From the Comments: Russia Resurgent and a Libertarian Strategy

I am working on a speculative piece about the recent assassination of liberal (i.e. libertarian, a.k.a. internationalist) politician Boris Nemtsov in front of the Kremlin. In the mean time, here is an old comment of mine on Russia’s new grand strategy:

Thanks Dr A,

I still think this is all a part of Russia’s symbolic strategy against the West. As you mention, the referendum is not legally binding and nobody aside from Moscow has recognized it.

What I think the best option available to the West would be to go ahead and recognize the independence of regions within Russia’s “official” borders (the territories you mentioned, for example).

To back this up, simply make a mockery of the whole process going on in Crimea. Have a couple of silly press conferences. Then, to add teeth to the recognitions, publicly announce some weapons deals with Georgia and Ukraine. Publicly announce that all Western arms-related bans in the Caucasus are to be repealed.

Then point out, in a rueful manner, that Canada and Mexico are under threat from domestic fascists and must be invaded in order to protect the American citizens and lovers of American citizens in those two countries.

Mocking Russia’s current moves in Crimea will have a much greater impact on policy decisions and public opinion than economic sanctions (which will only make things much, much worse).

Sanctions are a prelude to war.

There is also the issue of secession and political oppression to think about. As it stands, the Crimeans should be able to vote their way out of a political union with Kiev. So, too, should Dagestanis, Chechens, Karelians, etc., be able to vote their way out of a political union with Moscow. The fact that only guns have so far been able to secure a vote in favor of public opinion (Crimean secession from Ukraine) suggests that liberalism has yet to reach enough minds and institutions to have the positive impact that I think it could have on the world.

I also don’t buy the argument, made by some, about the fact that at least one of these oppressed post-socialist, post-Soviet regions was able to secede from a political center it deemed oppressive and should therefore be viewed in a positive light, even if it was Moscow’s guns which brought about the change. To me this line of reasoning is akin to arguing that the US invasion of Iraq was a cautious positive for the world, even though half a million people died due to the invasion, because there is now one less dictator in the world.

Secession needs to be viewed as a legitimate political option for peoples and this recognition needs to be incorporated into the legal systems of liberal societies if we want to avoid more conflicts like the one between Russia and Ukraine. The world is devolving politically, which means secessionist tendencies will increase, and if there is no political or legal mechanism (much less intellectual recognition) for dealing with these aspirations then be prepared for more problems in the post-colonial world (see this and this), but not so much in the West (see this and this). Liberals, of course, have been at the forefront of the secession debate since John Locke first brought it up in his 1689 classic Second Treatise of Government.

“The Lack of Competition/Diversity”: One objection to world government that shouldn’t be made

I have recently come across an old blog post by Ilya Somin at Volokh Conspiracy arguing against world government. Somin’s argument echoed Michelangelo’s here at the consortium, and in particular one aspect of their argument stands out for being especially short-sighted: That of a lack of competition or “diversity in governance” would be the inevitable result of a world government.

Now, a libertarian world government would be federal in nature, so if Somin and Michelangelo are arguing against a different kind of world government they may have a point (I don’t know of many arguments in favor of world government that are not federal in nature, and it wouldn’t be worth my time to read up on any such ludicrous proposals), but when addressing arguments in favor of world government from a libertarian perspective opponents must realize that it is federation they are skeptical of.

Here is how I address the opposition to a world government because competition (and, thus, diversity) would become diminished:

Libertarians generally argue that federalism is the best option we, as humans, have because it allows for competition between administrative units. This competition is enhanced and respected by the people it affects because of the rules set in place and enforced by a federal authority. So, for example, everyone in the US federation generally has their individual rights protected (there are always exceptions, of course, including blacks, Natives, felons, immigrants, and religious minorities), including freedom of movement. Under this general framework different administrative units come up with different policies concerning taxes, education, transportation, etc. This competitive framework makes policies better overall, in all 50 states, without having to resort to a central, one-size-fits-all policy.

It is true that the US could be better, and it is true that federal democracy may be inferior to anarchy, but it is also true that we live in a world of second bests, and comparatively speaking, the US has one of the highest standards of living in the world so I don’t see why this should not be taken as a sort of rough estimate for where libertarians should be aiming.

Is everybody in agreement that federalism is the least worst workable option largely because of the competition it allows for?

Okay then. It somehow follows, for opponents of world federalism, that if the US federal system were to add every administrative unit in the world into its system that competition would suddenly cease.

Huh?

Okay, I am being a jerk about this line of reasoning. It actually goes something like this: Because the US and Russia have different systems of governance, they are competing with each other. Fair enough, but it does not follow that this competition is a good thing. If I recall correctly, there are good kinds of competition and there are bad kinds of competition. Walmart versus Target is good competition. Lobbying for political favors is good competition (consider the alternatives, i.e. Russia). Building up military capabilities is bad competition. Pitting human rights-abusing regimes against liberal democracies is bad competition, too, but this last scenario is precisely what opponents of world federalism argue is desirable about the status quo.

World government wouldn’t eliminate competition, it would enhance it by focusing governmental duties on policy issues and standardizing a regime of rights protection based on the notion of the free and sovereign individual.

Comparing the US to, say, Gabon or China is not competition. It is an injustice, and one that ignores the plight of billions of people living under despotic regimes. Competition is not what happens when 5 million people live in a liberal democracy and 5 million more live in a one party socialist state. Competition is what happens when all 10 million people are free to worship the Flying Spaghetti Monster whenever and wherever they please, but only half of them pay a sales tax (the other half have banned plastic bags through plebiscite, of course).

Even if my competition-is-enhanced-by-federalism argument does not convince the opponent of world government, the fact that his own argument for more competition, through state sovereignty, should.

Consider the following scenario in regards to competition and world federalism: The state of Durango, in the United States of Mexico, is fed up with Mexico City’s corruption and inefficiency. The leaders of Durango, and a significant population of Durango (say, 60-65%), all would be thrilled to leave the Mexican federation. However, Durango knows that independence would be much worse than federation, so it continues to stay within the Mexican federation and simmers with despair and loathing.

Under the status quo – competition through state sovereignty – Duranguense have no options whatsoever, except to keep electing reformers to political office at the federal level and hope for a reform bloc to coalesce. How is this competitive?

Now, consider the scenario outlined above again. The federation of 50 American states has adopted a statute that allows for disgruntled administrative units elsewhere in the world to apply for admission into the union. Duranguense suddenly have an option. Not only that, but Mexico City suddenly has competition, and little of it can be snuffed out through repressive domestic policies.

Does this make sense? Am I knocking down a straw man? If so, please don’t hesitate to take me to task in the ‘comments’ threads!

Libertarians and World Government, Part 3

I have briefly blogged about the problem libertarians face when confronted with world government and the inherent internationalism of their creed before (here and here), but none of those musings were as deep as I’d have liked them to be. I think I have a better understanding of this puzzle now, and therefore you’re gonna get a longer than usual post.

First up is the task of confronting the skepticism of all government that comes from most American libertarians. This is a skepticism that becomes all the more hostile as the level of government rises. So, for example, many libertarians are contemptuous of local government but don’t mind it all that much. This contemptuousness rises a little when the next level of government is involved: that of the administrative unit (in the US this is known as a “state” for reasons I hope to explain a little further below; elsewhere the administrative unit is usually known as a “province”). When the federal government is involved, in US politics, the libertarian becomes deeply suspicious and hostile to its intents and actions. Much of this is warranted, of course, and the American libertarian usually allows the federal level of government room to maneuver in matters of foreign policy and the courts (the two legitimate functions of the state).

