When asked about his politics, John Ronald Reuel Tolkien simply responded that he was an “anarchist of the non-violent variety” and as has clearly come to be shown through his life, letters, and works, this translates to a profound belief in the principle of “subsidiarity,” or letting power reside with the nearest level possible.
This is not a new idea, and it is certainly not unique to Tolkien, although his display of it through his fictional works is a great way to get a grip on this idea. What is vital to understand however is that “subsidiarity” or “Tolkien anarchism” if I may call it that, is not a an ideology but rather a philosophy. That is, rather than dictating how proper power systems ought to be formed, it is understood these are simply consequences of right and just relations between human souls.