Fixing up Iraq
Posted by aogSaturday, 18 October 2003 at 13:08 TrackBack Ping URL
Even though Orrin made me move my clippings to another weblog, I’m going quote this comment by fred in full because it says what I should have said but didn’t.
You guys all miss the point. Why is the government sending cash at all? Why is it building anything? If the US set up and guaranteed modern land titles, contract, movable property, securities and court systems then private business would repair the country quickly and with their own borrowed money. They’d get the money from friends, venture capitalists, joint venturers, banks, locally and internationally. People would lend if the mortgages were enforceable. You are setting up the usual nonsense where only the large participate because only they can sucker governments into guaranteeing the money.

Ahmed Blogs will fix up his house, business, industrial plant, whatever, if credit registration and enforcement is cheap and reasonable. He’ll form a corporation and get that power plant built.

My German relative’s recollection of the Marshall plan was that it kept them from starving but that real reconstruction did not take place until the German institutional and legal infrastructure was back up and then they did it themselves.

Any idiot can do engineering and construction. Only the West can create a working society. The US proposes, once again, to export exactly the wrong thing, money and projects. Give them your legal system, not cash; Maybe hold off on plaintiff’s attorneys for a while. No point in kicking them while they’re down