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Monday, July 01, 2013

Why Centralization Leads To Collapse

A system that suppresses dissent is fault-intolerant, ignorant and fragile.

Increasing centralization has been viewed as the solution for all social and economic problems for quite some time. The Eurozone project is one recent manifestation of this belief.

The basis of this belief is rationality and efficiency. If we centralize production and decision-making, we eliminate all sorts of inefficiencies. Decisions can be made by "top people," and supply chains can be rationalized from a hopelessly inefficient clutter down to a supremely rational and cost-effective pathway.

Ironically, in eliminating inefficiency and messy decision-making, centralization eliminates redundancy, decentralized pathways of response and dissent. Once you lose redundancy and all the feedback it represents, you lose resiliency and fault-tolerance. The centralized system is fault-intolerant and fragile.

By rationalizing decision-making and authority in a centralized hierarchy, the system slowly but surely eliminates dissent: those who "don't get on board" and "get with the program" imposed from the top are marginalized, pushed out or liquidated.

From the point of view of the "top people," this is merely rational; why tolerate a lot of chatter and resistance that doesn't serve any real purpose except to bog down the duly chosen program?

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