This chapter marks the starting point of our investigation of actual policy solutions to tackle armed conflict. When a doctor has reached her diagnosis, she must then decide on the right medication to administer. Similarly, while economists started by studying the drivers of political violence, in recent years increasing efforts have been made to understand how to cut the Gordian knot of conflict. As argued in this chapter, a first-order factor is the institutional environment, and in particular the need to give a voice to all citizens and groups in society. Democracy is desirable, but without proper safeguards it can have a dark side and result in blood being spilt. Furthermore, the type of democracy and the provisions of sharing power between groups matter. Closer inspection of local-level power-sharing in Northern Ireland, the building of modern Switzerland after its civil war in 1847, the difficulties for current democratization in Iraq and the franchise extension during the British Age of Reform drive this discussion forward.