Plutocratic Government System, Definition and Characteristics

Mudabicara.com_  The plutocratic government system is one of the government systems that exist in the political system. Although in the current era this system of government is no longer as popular as the democratic system of government.

But there’s nothing wrong with knowing and studying a plutocratic government system or a plutocratic state. Besides adding insight, who knows in the future a government system that is similar to the name of this planet can be used as a tool for analyzing political phenomena.

Now! If so, what exactly is a plutocratic political system? Don’t worry, this article will discuss in depth about the plutocratic government system starting from its understanding to its characteristics, for more details, see the following review until it’s finished.

Read Also : Definition of Government System, Types and Examples

Understanding the Plutocratic Government System

Plutocratic Government System

Etymologically plutocracy comes from the Greek Ploutos and Cracy . Ploutos means wealth while Cracy means government or form of government.

Therefore, in its development the term plutocracy is closely related to a form of government and political system within the state.

According to Merriam-Webster, plutocracy is a system of government led and controlled by the rich.

Meanwhile, according to the Big Indonesian Dictionary, a plutocratic government system is a political system in which power is held by people who have the power of capital or capital.

As a form of government that is dominated by the role of the rich, a country that adheres to a plutocratic system of government will experience economic inequality.

There is a stark difference between the rich who own capital and the poor as workers and labourers.

Read Also: Despotism Government System, Definition and Characteristics

In the Encyclopedia of Governance (2010), Nurul Akhmad explains the beginning of the emergence of plutocracy from Greece until it spread to other regions to Italy.

In achieving the goal of a plutocratic system of government, it does not hesitate to spend a lot of money even though it is expensive. For them, high interests also require high costs.

This is inseparable from their interests to maintain influence and wealth in a plutocratic country.

However, plutocracy as a system of government can sneak into various political systems and good governance in democratic political systems , authoritarian political systems and even oligarchic political systems.

Interestingly these elites who have power and control of this power can be at odds with each other but still under command and fighting for the interests of the richest conglomerates.

However, it should be underlined that plutocracy is different from aristocracy. Plutocracy is a system of government where rulers are based on wealth and people who have wealth are not necessarily nobles.

While aristocracy is a system of government in which the power of the aristocratic class and hereditary control over the government.

Read Also : Political System, Definition and Kinds

Several countries that have adopted this system of government include the Carthaginian Civilization in Italy, Florence, Genoa, Ancient Greece and finally the Republic of Venetian merchants.

Features of Plutocracy Government System

In a government system that is closely related to money and capital, one indicator that people can become leaders is those who have the most wealth.

In addition to having wealth, there are several other characteristics of a plutocratic government system, including:

1. Sharp Economic Gaps

Rich people who have power and are able to make policies and political decisions tend to take personal interests and exploit the people below them.

As a result, in a plutocratic system of government there will be a sharp economic gap between the rulers and their people.

Read Also : Monarchy Government System, Definition, Types and Characteristics

2. The government better accommodates the interests of elites and conglomerates

All forms of political policies and decisions tend to accommodate the interests of conglomerates and elites so that the aspirations of the people are neglected.

3. Policies and Regulations Bind Communities Below

This means that binding policies and regulations mean that all forms of good or bad regulations must be implemented by the community.

4. Centralized Economic Resources

All forms of economic resources will be managed for the benefit of the elite both from the process and the results so that the community does not have the opportunity and access to develop.

5. Has Its Own Mechanism

With the power and wealth they have, the elite can create their own mechanism to keep their game safe and conditioned.

6. Power Based on Total Wealth

This means that in a plutocratic system of government, a president or prime minister or whatever the language may be revoked by adherents of the plutocracy.

What About Indonesia Is Approaching Plutocracy?

In the midst of the spirit of the Jokowi administration to open access to investment, it turns out that this cannot be separated from the officials behind it.

Now in the second era of his leadership, the president from the city of Solo has inaugurated several businessmen to become high-ranking officials and ministers.

The question is, when entrepreneurs have political power and hold important positions, both executive and legislative, is this not dangerous for the Indonesian democratic system?

Read Also: Totalitarian Political System, Definition, Types and Characteristics

In David C. Korten’s view, plutocracy had developed in the United States which resulted in conglomerates and businessmen getting richer.

At that time the United States made economic policies based on investment in the hope of increasing the wealth of plutocrats.

In the article Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens , written by Martin Gilens and Benjamin I Page, it is explained that the above phenomenon is because policy makers in America are dominated by those with business interests and capital capital.

The consequence of this policy is clear that the lower middle class will be increasingly marginalized and new vulnerable groups will emerge in the economy.

Even though the political reality shows that the number of grassroots is more, so of course they have interests that need to be accommodated in the form of policies by the government.

However, this large number cannot influence the policy-making process because all forms of policy are only made by the elite and the lower class must follow them.

Read Also: Democratic Political System, Definition, Types and Characteristics

This situation caused the democratic system of the United States to be questioned.

Indonesian Government System

In the Indonesian context, various policies related to investment and the economy are reflected in the Job Creation Law. At that time the House of Representatives (DPR) and the Government pushed for the Job Creation Bill to be passed immediately.

Despite the many waves of protests from various parties, including the general public, organizations and even the government’s labor and labor unions and the DPR, it is appropriate to ratify this job creation law.

Made Supriatman as a researcher at the ISEAS-Yusof Ishak Institute assesses that the law, which is considered not pro-workers and laborers, is the result of input from employers in the circle of power.

Furthermore, he said this phenomenon was one proof that Indonesian democracy had led to plutocracy.

“If there are comments that think that Indonesian democracy is doing well, of course this needs further discussion, what are the benchmarks and indicators,” said Made

Thus the explanation of the plutocratic government system, hopefully it will be reading material for young friends who are talking about studying political science. Keep it up and keep learning!