
Via Ezra Klein, an eye-opening chart from EPI about the business climate in Colombia. Clearly, you've got some rule of law issues that could be problematic for your firm. But on the plus side, Colombia's the kind of place where you can hire someone to just go murder any pesky union organizers or other malcontents who are trying to disrupt the sweet, sweet flexibility of your local labor market.
Given Burson-Marsteller's significant union busting practice, I'm actually a bit surprised that Mark Penn was such an advocate of the Colombia free trade deal. After all, if more companies start deciding to take Colombia-style shortcuts then B-M could be out a good deal of work. Worse, with a trade deal in place, B-M could actually see its clients looking to outsource their work to Colombian paramilitaries. Or maybe Penn was looking to add a sniper brigade to his firm's work.


I believe you and Ezra have both missed the obvious implication of this chart: in 2003, increased prosecutions brought increased murders. Since then, as prosecutions dropped, so did the trade-unionist murder rate. When the prosecution rate dropped to zero last year, trade unionist murders dropped to their lowest level on the chart. Clearly, Columbia's overzealous prosecutorial efforts, like all liberal regulatory regimes, was producing a perverse outcome, and the subsequent embrace of flexibility and market mechanisms is moving the country toward a more optimal equilibrium. I suspect that if Columbia were to start releasing trade-unionist murderers who were convicted in the past (that is, if any were convicted), then the trade-unionist murder rate could be brought lower still. You see, that's how markets solve problems.
Posted by Rich C | April 7, 2008 5:55 PM