Military fiat
Encyclopedia
Military fiat is a process whereby a decision is made and enforced by military
means without the participation of other political elements. The Latin
term fiat, translated as "let it be," suggests the autocratic
attitude ascribed to such a process. For example, many coup
s involve the imposition of a new government
by military fiat.
"). It was simply seized by the powerful with some support from empowered citizens - typically resulting in a monarchy
where power was passed on to heirs with no public consultation. Over time, this evolved into consultative systems, e.g. of other nobles holding fiefdom
s, e.g. of public in parliament
s.
In democracies
, however, the political parties
who run for office to represent the public will, must agree to certain guarantees to use power for public good - the relation between military and police powers is clearer but not obvious. In all countries, some fundamental decisions are made by the administration "without the participation of other political elements", and in general the administration of money
has been one of those functions. Public recourse is limited if the state relies on any other nation for major military support, e.g. then-communist Poland's
and East Germany's reliance on the Soviet Union
. So "a decision is made and enforced by military means" could be anything done by the administration or bureaucracy as a normal part of its foreign policy.
In economics
, fiat is one of three ways to guarantee the value of money, credit money
and commodity money
being alternatives - but both relying to some degree on the fiat. True fiat money
has no trust or product value of its own, but is backed only by trust in the issuing government and its ability to collect taxes or require conversion of some other resource into currency.
This view is questioned by some theories of political economy
that argue that there is always some intrinsic reliance on trust, or expectation of the delivery of the commodity itself. Critics of these views argue that withholding taxes in domestic trade or defying powerful nations regarding trade in narcotics or arms will very rapidly prove dangerous or fatal to some of the participants - and, furthermore, that at least some of these decisions are unpopular and are not reflective of the public will. This is a common accusation made by the anti-globalization movement
which argues that governments have been elected on a mandate to oppose global free trade
and instead pursued it.
actually justifies, e.g. in the political economy of capitalism
, military force is justified by the protection of property rights (which are presumed to optimize economic outcomes). Adam Smith
defined "defense
, infrastructure, justice, education and a stable currency" as the role of government. All defined, in his time, 1776, strictly by a military fiat in most countries, although Britain had a nascent democracy. When the United States
broke with the British Empire and its military hegemony in that same year, it was to establish a fiat of its own.
Smith wrote specifically against monetarism, where fiat would be exploited to protect favored industries, monopolize precious metals, and other goals that were not generally shared between the state and the more general public.
The later contributions of David Ricardo
and John Stuart Mill
led to the first theory of (classical) political economy
.
Military
A military is an organization authorized by its greater society to use lethal force, usually including use of weapons, in defending its country by combating actual or perceived threats. The military may have additional functions of use to its greater society, such as advancing a political agenda e.g...
means without the participation of other political elements. The Latin
Latin
Latin is an Italic language originally spoken in Latium and Ancient Rome. It, along with most European languages, is a descendant of the ancient Proto-Indo-European language. Although it is considered a dead language, a number of scholars and members of the Christian clergy speak it fluently, and...
term fiat, translated as "let it be," suggests the autocratic
Autocracy
An autocracy is a form of government in which one person is the supreme power within the state. It is derived from the Greek : and , and may be translated as "one who rules by himself". It is distinct from oligarchy and democracy...
attitude ascribed to such a process. For example, many coup
Coup d'état
A coup d'état state, literally: strike/blow of state)—also known as a coup, putsch, and overthrow—is the sudden, extrajudicial deposition of a government, usually by a small group of the existing state establishment—typically the military—to replace the deposed government with another body; either...
s involve the imposition of a new government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
by military fiat.
Origin of government
Historically, military fiat had no relation to particular theories of economics or how to use the power of the state ("political sciencePolitical science
Political Science is a social science discipline concerned with the study of the state, government and politics. Aristotle defined it as the study of the state. It deals extensively with the theory and practice of politics, and the analysis of political systems and political behavior...
"). It was simply seized by the powerful with some support from empowered citizens - typically resulting in a monarchy
Monarchy
A monarchy is a form of government in which the office of head of state is usually held until death or abdication and is often hereditary and includes a royal house. In some cases, the monarch is elected...
where power was passed on to heirs with no public consultation. Over time, this evolved into consultative systems, e.g. of other nobles holding fiefdom
Fiefdom
A fee was the central element of feudalism and consisted of heritable lands granted under one of several varieties of feudal tenure by an overlord to a vassal who held it in fealty in return for a form of feudal allegiance and service, usually given by the...
s, e.g. of public in parliament
Parliament
A parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French , the action of parler : a parlement is a discussion. The term came to mean a meeting at which...
s.
