Michael,

I have addressed at least part of this question in my response to
Sabri.  There is nothing technical, to my knowledge, that makes local
telephone or postal service not completely feasible and economic,
providing a co-operative "inter-local" system is maintained.  This is
not a difficult problem. International differences in taxation is only a
problem (or perhaps I should say is 'mainly' a problem) only because we
allow free flow of capital.  Since we don't allow free flow of labour,
why should we allow free flow of capital?  When you mention, local
variations in environment, are you talking about natural environment
(i.e. absolute natural advantage) or man-made,  economic environment
(i.e. comparative advantage from low conservation, pollution, labour
regulations and standards)?
   For the better part of a couple of decades I was chair of the milk
control board in Manitoba which regulated the price and, ultimately, the
supply of milk in the province and which basically eliminated all
imports.  We managed to keep the price (increase) below the increase in
the index for food (dominated by imports) and had a quality standard
higher than the international while at the same time maintaining a very
stable and remunerative farm sector.  In short, we outpreformed the
market -- but because we replaced the market, economists, the US and the
WTO howled for our downfall -- something that is in the process --
another example of the race to the bottom.  Yet it is another example of
localism outperforming globalism.  Little of that is technologically
necessary.  Rather it is financially necessary for global capital.
   The one real issue that transcends local boundaries are the
externalities issues -- global warming, pollution, resource depletion,
overpopulation.  None of these are tractable by local/regional
governments.  But they are also the very issue that the major
mega-governments are refusing to deal with either through deliberate
opposition (e.g. US and Kyoto), refusal to police (e.g. Portugal, Japan,
etc. and overfishing), or are ignoring (the over-population problem,
'peak oil').
   Yes, the issue is complex, but not as complex as you seem to picture
it.  Nor is it solved by burying one's head in the sand.

Paul P.

Michael Perelman wrote:

Isn't the question of local versus national extremely complex?  Global warming 
requires
international cooperation, yet local planning that would facilitate less 
driving and more
convenient mass transit can make an enormous contribution.

A local postal system or telephone network has limited value.  International 
variations in
tax systems make tax avoidance too easy for transnational corporations.  Yet 
better
planning would require legal structures to take account of local variations in 
the
environment.

-- Michael Perelman Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu






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