Oligarchy

Oligarchy is a form of government in which political and social power is concentrated in the hands of a small group of people. These individuals may be distinguished by wealth, noble lineage, corporate influence, military authority, education or religious status. Across history, oligarchies have frequently been regarded as coercive political structures, relying on obedience, patronage networks or repression to maintain control.
The term derives from the Ancient Greek oligarkhía, meaning “rule by the few”. Aristotle provided one of the earliest systematic treatments of the concept, distinguishing oligarchy from aristocracy: whereas aristocracy denotes rule by the virtuous, oligarchy represents its corruption or “perversion”, characterised by the rule of the wealthy for their own benefit.

Types

Minority Rule

Oligarchy may arise when a dominant ethnic or religious minority consolidates control over political institutions. Examples include South Africa under apartheid, Americo-Liberian dominance in Liberia, the Sultanate of Zanzibar and Rhodesia. Such forms of minority rule are frequently linked to patterns of colonial governance, where political and economic power was unevenly distributed.
Sociologist Robert Michels famously argued in his “iron law of oligarchy” that all large organisations, including democracies, tend toward oligarchic control because the delegation of tasks inevitably produces leaders who become invested in preserving their own authority.

Putative Oligarchies

Business groups may function as de facto oligarchies when they:

• hold dominant private ownership within the economy,
• possess sufficient political influence to shape policy in their favour, and
• coordinate multiple enterprises across key sectors.

Such structures are often identified in countries where economic and political elites are closely intertwined.

Intellectual Oligarchies

The concept of an intellectual oligarchy was articulated by George Bernard Shaw in his 1907 play Major Barbara. Shaw criticised the dominance of societies by specialised elites—lawyers, clergy, doctors, academics and politicians—and advocated empowering ordinary people to prevent intellectual elites from becoming tyrannical or self-serving.

History

Ancient Greece

The term oligarchia appears frequently in accounts of Classical Greece. Before the democratic reforms of 508–507 BC, Athens was governed by an aristocratic elite known as the Eupatridae. Although this oligarchy endured for generations, its downfall was hastened by growing resentment towards Spartan influence following intervention in Athenian politics.
In the wider Greek world, many city-states oscillated between oligarchic and democratic forms. Conflicts between wealthy elites and the demos (the common people) were common, particularly in Aegina, Naxos and Syracuse. Although nominally democratic, some poleis remained effectively controlled by affluent families who resisted broader civic participation.
Athens’ shift toward fuller democracy culminated in the ascendancy of Themistocles, a commoner who became archon in 493 BC and later a central figure in the Greco-Persian Wars. Subsequent tensions between aristocratic and democratic factions led to reforms by Ephialtes in 461 BC, who curtailed the authority of the Areopagus, a traditional aristocratic council. His assassination shortly thereafter reflected ongoing elite resistance to democratic expansion.

Oligarchy by Country

The Philippines

During Ferdinand Marcos’s presidency (1965–1986), several major monopolies were controlled by individuals close to the Marcos family, leading observers to describe the Philippines as an entrenched oligarchy. Efforts by later leaders, including President Rodrigo Duterte, to dismantle oligarchic structures had mixed results: while prominent tycoons were publicly criticised, politically connected business figures continued to gain influence.

Russia

After the dissolution of the Soviet Union in 1991, rapid privatisation transferred state assets—particularly in energy and natural resources—to a small group of businessmen known as oligarchs. Many developed close ties with political leaders. In the 1996 presidential election, several prominent oligarchs funded President Boris Yeltsin’s campaign, subsequently wielding considerable influence.
With Vladimir Putin’s rise to power in 1999, several early oligarchs were prosecuted or exiled. A new cohort emerged, largely consisting of Putin’s allies, strengthening perceptions of an oligarchy intertwined with the state. Commentators note that while individual elites changed, the underlying concentration of power did not.

Iran

The Islamic Republic of Iran is often characterised as a clerical oligarchy. Under the system of Guardianship of the Islamic Jurist, ultimate authority rests with a small group of senior Shia clerics, headed by the Supreme Leader. This group exerts decisive influence over legislation, the military, judiciary and economic policy. Critics argue that this arrangement restricts political pluralism. Recent initiatives, such as intensified enforcement of mandatory hijab laws under the 2024 “Noor Plan”, demonstrate the state’s centralised control.

Ukraine

Following independence in 1991, Ukraine saw the rise of business magnates who accumulated wealth and political influence from post-Soviet privatisation. These Ukrainian oligarchs became key actors in shaping government policy. Legislation passed in 2021 sought to reduce their political sway by introducing criteria for designating individuals as oligarchs and restricting their influence over media and political funding.

United States

Commentators have argued that the United States exhibits oligarchic tendencies due to the concentration of wealth and political influence among a small economic elite. Analysts point to:

• the outsized role of wealthy donors in political campaigns,
• increasing economic inequality, and
• the power of large financial institutions, particularly following the 2008 financial crisis.

Economist Thomas Piketty has warned of a potential drift toward an American oligarchy, while Simon Johnson has described the rise of a powerful financial elite capable of shaping major policy decisions.