This paper develops a theory of how democratic governance is possible. It analyses democracy as a laminated system consisting of three interdependent levels – the political/institutional, the social/interactional, and the psychological/intrapsychic – each of which is necessary for the others to exist. Each level is subject to a regulatory principle that is necessary for it to function appropriately. At the political/institutional level, competing political parties must be governed by the regulatory principle of ‘loser’s consent,’ in which the losing party must (...) agree to cede power to the winning party. At the social/interactional level individuals from opposing political parties must be governed by the regulatory principle of a superordinate identity as citizen, which allows them to transcend their partisan political identities. At the psychological/intrapsychic level individuals must be governed by the regulatory principle of mutuality/thirdness which allows the possibility of an alternative to the binary identities that result from the doer/done-to position. (shrink)