When a level of governance rises up any further than that, though, to the regional level (NAFTA, CAFTA, etc.) or the supranational level (the UN, World Bank, EU, etc.), the animosity displayed towards government is vicious and reactionary rather than thoughtful and penetrating. Again, much of this is warranted, as these levels of governance usually act beyond the scope of democracy and seem only to serve the interests of those who belong to the regional and supranational organizations (unelected – i.e. politically appointed – bureaucrats). The nature of these “higher levels” of government is the main reason the patron saints of modern-day libertarians – the interwar economist Ludwig von Mises and the legal philosopher FA Hayek chief among them – were highly critical of the creation of these organizations (as well as the short-lived League of Nations).

It does not follow, however, that the inter- and post-war libertarians disavowed the earlier writings of classical liberals on world government. Indeed, Ludwig von Mises himself, in his 1927 book Liberalism (pdf), observed:

Just as, in the eyes of the liberal, the state is not the highest ideal, so it is also not the best apparatus of compulsion. The metaphysical theory of the state declares—approaching, in this respect, the vanity and presumption of the absolute monarchs—that each individual state is sovereign, i.e., that it represents the last and highest court of appeals. But, for the liberal, the world does not end at the borders of the state. In his eyes, whatever significance national boundaries have is only incidental and subordinate. His political thinking encompasses the whole of mankind. The starting-point of his entire political philosophy is the conviction that the division of labor is international and not merely national. He realizes from the very first that it is not sufficient to establish peace within each country, that it is much more important that all nations live at peace with one another. The liberal therefore demands that the political organization of society be extended until it reaches its culmination in a world state that unites all nations on an equal basis. For this reason he sees the law of each nation as subordinate to international law, and that is why he demands supranational tribunals and administrative authorities to assure peace among nations in the same way that the judicial and executive organs of each country are charged with the maintenance of peace within its own territory.

For a long time the demand for the establishment of such a supranational world organization was confined to a few thinkers who were considered utopians and went unheeded. To be sure, after the end of the Napoleonic Wars, the world repeatedly witnessed the spectacle of the statesmen of the leading powers gathered around the conference table to arrive at a common accord, and after the middle of the nineteenth century, an increasing number of supranational institutions were established, the most widely noted of which are the Red Cross and the International Postal Union. Yet all of this was still a very far cry from the creation of a genuine supranational organization. Even the Hague Peace Conference signified hardly any progress in this respect. It was only the horrors of the World War that first made it possible to win widespread support for the idea of an organization of all nations that would be in a position to prevent future conflicts. (147-148)

What Mises and other interwar liberals missed in regards to establishing a supranational state is the very nature of the US constitution. Interwar liberals were more interested in pointing out the blatant inconsistencies of the multilateral institutions being erected after the war than they were with elaborating upon the idea of a world state. My guess is that they viewed the world state as too far out of reach for their goals at the time, and thus fell back on the ‘balance of power’ option (pdf) that was still popular among liberals at the time. The US constitution is, at its core, a pact between sovereign states to join together politically for the mutual self-interests of foreign affairs and legal standardization (a standardization that is very minimal, as it allows for plenty of flexibility and competition).

This pact, aside from explaining why US administrative units are known as ‘states’ rather than ‘provinces,’ is the key to slowly building a world state that is both representative and liberal (in that it exists to protect the rights of individuals first and foremost).

One of the biggest weaknesses of the US constitution to date is its inability to expand upon the notion that it is a legal charter outlining the duties of a supranational organization. Creating a mechanism that allows for the recognition of foreign provinces  as US member states by incorporating them into the federal apparatus would be a step in the right direction. This mechanism would obviously have to be slowed down in some way. It would have to be approved, for example, by two-thirds of all state legislatures (Utah and California say ‘Yes’ while Georgia says ‘No’) as well as two-thirds of both legislative bodies in the federal government (67% ‘Yes’ vote from both the House and the Senate).

There would also have to be a mechanism allowing for states in the federal union to exit if they so pleased (again in a way that is slow and deliberate so that as many factions as possible could have their voices heard). Contra to some musings by paleolibertarians here in the US, the constitution and the Bill of Rights actually has a sophisticated method of dealing with intrastate conflict within its sphere of jurisdiction; secession is allowed between states, as is the merging of two or more states, although secession from the federal government is so far prohibited (this failing would also have to be addressed before a world state could be contemplated).

It seems to me that the US has practiced unpolished versions of my argument in the past. Texas, for example, seceded from Mexico before becoming a US “state” through annexation.

Does any of this make sense, or do I just sound like a mad man?

Scotland, Nation, and Liberty

As I start writing voting is coming to an end in Scotland with regard to a referendum on whether Scotland should remain part of the United Kingdom. The United Kingdom comprises England, Scotland, Wales, and Northern Ireland. There are those in Cornwall, a peninsula on the extreme south-west of England who argue that is should be represented as an entity on  level with those four components of the UK, as it was regarded as distinct from England into the sixteenth century, never having being properly incorporated into Roman Britannia or Anglo-Saxon Wessex (the Old English kingdom in the south west, which became the nucleus of the Medieval English state).

From the 10th century onwards Anglo-Saxon kings asserted supremacy over Scotland with varying degrees of success in obtaining some recognition of overlordship from Scottish kings. Wars between Scotland and England led to victory for Scotland in the fourteenth century when the English monarchy ended attempts to use force to demand Scottish subordination, or even incorporation of Scotland, and European states accepted Scotland as a sovereign entity. In the early seventeenth century, Queen Elizabeth I of England died childless so that the heir to the English crown was King James VI of Scotland who became James I of England. He moved his court from Edinburgh to London, and pushed for the union of two kingdoms in his person to become a state union of England and Scotland as Great Britain. (At this time, Wales was treated as a part of England.)

The English Parliament resisted the creation of Great Britain, but by the early eighteenth century there was mutual interest in the trade and economic advantages of state union with accompany reductions on trade barriers, particularly after the failure of a brief attempt at Scottish empire building in Central America.  An Act of Union was passed by the English Parliament in 1707 and then by the Scottish Parliament in 1708, which abolished the Scottish Parliament. It also left in place major differences in laws, the legal system, education, and the state church, which have lasted until the present day.

Before the personal union of Scotland and England under James VI/I, Scotland itself went through a process of internal integration, or colonisation of the peripheral regions by the centre, as all nations have. This included the 1493  abolition of the Lord of the Isles, which indicated sovereignty over an area covering the highland and island areas of Scotland, and which has a complex history in relation to all the neighbouring powers. The incorporation  of that region, what could easily have been a separate sovereign nation if history had gone a bit differently, was not completed until 1745, that is after the Act of Union, when a British army destroyed an attempted restoration of the Stuart family of James VI/I. The attempted restoration is known as the Jacobite Rebellion. Jacobite refers to the latinised form of James, in honour of James II, who was overthrown in the Glorious Revolution of 1688 due to his Catholic religion, fears that he was attempting to enforce that religion as a state church instead of the existing Protestant established church, and fears that he was creating an absolute monarchy with a decorative role only for Parliament.

