decentralization

Scotland and Secession

Brandon Christensen Current Events, Links , , , , , , , , ,

From the New York Times:

Scotland would have to renegotiate membership in the European Union and other international organizations if it votes for independence in a referendum next year, according to legal advice expected to be published Monday by the British government.

Read the whole thing.

A couple of thoughts:

  1. Wow, the British government published a report on the possibility of secession. Can you imagine Washington ever doing something so outside the box?
  2. The rest of the analysis falls in line nicely with my own arguments (if I do say so myself!) that secession/devolution will only succeed in Europe (or elsewhere) if the new states are allowed into the EU (or other regional and international bodies not named the UN).

Rare Earth Elements: Stockpile or Markets?

Warren Gibson Economics , , , , , , , , , ,

Quick, what do you know about lanthanum, praseodymium, neodymium, or dysprosium? If you said they are chemical elements, you are right: numbers 57, 59, 60, and 66, to be exact. They and their neighbors on the periodic table, collectively “rare earths,” were once mere curiosities tucked in between barium and tungsten. Now they’re having their day in the sun, thanks to new technology, as did uranium and plutonium when atomic energy was developed. The military may begin stockpiling them.

Good idea or not?

My first encounter with these elements was a project that developed high-tech shock absorbers to protect a replacement camera for the Hubble telescope during the camera’s rough ride to orbit. These devices, called M-Struts, pioneered the use of permanent magnets for shock mitigation. The only material our team found that would provide sufficient magnetic flux density (a measure of the strength of a magnetic field at a given point) was a rare earth alloy, NdFeB (neodymium-iron-boron). This material could only be procured from China.

M-Struts were a one-off project that had no discernible effect on the demand curve for neodymium. But now the demand curve is crowding up against the supply curve largely because of rare earth applications in “green” energy devices such as wind turbines (extra points if you knew that). Continue reading →

Gold and Money

Warren Gibson Current Events, Economics, Liberty , , , , , , ,

Nothing seems to arouse passions—pro and con—quite like suggestions that gold should once again play a role in our money. “Only gold is money,” says one side. “It’s a barbarous relic,” says the other. Let’s turn down the heat a bit and look into some propositions about gold. That should lead us to some reasonable ideas about whether or how gold might return.

Propositions About Gold

Gold has intrinsic value. Actually, nothing has intrinsic value. The value of any good or service resides in the minds of individuals contemplating the benefits they might derive from it. What gold does have is some rather remarkable physical properties that make it very likely that people will continue to value it highly: luster, corrosion resistance, divisibility, malleability, high thermal and electrical conductivity, and a high degree of scarcity. All the gold ever mined would only fill one large swimming pool, and most of that gold is still recoverable.

Only gold is money. Although gold was once used as money, that is no longer the case. Money is whatever is generally accepted as a medium of exchange in a particular historical setting. Right now, government-issued fiat money, unbacked by any commodity, is the only kind of money we find anywhere in the world, with some possible obscure exceptions.

Perhaps people who say this mean that gold is the only form of money that can ensure stability. That’s what future Federal Reserve Chairman Alan Greenspan thought in 1967, when he wrote “Gold and Economic Freedom” for Ayn Rand’s newsletter. “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation,” he said. When later asked by U.S. Rep. Ron Paul whether he stood by that article, Greenspan said he did. But he weaseled out by saying a return to gold was unnecessary because central banks had learned to produce the same results gold would produce. Continue reading →

America and Firearms (Explained to Overseas Readers)

Jacques Delacroix Current Events, History, Law, Liberty, Politics , , , , , , , , , , ,

The other day, I am watching the news on TV5, the international French language network. I am doing this to get away from the spectacle of the impending economic disaster in the US where I live. This is shortly after the massacre of school children in Connecticut. One item draws my attention: The cute, airhead French female announcer (or “anchorette”) states that last year about 28,000 people in the US lost their lives to guns.

Here we go again, I think. More half-assed information that is worse than no information at all. I have witnessed European media disseminating misleading information about the US for more than forty years. This time again, I have to intervene to help overseas of observers of the international scene who want to know about reality and who might happen to read this blog.

I can’t tell you how often I have witnessed the following: European commentators making sarcastic, superior comments about some American event or custom, or some American way of doing things and then, their society adopting uncritically the same American event, or custom, or way of doing things ten years later, or even later. Right now, for example, I would bet you anything that one of the novelties on French radio is 1990s American popular music. That would be especially true on the channel that calls itself without batting an eye-lash, “France culture.”

The tendency of Europeans to copycat the United States is so pronounced that it even affects social pathologies, the last thing you should want to imitate. Accordingly, it seems that the French expression for “serial killer” is: “serial killer.” N.S. ! (Would I make this up?) Continue reading →

Secession within the EU?

