Monetary tools of safety coverage: Influencing offerings of Leaders through Sh...
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Extra resources for Economic Instruments of Security Policy Influencing Choices of Leaders by Shiffman, Gary M., Jochum, James J. [Palgrave Macmillan,2011] [Paperback] Second (2nd) edition
S. marketplace. Is it successful? S. jobs in one geographic area but driving up prices slightly throughout the country and preventing job growth in another area—is it a success? S. industry out of business. Have we succeeded? Three concepts can inform our opinion of policies: Pareto efficiency, cost-benefit analysis, and individual utility maximization. A theoretical concept, a Pareto efficient policy makes at least one person better off without making anyone worse off. If, after implementation, your policy makes only one person in the world better off and makes nobody in the world worse off, then it satisfies the definition for Pareto efficiency.
Through taxation, he can fund security forces that stifle opposition and he can pay for the loyalty of the elites. He maintains a relative wealth gap. If he loses this advantage, people will organize, alternative leaders will emerge, and competing sources of wealth will create new power sources and weaken existing loyalties to the dictator. So long as the dictator maintains his monopoly power over the sources of wealth, he maintains his advantage. Economic prosperity within his domain is not, in and of itself, good or bad for the dictator.
We each face scarcity; through trade and specialization we can increase 40 ECONOMIC INSTRUMENTS OF SECURITY POLICY wealth, but we will rely on others for our well-being to the extent we specialize. Bin Laden needed al Zawahiri. The Taliban needs money launderers. Shorty Guzman of the Sinaloa Cartel needs bankers. Policy makers should not only understand this concept, but must apply it to their advantage. How can we appeal to the self-love of the dictator, insurgent, or terrorist in a way to advance our own self-interests?