A Dictatorship means that the country is governed by a person who 'dictates' what the laws and policies of a country are, they have complete and unrestricted power. The citizens do not have a say in what happens in the country. There is no representation for or of the people with regards to laws and policies.
It derives from the word "Dictate" which roughly means (in this context) to lay down authoritatively - or to read or speak to.
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A dictator is a person excercising absolute power, especially one who assumes absolute power without benefit of hereditary right or the will of the people through public vote.