Brandon Christensen Current Events, Liberty, Politics , , , , , ,

While I’m on the topic of secession, I thought I’d point readers to the upcoming vote in Catalonia to see if they want to secede from Spain. Central to my arguments for secession is the role that new states would have within a broader free trade zone (like the U.S. or the E.U.). For Catalonia, the British paper Telegraph reports:

Catalonia wants to collect its own taxes, to control how they are spent and it seems prepared to break away from Spain to do so.

But with a clear road map yet to be outlined the process of separating from Spain promises to be burdened with hurdles.

While Catalans prize their role as citizens of Europe, EU officials have warned that membership of the union won’t be automatic. Instead Catalonia would have to gain admission, joining the queue of a list of new European nations seeking membership, and the process would likely be blocked by a vengeful Spain.

This is key to not only Catalonia’s success, but also the success of secessionist movements everywhere. If regions within current states want independence, they have to be sure to not confuse political independence with economic independence. The latter will only lead to poverty. I highlight this point because new states formed during the beginning of the post-colonial revolution of the 60’s and 70s thought that economic independence was the key to liberty. How wrong they were. Continue reading →

The Case for More States in Africa? Anarchy, State or Utopia?

Brandon Christensen Current Events, Law, Liberty , , , , , , , ,

Yes please! There is an old article in the Atlantic arguing that more states are just what Africa needs, and I’d like to highlight why I think more states are a good thing, and at the same time pick up Dr. Delacroix’s argument on states and libertarianism from a little while back and explain why I think that more states are a good thing and why Dr. Delacroix doesn’t really understand libertarian thought.

Now, I know more states seems at first glance to be a counterintuitive position for a libertarian to take, but upon second glance I hope to show you why this isn’t true.

First up, from the Atlantic‘s article:

The idea that Africa suffers from too few secessionist campaigns, too few attempts to carve a few large nations into many smaller ones, flies in the face of conventional wisdom. One of the truisms of African politics is that traditional borders, even when bequeathed by colonizers without the least sympathy for African political justice, ought to be respected. The cult of colonial borders has been a cornerstone not only of diplomacy between African nations but of the assistance programs of foreign governments and multinational non-governmental organizations.

I’ve pointed this out from a number of different angles previously here on the blog, so I don’t want to delve too deeply into this, but the article, written by a professor of journalism at Arizona State, has more: Continue reading →

The Year is 1534, and…

Brandon Christensen Books, History , , , , ,

…a great deal of Spanish conquistadores are trying to cut up Mexico into personal spheres of wealth and property.  I am reading Robert S. Chamberlain’s 1966 book The Conquest and Colonization of Yucatan, 1517-1550, and so far what I have gleaned from it has been great.  Check out this passage:

“Attempted conquest with small numbers and insufficient support for expeditions […] were the result of overconfidence on the part of [the would-be conquistadores…] They had a total misconception of the character of many of the Maya.  [Two of the conquistadores] had seen a few Spaniards destroy Montezuma’s imposing empire and bring it under the yoke.  They were firmly convinced of the invincibility of their arms in face of any odds, and, underestimating the determination and military capacity of the Maya, they believed they could easily be subjugated.

Furthermore, until it was too late, [the conquistadores] failed to understand that many caciques gave fealty only as a temporary expedient, and that they intended to appeal to arms at the first opportunity […] Many mistakes could have been avoided had the [conquistadores] accurately appraised the character of the people with whom he had to deal.”

Now, since the writing of Chamberlain’s book, new statistics and revision of the historical account of the Spanish conquest of the Aztec Empire (referred to by specialists as the Triple Alliance rather than the Aztec Empire) has fleshed out his writings.  Instead of a handful of Spaniards that brought down the Triple Alliance, it was a combination of Spanish forces and tens, if not hundreds, of thousands of indigenous soldiers from rival states that crushed the Triple Alliance.  The vast majority of the indigenous soldiers were commanded by indigenous military officers. Continue reading →

A European Union of More Nations?

Brandon Christensen Liberty , , , , , , , , ,

Wouldn’t that be so bad ass? Or am I just a geek?

The New York Times picks up on concepts that libertarians have been talking about for years. From the article:

The great paradox of the European Union, which is built on the concept of shared sovereignty, is that it lowers the stakes for regions to push for independence.

Has the NYT been reading Notes On Liberty? That’s a tongue-in-cheek question, of course, but one that makes me feel smug and sexy at the same time!

I have largely addressed the crisis in Europe from a political standpoint on this blog, and I don’t see that changing much over the next few years. Fiscal responsibility and civil society can only flourish if political institutions are well-defined.

