What does meritocracy mean?

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From our dictionary:

mer•i•toc•ra•cy

Pronunciation: (mer"i-tok'ru-sE), [key]
n.,
pl. -cies.

1. an elite group of people whose progress is based on ability and talent rather than on class privilege or wealth.
2. a system in which such persons are rewarded and advanced: The dean believes the educational system should be a meritocracy.
3. leadership by able and talented persons.