I'm at the point where I am adding dilemmas to democracy. Iv been arranging things like this:

Policies
These are things the player can create or destroy, and alter on a month by month basis, adjusting their effect. An example of this would be income tax.

Events
These are things that either happen suddenly, or are ongoing situations that are triggered by the simulation. The player cant create or destroy them, but over time through manuipulation of policy, he is able to encourage good events and bring bad ones to an end. An example would be A transport workers strike, Brain drain etc...

Dilemmas
Situations that arise which must be dealt with immeduiately. An example would be a hostage taking or a violent demonstration. The player has 2 options to deal with the dilemma, and each option will have repercussions. The dilemmas that occur are based on the decisions the player made before, and the state of the simulation.

Gradually the game is coming together... I still havent finalised an overall visual design yet...