The Jacobite Rebellion itself divided Scotland between the traditional semi-feudal highland chiefs and the commercial world of the Lowlands. As a consequence of the failure of the Rebellion, British law was enforced fully for the first time beyond the Highland line, while restrictions were placed of Highland customs, clothing, and language. The language of the Highlands was Gaelic (a Celtic language relate to Irish, Welsh, Cornish, and Breton).   This was the triumph of the Scots (a dialect of English, or a language which is very close to English depending on point of view) and English speaking Lowlanders and the end of the process initiated by the early Stuart overthrow of the Lords of the Isles.

The United Kingdom was formed by the 1800 Act of Union, which abolished the Irish parliament. Most of Ireland left to form what is now the Republic of Ireland in the early 1920s, but Northern Ireland remained, now with its own parliament, which is why there is still a UK, not just Great Britain.

All this history is to indicate the long historical nature and the complexity of the  relations between England and Scotland, with regard to sovereignty, identity, and so on. Scotland like England was itself a work in progress before union, and the integration of Scotland into what might be taken as a single nation, was completed over one hundred years after the Act of Union, over two hundred years after the union of crowns, under the leadership of the British crown, which at that time was unified with the German princedom of Hanover.

Scotland was never assimilated into England, even when there was no parliament, and Scotland has always been distinct from England than Wales in at least two respects:

  1. there is a higher proportion of trade within Scotland than with England, than of internal Welsh trading activity compared with trade with England;
  2. Wales’s contact with urban centres is just as much with the nearby English cities of Bristol, Birmingham, and Liverpool as with its own cities (principally Swansea and Cardiff) while Scotland is very focused on its own cities (principally Edinburgh and Glasgow).

However, Wales is more distinct from England in language since twenty per cent  speak Welsh fluently, everyone studies Welsh at school, and Wales is officially bilingual, even gesturing towards Welsh language priority. Gaelic speakers are about one per cent of the Scottish population.

The Welsh-Scottish comparison serves to show that ways of assessing national identity and distinctness vary and that there is no one way of evaluating this, so there can be no one institutional and political strategy for accommodating national differences within a state. The level and intensity of Scottish distinctness and identity has amounted to a nation now divided almost exactly down the middle about whether it wishes to separate from the UK.

This is not just an issue of identity though, as a large part of the Scottish independence vote is based on a belief that Scotland is egalitarian, welfarist, communal, social democratic, or even socialist, in comparison with England and that the countries are polar opposites on these issues. Another part of support for independence is the hope that North Sea oil will bring more benefit to Scotland if a Scottish government is collecting the tax revenue, accompanied by the belief that taxation at the UK level is some kind of resource theft.

Building on the historical, political, and institutional account above, what conclusions am I drawing? The first thing to state is of course that Scotland has every right to leave the UK if it so wishes, that it is a good thing that a referendum is being held to test what Scots want, and that if independence is what is wanted, then the government of the residual UK use must take a positive and co-operative approach to the departure of Scotland.

However, I certainly don’t believe that Scotland should separate. Part of that is the emotional patriotism of an Englishman, call it nationalism no problem, based on centuries of shared enterprise and struggle, good (the defeat of National Socialist Germany) and bad (imperialism). The Scots took a disproportionately large part in the trading, colonising, and military aspects of that joint history, and during that history many Scots went to England and became part of English society, John Stuart Mill’s father is a notable example. One of the great flourishing moments of that history was the Scottish Enlightenment of David Hume, Adam Smith, and others, which always involved education, travel, and interaction in England as well as Scotland.

Why peace behind centuries of joint enterprise in which despite centralising processes, differences of identity and in institutions proved to be compatible with the growth of commercial society, civil society, liberty under law, parliamentary government, science and culture, and the twentieth century struggle against totalitarianism.

There’s  a lot for liberty advocates to admire there, without denying that a lot of worse things happened as well, and surely we should be disposed to favour building on that rather than destroying it. Many liberty advocates have a preference for small nations where maybe there is more chance of intelligent laws and policies, less remote from everyday reality and individual understanding of particular realities.

I can only agree with the provision that such a result can be achieved through forms of federalism which are decentralising rather than centralising so that the federal centre is largely responsible for trade, foreign and defence policy, and the lower region and national levels do everything else in an innovative, flexible, diverse, and competitive way.

There is still some benefit in the UK remaining as a unified power for defence and military purposes. It is would not be good from a liberty point of view for a country that in its military budget and capacities, its diplomatic and transnational weight, is still a match for nearly all the major powers. The UK whatever its faults is one of the more liberty  oriented parts of the world, and no good would come from lessening its strategic and diplomatic weight. Of course those liberty advocates who prefer very neutralist and almost pacifist attitudes to international relations will not be impressed, but we live in a world where states with low levels of inner liberty and little respect for the rights of others exist, and should be at least matched by powers that are more liberty oriented at home and more respectful of the rights in the international sphere. The role of liberal democracies has not always been admirable in this sphere, but better those errors than unchecked aggression from authoritarian states.

The institutions of liberty are more likely to flourish in democratic states, where a multiplicity of national and regional identities flourish, than in attempts to break away based on some inclination, of some degree of intensity, that singular national identity is better than multiplicity and that national identity needs unrestrained state sovereignty. In the particular case of Scotland, the Scottish National Party, and others for independence, are relying on the dream of a more socialist country where ‘Scottish’ oil is protected from the English to fund an expanding state, without having a plausible explanation for the currency to be used on independence, or any sense of reality about how international markets testing the prudence of a new state are likely to drive it towards high interest rates and displays of deficit reduction.

The political consequences of a subsequent disillusion with social democratic dreams mingled with existing  assumptions of a morally superior Scottish community, and related anti-English feeling, in economically disruptive circumstances could be most severe and disturbing. Even on a more optimistic assumption about the future in which Scotland moves smoothly into a more social democratic future, nothing is gained from a pro-liberty point of view. Pro-liberty commentators who think that because Hume and Smith were Scots that an independent Scotland will be guided by Enlightenment classical liberalism have completely lost the plot.

From the Comments: On the Impossibility of Secession Within the European Union

Dr Stocker brings my musings on secession and the European Union back to reality:

Some good historical analysis here, but I’m not so sure about the conclusion. I certainly support a right for regions to secede, but not all EU member states recognise such a right. Spain is the obvious example, since while it gives a high degree of autonomy to regions, including enhanced autonomy for Catalonia and the Basque country, it does not recognise any right to secede except through a law passed by the Cortes (parliament of Spain), which is extremely adverse to allowing any procedure for secession.

Greece has been extremely adverse to secession by Kosovo from Serbia, and does not recognise Kosovo, on the basis that a majority vote within a region-aspirant nation is not enough to justify secession under international law, if opposed by the nation from which the secession is taking place. I suspect there are some other countries with similar barriers to secession.

They’d do well to recognise that right, but the EU can’t force this kind of change on existing member states since unanimous consent would be required for the necessary treaty changes, and even without that barrier, the idea of the EU forcing countries to accept a right to secede and then define when and how that right to secede, which could create conflict with counties like the UK which do recognise the possibility of secession by referendum within the relevant region-aspirant nation, as in the current Scottish vote.

The time might come in the future when all EU countries might recognise a right to secede and then recognising that right could be a requirement for membership. However, it is not Putin’s Russia that would be concerned. Recent events in Ukraine show Putin’s agents fomenting violent secessionism in Crimea etc and a rigged referendum in Crimea. Of course Putin’s meddling is not the same a secessionism exercised peacefully and through fair voting, but such differences are likely to be overlooked by many in light of the still unfinished Ukraine crisis.

My response can be found here. Longtime reader A. Herkenhoff chimes in as well.

