Theocracy can be both good and bad when it comes to the government. Theocracy is defined as being the rule that is governed by God or a set of certain religious beliefs. A theocratic government would be one that is ruled by a leader or leaders who are guided by their religious beliefs. Basically, religion is the number one ruler of the government.
Theocracy is good in the fact that there are usually certain morals that the leaders will live by because that is what they are taught in their beliefs. These sets of morals and religious beliefs will get passed on to the people under the rule. It can unify the people under that one belief as well. It places God above the rulers, therefore it can influence the people to seek God's will and live "good lives." It also gives more control to the rulers because people will not want to get on God's bad side by disobeying. It can make for more obedient people. Everyone also believes the same thing. This cuts back on a lot of confusion and debate about conflicting beliefs.
A theocratic government also has its drawbacks. People are forced to abide under the laws of God. They are also forced to believe the same thing. They lose their say in deciding what they believe is right and wrong. This in turn can cause debates about people not wanting to conform to this type of government. People who rebel against this type of government are rejected too. There is not much freedom under a theocratic government.