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Oligarchy

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Not to be confused withOligopoly,a type of market structure which is controlled by a small number of firms.

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Oligarchy(fromAncient Greekὀλιγαρχία(oligarkhía)'rule by few'; fromὀλίγος(olígos)'few', andἄρχω(árkhō)'to rule, command')[1][2][3]is a conceptual form ofpower structurein whichpowerrests with a small number of people. These people may or may not be distinguished by one or several characteristics, such asnobility,fame, wealth, education, or corporate, religious, political, or military control.

Throughout history, power structures considered to be oligarchies have often been viewed as coercive, relying on public obedience or oppression to exist.Aristotlepioneered the use of the term as meaning rule by the rich, contrasting it witharistocracy,arguing that oligarchy was the perverted form of aristocracy.[4]

Minority rule[edit]

Main article:Minoritarianism

The exclusive consolidation of power by adominant religious or ethnic minorityhas also been described as a form of oligarchy.[5]Examples of this system include South Africa underapartheid,Liberia underAmerico-Liberians,theSultanate of Zanzibar,andRhodesia,where the installation of oligarchic rule by the descendants of foreign settlers was primarily regarded as a legacy of various forms ofcolonialism.[5]In the early 20th centuryRobert Michelsre-articulated the Aristotelean andRousseauviantheory that democracies, like all large organizations, tend to turn into oligarchies. In his "Iron law of oligarchy"he suggests that the necessary division of labor in large organizations leads to the establishment of a ruling class mostly concerned with protecting their own power.

Putative oligarchies[edit]

A business group might be defined as an oligarchy if it satisfies all of the following conditions:

  • Owners are the largest private owners in the country.
  • It possesses sufficient political power to promote its own interests.
  • Owners control multiple businesses, which intensively coordinate their activities.[6]

Intellectual oligarchies[edit]

George Bernard Shawdefined in his playMajor Barbara,premiered in 1905 and first published in 1907, a new type of oligarchy, namely the intellectual oligarchy that acts against the interests of the common people: "I now want to give the common man weapons against the intellectual man. I love the common people. I want to arm them against the lawyer, the doctor, the priest, the literary man, the professor, the artist, and the politician, who, once in authority, is the most dangerous, disastrous, and tyrannical of all the fools, rascals, and impostors. I want a democratic power strong enough to force the intellectual oligarchy to use its genius for the general good or else perish."[7]

Cases perceived as oligarchies[edit]

Jeffrey A. WintersandBenjamin I. Pagehave described Colombia, Indonesia, Russia, Singapore, Canada and the United States as oligarchies.[8]

The Philippines[edit]

Main article:Monopolies in the Philippines (1965–1986)

During thepresidencyofFerdinand Marcosfrom 1965 to 1986, severalmonopoliesarose in the Philippines, particularly centered around thefamilyandclose associates of the president.This period, as well as subsequent decades, have led some analysts to describe the country as an oligarchy.[9][10][11][12]

PresidentRodrigo Duterte,who was elected in 2016, spoke of dismantling oligarchy during his presidency.[13][12]Nonetheless, corporate oligarchy remained throughout his presidency and his tirades against oligarchy proved to be selective. Although Duterte vented harsh rhetoric against prominent tycoons such as theAyalasandManny Pangilinan,corporate oligarchs who were friends and allies of Duterte such asDennis Uy,chairman and CEO ofUdenna Corporationbenefited under theDuterte presidency.[14]

Russian Federation[edit]

Main article:Russian oligarchs

Sincethe collapse of the Soviet Unionand thePrivatizationof the economy in December 1991. Privately owned, Russia-basedmultinational corporationsincluding: producers of petroleum, natural gas and metal have, in the view of many analysts, led to the rise ofRussian oligarchs.[15]Most of these are directly connected to the highest-ranking of government officials i.e thepresident.

