no shortage of what you can do when you open your mind up to the fantastical.
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