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Oligarchy (from Ancient Greek ὀλιγαρχία (oligarkhía) 'rule by few'; from ὀλίγος (olígos) 'few' and ἄρχω (árkhō) 'to rule, command')[1][2][3] is a conceptual form of power structure in which power rests with a small number of people. These people may or may not be distinguished by one or several characteristics, such as nobility, 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. Aristotle pioneered the use of the term as meaning rule by the rich, contrasting it with aristocracy, arguing that oligarchy was the perverted form of aristocracy.[4]
The consolidation of power by a dominant religious or ethnic minority can be considered a form of oligarchy.[5] Examples include South Africa during apartheid, Liberia under Americo-Liberians, the Sultanate of Zanzibar[citation needed], and Rhodesia. In these cases, oligarchic rule was often tied to the legacy of colonialism.[5]
In the early 20th century, Robert Michels expanded on this idea in his Iron Law of Oligarchy He argued that even democracies, like all large organizations, tend to become oligarchic due to the necessity of dividing labor, which ultimately results in a ruling class focused on maintaining its power.
Business groups may be considered oligarchies if they meet the following criteria:
George Bernard Shaw coined the concept of an intellectual oligarchy in his play Major Barbara (1907). In the play, Shaw criticizes the control of society by intellectual elites and expresses a desire for the empowerment of the common people:[7]
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.
Jeffrey A. Winters and Benjamin I. Page have described Colombia, Indonesia, Russia, Singapore and the United States as oligarchies.[8]
During the presidency of Ferdinand Marcos from 1965 to 1986, several monopolies arose in the Philippines, primarily linked to the Marcos family and their close associates. Analysts have described this period, and even subsequent decades, as an era of oligarchy in the Philippines.[9][10][11][12]
President Rodrigo Duterte, elected in 2016, promised to dismantle the oligarchy during his presidency.[13][12] However, corporate oligarchy persisted throughout his tenure. While Duterte criticized prominent tycoons such as the Ayalas and Manny Pangilinan, corporate figures allied with Duterte, including Dennis Uy of Udenna Corporation, benefitted during his administration.[14]
Since the dissolution of the Soviet Union in 1991 and the subsequent privatization of state-owned assets, a class of Russian oligarchs emerged. These oligarchs gained control of significant portions of the economy, especially in the energy, metals, and natural resources sectors.[15] Many of these individuals maintained close ties with government officials, particularly the president, leading some to characterize modern Russia as an oligarchy intertwined with the state.[16]
The Islamic Republic of Iran, established after the 1979 Iranian Revolution, is sometimes described as a clerical oligarchy. Its ruling system, known as Velayat-e-Faqih (Governance of the Jurist), places power in the hands of a small group of high-ranking Shia clerics, led by the Supreme Leader. This group holds significant influence over the country's legislative, military, and economic affairs, and critics argue that this system concentrates power in a religious elite, marginalizing other voices within society.[17][18]
Since Ukraine's independence in 1991, a powerful class of business elites, known as Ukrainian oligarchs, has played a significant role in the country's politics and economy. These oligarchs gained control of state assets during the rapid privatization that followed the collapse of the Soviet Union.[6] By 2021, Ukraine passed a law aimed at curbing oligarchic influence on politics and the economy.[19]
Several commentators and scholars have suggested that the United States demonstrates characteristics of an oligarchy, particularly in relation to the concentration of wealth and political influence among a small elite,[20][21][22][23][24] as exemplified by the list of top (political party) donors.[25][26][27]
Economist Simon Johnson argued that the rise of an American financial oligarchy became particularly prominent following the 2008 financial crisis.[28] This financial elite has been described as wielding significant power over both the economy and political decisions. Former President Jimmy Carter in 2015 characterized the United States as an "oligarchy with unlimited political bribery" following the 2010 Citizens United v. FEC Supreme Court decision, which removed limits on donations to political campaigns.[29]
In 2014, a study by political scientists Martin Gilens of Princeton University and Benjamin Page of Northwestern University argued that the United States' political system does not primarily reflect the preferences of its average citizens. Their analysis of policy outcomes between 1981 and 2002 suggested that wealthy individuals and business groups held substantial influence over political decisions, often sidelining the majority of Americans.[30] While the United States maintains democratic features such as regular elections, freedom of speech, and widespread suffrage, the study noted that policy decisions are disproportionately influenced by economic elites.[31]
However, the study received criticism from other scholars, who argued that the influence of average citizens should not be discounted and that the conclusions about oligarchic tendencies were overstated.[32] Gilens and Page defended their research, reiterating that while they do not label the United States an outright oligarchy, they found substantial evidence of economic elites dominating certain areas of policy-making.[33]
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.
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