Iran[edit]

Main articles:KhomeinismandVelayat-e-faqih

The religious government of Iran, formed after the 1979Iranian revolution,is described as a clerical oligarchy, led by a coalition of militantKhomeinistideologues and fundamentalistShiaclergy. The ruling system, led by clerical oligarchs, is known as "Velayat e-Faqih",i.e., governance by a class ofTwelver Shiamarjadesignated with the title of "Ayatollah".The highest ranking Shia cleric in the political system is the"Rahbar"(Supreme Leader) who serves for life and is considered to be" protector of the faith "in Khomeinist theology. The clerical oligarchs supervise the activities of the parliament and controls the armed forces, state media, sectors of the national economy and religious funds. TheRahbaris also the military chief of theIranian Armed Forcesand directly controls the conglomerate of Khomeinist paramilitaries known as theIRGC.[16][17]

Ukraine[edit]

Main article:Ukrainian oligarchs

The Ukrainian oligarchs are a group ofbusiness oligarchsthat quickly appeared on the economic and political scene of Ukraine after its independence in 1991. Overall there are 35 oligarchic groups.[6]

On 23 September 2021 the Ukrainian government released law No. 1780-ІХ which is primarily focused on protecting national interest and limiting the oligarchs' impact on democracy in Ukraine.

United States[edit]

Further information:Income inequality in the United States § Democracy and society,andPolitics of the United States § Concerns about oligarchy
The Bosses of the Senate,corporate interestsas giant money bags looming oversenators[18]

Some contemporary authors have characterized conditions in the United States in the 21st century as oligarchic in nature.[19][20]Simon Johnsonwrote in 2009 that "the reemergence of an American financial oligarchy is quite recent", a structure which he delineated as being the "most advanced" in the world.[21]Jeffrey A. Winterswrote that "oligarchy and democracy operate within a single system, and American politics is a daily display of their interplay."[22]The top 1% of the U.S. population by wealth in 2007 had a larger share of total income than at any time since 1928.[23]In 2011, according toPolitiFactand others, the top 400 wealthiest Americans "have more wealth than half of all Americans combined."[24][25][26][27]

In 1998,Bob HerbertofThe New York Timesreferred to modern American plutocrats as "The Donor Class"[28][29](list of top donors)[30]and defined the class, for the first time,[31]as "a tiny group—just one-quarter of 1 percent of the population—and it is not representative of the rest of the nation. But its money buys plenty of access."[28]

French economistThomas Pikettystates in his 2013 book,Capital in the Twenty-First Century,that "the risk of a drift towards oligarchy is real and gives little reason for optimism about where the United States is headed."[32]

A 2014 study by political scientists Martin Gilens ofPrinceton UniversityandBenjamin PageofNorthwestern Universitystated that "majorities of the American public actually have little influence over the policies our government adopts."[33]The study analyzed nearly 1,800 policies enacted by the US government between 1981 and 2002 and compared them to the expressed preferences of the American public as opposed to wealthy Americans and large special interest groups.[34]It found that wealthy individuals and organizations representing business interests have substantial political influence, while average citizens and mass-based interest groups have little to none. The study did concede that "Americans do enjoy many features central to democratic governance, such asregular elections,freedom of speechandassociation,and a widespread (if still contested)franchise."Gilens and Page do not characterize the US as an" oligarchy "per se; however, they do apply the concept of" civil oligarchy "as used byJeffrey Winterswith respect to the US. Winters has posited a comparative theory of "oligarchy" in which the wealthiest citizens—even in a "civil oligarchy" like the United States—dominate policy concerning crucial issues of wealth- and income protection.[35]

Gilens says that average citizens only get what they want if wealthy Americans and business-oriented interest groups also want it; and that when a policy favored by the majority of the American public is implemented, it is usually because the economic elites did not oppose it.[36]Other studies have criticized the Page and Gilens study.[37][38][39][40]Page and Gilens have defended their study from criticism.[40]

In a 2015 interview, former PresidentJimmy Carterstated that the United States is now "an oligarchy with unlimited political bribery" due to theCitizens United v. FECruling which effectively removed limits on donations to political candidates.[41]Wall Streetspent a record $2 billion trying to influence the2016 United States presidential election.[42][43]

