I think we should try to avoid turning this into a thread advocating our personal prefered forms of government. Otherwise the world might just explode.
Tolkien did say that his books were not in any way related to contempotary politics. However, we can look at the governments in the books and the letters to get a feel for his beliefs.
It's interesting that Tolkien says his political beliefs tend to Anarchy. Anarchy to me always evokes liberalism - each man for himself taken to an extreme. Indeed, this is what he says, "an abolition of control." I wonder to what extent he really believed in this - would his Catholicism get in the way of letting everybody pursue their own path in life?
I also refute that Anarchy could ever take the form of collectivism. Anarachism should not be considered as a form of socialism or communism. As Somalia shows, absolute abolition of any form of control leads to capitalism (which I believe Tolkien mentions disliking, though I may be wrong).
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