catallaxy files

catallaxy in technical exile

Can anarchy be beneficial in certain cases?

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According to Peter Leeson it is in Somalia. This is the abstract for his paper:

Could anarchy be good for Somalia’s development? If state predation goes unchecked government may not only fail to add to social welfare, but can actually reduce welfare below its level under statelessness. Such was the case with Somalia’s government, which did more harm to its citizens than good. The government’s collapse and subsequent emergence of statelessness opened the opportunity for Somali progress. This paper uses an “event study” to investigate the impact of anarchy on Somali development. The data suggest that while the state of this development remains low, on nearly all of 18 key indicators that allow pre- and post-stateless welfare comparisons, Somalis are better off under anarchy than they were under government. Renewed vibrancy in critical sectors of Somalia’s economy and public goods in the absence of a predatory state are responsible for this improvement.

Of course this doesn’t negate the possibility that a better State could still feasibly be put in place in Somalia which would lead to an improvement on all past outcomes. Though this depends on what is feasible …
(Link via Marginal Revolution)

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Written by Admin

March 7, 2006 at 12:26 pm

Posted in Uncategorized

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