Chapter 5: The Paradox of Government

Society operates not only in the context of formal political, judicial, economic, social, and other rules but also within informal systems of religion, culture, and customs (Cao, 2016b). Although political groups such as political parties, parliaments, local governments, and national governments develop simultaneously, non-political or semi-political organizations such as the stock market, enterprises, cooperatives, and some civil organizations (such as clubs, religious groups, and schools) also develop. These organizations are formed to achieve a common goal (Cederman, 2002).

In his essay “Mencius,” he wrote that “without a ruler, it is impossible to draw a square.” In this context, a system (the ruler) refers to all the norms that constrain human behavior, including formal institutions such as laws, rules, and regulations implemented by the government, its departments, enterprises, and organizations, and informal institutions such as customs, religion, culture, and morality that have developed through long-term historical evolution. The square that is drawn using the constraints imposed by these institutions represents a box that contains a nation’s society. Throughout history, groups based on cooperation are more likely than individuals to survive challenges. One of the most basic human choices is to cooperate rather than fight, and cooperation requires effective formal or informal organizations and systems (Bowles, 2012). As a society develops, its organizational structures and its social system evolve, generally becoming more formal and sometimes becoming more efficient. When a country forms, the government has become the most important component of a society’s social institutions and organizational mechanisms.