Power sharing is good because it helps reduce the possibility of conflict between social groups. Since social conflict often leads to violence and political instability, power sharing is a good way to ensure the stability of the political order. Imposing the will of majority community over others may look like an attractive option in the short run, but in the long run it undermines the unity of the nation. Tyranny of the majority is not just oppressive for the minority; it often brings ruin to the majority as well.

There is a deeper reason why power sharing is good for democracies. Power sharing is the very spirit of democracy. A democratic rule involves sharing power with those affected by its exercise, and who have a right to be governed by a legitimate government where citizens, through participation, acquire a stake in the system.

Let us call the first set of reasons prudential and the second moral. While prudential reasons stress that power sharing will bring out better outcomes, moral reason emphasises the very act of power sharing as valuable.

The idea of power sharing has emerged in opposition to the notions of undivided political power. For a long time it was believed that all power of a government must reside on one person or group of persons located at one place. It was felt that if the power to decide is dispersed, it would not be possible to take quick decisions and to enforce them. But these notions have changed with the emergence of democracy in which the people are the source of all political power. In a democracy, people rule themselves through institutions of self-governance. In a good democratic government, due respect is given to diverse groups and views that exist in a society. Everyone has a voice in the shaping of public policies. Therefore, it follows that in a democracy political power should be distributed among as many citizens as possible.

In modern democracies, power sharing arrangements can take many forms. Power is shared among different organs of the government, such as the legislature, executive and judiciary. Power can be shared among governments at different levels - a general government for the entire country or federal government and governments at the provincial or regional level. Power may also be shared among different social groups such as “Community government” in Belgium, which is a good example of such an arrangement.