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In an oligarchy power lies in the hands of a few powerful clans or families. When a new government leader has to be appointed, they usually meet informally and together decide which member of which family will "represent' them as government leader. Sometimes instead of a family member, a trusted 'client' of the families will be chosen to rule for them.

If there is a Parliament, it usually is one of the rubber stamp-variety and they will formally confirm the choice of candidate.

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