Mancur Olson in Afghanistan (And Thakur in Sholay!)

Who is (was) Mancur Olson?

An American economist of some note, who is perhaps not as widely known as he should be. Let me be honest upfront and say that I have never read a single book of his cover to cover, in spite of repeated attempts – they are really hard going, at least for me. But even dipping into them every now and then, based on snippets I pick up here and there is by fun, and rewarding. (One such snippet was provided by The Economist recently, about which more in a second.)

Olson is perhaps most well known for his theory of the “roving” and “stationary” bandit. Here’s Wikipedia:

In his final book, Power and Prosperity (2000), Olson distinguished between the economic effects of different types of government, in particular, tyranny, anarchy, and democracy. Olson argued that under anarchy, a “roving bandit” only has the incentive to steal and destroy, whilst a “stationary bandit”—a tyrant—has an incentive to encourage some degree of economic success as he expects to remain in power long enough to benefit from that success. A stationary bandit thereby begins to take on the governmental function of protecting citizens and their property against roving bandits. In the move from roving to stationary bandits, Olson sees the seeds of civilization, paving the way, eventually for democracy, which by giving power to those who align with the wishes of the population, improves incentives for good government. Olson’s work on the roving vs. stationary bandits is influential in analysis of the political and economic order structured in warlord states and societies.

https://en.wikipedia.org/wiki/Mancur_Olson

And here’s the Economist, writing about the current state of Afghanistan:

At the edge of Kabul, the boss of a company which imports cooking gas says the security of his tankers has actually improved over the past year, because the Taliban control more roads. They charge 35,000 afghanis ($455) for every lorry travelling from Herat, on the Iranian border, to Kabul. “In the past there were no Taliban taxes,” he says. “But they used to shoot us with RPGs [rocket-propelled grenades]. So we are happy with the taxes.”

https://www.economist.com/asia/2020/11/18/as-america-pulls-out-of-afghanistan-the-taliban-fight-on

The trick (for the bandit) lies in getting the quantum of taxation just right, of course…

Links for 6th June, 2019

  1. “That night, after singing in the Rose Garden, Nelson went to sleep with his wife, Connie, in the Lincoln Bedroom. Then one of the president’s sons knocked on his door.“Chip Carter took me down into the bottom of the White House, where the bowling alley is,” Nelson says. Then they went up to the roof and smoked a joint. Nelson remembers Carter explaining the surrounding view — the Washington Monument, the string of lights on Pennsylvania Avenue. “It’s really pretty nice up there,” Nelson says.”
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    I found it hard to extract an excerpt from this article, because it is (all of it) entirely readable, multiple times. There’s information about music, weed, economics, sustainability, mortality, longevity and so much more!
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  2. “Graham Fagg, the British miner who punched through to the French side and became the face of continental connection, on Friday told French news agency AFP that he was now a Brexit supporter. “I worked on the Channel Tunnel and did the breakthrough, but I actually voted for Brexit,” the 70-year-old said. “I don’t see that as incompatible.”Fagg said he supported joining the European Economic Community — the forerunner to the EU — in a 1975 referendum, but did not realize it would become a political union.”We voted for a trade deal,” he explained. “I can’t remember anybody ever saying to me, ‘we’re going to turn it into a federal Europe. We’re going to set all the rules and you’ve got to obey them’.””
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    A short, but very readable article about the Chunnel – I didn’t know the history was as long as all that. I also found the Thomas The Train picture quite poignant.
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  3. “The consistent critic of anarchism must, however, attack with equal force all of those who suppose that large groups will whenever the need arises voluntarily organize a pressure group to deal with the state, or a labor union to deal with an employer. Bentley, Truman, Commons, Latham, and many of the pluralist and corporatist thinkers are fully as guilty of the “anarchistic fallacy” as the anarchists themselves. The anarchists supposed that the need or incentive for organized or coordinated cooperation after the state was overthrown would ensure that the necessary organization and group action would be forthcoming. Is the view that workers will voluntarily support a trade union, and that any large group will organize a pressure-group lobby to ensure that its interests are protected by the government, any more plausible?”
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    Aadisht Khanna reviews “A Theory of Collective Action”. This, I should confess, is a book I started but have (at least for now) given up on. It is not an easy read. But reading Aadisht’s review, this excerpt caught my eye – it is the strongest argument I have seen to make me want to vote.
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  4. “And so Thibaw wasted away in Ratnagiri, “a very unpleasant place to live in”, he wrote, full of “snakes and scorpions”. His expenses—much of it religious—led to endless debt, even as he petitioned the British for the return of valuables he had entrusted to them when surrendering his former capital (including a celebrated ruby, never seen since). His wife was initially resolute: She smelt conspiracy everywhere, Shah notes, and taught her daughters to cook, certain that they would be poisoned otherwise. But, by 1900, bogged down by their fall, she was in the grip of depression. Denied regular social contact, and policed and watched, their daughters too grew up lonely—the princess who in 1944 gave mangoes to her visitor began an affair with their Maharashtrian gatekeeper, her love child later marrying the family’s dog-walker. This granddaughter of the last king of Burma would one day transform herself from TuTu to Baisubai, selling paper decorations in the local market.”
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    Do you follow Manu Pillai on Twitter? Do you read his columns in Livemint? Have you read his books? Get started right away!
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  5. “The results of this survey have not been officially released. However, the leaked reports of an historically high unemployment rate and the subsequent resignation of two members of the National Statistical Commission (NSC), who were involved with the PLFS, created a furore and heightened the politicisation of unemployment. The Opposition used this as an opportunity to malign the government, while the government representatives at NITI Aayog resorted to the view that the survey results have not been reviewed by experts, and therefore the report was not deemed reliable enough to be released. The truth of the matter, however, is that there is neither credible evidence of a job crisis in India, nor credible evidence of the absence of it.”
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    There is a problem pertaining to data measurement in India, and it is a big one. This article doesn’t necessarily tell you how to solve that problem (no article can, in the length that articles usually comprise of), but it does help you be aware of what the problem is.