Islam caliphate system is more like early version of democracy. Abu Bakar was surely elected by the people (Madinah), there was huge debate on who should be the leader after prophet Muhammad passed away. I have read Abu Bakar biography written by famous Egyptian historian, Muhammad Haikal
It is just a different name, the principle is more like democracy. But the system still have deficiency, understandable since it is not fully developed, it is why Muslim during Ali bin Abi Thalib get divided and make a war with each other that weaken Ali and then give more room for Muawiyah to rebel.
Democracy is very Islamic in nature as political system since there is verse in Quran advocating believers to solve their dispute through consultation.
As Shura: Verse 38
"Those who hearken to their Lord, and establish regular Prayer; who (conduct) their affairs by
mutual consultation among themselves; who spend out of what We bestow on them for Sustenance" [are praised]
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- The 159th verse of 3rd Sura orders Muhammad to consult with believers. The verse makes a direct reference to those (Muslims) who disobeyed Muhammad, indicating that ordinary, fallible Muslims should be consulted. The Qur'an says:
Thus it is due to mercy from God that you deal with them gently, and had you been rough, hard hearted, they would certainly have dispersed from around you; pardon them therefore and ask pardon for them, and
take counsel with them in the affair; so when you have decided, then place your trust in God; surely God loves those who trust.
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