California Times Six

I live in California. It’s a great state. Too great.

A proposition to split California into six states may be on the ballot in 2016. “Six Californias” has announced that it has collected sufficient signatures. Why six? California’s population of over 38 million is six times lager than the US state average. The ruling powers may find a way to block the proposal, as some opponents claim that the signature gathering was unlawful. If “Six Californias” does get on the 2016 ballot, in my judgment, this will be a rare chance for fundamental reforms.

Many Californians have said that the state is too big to govern effectively. But the governance problem is not size, but structure. After the property-tax limiting Proposition 13 was adopted in 1978, taxes and political power shifted from the counties and cities to the state government. California could be governed well if decentralized, but the concentration of fiscal power to the state has made the state among the highest taxed and worst regulated in the USA.

There have been many attempts to reform the lengthy California constitution, but they have all failed. Attempts to replace the Proposition 13 have gone nowhere. The best option is to start over. Creating new states would provide six fresh starts.

Critics of the six-state plan say that the wealth of the new Californias would be unequal. The Silicon Valley state would include the high-tech wealthy counties of San Francisco, San Mateo, and Santa Clara, among others. The promoter of this initiative, Timothy Drapers, happens to be a Silicon Valley entrepreneur.

But the current 50 US states are also unequal in wealth. The income inequality problem is a national and global problem. Income can become more equal without hurting production by collecting the land rent and distributing it equally among the population. Since the critics of Six Californias are not proposing or even discussing this most effective way to equalize income, their complaints should be dismissed as irrelevant, immaterial, and incompetent.

US states have been split in the past. Maine was split off from Massachusetts in 1820, and West Virginia was carved out of Virginia in 1863.

If the initiative passes, a board of commissioners would draw up a plan to divide the state’s assets and liabilities among the six new states. A good way to do this would be to divide the value of the assets by population, but to divide the liabilities (including both the official debt and the unfunded liabilities such as promised pensions) by the wealth of each state. That would go a ways to deal with the inequality problem.

California’s complex water rights could be simplified by eliminating subsidies, instead charging all users the market price of water. There could continue to be a unified water system with a water commission with representatives from the six state.

If this measure is approved by the voters and by Congress, each state will design a constitution. The new constitutions should be brief, like the US Constitution, in contrast to the lengthy current California constitution that contains many provisions best left to statute law.

The new constitutions should retain the declaration of rights in the current state constitution, including Article I, Section 24: “This declaration of rights may not be construed to impair or deny others retained by the people.” This wording, similar to the US 9th Amendment, recognizes the existence of natural and common-law rights. This text should be strengthened with something like this: “These rights of the people include the natural right to do anything which does not coercively invade the properties and bodies of others, notwithstanding any state interest or police power.”

These new constitutions will be an opportunity to replace California’s market-hampering tax system with economy-enhancing levies on pollution and land value. There should be a parallel initiative stating that if Six Californias passes, the states will collect all the land rent within their jurisdictions and distribute the rent to all six states based on their populations. A tax on land value is by itself market enhancing, better than neutral, because it promotes an efficient use of land, it reduces housing costs for lower-income folks, and eliminates real-estate bubbles. Combined with the elimination of taxes on wages, business profits, and goods, the prosperity tax shift would raise wages and make California the best place in the world for labor and business.

This is all a dream, but the past dreams of abolishing slavery, having equal rights for women, and eliminating forced segregation all came true. This proposition will at least provide a platform for discussing such fundamental reforms.
—————————————-
This article was first published at http://www.progress.org/views/editorials/california-times-six/

Secession and international alliances go together

It is important to scrutinize the intellectual strength of libertarian ideas about international relations. Here are a few – admittedly only partly systematic- thoughts about the relation between secession and international relations. Or more precise: some libertarians are positive about secession, yet at the same time negative about international alliances. How does that relate?

Pleas for secession can be found in the works of Von Mises, Rothbard, Hoppe and other luminaries of libertarian thought, broadly defined. In an informative chapter on the issue, Mises-biographer Jörg Guido Hüllsman (at mises.org) defined secession as the ‘one-sided disruption of (hegemonic) bonds with a larger organized whole to which the secessionists have been tied’. Recent examples are the bloody secessions of South Sudan or Eritrea. Yet the issue also remains topical in Western Europe, for example in Scotland. It is not my purpose to emphasize the practical failures and wars associated with secession. From a libertarian perspective the principal benefit of secession is that a group of sovereign individuals decide for themselves how and by whom they are governed, and in which type of regime this shall happen. So far, no problem.

Let’s assume a world where secessions take place freely, peacefully and more frequent than in the past twenty-five years, where the number of sovereign states just went up by approximately twenty recognized independent countries. The logical result will be the fragmentation of the world in numerous smaller states, or state-like entities, of different sizes, composed of different groups of people. Perhaps some of these states will comply to an anarcho-capitalist libertarian ideal, so with a strict respect for property rights and the use of military defense only for clear-cut violations of these rights by others. However, it is unlikely that all states will be characterized in this way. Consequently, there remain a lot of causes for international conflict and war. For example, as there are more borders, there are also potentially more border disputes, about natural resources, water, stretches of land, et cetera. Of course humans are not angels, and no libertarian ever claims they will be. It simply means none of the other causes of war are perpetually eradicated in a world of free secession either.

So how to defend oneself in such situation, particularly when your state is much smaller than one or more other states in the vicinity? In such a situation you are unable to defend yourself against the most viable threats. Even if you declare yourself a neutral state it is unlikely this will always be respected. After all, it takes at least two to tango in international politics. Of the many possibilities to defend your property rights and sovereignty, the negotiation of agreements with other countries, or joining an international alliance seems logical and potentially beneficial (of course depending on the precise terms). It would amount to a system of multiple balances of power around the globe, very much like for example former Cato Institute scholar Ted Galen Carpenter favored for the current world. Surely, this would not be ideal, and would not be able to eradicate war either. Yet it will prevent many wars and safeguard the liberties and property rights of the participants.

This differs significantly from the pleas by people who simultaneously favor secession while calling for a non-interventionist foreign policy without alliances, such as Rothbard, Ron Paul (see for example in a column), or many contributors on www.lewrockwell.com.

Admittedly, most of these anti-alliance commentaries are directed against particular parts of current US foreign policy. However, it is still fair to demand theoretical consistency. Either these writers overlook there might be an problem, or they choose to ignore it. Still it is important to acknowledge there is an issue here. It is too simple to reject international alliances while embracing secession at the same time.

A California Crack-Up?

We can only hope.

There has been a small flurry of news articles covering the success of a political initiative by a Silicon Valley entrepreneur to split California into six states rather than one. If this sounds familiar, it’s because many Notewriters have been advocating for more decentralization – both in the US and abroad – since NOL was founded back in 2012. Because breaking up states within free trade zones is such a sophisticated idea, many mainstream pundits have been reluctant to read up on it. Instead, Left-wing reactionaries (and really, are there any other kind?) simply resort to slandering the entrepreneur responsible for the initiative (his name is Timothy Draper, by the way, and you can look up his wiki here), slandering libertarianism, and slandering rich people (Slate, predictably, covers all of the fallacious bases in one fell swoop).

Luckily, the internet now provides people with more than three television channels.

There are two things you need to know about secession within the US free trade zone. First, it is extremely hard to break up one state into many. There is a constitutional process for the whole idea (I don’t understand why the framers, and subsequent legal experts, can respect secession within free trade zones but cannot bother to apply their reasoning to secession in matters outside of a free trade zone’s jurisdiction; Texas, for example, provides us with a great case study of what happens when an administrative polity breaks away from a federal state only to join a rival federal state; Why should this concept not be applied to the West’s foreign policies today?).