China[edit]

Since 1950, China has been considered an oligarchy.[44]

See also[edit]

References[edit]

  1. ^"ὀλίγος",Henry George Liddell, Robert Scott,A Greek–English Lexicon,on Perseus Digital Library
  2. ^"ἄρχω",Liddell/Scott.
  3. ^"ὀλιγαρχία".Liddell/Scott.
  4. ^Winters (2011) pp. 26–28. "Aristotle writes that 'oligarchy is when men of property have the government in their hands... wherever men rule by reason of their wealth, whether they be few or many, that is an oligarchy, and where the poor rule, that is a democracy'."
  5. ^abColeman, James; Rosberg, Carl (1966).Political Parties and National Integration in Tropical Africa.Los Angeles:University of California Press.pp.681–683.ISBN978-0520002531.
  6. ^abChernenko, Demid (2018)."Capital structure and oligarch ownership"(PDF).Economic Change and Restructuring.52(4): 383–411.doi:10.1007/S10644-018-9226-9.S2CID56232563.
  7. ^Shaw, Bernard und Baziyan, Vitaly. 2-in-1: English-German. Major Barbara & Major in Barbara. New York, 2020,ISBN979-8692881076
  8. ^Winters, Jeffrey;Page, Benjamin(2009)."Oligarchy in the United States?".Perspectives on Politics.7(4) (published December 2009): 731–751.doi:10.1017/S1537592709991770.S2CID144432999.Retrieved12 March2022.the concept of oligarchy can be fruitfully applied not only to places like Singapore, Colombia, Russia, and Indonesia, but also to the contemporary United States.
  9. ^Hutchcroft, Paul D. (April 1991)."Oligarchs and Cronies in the Philippine State the Politics of Patrimonial Plunder".World Politics.43(3): 414–450.doi:10.2307/2010401.ISSN1086-3338.JSTOR2010401.S2CID154855272.
  10. ^Mendoza, Ronald U.; Bulaong, Oscar Jr.; Mendoza, Gabrielle Ann S. (1 February 2022). "Cronyism, Oligarchy and Governance in the Philippines: 1970s vs 2020s".SSRN4032259.
  11. ^Quimpo, Nathan Gilbert (2015),"Can the Philippines' wild oligarchy be tamed?",Routledge Handbook of Southeast Asian Democratization,Routledge, pp. 347–362,doi:10.4324/9781315674735-30,ISBN978-1-315-67473-5,retrieved15 May2022
  12. ^ab"Explainer: The oligarchy in the Philippines is more than just one family or firm".Philstar.com.Retrieved15 May2022.
  13. ^Ruth Abbey Gita-Carlos."Duterte takes pride in dismantling oligarchy".Philippine News Agency.Retrieved15 May2022.
  14. ^Esmael, Lisbet (29 June 2022)."Businesses under Duterte administration: Who gained, who got hurt?".CNN Philippines.Archived fromthe originalon 28 September 2023.Retrieved19 September2023.
  15. ^Scheidel, Walter(2017).The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century.Princeton University Press.pp.51&222–223.ISBN978-0691165028.
  16. ^Kazemzadeh, Masoud (2020).Iran's Foreign Policy: Elite Factionalism, Ideology, the Nuclear Weapons Program, and the United States.New York: Routledge. pp. 1–19.ISBN978-0-367-49545-9.
  17. ^Amuzager, Jahangir (2014).The Islamic Republic of Iran: Reflections on an Emerging Economy.New York: Routledge. pp. 48–50, 88–89.ISBN978-1-85743-748-5.
  18. ^Joseph Keppler,Puck(January 23, 1889)
  19. ^Kroll, Andy (2 December 2010)."The New American Oligarchy".TomDispatch.Truthout.Archived fromthe originalon 22 January 2012.Retrieved17 August2012.
  20. ^Starr, Paul (24 August 2012)."America on the Brink of Oligarchy".The New Republic.
  21. ^Johnson, Simon(May 2009)."The Quiet Coup".The Atlantic.Retrieved17 August2012.
