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October 03, 2008

Comments

terence

I always thought this was a pretty good example of the perils of being a property rights purist:

http://www.slate.com/id/2112792/

Per Kurowski

Dani Rodrik says: “The privileges accorded to the Mesta were a tool that enabled Medieval Castile to realize its comparative advantage in fine wool” and sort of concludes “In the imperfect contractual environment of the time it simply made sense.

Let us not forget that that same Spain placed oil in the hands of the State and that has now in oil rich countries enabled the politicians to realize their comparative advantage by capturing the check book made obese with the oil revenues making the government wealthy independently of its citizens and turning them into autocrats and the people into beggars of oil favors.

Some times the “second best” is just the last!

john b

"the oil revenues making the government wealthy independently of its citizens and turning them into autocrats and the people into beggars of oil favors"

Like in Norway and Canada, you mean?

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