In order for a potential administrative unit (“state”) to become an actual US state, it must first be approved by state legislatures. So, in California’s case, only the California legislature needs to approve of the secession. However, there are rules in the constitution allowing for states to join up with each other, or for one region between two US states (like the hippie area in northern California and southern Oregon) to apply for statehood as well. When two or more states are involved, the legislatures of each state must approve of the secession (or marriage). Are we all clear?

Second, after the state legislature(s) approve of the secession, the move must then be approved by the US Congress (both houses). Andrew Prokop, of the Left-wing site vox.com (lest I be accused of being too ideological), explains well what this means:

The biggest difficulty of all would be getting Congressional approval. Giving California 12 Senate seats would be an extremely tough sell. Though those seats wouldn’t necessarily be overwhelmingly Democratic […] they would dilute the power of every existing senator.

Indeed. Now you can hopefully see why libertarians generally support decentralized governance (and let it be remembered that federalism – even a territorially-expansionist federalism – is likely to be the quickest, but still legally-soundest, way towards decentralized governance). As I wrote in a ‘comments’ thread last September (2013):

[…] the federal pie itself would not grow in the event of a few states splitting up.

Think of it this way: suppose the federal budget is $100 for the year. Currently, there are 100 Senators and 435 members of the House, so altogether there are 535 politicians dividing up the $100 pie.

Now suppose the number of states suddenly doubled. You now have 200 Senators and say 870 members of the House.

Numbers like this guarantee that each politician will have less power.

Additionally, you cannot grow the federal pie simply by creating new states out of thin air. If this were the case, then politicians and intellectuals who favor the government redistribution of wealth approach would have long ago advocated for more states. Advocates of redistribution recognize that more decentralization of power makes it harder to come to a consensus about policy options.

And the less government does, the better off everybody will be.

Now, with this being said, there is more than one type of pie. There are state pies and county pies and private sector pies, too. Secession would weaken the power of state-level politicians (Governor Brown could only inflict damage on northern Californians rather than all Californians, for example).

County pies may or may not grow, but in my estimation I do not think growth at the county level is all that important.

The one pie that would grow would be the private sector pie, largely due to the lack of consensus (or, in other words, the greater amount of special interests) at the federal level that decentralization brings about.

Speaking of ‘comments’ threads: One of the things I like most about blogs is the fact that many of the insights I receive about an idea or an event are found in the ‘comments’ threads rather than in an original post. The openness of the blogging platform provides not only an avenue for individuals to express their thoughts, no matter how primitive or vulgar, but also a way for people to expand their horizons and learn something new. This is one of the reasons I try to encourage readers, as well as my fellow Notewriters, to get more involved in the ‘comments’ threads, although y’all are understandably weary of trolls.

The European Union Needs More States, Not More Territory

The recent uproar over the upcoming vote on the potential secession of Scotland from Great Britain illustrates well the European Union’s foreign policy weaknesses. The EU’s potential to increase the number of states within its borders without having to expand its geographic space is an overlooked avenue to reaching a bolder, more sophisticated foreign policy.

Regional aspirations for more political autonomy have been voiced since the time of the creation of Germany and Italy in the late 19th century, but wars, nationalism, economic concerns, and fear of wars (along with the presence of the American military, of course) have largely kept these aspirations on the fringe of domestic political debates in Europe.

Steven Erlanger’s 2012 piece in the New York Times explains well why this is changing and what is currently happening in the European Union:

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.

Erlanger also goes on to quote a scholar at the European Council on Foreign Relations:

‘The whole development of European integration has lowered the stakes for separation, because the entities that emerge know they don’t have to be fully autonomous and free-standing,’ said Mark Leonard, the director of the European Council on Foreign Relations. ‘They know they’ll have access to a market of 500 million people and some of the protections of the E.U.’

The European Union has essentially taken the place of the nation-state as the chief entity in charge of standardizing trading policies in Europe. This political setup is a great opportunity for regions that have been absorbed into larger nation-states to assert more fiscal and political independence because of these regions’ new interdependence with a larger part of the European economy. The confederation has provided an opportunity for smaller states to emerge while at the same time providing these small state polities with a range of options and allies that are often missing from small states’ repertoires. The best of both worlds has a chance to flower: local governance and total participation in world trade.

This is better understood with a quick historical sketch of 19th and 20th century Europe in mind.

In the last decades of the 19th century the large nation-states of central Europe – Germany and Italy – had just been formed after centuries of being composed of hundreds of small polities. These small polities were parochial, and many of these polities’ elite factions had erected protectionist barriers around their small territories. These newly established nation-states were flanked on their eastern borders by cosmopolitan-but-despotic empires operating from Vienna, Moscow and Istanbul, and to the south were small Muslim polities haphazardly connected to the Ottoman Empire and economically dependent on Mediterranean piracy and Saharan trade routes. To the north and west: oceans and the seafaring, imperial regimes of Great Britain, the Netherlands, and France.

A map of Europe in 1800 AD. Look at how many polities are in what is now Germany and Italy. Thanks goes to euratlas.com

The formation of these larger nation-states were undertaken, generally speaking, in order to unify territories considered to be connected under various broad cultural domains into a cohesive political units and mercantile trading blocs.

After Germany and Italy achieved political unification, programs geared towards creating economic spheres of influence within the territory of the new nation-states began to be implemented. The creation of nation-states in central Europe had the contradictory result of opening up free trade zones within the territories of nation-states while simultaneously erecting new trading barriers that targeted individuals and factions not connected with the new nation-states. Free trade won in the domestic arena of these new states, but it also lost out internationally.

The political unification of these nation-states did not go down well with a myriad of factions. The reasons for resistance were varied, but suffice it to say that there was an intense backlash against the centralization of power and the nationalization of everyday life in the new nation-states of central Europe.

To counter regional resistance, proponents of political centralization argued that political union halted the wars that had wracked Europe for centuries (the economic benefits of freer trade were touted as well, but this argument did not have the same clout as it does today). However, this intellectual argument was framed in nationalistic terms, so when it trickled down into the public sphere of European life what emerged was a solid case against regional fracture that involved one part peace and one part national chauvinism.

The end result of this was the destruction of Europe through two large-scale, horrific wars.

The European Union has succeeded where the nation-states of Germany and Italy failed: by creating a massive free trade zone that eliminates protectionism (as the German and Italian nation-states did), and the necessity of cultural chauvinism (“nationalism”)  to maintain legitimacy (which the German and Italian nation-states could not do), the European Union has provided Europe with an incredible opportunity to build a lasting peace.

Adopting a requirement for member states  to incorporate a constitutional option that allows for referendums on secession would be a bold move that would not only bring a higher level of sophistication to EU foreign policy, but also fluster Moscow without edging closer to its borders (think about the example this would set in Russia’s own self-styled federation).

Around the Web

  1. The first Gulf War in 1991 was the US’s opening Iraqi mistake
  2. The art history of an unknown Korea
  3. Damon Root sums up Obama’s disappointing year with the Supreme Court
  4. Brazil: Cinema’s most radical battleground
  5. How to have law without legislation
  6. If Scotland Goes: First the empire disappeared. Now Britain itself could crumble. Scottish independence would have global implications

More regions contemplating independence?

