It's been a pretty long time since I played Civ2--my current PC won't even run it, I just traded up to IV and never looked back--but I do remember, first, that democracy's happiness penalties were crippling in wartime. Two crankies for every troop outside city limits meant you had to pay so much in luxuries and/or entertainers that the trade advantages were effectively negated (especially since martial law didn't work), and it doesn't sound like this fellow can afford the upkeep with his small cities. Given his food problems and the constant barrage of pollution, the pop-booming seems a questionable strategy. If those were fixed, of course, it might mean something. I also seem to recall that fundamentalism, communism and...republic, I think, shared the same WLT effect; they ALL turned you into a democracy in that city, with extra trade, no bribery and no corruption/waste. But it's been a while and, like I said, I can't access the game anymore.