Relative merits of oligarchy and democracy
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Accepted answer
The real dichotomy is the balance between Democracy and Meritocracy. Sometimes an oligarchy is more meritocratic in a given context than a democracy, sometimes it isn't.
So to answer your question (Under what circumstances would a tight oligarchy tend to outperform, and under what circumstances would a democracy?):
Oligarchy:
- When entry into the oligarchy or role distribution therein is assigned on merit. Military oligarchies for example.
- When communication of a problem or solution is complex, an oligarchy has lower overheads (O(1) instead of O(N)) to distribute and review potential solutions. A war cabinet would be an example, as strictly speaking inclusion of members disproportionate to underlying democratic mandate makes it more a meritocracy than a democracy.
- When a solution must applied within a limited time-frame. For example, the Manhattan Project wasn't voted on, nor the Cuban missile crisis. The executive (assumed to be filled on some basis of merit and demos) acted directly.
Democracy:
- When solutions are intended to be stable and long-term, democratic consent makes the people more likely to comply and apply the solution. Any major law or law reform would be an example of this.
- When the problem is too complex for the size of the oligarchy regardless of merit.
- When the criteria "outperform" means for everyone, not just a minority.
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