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Sunday, December 02, 2012


Sharing Stationary Banditry Between Countries

            Enrique Pea Nieto from the Washing Post claims that the U.S. and Mexico can prosper as partners; this last U.S. presidential election demonstrated to him the growing demographic bonds between the U.S. and Mexico that connects the two counties’ prosperous futures.  “To build a more prosperous future for our two countries, we must continue strengthening and expanding our deep economic, social and cultural ties.  It is a mistake to limit our bilateral relationship to drugs and security concerns.  Our mutual interests are too vast and complex to be restricted in the shortsighted way…. I want to discuss the best way to rearrange our common priorities.  After all, our agenda affects millions of citizens.”  I think what he is implying is that Mexico may understand the logic of force and exchange and would like to become a stationary bandit with the U.S. government.  Mexico seems to want a larger population to steal from; they see that the net benefit for trade outweighs the net benefit for force.  “Perhaps the most important issue is finding new ways to bolster our economic and trade relationship to attain common prosperity in our nations.”  Clearly Mexico wants to enhance their stationary banditry power through the U.S. understanding of Diplomacy.  Mexico needs more people to prosper under them in order for them to see increased revenue in their country.  “Consequently, in NAFTA we have a solid foundation to further integrate our economies through greater investments in finance, infrastructure, manufacturing and energy.  Together, we must build a more competitive and productive region.”  For Mexico to become a successful bandit, they need the help of the United States power and a growing population that is more prosperous.  Right now it seems to me that the Mexican government is stealing too much and the country has become corrupt.  Thus,  “Above all, our mutual interest lies in our intertwined peoples.  More than 1 million U.S. citizens live in Mexico, and my country remains the largest source of immigrants to the United States.  Some analysts detect new momentum for comprehensive immigration reform since the U.S. presidential election.  All Mexican would welcome such a development.”  It’s obvious that Mexicans would be open to higher immigration rates into their country.  Again, for their government the be better off they need to protect their own property rights and play less of a predator role on their society.  Mexico needs more people to steal from, but first they need to understand the logic of force, exchange and diplomacy in order to become a successful stationary banditry. 


I'm not sure the suggestion of more people to steal from is quite on target.

Certainly I think we can use Olson to understand that the corruption that is pervasive in Mexico fits many market contrary government policies.

Wanting increased trade fits with a stationary bandit, not so much wanting to steal from more, realizing past policies have "non-optimally" become too predatory on productive efforts. In a sense this may be wanting more to steal from, but I suggest the insight from Olson is there is this other invisible hand with the logic of power than can show incentives even to a bandit to intervene less on productive efforts.
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