Author: Brandon Christensen

From the Comments: Pushback in favor of Brexit

Brandon Christensen Comments, Current Events , , , ,

Dr Stocker‘s recent post arguing against Brexit elicited the following response from Chhay Lin in the ‘comments’ threads, and I think it’s worth highlighting in a post of its own:

Very well explained, Barry Stocker. Although it can be good for Britain to leave the EU, it entirely depends on how they go on from there. I am worried that Britain will move unto the path of less free trade which would be an erosion of the 4 freedoms – free movement of goods, capital, services, and people. On the other hand, it seems to me that the EU was steadily moving toward greater centralization and harmonization of regulations that would decrease the competition between its member states and thereby becoming quite harmful. I think that the EU should have never had greater ambitions than the 4 freedoms with a European Court of Justice that would protect these freedoms. Now they can impose EU-wide tariffs and quotas against products from countries outside of the EU or they can impose EU-wide sanctions. Some harmful examples of the EU: the quotas on cheap Chinese solar panels and EU-wide sanctions against Russia. A wise independent Britain would have free trade agreements with countries within and outside the EU, but I’m afraid that too large a portion of the Leave supporters are hostile to immigration and open markets.

Chhay Lin has written more about Brexit, in Dutch, on his homepage and I do recommend you check it out.

A quick note on the Brexit debacle

Brandon Christensen Current Events , , , , , ,

I think Barry (here and here) and Edwin (here and here) have made the best contributions to the debate on the EU and sovereignty here at NOL to date, so I’m just going to add a couple of open-ended thoughts to the recent vote (which I think was a huge mistake).

One of the big theoretical debates over the years concerning the EU is the concept of European-ness and how it can never replace the nationalisms that already exist in each state across the pond. This makes no sense to me, though, especially if you buy the argument (as I do) that nations come and go largely in reaction to current events. German-ness or French-ness or British-ness could easily be subsumed by a European-ness.

I don’t want to be one of those doomsayers who claims that, because things did not go my way, all will be lost. The UK is going to be in for a little bit of hurt, financially, as is the European Union; losing the UK is a big deal, and so is leaving the EU. However, the UK is not exactly Sweden or Germany. The United Kingdom is poorer than Mississippi, the poorest administrative unit in the United States. It’s possible, if a bit unlikely, that the UK will be better placed to negotiate itself back to economic prominence if it doesn’t have to work through the EU to attain some of its goals. The UK has deep connections with a number of states and regions around the world thanks to its now-dead worldwide empire, and I don’t why a more Euroskeptic UK would decide to shun the rest of the world too, especially if the “rest of the world” was once a part of the UK’s empire (the glorious past of the UK seems to be an important talking point for Euroskeptics).

Immigration may not cease either. An irony here is that the Euroskeptics who won rode hard a wave of anti-immigration sentiment sweeping across the UK (and the rest of Europe, too). But it seems to me that, because of the UK’s deep connections to its former imperial provinces, most of the immigrants in the UK are going to be South Asian or Gulf Arab rather than Polish or Greek. Given that much of the anti-immigrant rhetoric in Europe stems from a deep distrust of Islam, I find it odd that British voters could be so gullible on this matter.

Does anybody know if this vote is the final say on whether or not the UK will leave the EU? [UPDATE: see Dr van de Haar’s comment for an answer to my question] It seems to me that there has got to be some legal mechanisms, via courts, that have been put into place in order to slow down things like mob rule mass voting.

BC’s weekend reads

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  1. Anthropology as critique of reality: A Japanese turn (pdf)
  2. Flat-footed Giants: Zaibatsu and Industrialization in Meiji Japan, 1868-1912 (pdf)
  3. A hypothetical federation between Japan and the United States

The problems of ‘Exit’ and ‘Autonomy’ in (mostly American) libertarian thought

Brandon Christensen Politics , , , ,

Over at EconLog, Italian political theorist Alberto Mingardi has a great post up on defining national socialism. Here is the money shot:

So, the nationalists are going to be more socialist, because they want to vindicate the power of the nation state in taking control of the national economy, and the socialists are going to be more nationalist, because strengthening regulation and advancing redistribution is all the more difficult in supranational arrangements, where a cooperative understanding is seldom reached.

My own mind was drawn to this insight, though:

I fear there is a symmetric problem for libertarians. If we take Applebaum’s points seriously, as we should, we are put in a very awkward position: which is defending the status quo, made of relatively free international trade plus relatively weak supranational institutions, as the least bad of all possible worlds. And yet libertarians are highly critical of the status quo and won’t feel well in the company of the current global elites.

This is largely correct. Libertarians are right, I think, to be critical of the status quo (even though it is the least bad of all possible worlds, and has been for the last three decades), but they veer off in the wrong direction when they start emphasizing exit and autonomy over entrance and interconnectedness.

