1. John Robb on the Nation-State Protection Racket

    “A core dynamic behind the emergence of the nation-state was it’s ability to run a successful protection business (aka racket).  A system that has been growing since the treaties of Westphalia in the 1600s.  The protection business is relatively simple:

    1. It is a monopoly.  It has exclusive ownership over the use of violence.  As a monopoly, it must crush all internal competitors.
    2. It defends its monopoly from outside interests — as in warfare with nation-state and non-state competitors.
    3. It charges the customers (individuals and businesses) within its geographical areas of control for this service.  This isn’t optional.  Customers presumably benefit from this protection.

    So what made the nation-state formula for protection so superior to its competitors during its ascent over the last 400 years?   It’s simple.  It delivered value to its customers.”

    Read the rest of the article on Robb’s Global Guerrillas blog.

Notes