The NYT article decided to quote a scholar at the European Council on Foreign Relations (which is not *sigh* a think tank dedicated to furthering the interests of a small, elite circle of bankers and industrialists) instead of me: Continue reading →

Separatism (Secession) in Spain, and the Rest of the World

Brandon Christensen Current Events, Liberty , , , , , , , ,

Separatist agitations in Spain have prompted some observers to reconsider the concept of secession as a viable option in politics again. The BBC has a very good report here, and the Economist has an even better one here.

When I was taking an Honors course on Western civilization and we got to the European Union, a thought immediately came to my head and I shared it with the class: does the European Union mean the demise of the big nation-states of Europe?

My hope is that it will, but my Professor and my Left-leaning classmates either thought ‘no’ or had not thought about this question at all. One sexy girl did think it was possible, though I think she was just humoring me so that I would ask her out on a date (yes, I did, but she couldn’t get into UCLA, though, so she ended up at Berkeley!).

I thought about the confederation of states in Europe that the EuroZone has created, and remembered that many regions within the nation-states of Europe have harbored separatist sentiments since being absorbed into the nation-states of Europe (sometimes hundreds of years ago, sometimes decades ago), as well as the peaceful split-up of Czechoslovakia into two states within the EuroZone.

The purpose of the nation-states was to streamline trade between regions by standardizing trading policy and eliminating parochial tariffs that regions within the nation-states had erected over the course of centuries. So, in what is now Germany, for example, there were hundreds of small states that each had their own economic policies, and most of these states had erected protectionist tariffs, even on neighboring states. The German state standardized trading policy in what is now Germany so that a tariff-free zone of trade eventually emerged within Germany. The federal set-up of the United States accomplished the same thing.

Now, though, the European Union has essentially taken the place of the nation-state as the chief entity in charge of standardizing trading policies in Europe. My line of thought leads me to conclude that this political setup is a great opportunity for regions that have been absorbed into larger nation-states to assert more fiscal (local taxes) and political (local elections) independence because of these region’s new interdependence with a larger part of the European economy thanks to the elimination of tariffs between the larger nation-states currently in place. In short, the confederation has provided the opportunity for smaller states to emerge while at the same time eliminating the parochial and self-defeating aspects (trade policy) of small state polities that often accompanies “smallness.” The best of both worlds has the chance to flower: local governance and total participation in world trade.

I realize that the EuroZone shot itself in the foot with the creation of a central bank and the attempts to delegate to itself ever more political power, but with these two blemishes notwithstanding the European Union is a good thing for both peace and prosperity.

The question of secession in political science has recently emerged as a good one for many scholars, but unfortunately their focus has tilted heavily towards Europe and Canada (Quebec and Nunavut). If we apply this concept to other regions of the globe – especially China, Africa, the Middle East and India – then the notions of violence and despotism that Westerners largely harbor towards these regions disappears.

I hope this makes sense. If it doesn’t you know where the ‘comments’ section is!

The UN Sucks

Brandon Christensen Current Events , , ,

I didn’t catch President Obama’s speech to the UN last night. I had other things to do (like stare at a brick wall).

I think the UN actually deserves credit for helping to avert nuclear war between the Soviet Union and the United States. The UN also did a good job of containing any French, British, or Chinese jealousies that could have erupted during the Cold War by keeping them included in the decision-making process. The diplomatic institutions it put in place were voluntary and had three clear-cut goals in mind: 1) avert nuclear war between the two rising superpowers, 2) avert rivalries between the two fading European powers not defeated by the United States, and 3) ensure that tensions in the Far East remained manageable.

The UN did all of these fairly well.

Today, though, I think the UN is a sham. The few good programs it has, such as the ones focusing on health and clean water, can be better run by various agencies in a decentralized manner. The goals of the post-Cold War UN are vague and paternalistic, which is why I suspect it attracts the curiosity, awe and respect of so many young Leftists. Continue reading →

Property Rights in Africa: More Decentralization Please

Brandon Christensen Current Events, Law , , , , , , , , ,

From the economist Camilla Toulmin:

While land registration is often proposed as a means of resolving disputes, the introduction of central registration systems may actually exacerbate them. Elite groups may seek to assert claims over land which was not theirs under customary law, leaving local people to find that the land they thought was theirs has been registered to someone else. The high costs of registration, in money, time, and transport, make smallholders particularly vulnerable to this.

You can read the rest of her article here [ungated version can be found here]. It goes on to elaborate upon how more decentralization is needed, as well as the need for more incorporation of indigenous legal practices. Highly recommended, but grab a cup of coffee first.

Arguments to ponder:

  1. James Buchanan’s work on public choice (elite groups seeking to capture the rent)
  2. Friedrich Hayek’s work on tacit knowledge and the inability to plan societies from the top
  3. Elinor Ostrom’s work on governing the commons and how states muddle the intricate “rules of the game”

Any thoughts? Suggestions for further reading?