This is not just a complaint about rhetoric, either. When libertarians constantly focus on exit and autonomy, a tendency begins to develop where these two concepts become harder and harder to critique and develop into more coherent ideas about liberty and freedom. Just look at all the support for Brexit by libertarians, or the support still given to the Confederate States of America (!). These libertarians have become so obsessed with exit and autonomy that they end up failing to even entertain the notion that you can’t have exit without entrance, or autonomy without interconnectedness.

“Voice, Exit, and Liberty: The Effect of Emigration on Origin Country Institutions”

Brandon Christensen Current Events, Liberty , ,

That’s the title of this short piece (pdf) by Michelangelo, which was just published by the Cato Institute. Michelangelo, by the way, just got his MA in economics and is now in a doctoral program at UC Riverside’s political science department. Get reaquainted with his bio.

Hopefully he has a little bit of time now to work on NOL‘s soon-to-be-world-famous foreign policy quiz…

BC’s weekend reads

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  1. Saudi-Iran Conflict Is Not America’s Fault
  2. Gains from trade: China and the United States
  3. How Bad Is Trump’s Brand of Authoritarianism?
  4. How Hiroshima Became A War Crime
  5. Art and Porn in Edo Period Japan
  6. The [True?] Meaning of Marxism

A short note on two types of political structures

Brandon Christensen Books, History , , , , , ,

I just came across an excellent review by Herman Belz of a book on American history recently published by Nicolas Barreyre, a French history professor. The main thrust of the book Belz is reviewing has to do with American Reconstruction, but the theoretical thrust of the book is all about state-building and political economy. The whole article is worth your time, but I wanted to hone in on a particular paragraph that caught my attention:

In the 20th century, Progressive “living-Constitutionalism” dedicated to constructing a centralized administrative state […] undermined the Founders’ establishment of a territorial federal republic as the constitutional ground of American liberty. Americans were the territorial people of the United States. Sovereignty resided in the people of the state in which they lived as well as in the states united as a national whole. In the 21st century, the aspirations of Progressive statism reach beyond national borders to the conceit of transnational global authority.

In this paragraph Dr Belz draws a distinction between two political structures:

  1. a centralized administrative state
  2. and a territorial federal republic

The centralized administrative state is a much worse option than a territorial federal republic in Belz’ view (and my own), mostly because in the federal republic sovereignty resides in both “the people” and in the various “states” that have federated to form a republic (Belz suggests this made the United states “a national whole,” but I don’t think that’s true, largely because of Belz’ own description of what Barreyre calls “sectional” politics at the time, but I digress; see Michelangelo for conceptions about “the nation”).

The territorial federal republic is thus a bottom-up approach to a more inclusive, more open society, whereas the centralized administrative state relies on experts, many of whom are unelected and unknown, to govern public affairs.

Belz is largely correct in his summaries of these two political structures, but I think his conclusion (“the aspirations of Progressive statism reach beyond national borders to the conceit of transnational global authority”) misses the mark. This is not because he is right to suspect the Left of wanting to create and sustain a centralized administrative state with a global reach (i.e. the UN), but because he leaves out the possibility that a territorial federal republic can also have a global reach while still avoiding the pitfalls of morphing into a centralized administrative state. Belz is probably more conservative than I am, and hence more pessimistic about the chances of a “transnational global authority” being republican in nature rather than administrative, but I still think my argument is better…

BC’s weekend reads

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  1. Sectarianism and the New Shiism
  2. Why Islamic State Militants Care So Much About Sykes-Picot
  3. The Bullshistory of “Sykes-Picot”
  4. Never Alone: Let’s Retire the Word “Isolationism”
  5. Morals and the Free Society: On Cultural Group Selection
  6. The Creeping Militarization of American Culture

Large states, artificial borders, and the African exception

Brandon Christensen Liberty, Links , , , ,

Large states have been shown to be correlated with a large number of poor developmental outcomes, including poor institutions (Olsson and Hansson 2009), conflict (Buhaug and Rød 2006; Englebert et al. 2002; Raleigh and Hegre 2009), and ethnic diversity (Green 2010a). Similarly, states with artificial borders have been shown to be correlated with boundary disputes and low GDP per capita (Alesina et al. 2010; Englebert et al. 2002).

Sub-Saharan Africa has been affected by large states and artificial borders perhaps more than any other part of the world. Indeed, while Sub-Saharan Africa and Europe both contain between 48 and 50 sovereign states each, Sub-Saharan Africa is around 2.4 times larger than Europe. Moreover, with 44% of borders drawn as straight lines, “Africa is the region most notorious for arbitrary borders” (Alesina et al. 2010:7). Scholars have thus suggested that Africa’s poor economic development and numerous conflicts have been at least partially a result of its large states and artificial borders (Alesina et al. 2010; Englebert et al. 2002).

