Actually, religion is one of the most powerful tool by megalomaniacs of the past to unify people. Unfortunately, this has almost aways been misused for selfish reasons. Hence, it has almost always resulted in bloody wars, crusades, jihads and the like.
Theocratic rule has been an old tool for mankind to unify others but since the dawn of modern democracy and socialism, such a often-misused method has fallen out of style in favor of nationalism, revolution and racial supremacy. So, it is also the dawn of world wars. Hence, you will find nowhere else theocracy still in living practice as much as in Tibet. Even when the country is lost, the people still hold such strong allegiance to the Dalai Lama.
Even, he has been trying to instill modern democratic practices but his bigger view of things takes precedence. He is foregoing democracy to suppress Dorje Shugden so it will go big. So more people will enter the Dharma because of Dorje Shugden. So, he is using all his political might to push for this as his time in this life is coming to a close soon...