In his first major speech since taking up his cabinet post, the Liberal Democrat leader said that the new government is planning the biggest shake-up of British democracy since the Great Reform Act on 1832 extended the franchise beyond the landed classes.
His wide-ranging programme touched on reform on the libel laws, the replacement of the House of Lords with an elected chamber chosen using a proportional voting system and allowing the public to nominate unpopular laws to be struck down.
Mr Clegg said that Whitehall will "radically distribute power away from the centre" to give local authorities, communities and individuals greater powers.
As part of this plan, the government will scrap unelected quangos and give councils a greater hand in how they spend public money so services can be tailored to the needs of their particular area.
The deputy prime minister also said that the new coalition will look at options for strengthening devolution in Scotland, Wales and Northern Ireland.
Earlier this month, the government appointed Conservative MP Greg Clark as its new minister with responsibility for decentralisation.