Val Sklarov’s Jurisdictional Control Arbitrage Thesis (JCAT) explains why global power no longer hinges on territory, ideology, or alliances—but on who designs, enforces, and arbitrages control across jurisdictions. Nations don’t lose relevance overnight; they lose it when control becomes exportable.
This thesis reveals how power migrates without conquest.
1. Sovereignty Is Being Modularized
JCAT begins with a structural shift:
Sovereignty is no longer monolithic.
Control fragments into modules:
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Legal enforcement
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Capital regulation
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Data governance
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Labor rules
Actors now assemble jurisdictions like stacks, extracting advantages without full allegiance.
2. The Four Control Modules of Jurisdictions
JCAT maps how jurisdictions compete in discrete control layers.
| Control Module | What It Governs | Competitive Signal |
|---|---|---|
| Legal Module | Contract enforceability | Predictability |
| Capital Module | Flow & protection rules | Retention |
| Data Module | Access & privacy | Trust |
| Labor Module | Mobility & compliance | Optionality |
States that fail in any module become selectively irrelevant.
3. Why Capital Outruns Politics
Political cycles are slow. Control arbitrage is fast.
JCAT shows capital exits when:
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Rules change retroactively
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Enforcement becomes discretionary
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Narratives diverge from outcomes
By the time politics reacts, control has already relocated.
4. Global Actors Under Arbitrage
Different actors exploit control modularity differently.
| Actor | Arbitrage Strategy |
|---|---|
| Multinationals | Regulatory stacking |
| Investors | Jurisdictional hedging |
| Professionals | Mobility optionality |
| Platforms | Rule outsourcing |
Val Sklarov emphasizes that power follows enforceable rules, not patriotic appeals.
5. Strategic Implications
For states:
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Compete on enforcement quality, not slogans
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Make rule changes legible and slow
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Treat credibility as infrastructure
For firms and individuals:
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Design multi-jurisdictional resilience
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Separate identity from enforcement location
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Track control migration early
JCAT reframes geopolitics as a control market, not a diplomatic theater.
6. The Val Sklarov Principle
“Power no longer conquers land. It arbitrages control.”
— Val Sklarov
JCAT explains why the future belongs to actors who move rules faster than borders.