One Sure Thing About Globalization – The American Motion Pictures Industry World Hegemony Part 1

Jacques Delacroix Economics , , , , ,

[Editor’s note: this lecture was delivered to the Leavey Institute of Santa Clara University in 2003. You can find it reproduced in whole here.]

The word “globalization” is often used as shorthand to suggest that the world as recently shrunk for many purposes (Friedman, 1999). At first blush, this would seem to be good news, facilitating the spread of literacy, the diffusion of useful technologies, and socioeconomic progress, in general. However, a large segment of public opinion, in this country and, apparently, a larger segment in Europe and certain other countries (such as India), takes a jaundiced view of this shrinkage. This view is propagated by numerous websites as well as by professional intellectuals such as Noam Chomsky (who is often heard on National Public Radio). It contains a large anti-American component (Menand, 2002). It is widespread – at various levels of sophistication – in American universities. (1) In recent years, it has been dramatically acted out by rioters in Seattle, Quebec and Genoa, among other places. For left-wing opinion, “globalization” seems to imply that there is something radically new under the sun that is also economically nefarious for the poor and for the weak. For the same left-wing opinion, the word often suggests a sinister plot implicating in turn, “big corporations”, the World Trade Organization, the International Monetary Fund, and other organizations little understood by the general public. (For a broad, business-oriented and mildly liberal classification of the many sins the word “globalization” covers, see Eden and Lenway, 2001.) That new something entails a clandestine hegemony, or hegemonies, of some sort, dedicated to the further “exploitation” of the already poor and weak by the already rich and powerful. In this presentation, I develop the idea that there is little that is both radically new and nefarious,
and that what is new is likely to have largely beneficial effects. I rest my argumentation on readily available, public evidence.

Note: If you don’t think such a perspective on globalization exists, or you believe it’s inconsequential, you may want to stop reading. It is very difficult to find anywhere assertions about globalization displaying at once the following features: Continue reading →

Somaliland in the News

Brandon Christensen Current Events, Law , , , , , , , ,

Reports the BBC:

Leaders from Somalia and Somaliland have held their first formal discussions on the future of the self-proclaimed Somaliland republic.

It broke away in 1991 and wants to be a separate country – but it has not been internationally recognised.

Mogadishu wants the northern territory to be part of a single Somali state.

Since declaring independence, Somaliland has enjoyed relative peace in contrast to the rest of Somalia, which has been plagued by conflict […]

It was the first time in 21 years that there had been formal, direct contact between the authorities in Mogadishu, and the Somaliland administration, which used to be a British colony, whereas southern Somalia was governed by Italy.

The two sides agreed the talks should continue and, in a declaration, they called on their respective presidents to meet as soon as possible – this could be as early as next week in Dubai.

They also called on the international community to help provide experts on legal, economic and security matters, which our correspondent says are all issues that will need to be addressed in clarifying the future relationship between Somalia and Somaliland.

This is great news! Continue reading →

Santa Cruz Vandals, Drums, and Left-Wing Authoritarianism

Jacques Delacroix Current Events, Politics , , , , , , , , , , ,

I live in wonderful times in a wonderful place. Important history is re-playing itself before my eyes. This a sequel to my recent previous blogs (“Freedom Fighters…” and, “The Leftist Municipality….”)

The story has to do with the fact that a few fast-moving people dressed in black caused about $100,000 worth of damage in six or seven storefronts withing three blocks of each other. (The damage cost estimate comes from the local paper. I cannot verify it.) That was in Santa Cruz, California.

The vandals came out of a demonstration of a few hundred young people with no particular agenda, except the usual vague left-wing slogans and a few more about the new Arizona law on illegal immigration . (See my posting on that too: “Illegal Immigration…,” “The Arizona Immigration Law…,” and, “Immigration: More on Conservative….”) It was supposed to be a “May Day” celebration, but May Day is the first of May and the demonstration was on the second. Well, nobody is perfect and this is a beach town.

I did not learn much from the videos on YouTube except that one demonstrator was wearing a tie. There seems to be a consensus that the window breakers were few and well prepared and that they had kept their intentions secret. I believe there were fewer than ten actively involved in the vandalism.

There were no police present at the scene for a long time. I pointed out in previous postings: 1 That the police had other priorities, and, 2 That it was not surprising that they did, given the nature of the city government. Here is more, more blatant evidence. Again, this is contemporary political history in a small capsule. Continue reading →

What Would You Do?

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

I picked up a five things to-do list from Grover Cleveland over at Pileus Blog if he were supreme ruler of the land. He in turn got his 5 from a prompt by Angus over at Kids Prefer Cheese. If readers have any more Top 5 lists they’ve come across let me know and I’ll link them accordingly.

Anyway, here are Angus’s Top 5: Continue reading →