[governance] [JNC - Forum] On the death of neo-liberalism

[Mueller, Milton L]

Great to see a rational dialogue, Anriette.
I think if the discussion of the role of market forces in internet governance proceeded along these lines it would be much more constructive. 

Some responses: 

> -----Original Message-----
> Milton, it is true that state-control and state-owned enterprises are
> associated with corruption. But it is often the privatisation of these
> enterprises that escalates this corruption. And it is competition for
> government contracts by private sector actors that oils the day to day bribes
> and pay backs that is so prevalent in large parts of the world.

Yes, and this is well-theorized and documented in the political economy theories associated with public choice and institutional economics. The concept of rent-seeking, e.g. Both pro-market and not so pro market liberals are keenly aware of the dangers of mixing government power (protection, licensing, monopolies, subsidies) with private gain incentives. As you are probably well aware from South Africa's experience with telecom privatization, states and politics can mix up in ways that make potentially good policies (privatization of a state owned monopoly) into enrichment schemes for private interests. The state increases the price it gets paid for the privatization by packaging protection against competition into the deal. 

I think the key difference here is that PE theory post-1960 no longer exempts state actors from self-interested behavior. That is, in designing institutions or regulations one cannot assume that private = self-interested and greedy while public = disinterested, neutral and motivated entirely by public interest. That false assumption is where so many progressives/statists founder.

> You say:  "Entities not subject to the discipline of market forces are far more
> likely to rely on privilege and corruption to get things done."
> 
> Yes, this can be true. But it is also true that the "discipline of market forces"
> includes being good at being corrupt and getting away with it. When people
> are brought to justice it is often the corrupt civil servants at the receiving
> end. It is rare for the corporate actors who keep the cash flowing to get into
> trouble.

Not sure what market forces have to do with being good at being corrupt and getting away with it, but yes, there are so many examples of corruption going unpunished it can be sickening. Of course the same thing happens in non-market contexts, it is about power. Witness for example who was punished for the Abu Ghraib abuses in Iraq. Small people, not big people like Rumsfeld. This is an institutional and collective action problem generally. 

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