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Theocracy is a state where the country and its people are ruled by a group of people who are believed to be guided by the almighty. Thus it implies that in a theoretical state the ruling body is chosen on religious basis. Democracy is however a completely different scenario. In a democratic state the governing body is chosen by a system of elections.  

However it is not so difficult to conclude that with the examples of theocratic countries such as Iran, theocracy as compared to democracy is not a very progressive form of government. It tends to curtail basic human rights and can be misleading in the name of religion. It has its advantages as well but they are few and there is no real positive effect.

Theocracy is a form of government in which a state is understood as governed by immediate divine guidance especially a state ruled by clergy, or by officials who are regarded as divinely guided.[1]

Israel operates under a parliamentary system as a democratic republic with universal suffrage.[10] However, Israel is frequently described as being a theocratic state.[11] Since Israel was founded by the Zionist movement as a Jewish state, and Judaism as a religion is often conflated Judaism as a nationality,[11] Israel can have the semblance of guiding theocratic principles in its government. Mitchell Bard writes:[11]