--- MAPPING: expense of defence-to-S3 ---

# Expense of Defence -> System 3 (Control / Operational Management)

## Economic Entity Reference

The sovereign's financial obligation to maintain military forces capable of protecting society from external violence and invasion, including both the costs of preparing forces in peacetime and employing them during war.

## VSM Concept Reference

System 3 (S3) is the operational management system that establishes rules, resources, rights, and responsibilities for System 1 operations. It optimises the internal environment through regulation, resource allocation, and performance management.

## Mapping Rationale

The expense of defence directly performs the regulatory function of S3 by establishing the sovereign's obligation to maintain military forces that protect society from external threats. This represents internal regulation of the state's protective capabilities, allocating resources (tax revenue) to maintain forces that ensure the viability of the entire economic system. The sovereign's duty to maintain defence forces is a clear example of operational management setting the rules and resources necessary for the system's survival.

## Mapping Strength

Strong

---

--- MAPPING: expense of justice-to-S3 ---

# Expense of Justice -> System 3 (Control / Operational Management)

## Economic Entity Reference

The sovereign's financial obligation to establish and maintain an exact administration of justice that protects every member of society from the injustice or oppression of every other member.

## VSM Concept Reference

System 3 (S3) is the operational management system that establishes rules, resources, rights, and responsibilities for System 1 operations. It optimises the internal environment through regulation, resource allocation, and performance management.

## Mapping Rationale

The expense of justice directly embodies S3's regulatory function by establishing the legal framework that governs economic interactions. This internal regulation protects property rights, enforces contracts, and maintains the social order necessary for market operations. By allocating resources to maintain courts and legal administration, the sovereign performs the essential control function of ensuring that economic actors can engage in exchange with confidence in the enforcement of agreements.

## Mapping Strength

Strong

---

--- MAPPING: expense of public works and public institutions-to-S3 ---

# Expense of Public Works and Public Institutions -> System 3 (Control / Operational Management)

## Economic Entity Reference

The sovereign's financial obligation to erect and maintain public works and institutions that are of high societal benefit but cannot be profitably undertaken by individuals or small groups due to insufficient private return on investment.

## VSM Concept Reference

System 3 (S3) is the operational management system that establishes rules, resources, rights, and responsibilities for System 1 operations. It optimises the internal environment through regulation, resource allocation, and performance management.

## Mapping Rationale

The expense of public works directly represents S3's resource allocation and internal regulation functions. The sovereign identifies infrastructure needs (roads, bridges, canals) that the market cannot provide due to insufficient private return, then allocates public resources to create these essential coordination mechanisms. This internal regulation of the economic environment ensures that System 1 operations (individual enterprises) have the infrastructure necessary for effective functioning, optimising the conditions for economic activity.

## Mapping Strength

Strong

---

--- MAPPING: militia-to-S1 ---

# Militia -> System 1 (Operations)

## Economic Entity Reference

A military force composed of ordinary citizens who serve part-time, maintaining their civilian occupations while periodically training for military service, funded primarily through their own subsistence rather than state pay.

## VSM Concept Reference

System 1 (S1) consists of the primary activities that produce the organisation's purpose. These operational units directly create value and engage with the environment, maintaining autonomy within constraints.

## Mapping Rationale

The militia represents autonomous operational units (citizens) who directly engage in the primary activity of defence while maintaining their own economic functions. Each militiaman operates as an independent economic agent who contributes defence capability as part of their broader economic activity, embodying the principle of operational autonomy that characterises S1. The militia members produce defence as one of their multiple outputs while primarily engaged in civilian economic activities.

## Mapping Strength

Strong

---

--- MAPPING: standing army-to-S1 ---

# Standing Army -> System 1 (Operations)

## Economic Entity Reference

A permanent military force maintained by the state during both peace and war, consisting of professional soldiers who serve as their full-time occupation and receive regular pay and maintenance from public funds.

## VSM Concept Reference

System 1 (S1) consists of the primary activities that produce the organisation's purpose. These operational units directly create value and engage with the environment, maintaining autonomy within constraints.