In democracies
Democracy
Democracy is generally defined as a form of government in which all adult citizens have an equal say in the decisions that affect their lives. Ideally, this includes equal participation in the proposal, development and passage of legislation into law...
, however, the political parties
Political Parties
Political Parties: A Sociological Study of the Oligarchical Tendencies of Modern Democracy is a book by sociologist Robert Michels, published in 1911 , and first introducing the concept of iron law of oligarchy...
who run for office to represent the public will, must agree to certain guarantees to use power for public good - the relation between military and police powers is clearer but not obvious. In all countries, some fundamental decisions are made by the administration "without the participation of other political elements", and in general the administration of money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
has been one of those functions. Public recourse is limited if the state relies on any other nation for major military support, e.g. then-communist Poland's
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
and East Germany's reliance on the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
. So "a decision is made and enforced by military means" could be anything done by the administration or bureaucracy as a normal part of its foreign policy.
Definition of participation
Theories vary on how to measure "participation of other political elements."In economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, fiat is one of three ways to guarantee the value of money, credit money
Credit money
Credit money is any claim against a physical or legal person that can be used for the purchase of goods and services. Examples of credit money include personal IOUs, and in general any financial instrument or bank money market account certificate, which is not immediately repayable in specie, on...
and commodity money
Commodity money
Commodity money is money whose value comes from a commodity out of which it is made. It is objects that have value in themselves as well as for use as money....
being alternatives - but both relying to some degree on the fiat. True fiat money
Fiat money
Fiat money is money that has value only because of government regulation or law. The term derives from the Latin fiat, meaning "let it be done", as such money is established by government decree. Where fiat money is used as currency, the term fiat currency is used.Fiat money originated in 11th...
has no trust or product value of its own, but is backed only by trust in the issuing government and its ability to collect taxes or require conversion of some other resource into currency.
This view is questioned by some theories of political economy
Political economy
Political economy originally was the term for studying production, buying, and selling, and their relations with law, custom, and government, as well as with the distribution of national income and wealth, including through the budget process. Political economy originated in moral philosophy...
that argue that there is always some intrinsic reliance on trust, or expectation of the delivery of the commodity itself. Critics of these views argue that withholding taxes in domestic trade or defying powerful nations regarding trade in narcotics or arms will very rapidly prove dangerous or fatal to some of the participants - and, furthermore, that at least some of these decisions are unpopular and are not reflective of the public will. This is a common accusation made by the anti-globalization movement
Anti-globalization movement
The anti-globalization movement, or counter-globalisation movement, is critical of the globalization of corporate capitalism. The movement is also commonly referred to as the global justice movement, alter-globalization movement, anti-globalist movement, anti-corporate globalization movement, or...
which argues that governments have been elected on a mandate to oppose global free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
and instead pursued it.
Military vs. monetary
The use of the military fiat to back economic transactions is what a given theory of political economyPolitical economy
Political economy originally was the term for studying production, buying, and selling, and their relations with law, custom, and government, as well as with the distribution of national income and wealth, including through the budget process. Political economy originated in moral philosophy...
actually justifies, e.g. in the political economy of capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
, military force is justified by the protection of property rights (which are presumed to optimize economic outcomes). Adam Smith
Adam Smith
Adam Smith was a Scottish social philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations...
defined "defense
Defense (military)
Defense has several uses in the sphere of military application.Personal defense implies measures taken by individual soldiers in protecting themselves whether by use of protective materials such as armor, or field construction of trenches or a bunker, or by using weapons that prevent the enemy...
, infrastructure, justice, education and a stable currency" as the role of government. All defined, in his time, 1776, strictly by a military fiat in most countries, although Britain had a nascent democracy. When the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
broke with the British Empire and its military hegemony in that same year, it was to establish a fiat of its own.
Smith wrote specifically against monetarism, where fiat would be exploited to protect favored industries, monopolize precious metals, and other goals that were not generally shared between the state and the more general public.
The later contributions of David Ricardo
David Ricardo
David Ricardo was an English political economist, often credited with systematising economics, and was one of the most influential of the classical economists, along with Thomas Malthus, Adam Smith, and John Stuart Mill. He was also a member of Parliament, businessman, financier and speculator,...
and John Stuart Mill
John Stuart Mill
John Stuart Mill was a British philosopher, economist and civil servant. An influential contributor to social theory, political theory, and political economy, his conception of liberty justified the freedom of the individual in opposition to unlimited state control. He was a proponent of...
led to the first theory of (classical) political economy
Political economy
Political economy originally was the term for studying production, buying, and selling, and their relations with law, custom, and government, as well as with the distribution of national income and wealth, including through the budget process. Political economy originated in moral philosophy...
.