I’ve seen progressives foolishly refer to Somali’s “Ribaran Paradise.” There is almost no government there. It is true that Somalia is a good example of the importance of having sufficient “state capabilities” to protect property rights, but even Somalia’s disorder has unexpected benefits. This is the Economist:
In August 30, calling from Somalia meant crossing the border to Kenya or Ethiopia, where there are better connections. But by 2004, Lawless countries had more telephone connections than any other East African nation. Today, the Somali state is still vulnerable. Anxiety is widespread and government services are poor. However, mobile data in Somali is cheaper than in the UK, Finland or Japan, and has better signal traffic. . . . How did dysfunctional Somalia develop such a great communications network? The answer lies in the weaknesses of the state’s Vray. Thirty years of chaos and conflict have forced hundreds of thousands of Somalis to flee their country. Those who stayed depend on them. Diazcapa sends about $2 billion homes a year, roughly doubles the government’s budget. A wide range of telephone networks were required to handle the enormous transfer flows. Invisible hands remained in Somalia’s radical free market. The advantage of the lack of government is that they don’t have to pay for grants or don’t have to pay corrupt bribery to get the job done.
This article also cites the benefits of other subs.
Social media is also filling in other ways. The WhatsApp group serves as a virtual court where clan elders resolve disputes, rather than corrupt or distant judges, for example. These online groups have revenue-raising Powerrs. Members are required to make monthly donations. This is used to provide payments if you don’t have enough money.
In areas such as property protection, state capacity is useful. In other areas, the best thing a state can do is to get out of the way.
If you’re willing to spend 41 minutes on various interesting YouTube videos, you’ll see a good description of my version of libertarianism. The video shows how the Hong Kong government has delegated responsibility for operating the subway system to the private sector.
Are the heroes in the story a very capable government? Or are they building a system, effectively building a system, and longing it? Who is Cares than the work?