The historically great city-state of Venice is contemplating independence from Italy. “Over two million residents,” nearly half of the total population, “of the Veneto region took part in the week-long survey, with 89 percent voting in favour of independence from Italy.” The  Indipendenza Veneta party believes that the centralized Italian government is unable “to stamp out corruption, protect its citizens from a damaging recession and plug waste in the poorer south.” Venice joins Catalonia and, for better or worse, Crimea this year in considering breaking away from it’s central government. Catalonia’s request for an independence referendum denied by the Spanish prime minister while we all know how long Crimean independence lasted.  All is not lost however.

These types of referendum must be celebrated by libertarians throughout the world. The further decentralization of governments is a goal that can directly lead to a freer, more libertarian society and will serve as a siphon weakening governments worldwide. To quote, as I do so often, the great Murray Rothbard:

“Once one concedes that a single world government is not necessary, then where does one logically stop at the permissibility of separate states? If Canada and the United States can be separate nations without being denounced as in a state of impermissible ‘anarchy’, why may not the South secede from the United States? New York State from the Union? New York City from the state? Why may not Manhattan secede? Each neighbourhood? Each block? Each house? Each person?”

Why not indeed.

Secession and libertarianism – Ukraine Edition

The most basic rule of schoolyard behavior is this: Don’t challenge the school bully if your knees are buckling under you. Mr Obama keeps ignoring the rule, with predictable results: One tyrant, one despot after another receives his confirmation that the USA is no dangerous, no matter what you do. Thinking the US in not dangerous is very dangerous for the world. I keep challenging the ones and the others, including mainstream libertarians, to say what will, or should replace the pax americana that has given us relative peace since 1945. No one cares to answer.

This introduction, not by way of beginning to argue that the US should have gone to war over Crimea. I don’t believe it should have; I don’t even think the US should have risked war ever so little because of Crimea. I think rather that Mr Obama should have been absent, with a pass for the nurse’s office, for example. Neither am I being pathetically “realistic,” here. Mine is a principled position. Let me explain.

Anyone who has any libertarian fiber but who maintains his criticality should be instinctively in favor of secessions. Two reasons.

First if being governed is an assault on individual liberty, being governed by those who are unlike you in some fundamental way is a doubly liberticide. Fundamental differences include, but are not limited to, language. That’s because your language largely determines the way you see the world and your sensitivities, what’s important to you as a person. Governors who have different beliefs, who operate on the basis of different assumptions, who nurture different dislikes than you are bound to commit slow rape on you every day of your life. That’s true even if they harbor zero hostile intention toward you. And that’s unless you volunteer, of course, as many immigrants like me – do.

I wish good luck to the Catalan independentists and to the Scottish autonomists. I would even if you proved to me beyond the shadow of a doubt that powerful economic interests undergirth their efforts. It’s true that Catalonia is more prosperous than the rest of Spain. It does not prevent Catalans from feelings how they do. They probably would, if they were less prosperous. I don’t know if the Scots would like to split from the UK absent North Sea oil but, if they do, they do, and that’s it. I believe, of course, that the Tibetans have had a solid claim for secession for all the time they have been under Chinese rule. (And, yes, it may well be that the objective quality of their lives has improved under Chinese Communist Party dictatorship.)

Am I saying that it’s better to be oppressed by those you think of as your kin?

Yes.

The Crimean population overwhelmingly wanted secession from Ukraine. Without the presence of Russian guns, the referendum would have been, maybe, 76 % in favor rather than 96%. The final result would have been the same. It’s not difficult to entertain this double thought: Putin is a gangster and the Crimeans would rather be Russian citizens.

Speaking of Putin: The fact that he used exactly the same arguments as Hitler in 1939 does not logically imply that he did something like dismantling and gobbling up independent Czechoslovakia. The Czechs and the Slovaks, were not volunteers the way most Crimeans are. The annexation of Crimea by Russia changes little to all this. (See below.) Crimeans did not feel Ukrainian, overall and they were tired of being very poor under the Ukraine. They would rather be moderately poor as Russians. It’s not hard to believe either.

The second reason for libertarians to favor secession instinctively is that rational people cannot treat the boundaries of nation-states as if they were sacred, the way most governments pretend to do. At best, one could argue that that fiction contributes to world stability. (I doubt it but it’s not a stupid position.) Rather, the borders of existing nation-states are often the result of centuries of sometimes successful wars (France), or of recent shameless robbery of one’s neighbors (the US), or of colonial bureaucratic insouciance (Iraq). In some cases, the tracing of boundaries looks like a joke: Take for example the long penis-like extension of Afghanistan into China in the eastern part of the former country. The mapmaker, probably a junior English officer must have chuckled with relief in his loneliness.

National boundaries may be useful or even indispensable (to control entry, of undesirables, for example) that makes them a necessity, or a necessary evil. Nothing confers on them a status above critical thinking: Sometimes, the violation of existing borders should not be countenanced; sometimes, such violation deserves only a shrug.

Note with respect to the present annexation of Crimea by Russia following this secession, I am saying nothing about the ensuing strengthening of the Russian kleptocracy. The encouragement of tyrants inherent in the Putin impunity also belongs in another essay.

The fact is that the prevention of secession has always produced tons of mischief, most of it violent, much of it an affront to basic human decency.

Hitler used the existence of a sizable German minority in a strategically important part of Czechoslovakia, of smaller Hungarians-speaking and of Ukrainian-speaking smaller minorities elsewhere to start World War II. It’s possible, even likely that Hitler would have used another excuse absent this one. But linguistic minority aspirations gave a cover of semi-legitimacy to his aggressive action. Without such legitimacy, it is quite conceivable that British and French public opinions would have demanded that Hitler be stopped while it was still possible. (The whole sorry story of Western passivity and vacillation in 1938-39 is recounted in minute, hour-by hour detail in William Shirer’ s classic: The Rise and Fall of the Third Reich.)

In more recent times, we witnessed violent and massive ethnic cleansing in Kosovo , the three-year long siege of a large city one hour flight from Rome, Sarajevo, and the starvation and daily bombing of its civilian population, and the massacre of thousands of men and boys, also in Bosnia. Most of these horrors could have been avoided by finely wrought enough secessions, even at county level if necessary.

A contrario examples abound of the healthful, virtuous nature of secession as a solution to intercommunal tensions. Some come from the most unlikely places.

The dissolution of Czechoslovakia – a radical form of secession – in 1993 was so peaceful that it went almost unperceived . The resulting Czech and Slovak Republics have since continued separately on their fairly prosperous paths. They maintain sound relationships as good neighbors (as very good neighbors, more or less like the US and Canada).

Paradoxically, today’s Iraq offers a striking example of the virtuousness of secession. The world follows with a tired eye Iraqi Arabs eviscerating each other along communal lines. That is, the Sunni Muslim Arabs there and the Shiite Muslim Arabs there are slaughtering each other every day, same as when the presence of Americans was said to cause all the murderous civil strife. Many Sunnis and many Shiites consider themselves members of existentially different groups. They do so for reasons that are probably difficult for Westerners to understand (except those who remember the Wars of Religion in Europe, of course, between 1520 and 1648.) It matters not; as far as they are concerned, those are reasons worth killing and dying for. Keeping them bottled up together, forced co-habitation, is not likely to attenuate these sentiments. (Think of ill-matched college roommates.)

