Rawls idea of democratic equality was founded on two basic principles: justice as fairness, or basic equal rights for all, and fair equality of opportunity, or establishment of basic social and natural equality. The difference principle, which is included in the second principle derived, provides a solution to natural and social inherited positions by ensuring that any decision benefits the least well off in society. These principles arose through a careful examination of a thought experiment performed under the so-called ‘veil of ignorance’, in which the members of society know practically nothing about themselves or one another and are forced to agree upon basic rules for society.

Democratic equality is an ideal of society as a system of fair cooperation between free and equal persons. This ideal implies,

1. First, political equality; the laws of society should be generated by a process that treats all citizens as equal sources of political authority.
2. Second, personal freedom; all citizens should be free to define and pursue their own conception of the good life.
3. Third, rules that ensure a fair distribution of the benefits and burdens of cooperation.
4. Fourth, and linked to the fairness requirement, the idea of democratic reciprocity; the terms of cooperation should be agreeable to all citizens as free and equal persons.

Rawls argues that three principles of justice and attendant priority rules together express and specify the normative requirements of democratic equality. In order of priority, these are the principles of equal basic rights, fair equality of opportunity, and the difference principle.

Rawls’s argument against welfare -state capitalism offers three distinct theses:

1. Welfare-state capitalism does not guarantee the fair value of the political liberties.
2. Welfare-state capitalism does not do enough to secure fair equality of opportunity.
3. Welfare-state capitalism does not satisfy the requirement of reciprocity appropriate to a democratic society.

The truth of any one of these would establish that welfare-state capitalism cannot satisfy the demands of democratic equality.

Fair equality of opportunity requires that “those who are at the same level of talent and ability, and have the same willingness to use them, should have the same prospects of success regardless of their initial place in the social system.

In Rawls’s theory of justice, individuals have to make a choice of social order. They would naturally prefer an egalitarian society. His theory grants equal basic liberties for all. Inequalities should be attached to offices open to all. They should benefit the disadvantaged section the most.

The constitutional or institutional obligations induce a man to perform some duties which ensure the realisation of justice. The performance of institutional duties enables an individual to manage a democratic society and furtherance of general welfare. We, therefore, conclude that the obligations with a strong emphasis on its nature, institutional arrangement and to actively cooperate with the duties made by the institution or any other official declaration are included into the fairness principle.