## Mapping Rationale

The standing army functions as a dedicated operational unit focused entirely on the production of defence services. Professional soldiers constitute a specialised System 1 entity whose sole purpose is military production, operating with internal autonomy within the constraints set by the sovereign. This represents a more specialised and focused form of operational activity compared to the militia, with defence as their exclusive economic function.

## Mapping Strength

Strong

---

--- MAPPING: corvée-to-S2 ---

# Corvée -> System 2 (Coordination)

## Economic Entity Reference

A system of forced labour imposed on the rural population for public works such as road repair, typically requiring a certain number of days of service per year without monetary compensation.

## VSM Concept Reference

System 2 (S2) provides coordination between System 1 operations through information channels, standardisation, and conflict resolution. It dampens oscillations and ensures smooth communication between operational units.

## Mapping Rationale

The corvée system coordinates labour resources across the population for public works, creating a standardised mechanism for distributing the burden of infrastructure maintenance. This coordination mechanism resolves potential conflicts between individual farmers' interests and collective infrastructure needs by establishing a predictable, uniform obligation. The corvée functions as a coordination mechanism that ensures public works receive necessary labour inputs without requiring monetary exchange.

## Mapping Strength

Moderate

---

--- MAPPING: regulated company-to-S1 ---

# Regulated Company -> System 1 (Operations)

## Economic Entity Reference

A trading company that admits members upon payment of fees and adherence to company regulations, but allows each member to trade on their own account rather than pooling capital into a common stock.

## VSM Concept Reference

System 1 (S1) consists of the primary activities that produce the organisation's purpose. These operational units directly create value and engage with the environment, maintaining autonomy within constraints.

## Mapping Rationale

The regulated company represents autonomous trading operations where individual merchants maintain their own capital and trade independently while adhering to common regulations. Each member operates as an independent economic agent within the coordinating framework of the company, producing commercial value through their individual trading activities. The company provides a regulatory framework while preserving the operational autonomy of its members.

## Mapping Strength

Strong

---

--- MAPPING: joint-stock company-to-S1 ---

# Joint-Stock Company -> System 1 (Operations)

## Economic Entity Reference

A trading company formed by pooling capital from multiple investors who share in the profits and losses proportionally to their investment, managed by a court of directors elected by the shareholders.

## VSM Concept Reference

System 1 (S1) consists of the primary activities that produce the organisation's purpose. These operational units directly create value and engage with the environment, maintaining autonomy within constraints.

## Mapping Rationale

The joint-stock company represents a more integrated form of operational unit where capital is pooled to create larger-scale trading operations. The company itself functions as a single operational entity producing commercial value through coordinated trading activities, with shareholders providing capital and directors managing operations. This represents a more capital-intensive form of System 1 operation compared to regulated companies.

## Mapping Strength

Strong

---

--- MAPPING: regulated company versus joint-stock company comparison-to-S2 ---

# Regulated Company versus Joint-Stock Company Comparison -> System 2 (Coordination)

## Economic Entity Reference

The distinction between trading companies where members trade separately on their own capital versus companies where capital is pooled and profits shared, with different implications for management, risk, and effectiveness.

## VSM Concept Reference

System 2 (S2) provides coordination between System 1 operations through information channels, standardisation, and conflict resolution. It dampens oscillations and ensures smooth communication between operational units.

## Mapping Rationale

The comparison between regulated and joint-stock companies serves a coordination function by clarifying the different organisational forms available for commercial activity. This analytical distinction helps coordinate understanding of how different trading structures affect risk, management, and effectiveness, providing information that helps economic actors choose appropriate organisational forms. The comparison itself coordinates knowledge about commercial organisation.

## Mapping Strength

Moderate

---

--- MAPPING: public education institutions-to-S3 ---

# Public Education Institutions -> System 3 (Control / Operational Management)

## Economic Entity Reference

Organisations established and maintained by public authorities for the systematic instruction of youth and people of all ages, including schools, universities, and religious institutions.

