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The Draconian Empire was the interstellar empire of the Draconians. It occupied one part of the Milky Way galaxy and the Earth Empire occupied another. There was a war between the two powers, ending with Articles of Peace that guaranteed a "frontier in space" between the two. Trade agreements and cultural exchanges were made to lessen tensions. In 2540, the Master, employing Ogrons, stirred up war between Earth and Draconia on behalf of the Daleks, but his plan was exposed. (TV: Frontier in Space)
Government
In theory the Draconian empire was an absolute monarchy with the emporer having the final say on all decisions. In reality the monarchy relied on the support of the nobles and it was rare but not unheard of for the nobles to overthrow an unpopular emporer. (Doctor Who and the Space War)