By fiat and by decree

"Bolivia is well on the way to suicide by an overdose of schooling. This impoverished, landlocked country creates papier-mâché bridges to prosperity by spending more than a third of its entire budget on public education and half as much again on private schools. A full half of this educational misspending is consumed by 1 per cent of the school-age population. In Bolivia, the university student’s share of public funds is a thousand times greater than that of his fellow citizen of median income. Most Bolivian people live outside the city, yet only 2 per cent of the rural population makes it to the fifth grade. This discrimination was legally sanctioned in 1967 by declaring grade school obligatory for all—a law that made most people criminal by fiat and the rest immoral exploiters by decree." (Ivan Illich, Celebration of Awareness)

In what senses are the emphasized phrases used here?