This passage is from Perikles' Funeral Oration in book 2.37 of Thucydides' "The Peloponnesian War". The speech was given at the end of the war's first year to praise those who had died fighting against Sparta. It is brilliant and is a magnificent example of the power and vitality of Attic Greek prose at its apex.

But it is also extremely complex, partly due to its structure, partly due to its ideas and partly due to the pecularities of Thucydides abstract style. It is very difficult if not impossible to fully capture in translation, since the ideas echo and build to an ultimate whole, where ambiguity of meaning and subtlety of language contributes to differing yet intimately connected interpretations that reveal an inherent contradiction.

Although posited as a defence of democracy, it holds that the Athenian form of goverment is also based on merit. The question is then who can achieve the level of merit necessary to be seen as legitimately holding power in the state? This seems to be answered when Perikles discusses 'worth' or 'ἀξίωσις'. We are told that poverty does not exclude a man from contributing to the whole as long as he is able to do something good for state. But even this does not mean he is or has 'ἀξίωσις'. Indeed it is his very ability to do something good for city, despite his lack of 'ἀξίωσις', that allows him to participate in public affairs, i.e. "ἀξιώματος ἀφανείᾳ κεκώλυται". Yet it is those who are or possess 'ἀξίωσις' that are prefered for rule: i.e. "κατὰ δὲ τὴν ἀξίωσιν ... τὸ πλέον ἐς τὰ κοινὰ ... προτιμᾶται". In short, it is a justification of what the ancients called a "mixed constitution" that blends elements of both democracy and aristocracy, or what Loraux has labelled an aristocratic legitimation of the Athenian democratic state.

This is my translation of the passage, more liberal than some, less so than others but certainly worse than most, if not all!

χρώμεθα γὰρ πολιτείᾳ οὐ ζηλούσῃ τοὺς τῶν πέλας νόμους, παράδειγμα δὲ μᾶλλον αὐτοὶ ὄντες τισὶν ἢ μιμούμενοι ἑτέρους. καὶ ὄνομα μὲν διὰ τὸ μὴ ἐς ὀλίγους ἀλλ᾽ ἐς πλείονας οἰκεῖν δημοκρατία κέκληται: μέτεστι δὲ κατὰ μὲν τοὺς νόμους πρὸς τὰ ἴδια διάφορα πᾶσι τὸ ἴσον, κατὰ δὲ τὴν ἀξίωσιν, ὡς ἕκαστος ἔν τῳ εὐδοκιμεῖ, οὐκ ἀπὸ μέρους τὸ πλέον ἐς τὰ κοινὰ ἢ ἀπ᾽ ἀρετῆς προτιμᾶται, οὐδ᾽ αὖ κατὰ πενίαν, ἔχων γέ τι ἀγαθὸν δρᾶσαι τὴν πόλιν, ἀξιώματος ἀφανείᾳ κεκώλυται.

ἐλευθέρως δὲ τά τε πρὸς τὸ κοινὸν πολιτεύομεν καὶ ἐς τὴν πρὸς ἀλλήλους τῶν καθ᾽ ἡμέραν ἐπιτηδευμάτων ὑποψίαν, οὐ δι᾽ ὀργῆς τὸν πέλας, εἰ καθ᾽ ἡδονήν τι δρᾷ, ἔχοντες, οὐδὲ ἀζημίους μέν, λυπηρὰς δὲ τῇ ὄψει ἀχθηδόνας προστιθέμενοι. ἀνεπαχθῶς δὲ τὰ ἴδια προσομιλοῦντες τὰ δημόσια διὰ δέος μάλιστα οὐ παρανομοῦμεν, τῶν τε αἰεὶ ἐν ἀρχῇ ὄντων ἀκροάσει καὶ τῶν νόμων, καὶ μάλιστα αὐτῶν ὅσοι τε ἐπ᾽ ὠφελίᾳ τῶν ἀδικουμένων κεῖνται καὶ ὅσοι ἄγραφοι ὄντες αἰσχύνην ὁμολογουμένην φέρουσιν.

ζηλόω: to rival, vie with, emulate.
πέλας: adv near, hard by
παράδειγ-μα , ατος,το: model, pattern, example.
οἰκέω: dwell, inhabit; to manage, direct a household or a state.
οἱ πλέονες the greater number, the mass or crowd.
Note that Pericles is not claiming that it is a democracy because the majority rule instead of the few, instead that governance is for the majority and not the few; a quite different justificatory claim for democratic order.
διάφορον, τό: substantive, difference, disagreement,
μέτεστί: impers., μέτεστί μοί τινος i.e. I have a share in or claim to a thing.
τὸ ἴσον: subject of μέτεστί: equality
ἀξίωσις: being thought worthy, one's reputation, character
εὐδοκιμέω: to be of good repute, to be held in esteem, honoured, famous, popular. εὐ. ἔν τινι to be distinguished in a thing.
μέρος: part, portion; lot, rank, share,heritage
προτιμάω: to honour; Pass., to be so preferred,
πλέον or τὸ πλέον τινός: comp.adv a higher degree of a thing
κοινός: the government, public authorities, common weal, the public
ἀφάνεια: obscurity, uncertainty
κωλύω: prevent
ἐπιτήδευμα: a pursuit, business, practice
ὑποψία: suspicion, jealousy
δρᾷ: 3rd sg pres ind act: to do
ἀζήμιος: free from further payment: without loss, harmless
ἀχθηδών: a weight, burden, vexation
λυπηρός: painful, distressing
ἀνεπαχθῶς: adv, without offence, not burdensome. Poetic for ἄχθος, εος, τὸ: burden, weight
προσομιλέω: to converse with, live, associate with
δημόσιον, ου, τό, the state, Latin: respublica.
ἀκρόασις: a hearing hearing, hearkening or listening to

We have a form of goverment that does not emulate the laws of our neighbouring states, instead we are the model for them, not their imitators. By name it is called a democracy because governance is not for the select but for the many. And although under our laws equality is there for all undertaking private disputes, it is in accord with reputation, as each man distinguishes himself in some pursuit, that he is prefered for public service, but not because of his rank/rotation but because of his excellence. Furthemore, if a man though poor is able to do something good for the city, he is not prevented because of the obscurity of his worth.

It is with openess that we engage in public matters and it is with tolerance that we respond to those jealousies arising from the daily activities of others. We do not become angry with a neighbour, if he does something that gives him pleasure, nor do we tend to open vexation, which although harmless, causes distress. Privately we converse with each other free of this burden, yet publicly we do not act lawlessly due to our restraint in obeying those who rule and the laws, particularly those laws established to protect those who have been wronged, which, although unwritten, neverthless carry acknowledged shame (when broken).