However, there is very little scholarship explaining African state size or shape, with previous literature only focusing on the persistence of state size and borders in the post-colonial period rather than on their origins (Englebert 2009; Herbst 2000). Thus my goal here is to probe the origins of state size and shape in Africa.

That’s from this paper (pdf) by Elliot Green, an American political scientist at LSE. Here is Edwin arguing that size doesn’t matter.

Should Somaliland be recognized as a state by the international “community”?

Brandon Christensen Current Events , , , , ,

I’ve gone on record here at NOL as stating that one of the big problems facing advocates of individual liberty today is the failure of the international system to recognize calls for autonomy from sub-state actors, and that one of the best ways to do this is by counterintuitively incorporating that new autonomy into the international system in some way (you can do this by admitting such regions into the UN and other IGOs, or by admitting such regions into suprastate organizations like the United States or the European Union).

Mary Harper, a journalist writing for the BBC, has a new piece up that suggests I may be entirely wrong in my approach for a more individualistic and peaceful world:

The differences between Somalia and Somaliland raise interesting questions about recognition.

Somalia is a fully recognised country. Billions of dollars have been spent and many lives lost trying to restore a country devastated by more than a quarter of a century of conflict.

There has been some progress but there are no signs of full stability returning any time soon.

Somaliland is not recognised and does not receive much outside help. But it has built itself up from the devastation of civil war.

I first visited the territory in the early 1990s, when the capital Hargeisa had been reduced to rubble. When I returned in 2011, as I stood on a hill above the city, I was astonished is to see a whole new Hargeisa below me.

With the international gaze so firmly fixed on Mogadishu, it is unlikely Somaliland will be recognised in the near future – but that may be a blessing in disguise.

Maybe, but Somaliland’s plight could be a whole lot better, too. Imagine, for example, Somaliland joining the EU…

From the Comments: Why care about Syrians?

Brandon Christensen Comments, Current Events , , , , , ,

Dr Gibson notes:

I’d say the “big question” makes no sense. Surely some Syrians would be better off under ISIS and some under Assad.

And there’s a bigger question: who the hell cares? Few if any of us Americans have enough information to judge this issue nor should we. We have our own fish to fry. The Washington politicians have done incalculable damage with their ceaseless meddling in the affairs of the Middle East and elsewhere. Let the Syrians and their immediate neighbors sort this out.

I wanted to draw this excellent comment out for two reasons. Reason number one has to do with Dr Gibson’s first paragraph. Questions rarely make sense (which is why you ask people for help), but suppose you asked whether Syrians would be better off under capitalism or socialism. Some Syrians would be better off under socialism than capitalism, but that doesn’t mean it’s just as good as capitalism. Right? One of those systems is better for far more people than the other, and as an individual don’t you have a moral duty to support the more just system in some form or other? These are questions that libertarians, especially libertarians in the United States, should be asking themselves more often than not. There is a disturbing tendency among this faction of libertarians to lean in the direction of nationalist parochialism when it comes to matters outside of our borders. This brings me to reason number two for highlighting Dr Gibson’s (quite excellent) comment: Reminding libertarians and classical liberals that our creed is an international (and a humble) one.

War refugees represent the humblest of our species. The UN estimates that the war has affected nearly 12 million Syrians so far and, of course, that doesn’t include all of the people outside of Syria’s borders who have been affected. Russians, Europeans, North Americans, Syria’s immediate neighbors, and East Africans have all been affected by the ongoing war. How could you not be interested, especially from an individualist point of view?

I think the problem of the American libertarian’s parochialist nationalism stems from Murray Rothbard’s Cold War-era writings. Unlike F.A. Hayek and Ludwig von Mises, who were both big supporters of more international cooperation (but who both saw the glaring flaws in organizations like the UN and what is now the EU), Rothbard’s writings on foreign affairs were heavily influenced by the fact that the world was dominated by two superpowers and that the government he lived under used lies and deceit to counter Moscow’s power plays. Rothbard’s world of bi-polar geopolitics is long gone. It doesn’t exist. It will not exist again in my lifetime. Ours is a world of multipolarity. Yet somehow Rothbard’s writings on foreign affairs (which descended into outright incoherence near the end of his life) still have a profound impact on the American libertarian movement.

Much of my work here at NOL is dedicated to eviscerating this long-expired mindset from the American libertarian movement. Isolationism is nationalist, plain and simple (just pay attention to the rhetoric of libertarians like Justin Raimondo or Doug Bandow if you need more convincing), but Warren’s point about Washington’s meddling in the affairs of other states remains pertinent. So perhaps a different question to ask (even if it doesn’t make sense) is what a more internationalist-minded, in the vein of Hayek and Mises and Adam Smith, US foreign policy would look like. (I’ve been asking this question for a while now.)