In the meantime, you hardly ever hear of the Northern third of the same country, bloodied Iraq. I refer to “Kurdistan,” still formally a part of the Iraqi republic. Kurdistan, which does not exist officially, is people mostly by Kurds, a group with a distinctive language unrelated to Arabic. They comprise both Sunnis and Shiites. As far as the facts on the ground are concerned, Iraqi “Kurdistan” has achieved secession from its bloodied mother country. No shot was fired in spite of the quick-trigger violence of the Middle-East. The Kurdish area is so prosperous and so peaceful that others go there on vacation. The vacationers are first of all, Arabs from other parts of Iraq seeking relief from incessant violence in their part of the country. Second, Turks are crossing their southern border in increasing numbers for the same purpose . (May of those Turkish tourists are probably themselves ethnic Kurds.)

And we should not lose track of the fact that the 25 years of Saddam tyranny over all of Iraq, accompanied by internal massacres and two wars he started deliberately found what legitimacy it possessed in the supposedly sacred duty to keep Iraq unified. (Keep in mind that the Saddamite regime utterly lacked traditional legitimacy and religious legitimacy, or the political legitimacy that comes from winning fair elections, or any other source of legitimacy.)

Had Iraq broken up earlier into a Kurdish north, a Sunni center and a Shiite south, the world and, especially, the martyred Iraqi people, would have been spared enormous misery. It’s not too late to achieve this end.

I am speculating that many people’s unexamined attachment to the general concept of national border harks back to an earlier time, a time when they were coterminous with economic boundaries and with information boundaries. Not long ago, French citizens ate almost only French food, they wore only French-made clothing (there was even a lively traffic in illegal, smuggled blue jeans), and heard and read only news originating in France in French. All was produced almost entirely with French capital. National boundaries were then the very containers of our existence defined in the most concrete ways. None of this is true anymore for most countries. Borders are porous to most things including words (if not yet to people). Many people are thus ready to fight for a reality that disappeared quite a while ago.

A major more or less unintended effect of this pursuit of ghosts is that it easily turns to bloodshed, domestic and international. So, many Spaniard are resisting the threatened secession of Catalonia as if it would become a catastrophe of sorts for them. There is still little realization that nations that perceived themselves as homogeneous (for whatever reason) are spared major conflicts, including civil conflict. Homogeneous Denmark, with a similar level of development, is more peaceful than bi-community (linguistic communities) Belgium. Either a Walloon or a Flemish secession there would improve the lives of both Walloon and Fleming.

Secession is usually a good thing overall, for peace, and for individual liberties. Let them go and they will lose the ability to stab you in your own kitchen with your own kitchen knife. They may even become your friends, after a while.

N.B. I still have not heard anyone, or heard of anyone saying that he regretted voting for Obama. Amazing!

Imperialisms, Old and New: Sykes-Picot and the United Nations

Foreign policy expert (and Reason contributor) Michael Young had an op-ed out last week on nationalism and imperialism in the Middle East. Writing in The National, Young argues that Western imperialism should not be blamed for the problems of the Middle East today. Young argues that the power vacuum left by the collapse of the Ottoman Empire guaranteed that violence would play a prominent role in the region, regardless of where the lines of borders had been drawn, or who had drawn them.

Violence would play an important role, Young argues, because aspirant hegemons and various types of nationalisms (Arab, Iraqi, Lebanese, etc.) would be eager to expand their influence and power throughout the Middle East. This is an interesting hypothesis, but it strikes me as disingenuous largely because there is no way to prove such an assertion wrong. The fact that violence could have happened in the absence of European imperialism does not excuse the cartographic crimes of European states. The carving up of the post-Ottoman Arab world happened (interesting counterfactuals notwithstanding).

Young’s argument fails on another account as well. He writes, for example, that:

None of the protagonists in Syria’s conflict has cast doubt on its borders, or has called for a Sunni or Alawite state. Their rhetoric has almost entirely been couched in nationalistic terms, with their aim being the control over all of Syria. Even Mr Al Assad has never expressed interest in falling back on an Alawite mini-state, and if he does so that would only be because he can no longer hold Damascus.

There are two arguments worth scrutinizing here. One, there have been calls for a Sunni state. Two, the nationalist rhetoric is itself a product of Western imperialism. For example, these power struggles for the center occur because secessionist or federalist options are not available to factions in the region. The lack of options stems from the inherent inability of these post-imperial states to govern without a strong man. Strong men are required in the post-imperial Middle East because the states that were drawn up by European diplomats were arbitrary and ahistorical, and therefore lack legitimacy in the eyes of the people.

Post-imperial states are not considered legitimate by their citizens because they never had a say in how to go about structuring such a state (not even through the traditional channel of war). They had no say in where the borders should be, or who they could trade with, or how to best accommodate foreigners. Because post-colonial states are not legitimate, violent centripetal forces are constant. This pattern continues unabated because those who eventually end up controlling the center receive legitimacy from the international legal order, as exemplified by the United Nations and financial lending institutions such as the IMF.

By recognizing the legitimacy of Sykes-Picot’s arbitrary states and the sanctity of its borders, the UN and other Western institutions contribute directly to the bloodshed and impoverishment of the region. Because these states have been legitimized by the UN, violent factions can simply seize control of the center and they will automatically gain legitimacy from the very international order that has sustained this chaos. Why bother trying to gain the legitimacy of an impoverished populace when you can simply capture the rent associated with running a post-imperial state?

The West would do well to start working on a foreign policy that looks at recognizing devolutionist tendencies in the post-imperial world as a legitimate option. Recognizing the mistakes of Western imperialism would be a good start. Western recognition would also give these breakaway movements a sense of legitimacy when it comes to working with international organizations such as the IMF or WTO. Official recognition could open up diplomatic options that are currently unavailable to stateless societies in the post-imperial world.

By continuing to not view devolution as a legitimate option for Middle Eastern (and other) societies, the West is doubling down on its moral failure of a hundred years ago. Recognizing centrifugal forces as a legitimate political process would also bring the post-imperial world and the West to a more level standing with each other, as the West would welcome new states into their international orders rather than picking winners and losers through cartographic exercises. In an era where inequalities are shaping up to play prominent roles in policy debates, this last tweak in diplomacy could very well contribute (politically at least) to a more equitable world.

Has Nobel Laureate Gary Becker been reading NOL?

I would think so, especially after reading this:

The movement toward free trade agreements and globalization during the past 60 years has enormously reduced the economic advantages of having a larger domestic market to sell goods ands services. Small countries can sell their goods to other countries, both large and small, almost as easily as large countries can sell in their own domestic markets. For example, during the past 30 years the small country of Chile has had the fastest growing economy of Latin America, larger than Brazil and Mexico, the two largest nations of this region. This would not have been possible without the access of Chilean companies to markets in other countries, both in South America and elsewhere. As a result, Chile now exports around 40% of its GDP, compared to a ratio of exports to GDP in the United States of about 13%.

[…]

Small countries can do well with small domestic markets by taking advantage of a globalized economy by selling large fractions of its production to consumers and companies in other countries. That is why smaller countries usually export a considerably larger fraction of its production, and import a much bigger share of its consumption, than do larger countries. Size of country was much more important in the past when many countries had high tariffs, and transportation costs were much more important.

Political interest groups tend to be less able in smaller countries in distorting political decision in their favor. This is partly because smaller countries are more homogeneous, so it is harder for one group to exploit another group since the groups are similar. In addition, since smaller nations have less monopoly power in world markets, it is less efficent for them to subsidize domestic companies in order to give these companies an advantage over imports. The greater profits to domestic companies from these subsidies come at the expense of much larger declines in consumer well being.

