October 28th, 2018 10:19 AM
THE FORM OF GOVERNMENT NECESSARY AND WHY
[T]he form of government necessary for a people depends upon their demographic distribution, homogeneity, and the size of the middle class, because the middle class generates demand for rule of law, and the state generates demand for income from the wealth the middle class generates. So in the competition between rule of law and rule by man, demand is driven by conditions.
This market is created by the competition for profits by the middle classes and their employees vs rents by the state and their dependents, with the principle difference being that the state can more easily concentrate startup capital and market advantage for heavy capital industries at the cost of corruption – and while the private sector cannot so easily produce the capital and market advantage through trade policy, the private sector can better utilize that capital and suppress state corruption since market competition suppresses rents.
For historical reasons (geography, militia order, and ‘competitive’ bipartite manorialism), the west evolved cross-family corporations rather than intra-family clans, and as such superior trust, superior ability to produce commons because of it, and as such superior ability to generate large scale private sector organizations with greater innovation and returns on capital.
Just as social orders became anchored (religion) during the age of transformation (the restoration after the bronze age collapse) societies became anchored during the industrial transformation after the Abrahamic Collapse (judaism,christianity,islam: the semitic – turkic invasion).
Fukuyama attributed the success of european bureaucracy to its development prior to democracy. Because, despite his stated positions, his analysis favors the sino tradition of monolithic bureaucracy.