Violence threatens the economy

Kathmandu, Nepal, November 10 — If violence succeeds, the subsequent history of this beautiful world is likely to follow the history of many countries that adopted violence or terrorism for a while, only to reject them later, after their failures became obvious. The governments of many countries have adopted violence as a strategy. All have failed.

Desperate people welcome new ideologies, so it is not surprising that the people would welcome violent groups. Initially, they would fare well with land redistribution and job creation for all who apply. No starvation would exist and everyone who wanted to work would be able to do so. However, the dream ends there.

To develop economically, a nation must be able to import goods and services that it cannot provide itself from other countries. To trade, one must have something worthwhile to sell to the people of other countries. Tourism is insufficient.

Therefore, the government has to build an infrastructure including electric power, communications, water supply and transportation, as well as provide education. This takes time and money. Where to obtain the money? From which countries? Therefore, after some initial success, the people would continue to be poor.

Another problem with violent groups is their lack of providing incentives to the people. It has been shown time and time again in formerly violent countries that people will not work hard when the product of their efforts mainly benefits others rather than themselves. People are selfish in this way. However, we know that we need the intellectual and physical labor of people in order to benefit the community.

A good economic system features selfish incentives for creative and hardworking people. It is a system where selfishness benefits both the producer and the consumer, since the latter is the final arbiter of what is sold, as "the consumer is king." Since a violent group's economy will lack adequate incentives, its workers will not produce well.

Furthermore, in the group’s endeavor to provide jobs for everyone, labor costs will escalate, thus making prices uncompetitive in world markets. Therefore, the economy will not be competitive, and it will be unable to import goods and services in sufficient quantities. The result will be that its people will continue to be poor.

Eventually, the general population would become so dissatisfied that opposition groups could win their support and oust the violent groups. The people would be no better off than before, except for those in the violent groups who would line their own pockets in the meantime.

Equality and incentive are mutually incompatible. When will violent groups learn that they will never succeed?