In this chapter, I use FSC to develop a theory of liberal democracy. The line of reasoning I follow is that the structure of liberal democracy is a more evolved, but not fundamentally different, version of the organizational form found in “primitive cooperation.” The greater sophistication of liberal democratic institutions can be understood as solutions to certain problems that would arise in such a more precarious scenario. In particular, this chapter focuses on political institutions. I argue that FSC can explain institutions such as the state, suffrage, federalism, and features of the political system like the separation of powers and checks and balances.