  22. ^Winters, Jeffrey A. (November–December 2011) [28 September 2011]."Oligarchy and Democracy".The American Interest.7(2).Retrieved17 August2012.
  23. ^"Tax Data Show Richest 1 Percent Took a Hit in 2008, But Income Remained Highly Concentrated at the Top. Recent Gains of Bottom 90 Percent Wiped Out".Center on Budget and Policy Priorities.25 May 2011.Retrieved30 May2014.
  24. ^Kertscher, Tom; Borowski, Greg (10 March 2011)."The Truth-O-Meter Says:True– Michael Moore says 400 Americans have more wealth than half of all Americans combined ".PolitiFact.Retrieved11 August2013.
  25. ^Moore, Michael(6 March 2011)."America Is Not Broke".Huffington Post.Retrieved11 August2013.
  26. ^Moore, Michael(7 March 2011)."The Forbes 400 vs. Everybody Else".michaelmoore.com.Archived fromthe originalon 9 March 2011.Retrieved28 August2014.
  27. ^Pepitone, Julianne (22 September 2010)."Forbes 400: The super-rich get richer".CNN.Retrieved11 August2013.
  28. ^abHerbert, Bob(19 July 1998)."The Donor Class".The New York Times.Retrieved10 March2016.
  29. ^Confessore, Nicholas; Cohen, Sarah; Yourish, Karen (10 October 2015)."The Families Funding the 2016 Presidential Election".The New York Times.Retrieved10 March2016.
  30. ^Lichtblau, Eric; Confessore, Nicholas (10 October 2015)."From Fracking to Finance, a Torrent of Campaign Cash – Top Donors List".The New York Times.Retrieved11 March2016.
  31. ^McCutcheon, Chuck (26 December 2014)."Why the 'donor class' matters, especially in the GOP presidential scrum"."The Christian Science Monitor.Retrieved10 March2016.
  32. ^Piketty, Thomas(2014).Capital in the Twenty-First Century.Belknap Press.ISBN067443000Xp. 514
  33. ^Gilens, Martin & Page, Benjamin I. (2014)."Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens".Perspectives on Politics.12(3): 564–581.doi:10.1017/S1537592714001595.
  34. ^"Major Study Finds The US Is An Oligarchy".businessinsider.com.
  35. ^Gilens & Page (2014) p. 6
  36. ^Prokop, A. (18 April 2014)"The new study about oligarchy that's blowing up the Internet, explained"Vox
  37. ^Bashir, Omar S. (1 October 2015)."Testing Inferences about American Politics: A Review of the" Oligarchy "Result".Research & Politics.2(4): 2053168015608896.doi:10.1177/2053168015608896.ISSN2053-1680.
  38. ^Enns, Peter K. (1 December 2015). "Relative Policy Support and Coincidental Representation".Perspectives on Politics.13(4): 1053–1064.doi:10.1017/S1537592715002315.ISSN1541-0986.S2CID14664012.
  39. ^Enns, Peter K. (1 December 2015). "Reconsidering the Middle: A Reply to Martin Gilens".Perspectives on Politics.13(4): 1072–1074.doi:10.1017/S1537592715002339.ISSN1541-0986.S2CID148467972.
  40. ^abMatthews, Dylan (9 May 2016)."Remember that study saying America is an oligarchy? 3 rebuttals say it's wrong".Vox.Retrieved10 November2021.
  41. ^Kreps, Daniel (31 July 2015)."Jimmy Carter: U.S. Is an 'Oligarchy With Unlimited Political Bribery'".Rolling Stone.
  42. ^"Wall Street spends record $2bn on US election lobbying".Financial Times.8 March 2017. Archived fromthe originalon 10 December 2022.
  43. ^"Wall Street Spent $2 Billion Trying to Influence the 2016 Election".Fortune.8 March 2017.
  44. ^"Oligarchy".education.nationalgeographic.org.National Geographic.Retrieved21 July2023.

Further reading[edit]

External links[edit]

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