“If we have to choose between ISIS and Assad…”

Brandon Christensen Current Events , , , , , ,

 

…we’ll take ISIS. ISIS has flatbed trucks and machine guns. Assad represents the strategic arch from Tehran to Beirut, 130,000 rockets in the hands of Hezbollah, and the Iranian nuclear program.

That’s from Michael Oren, a prominent Israeli lawmaker and a former ambassador to the United States. I got the quote from an excellent bit of reporting in the Wall Street Journal by Yaroslav Trofimov on the Syrian war as viewed by the Israelis. (Read the whole thing.)

ISIS isn’t a privatized security force per se, but it is definitely a denationalized one. So the Israelis, or at least one prominent faction of Israelis, prefer ISIS to Assad. The big question, though, is whether or not people in what is presently called “Syria” are better off under ISIS (a non-state actor) or under a pseudo-state that is inevitably going to be governed by a strong man…

BC’s weekend reads

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  1. Power, Islam, and Pragmatism in Turkish Strategy
  2. Anthropology, Empire and Modernity
  3. Would New Borders Mean Less Conflict in the Middle East?
  4. Cairo: A Museum of Ghosts
  5. Obama in London
  6. Rand back to being Rand

BC’s weekend reads

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  1. China’s Legalist Revival
  2. Does Europe need a new Warsaw Pact?
  3. Daniel Larison (PhD in Russian History) on Trump’s foreign policy speech
  4. The Anti-Trumplodytes
  5. Why Popular Sovereignty requires the due process of law

Coase’s “Nature of the Firm”: An Anthropological Critique

Brandon Christensen Economics, History , , , , ,

But is it a good one? Is it even made in good faith? I need help.

From American anthropologist John D Kelly’s The American Game…:

Ronald Coase’s theory of the nature of the firm rescued, for neo-classical economics, the existence of firms or corporations as rational entities […] Markets always come first, and the problem of the existence of firms is depicted as the problem of why a rational manager would rely on employees rather than markets. State planning and private firms are taking over what already exists, integrated by the price mechanism of markets, and are successful to the extent that they lower costs, since there are a variety of costs involved in market transactions. Thus marginalist analysis implies that an equilibrium will always be found between planning structures and integration by price mechanism, especially since, as Coase says in “The Nature of the Firm,” “businessmen will be constantly experimenting, controlling more or less” and “firms arise voluntarily because they represent a more efficient method of organizing production.” The rise of the firm, as Coase imagines it, is always a movement from many pre-existing contracts to a controlling structure, “For this series of contracts is substituted one.” (94)

The emphasis is mine. Kelly continues:

This imaginary fits poorly the situations that were precisely the actual origins of firms, as when banks gave mortgages to planters, or stock markets funded companies of young agents, prepared to cut plantations into captured wilderness for tropical commodities […] usually employing labor moved long distances and disciplined by direct violence. There is more in the universe than Coase’s imagination, more motives for controlling powers of firms than their cost efficiencies. (94-95)

Kelly goes on to give a brief account of 1) how corporations created commodity production out of thin air, 2) how these corporations were tied to European imperialism, and 3) how they used slaves and indentured servants even when it would have been cheaper to hire the locals.

I want to address Kelly’s summary of Coase’s paper (here is a pdf, by the way, in case you want to follow along), mostly because I’ve never read it although I know it’s important, but first I want to make a couple of digressions. Libertarians would more or less answer Kelly’s three charges listed above as follows: 1) yes, and this is a good thing, 2) state-sponsored corporations and private firms are two distinct entities with two very different incentive structures, and 3) see #2. There is also an issue of accuracy in regards to Kelly’s brief summary of world history since 1600. I don’t want to get into the details here, but I do want you to recognize that I am reading Kelly critically. My last digression is simply to point out that libertarians and Weberian Leftists like Kelly have more in common than we think.

To get back to Coase’s paper, and Kelly’s critique of it, I want to highlight one sentence from Kelly’s book in particular and then turn it over to the peanut gallery in the hopes of gaining some insight:

Markets always come first, and the problem of the existence of firms is depicted as the problem of why a rational manager would rely on employees rather than markets.

Is this the puzzle Coase was trying to grapple with in his paper? I ctrl+f’d Coase’s paper (“employe” – not a typo) and couldn’t find anything that actually confirms Kelly’s summary, but it would be an interesting project (if I am right in stating that Kelly’s summary of Coase’s paper is not accurate) to follow this line of thought and delve into Kelly’s insight about the reliance that entrepreneurs/firms have on employees (rather than markets)…