Islam and Democracy?

From an interview with Salman Rushdie:

Reason: Where does this leave us on the question of democratic reform in Islamic countries? Do you think that Islam lacks a crucial piece to build a foundation for freedom?

Rushdie: What it has is an extra piece that believes that religion can be the foundation for a state. It's a question of removing that piece rather than adding something. There have been various moments in the history of Pakistan when attempts to Islamize the country were resisted strongly by both generals and civilian governments. It's not inevitable that a country full of Muslims will seek to Islamize its structures. But I do think there is a need for a widespread realization among Muslims that you cannot build a state based on religion. Pakistan is proof of that. Here was a state that was built on religion, but a quarter of a century after it was founded it fell apart, because the glue is not strong enough.