Leviathan Denied: Rules, Governments, and Social Dynamics

A core functions of governments is to enhance and sustain social coordination through the articulation and enforcement of rules.  In most societies, both historically and in the contemporary world, governments apply and enforce different rules to different people.  Powerful individuals sometimes enjoy rules whose form favors their interests, but even more important, the enforcement of rules is often biased in their favor.  Rules whose form and enforcement depend on the social identity of the people to which they apply are “identity” rules.  Over the last two centuries, a handful of societies have developed the capacity to create and enforce some “impersonal” rules: rules whose form and enforcement treat everyone the same.  This paper lays out a conceptual framework for understanding how societies acquire that capacity.  It differs from existing frameworks by not beginning with a government whose essential feature is the ability to threaten violence, i.e. to coerce.  In addition to the distinction between identity rules and impersonal rules, the framework utilizes the difference between rules that operate as boundaries and rules that operate as outside options.  Outside options can enable individuals and organizations to structure more valuable and durable relationships.  Rather than conceiving of the government as an organization that patrols and enforces boundaries, and therefore depends on having coercive power capable of overcoming resistance, the framework builds on the concept of government as the organization that publicly signifies agreements.  The ability of governments to create outside options that individuals can use to structure relationships is the foundation of government capacity. Governments that do a better job of creating outside options that enhance private relationships do a better job of social coordination.  It is only when powerful individuals and organizations find it in their interest to coordinate on impersonal rules, that the government is credibly able to enforce impersonal rules.  Adoption of impersonal rules depends on the government’s ability to coordinate, and it is ability to coordinate that leads governments in developed societies to enhance their ability to coerce, not the other way around.