The growth in the competitiveness of small countries on the global market is in good part responsible at a deeper level for the remarkable growth in the number of countries since 1950 from a little over 100 to almost 200 countries now. And the number of independent countries is still growing.

OMG! He has been reading us! How could he not be? Check out our thoughts on secession, decentralization, and devolution and tell me I’m wrong. Do it!

Heck, if we’re writing about the same stuff as a Nobel Laureate, and you’re reading us, what does that tell you about you? About us?

I’m curious. I also know Dr Becker doesn’t really read us. However, does the fact that we write about the same concepts and events as a Nobel Laureate have more to do with intelligence or ideological bias? Do prominent Left-wing scholars write about secession and globalization in the same way that we do?

From what I can tell, the answer to my second question is ‘no’ (the answer to my first is further below). Generally speaking, libertarians view more countries, more decentralization and more economic integration as a great thing, and we’ve got the data (increases in income, and longevity of life, and literacy rates, and…) to back it up. We’re the optimists.

Leftists and conservatives argue that all the good libertarian things happening in the world are bad, and they have some data to back it up (like Gross National Happiness). Leftists and conservatives are the pessimists.

Is this disagreement over globalization really a matter of intelligence? Of ideology? I think it’s probably a mixture of both, and also that intelligence levels affect ideological bias. You don’t hear many stupid people advocating for a more globalized world, much less for decentralized power structures and economic integration. It’s also hard to find smart people that will shun internationalism at the cultural or political level. The fact that many smart people, especially on the Left, shun economic internationalism is not so much troubling as it is amusing.

Watching intelligent people attempt to squirm out of answering questions about economic internationalism (“globalization”) can be quite the treat.

I think facts are squarely on the libertarian’s side, and that the main obstacle to attaining a more globalized, a more economically integrated, and a more politically decentralized world is rhetoric (and sheer numbers, of course). The benefits of globalization are usually seen by intelligent people very quickly (though not always thanks to clever rhetoric), but there are simply not that many intelligent people in the world (if there were, wouldn’t intelligence be rendered useless or morph into something else?).

I guess what I’m trying to say is that working towards a more libertarian world (thousands of political units with one world market) should be easy, so why isn’t it? I think the answer is ‘factions’. Farm subsidies in the West, for example, are unnecessary and can actually lead to hunger in poorer parts of the world. Getting rid of such subsidies would be a great benefit to mankind, but these subsidies persist. Why? Because of the political power of farm lobbies. If a politician representing a farm district in the West votes to eliminate subsidies, he’s gone in the next election. So unless the representatives of Western farmers somehow band together in defiance of their own interests and vote to eliminate farm subsidies, poor people will go hungry and Western citizens will pay too much for food.

Here is the real conundrum, though. If some factions gain political leverage over other factions, it does not necessarily follow that arbitrarily ending the hard-won privileges of the rent-capturing factions is the best option to take. In fact, it is often the worst option to take because of the dangers associated with arbitrary rule.

Think about it this way: Suppose a bunch of farmers in a democratic state band together and form a lobby for the purpose of protecting their interests. They gain influence (“capturing the rent”) and eventually become a nuisance to their countrymen but not a problem. Unfortunately, they are more than a nuisance to people in poor countries, but these poor people are unable to form a lobby that counters the lobbying efforts of the farmers.

The farm lobby in the rich country has followed all the rules. It has achieved its status as rent-capturer fairly, democratically and legally. What gives the government the right to suddenly change the rules on the farm lobby? Absolutely nothing. Furthermore, if the democratic government starts to ban lobbies it deems to be nuisances, it relinquishes its democratic moniker (and, more importantly, introduces arbitrary rule). Do you see the problem of ‘factions’?

Unfortunately, factions are built in to the policy-making process itself. One of the strengths of democracies is that they tend to give factions more of a voice than autocracies. In the United States, for example, Madison sought to combat the problem of factions by restricting the scope of the state to certain duties, and his system has done an excellent job (all things considered).

So I’ve got two questions I hope to be able to think about in the near term: 1) how can we make the Madisonian system better here in the United States, and 2) how can we “export” (for lack of a better term) Madisonian democracy abroad in a non-coercive manner?

Weekend Question: What to do about the violence in South Sudan?

As many of you may know, the recently-minted country of South Sudan has descended into civil war. I’m going to show you how this violence was actually predictable, but first I want to point out a couple of things.

  1. Why did South Sudan get international recognition and not Somaliland, which has been a functioning democracy for about twenty years now? I’ve got two theories: One of them has to do with Islam. The peoples in what is now South Sudan are Christians and animists and the Arabs they were fighting in Khartoum were Muslims. Theory 2 has to do with Western pseudo-guilt associated with its past, state-sponsored racism. The peoples of South Sudan are black and the people running Khartoum are not.  Neither of these theories makes sense, mind you, but I think this actually bolsters my thoughts on ‘why?‘.
  2. Where did the violence between South Sudan and Sudan go? These guys were duking it out over an oil-rich region just a few months ago and now I can’t find much about the conflict. I’ll bet Khartoum’s disappearance has to do with both Western threats and the realization that it could accomplish more behind the scenes, so to speak, by playing its former enemies (various black ethnic groups) off on each other.
  3. The violence between former allies in war against Khartoum is also worth musing about, if only for a moment. A bunch of different ethnic groups were former allies in the war against Arab Khartoum and now they are at each other’s throats. I don’t think ideology, specifically ethno-nationalism, is an issue here…yet. It won’t be for a long time. Ethno-nationalism seems to be something that shows up within a society after years and years of botched efforts by elites to mold a nation out of a post-colonial state.

Ok, back to the issue at hand. I’ve blogged a little bit about secession before, and one thing I like to remind readers of is that there is an underlying concept that is much more important than case studies. For instance, you can probably get a much better understanding of what is going on in South Sudan by reading this old piece by yours truly:

In fact, the West could help to turn this disaster into something quite worthwhile: Build an international consensus and recognize the independence of the fiefdoms.  If the West does this now, there is a good chance that local players will be more agreeable in their claims on territory.  To secure independence from a Leviathan like Libya would guarantee a period of time for the local fiefdoms to regroup and rebuild what Ghaddafi had destroyed.

A parallel can be drawn to the velvet divorce of the Czech Republic and Slovakia just after the collapse of the USSR.  What made the divorce “velvet” was international cooperation.  When the international community doesn’t play the game smart, however, divorces look more like Algeria, Indonesia, the Congo basin, the Balkans, and, of course, Somalia.

If the West is to “do something”, and I think it should in most cases, then pursuing diplomatic relations that focus on decentralized governance and international trade are a good way to start.

Can you see how this works? Just replace ‘Libya’ with ‘South Sudan’ and ‘Ghaddafi’ with ‘Khartoum’ and you have the right parameters in place for what needs to be done in regards to making secession in failed states work (I blogged a little bit more about these parameters in South Sudan here as well).

Here is the relevant map for our weekend question:

This is a map of South Sudan’s ethnic groups. It looks like Switzerland, to be honest, but unlike Switzerland South Sudan does not have the same institutional structures in place. Nor does this new country have the full support of the international community. There are plenty of condescending Leftists “monitoring” the country inside and out, but that’s about it.

If the West wants to play a role in helping to avert a violent downward spiral, then it would do well to quickly recognize the futility of South Sudan’s existence and start acknowledging the legitimacy of the fiefdoms. You know where the ‘comments’ section is!