By Daniel Archibald | CFA
The state of global politics has been relatively volatile over the past decade. From uprisings in the Arab world to Brexit and Trump, the state of affairs for the world's ruling classes has been turned upside down in multiple regions across the world. Clashes of idealogies, both internally and externally, have continued to rise regardless of a nation's wealth or its success in dealing with the current pandemic. The question of who ultimately decides the fates of the citizens of countries, which often drifts into the realm of conspiracy theory, is vital in understanding the past and future trajectory of the world.
Democracy vs Autocracy vs Oligarchy
One way in which to view government is by looking at how power is created. One of the oldest forms of government - rule by Kings and Queens - is an autocracy. Here, one person holds the power of government; a power usually bestowed based on lineage. Most evolved monarchies in today's world hold little ruling power, but there are still a number of absolute monarchs and dictatorships in existence.
This is opposite to a democracy, in which the government is elected for and by the citizenry. Most countries around the world might consider themselves to fit into this democratic bucket - having its nation's leaders acting on behalf of the collective voice of the people. However, there have been numerous examples over the years of tainted elections around the world that have led to autocratic rule in sheep's clothing. One way around this is a government in the form of a demarchy, in which citizens are randomly selected to fill seats of power (only real example of this is ancient Athens).
The other main type of government is an oligarchy, which is where a country is run by a relatively small group. Most of today's governments might best be described as a confluence of oligarchies, as opposed to being strictly autocratic or democratic. Rather than power being vested in one (autocracy) or all (democracy), power is often distributed amongst a select few.
Who rules?
There are many different groups within society that might take control of a nation's affairs for a time being. Different forms of oligarchies include:
- Theocracy - Government is led by religious leaders
- Aristocracy - This is rule by wealthy, multi-generational families
- Plutocracy - Where power is held by the rich (aristocrats and industry leaders)
- Stratocracy - Rule by military forces
- Technocracy - Governed by the skilled and intellectual
- Meritocracy - Rulers chosen based on merit or other achievements
- Noocracy - Power given to philosophers and leader thinkers
- Corporotocracy - Executive decisions at the behest of company interests
- Ergatrocacy - Government by the working class
- Gerontocracy - Rule by the elderly
Australia, like many of its peers, is likely to have some of the above influences limiting its purely democratic process. This might be in the louder voice afforded to those with wealth, the lobbying power of corporate interests or even the growing distribution of power to older generations (e.g. median age of Australians has risen from 27 to 37 over the past 50 years). Non-democratic risk controls, such as the separation of church and state, anti-corruption measures and compulsory voting should help Australia stay well away from the autocratic end of the spectrum. But as has been seen throughout history, where these controls fail, revolution and anarchy (rule by none) might start to become a possibility.