Brother Shikamaru mentioned Athenian democracy. Solon is often credited as laying the foundation of Athenian democracy.
http://en.m.wikipedia.org/wiki/Solon
From my research, Solon was a student in ancient Egypt (Kamit).
However, I have found no evidence that the form of governance in ancient Kamit was "democratic".
Another person often mention in this context is Pericles.
http://en.m.wikipedia.org/wiki/Pericles
If we are going to talk about 'Federations' in this discussion here is the OLDEST on record.
http://www.moorsgate.com/2008/07/09...elestial-ship-of-the-north-and-al-khem-muria/