An oligarchy is a form of governance where power resides in the hands of a small group of individuals or families, often based on wealth, social status, or political influence. This concentration of power enables oligarchs to make decisions that benefit their interests, potentially at the expense of the broader populace. Oligarchies can arise within democratic systems where elites manipulate political processes to maintain control, thereby undermining true democratic representation. This governance structure can lead to increasing inequality and social unrest, as the majority may feel disenfranchised and excluded from political decision-making.