Exploring the Potential Impact of Authoritarian Efficiency

The most recent episode of the Bankless podcast discussed the potential advantages of authoritarian regimes in the 21st century. The argument stems from the idea that the Chinese and Russian governments allocate significant resources to promote their narratives while the US government takes a more hands-off approach.

In the episode, hosts Ryan Sean Adams and David Hoffman delve into whether authoritarianism could outcompete liberal democracies, featuring insights from economist Noah Smith and Ethereum co-founder Vitalik Buterin.

Efficiency of Authoritarian regimes as a threat to liberalism

Smith argues that liberal democracy was hailed as the optimal societal model at the end of the 20th century, epitomized by Francis Fukuyama’s “The End of History” thesis. However, recent developments have cast doubt on this triumphalism. The rise of China, perceived weaknesses in the US, and the transformative impact of the internet are central to this reassessment.

The internet’s role is pivotal. Smith posits that liberal democracies historically excel at aggregating information through markets, elections, and public discourse. However, the internet’s ability to centralize vast amounts of data potentially reduces this advantage. Authoritarian states can now harness this data to gauge public sentiment, allocate resources more efficiently, and respond swiftly to unrest, as evidenced by China’s rapid policy shifts following the 2022 “white paper protests.”

Moreover, the internet fosters information anarchy, making it easier for disinformation to proliferate. This scenario complicates governance in liberal democracies, where politicians spend substantial time countering false narratives and fundraising, detracting from effective governance.

Buterin expands on this, likening the information landscape to Thomas Hobbes’ concept of a “war of all against all,” where monopolistic control over narratives might emerge as the only stable equilibrium. This metaphor…