The notion of democracy has evolved over time and nowadays is commonly understood to be a gradient, encompassing a number of democratic indicators in addition to free and fair elections: freedom of press, freedom of assembly, respect for the individual, civil rights... There are a number of 'democratic indexes' like the Freedom in the World index by Freedom House and The Economist's Democracy Index. A contry can score low even if technically its citizens are able to vote. You can read more about democracy in an excellent book by Bernard Crick, 'Democracy: A Very Short Introduction' (2002), by Oxford University Press.
The biggest trick ever played by the ruling elite was convincing people that private property rights and capitalism were somehow related to and necessary for democracy. Democracy should be that power comes from the people, but wealth creates unaccountable power structures that have far more power over the lives of most people then any government.
