Monday, February 24, 2014

Relationships.....................

Establishing, and keeping, the proper and healthy relationship between business and government may be the key to society's enduring prosperity.  Unfortunately, as history has shown, this balance has not proved easy to find or maintain.  The Economist, in this Special Report, is on the story.  Opening paragraphs here:

In the Middle Ages the Rhine was Europe's most important commercial waterway.  Like many modern highways, it was a toll route.  Toll points were meant to be approved by the Hole Roman Emperor, but local landowners often charged river traffic for passing through.  These "robber barons", as they became known, were a serious impediment to trade, and imperial forces had to take costly punitive action to remove them.
     The relationship between business and the state bears some resemblance to this medieval tussle.  Like those Rhine boatmen, the companies operating within national borders must pay something towards the cost of supporting commerce, but if tolls are excessive, trade will suffer.  At least some of the world's 200 or so countries will be tempted to act as robber barons, charging the equivalent of protection money to the companies they deal with.

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