## VSM Concept Reference

System 3 (S3) is the operational management system that establishes rules, resources, rights, and responsibilities for System 1 operations. It optimises the internal environment through regulation, resource allocation, and performance management.

## Mapping Rationale

Public education institutions represent S3's internal regulation function by establishing the human capital framework necessary for economic operations. The sovereign allocates resources to create educational infrastructure that produces skilled workers and informed citizens, optimising the internal environment for System 1 operations. This represents internal regulation of the knowledge and skills available to the economic system.

## Mapping Strength

Strong

---

--- MAPPING: public works funding mechanisms-to-S3 ---

# Public Works Funding Mechanisms -> System 3 (Control / Operational Management)

## Economic Entity Reference

The various methods by which public infrastructure projects such as roads, bridges, canals, and harbours can be financed, including tolls, local taxes, general revenue, and forced labour.

## VSM Concept Reference

System 3 (S3) is the operational management system that establishes rules, resources, rights, and responsibilities for System 1 operations. It optimises the internal environment through regulation, resource allocation, and performance management.

## Mapping Rationale

Public works funding mechanisms represent S3's resource allocation function by establishing how the sovereign directs resources to infrastructure development. The analysis of different funding methods (tolls, taxes, corvée) represents operational management's consideration of how to efficiently allocate public resources to create the infrastructure necessary for System 1 operations. This is internal regulation of resource allocation for infrastructure.

## Mapping Strength

Strong

---

--- MAPPING: sovereign dignity expenses-to-S5 ---

# Sovereign Dignity Expenses -> System 5 (Policy / Identity)

## Economic Entity Reference

The additional public expenditure required to maintain the elevated status and ceremonial functions of the monarch, which increases with societal wealth and the prevailing standards of luxury and display.

## VSM Concept Reference

System 5 (S5) is the policy-making body that balances demands from Systems 3 and 4 and defines the identity, values, and purpose of the organisation. It provides closure to the whole system and represents its supreme authority.

## Mapping Rationale

Sovereign dignity expenses represent S5's identity-defining function by maintaining the symbolic and ceremonial aspects of the state that establish its legitimacy and authority. These expenses define the sovereign's role as the embodiment of the nation's identity and values, providing the symbolic closure necessary for the political-economic system. The dignity expenses establish the identity framework within which all other economic activities occur.

## Mapping Strength

Strong

---

--- MAPPING: public revenue sources-to-S3 ---

# Public Revenue Sources -> System 3 (Control / Operational Management)

## Economic Entity Reference

The various streams of income available to the sovereign for funding public expenses, including taxes, fees, rents, and other charges, distinguished by their economic effects and administrative requirements.

## VSM Concept Reference

System 3 (S3) is the operational management system that establishes rules, resources, rights, and responsibilities for System 1 operations. It optimises the internal environment through regulation, resource allocation, and performance management.

## Mapping Rationale

Public revenue sources represent S3's resource management function by establishing how the sovereign collects the resources necessary for public expenditure. The analysis of different revenue sources and their economic effects represents operational management's consideration of how to efficiently extract resources from the economic system while maintaining its viability. This is internal regulation of the resource collection process.

## Mapping Strength

Strong

---

--- MAPPING: three duties of the sovereign-to-S5 ---

# Three Duties of the Sovereign -> System 5 (Policy / Identity)

## Economic Entity Reference

The fundamental obligations of government consisting of protecting society from external violence, protecting individuals from injustice, and establishing public works and institutions that benefit society as a whole.

## VSM Concept Reference

System 5 (S5) is the policy-making body that balances demands from Systems 3 and 4 and defines the identity, values, and purpose of the organisation. It provides closure to the whole system and represents its supreme authority.

## Mapping Rationale

The three duties of the sovereign represent S5's policy-defining function by establishing the fundamental purpose and identity of the state within the economic system. These duties provide the philosophical framework that defines the proper scope of government intervention, establishing the identity and values that guide all economic policy decisions. This represents the supreme policy framework that gives meaning and direction to the entire economic system.

## Mapping Strength

Strong