The elementary, liberal form of democracy has been criticized for being purely political, predominantly representative, centralistic, involving struggle for power among oligarchic political parties, maintaining professional politics and domination of wealthy classes. A more rational and radical form, the council democracy, is projected as a historically possible and better alternative. It extends democratic principles to economy and culture, combines direct participation with representation, replaces centralism with federalism, develops political pluralism without ruling parties, deprofessionalizes politics, and dismantles any monopoly of power. In the light of existing historical experiences the structure of council-democracy is analyzed, possible solutions of crucial practical problems indicated, and different strategies of its realization are examined.