The Rise and Influence of Oligarchy in Modern Democracies
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Source: This post on The Rise and Influence of Oligarchy in Modern Democracies has been created based on article “The oligarchy we see today” published in The Hindu on 23rd January 2025.

UPSC Syllabus topic: GS Paper 2 – International relations

Context: The article explores the concept and evolution of oligarchy, emphasizing its contemporary relevance and implications for democracy. It begins by addressing U.S. President Joe Biden’s warning about a “tech industrial complex” and a new Gilded Age of oligarchs threatening American democracy.

What warnings have been made about oligarchy in the U.S. recently?

  1. In his farewell remarks, U.S. President Joe Biden warned of an emerging oligarchy threatening American democracy.
  2. Biden highlighted a “tech industrial complex,” akin to Dwight Eisenhower’s 1961 warning about the “military-industrial complex.”
  3. Biden cautioned about a new Gilded Age of “robber barons” eroding freedoms.
  4. Theodore Roosevelt, a U.S. President in the early 1900s, combated similar challenges by trust-busting and creating regulatory agencies.

How is oligarchy currently visible in the U.S.?

  1. Political and economic power are intertwined, as seen in Donald Trump’s cabinet, which included 13 billionaires.
  2. Elon Musk, the first individual with a net worth exceeding $400 billion, supported Trump’s campaign with $200 million and proposed public spending cuts.
  3. Billionaires from industries like fossil fuels, tech, and others (e.g., Jeff Bezos, Tim Cook, and Mark Zuckerberg) were prominently present at Trump’s inauguration and have federal government contracts.

 What is the origin of the term oligarchy? How do oligarchs operate and adapt?

  1. The term was coined by Aristotle to describe the rule of a wealthy few “for corrupt and unjust purposes.”
  2. Oligarchs often gain power through financial means, social standing, or connections in politics, religion, or the military.
  3. Jeffrey A. Winters, in his book Oligarchy (2011), explained that oligarchs defend their wealth by using power and influence.
  4. Their involvement varies depending on threats to their interests.

How has oligarchy evolved over time?

  1. Modern oligarchs, like Michael Bloomberg, use private funds to secure political positions, unlike historical oligarchs such as Marcus Licinius Crassus, who sought political power for survival.
  2. Oligarchs today focus more on vanity and influence than survival.
  3. Oligarchy becomes dangerous when oligarchs:
    • Violate the rule of law.
    • Remove checks and balances on their power.
    • Prioritize personal interests over the people’s welfare.

 What are some examples of oligarchies globally?

  1. Philippines: Powerful families dominate due to its colonial past.
  2. China: Despite calling itself a communist republic, power is concentrated in a few hands.
  3. Russia: Wealthy businessmen with political influence are often referred to as oligarchs.
  4. United States: Bernie Sanders pointed out that oligarchs run both Russia and the U.S.

Can democracy counter oligarchy?

  1. Aristotle, in Politics, argued democracy is safer and less prone to conflict than oligarchy.
  2. However, sociologist Robert Michels’ “iron law of oligarchy” posits that democracies inevitably transform into oligarchies due to labor division.

What risks does oligarchy pose today?

  1. John Adams feared the rise of a “power elite” over 200 years ago.
  2. Today, economic power concentrated through technological advancements, like AI, is intensifying oligarchic tendencies globally.

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