Hayek argued in the 1940s for Interstate Federalism in order to preserve liberal economic policies. Tiebout's argument was that federalism simulated in politics what market competition achieved in the economy. Does Globalization result in the theoretical path laid out by Hayek and Tiebout and lead to increased competition between nations in terms of public policy? The evidence seems to support the conjecture that globalization does generate a "race to the top" in terms of public policy. Download racing_to_the_top.pdf .
Frog essentially agrees. While there are still high barriers to switching governments, especially if one lives in places like North Korea or Cuba, national governments are having to compete more to keep their best and avoid “brain drain.” This effect apparently was one of the downfalls of the Soviet Union. Hopefully America will make it easier for those with highly demanded skills to immigrate and become citizens if they do not have probable ties to terrorists, contagious diseases, and if they otherwise qualify (speak English & have a basic understanding of American government and history).
The right to leave one’s nation-state should be regarded as one of the most essential basic rights.
Posted by: Lab_Frog | April 22, 2006 at 12:31 AM