SUMMARY
It is necessary to clearly separate the functions of the state from those of the settlement. The definition of “democracy” should not do without the definition of “self-government”. A true self-government is an association of owners of the given territory, within the boundaries of the settlement. These owners are to govern in this territory. The government in the person of federal and regional officials should be a defender of one’s rights, including the rights of property.The whole system of power, both local and state, should be an infrastructure serving for the citizen. But we do not adhere to the position of self-government as the main principle of power, still keeping to autocracy, its main contraposition. The Constitution of the Russian Federation defines the state as a bearer of law and order, giving the municipalities the right and the obligation to represent the citizens’ public interests. So the legislation excludes the direct participation in entrepreneurship for both of them. Violation of this principle inevitably leads to the system corruption. The state official should always remember that he is not appointed to dispose of the property of settlements and individuals as he thinks fit. He should be aware that he is to consider the matters of order. This order, defined by Russian national consciousness as justice, should be supported by the state. And the municipal deputies and officials should remember that they are the executors of the citizens’ will.