Plunder or Trade?

Plunder and trade are theoretically and historically entwined in complex ways. This paper examines when rational players will choose one or both by employing a model of plunder within an evolutionary game theoretic framework. Evolutionary stable strategy equilibria are derived and the replicator dynamics are examined for simple two-by-two symmetric games. Not only are positive defense allocations necessary for trade, implying that all trade is of a contested nature, but the defense technology must also exhibit sufficient effectiveness relative to the plunder technology. A continuum of possible exchanges is proposed that is based on the effectiveness of enforcing property claims. For high levels of transactions costs, plunder dominates. As transactions costs decline, mutual trade emerges as one possible exchange mechanism. All market exchange entails some cost of enforcement; it is contested. Insufficient enforcement of property claims produces mutual plunder as the dominant exchange mechanism. Some implications are suggested for institutional evolution. C7 K4 N4     

Book reviews

Jurgen Brauer's comment presents what he calls a replication of an earlier study by Higgs and Kilduff (1993) and uses it to criticize the adequacy of the Higgs‐Kilduff model. In several respects, however, Brauer has not actually performed a replication: he uses different data, a different sample period, and arrives at different results. His criticisms rest on his own setup, not that of Higgs and Kilduff. Therefore they have no strict applicability to the latter. Moreover, Brauer's stepwise model has no bearing on the Higgs‐Kilduff model, as it violates that model's specification requirements.     

The economic effects of international trade in armaments in the major western industrialized and developing countries†

We have used the Michigan Model of World Production and Trade to assess the impact of exports and imports of armaments (based on 1980 data) on sectoral trade and employment and other economic variables in the major Western trading countries. If the United States were to place a unilateral embargo on its arms exports and imports, we calculate that it would experience a comparatively small amount of employment displacement in the aggregate and that most of this displacement would occur in the transport equipment and electric machinery sectors. If all the major Western countries were to place a multilateral embargo on their arms trade, the sectoral effects on the United States would be similarly small. But the sectoral effects in several other industrialized and developing countries measured as a percentage of sectoral employment, would be larger, indicating potential short‐run adjustment problems in labor markets in some cases.     

Force deployment and the production of security: Why is the united states in NATO?

Standard economic concepts of production and cost minimization subject to a production constraint are used to derive the conditions of optimal deployment of home and forward military forces for the production of home security. United States' participation in the NATO alliance is then analyzed in the context of a two‐ally (U.S. and Western Europe) optimal force deployment model of NATO. Next, U.S. force‐basing policy is adduced as an enforcement mechanism for the “transatlantic contract.” Lastly, statistical evidence on burden sharing within Western Europe, and the effectiveness of the U.S. contract enforcement policy, is presented.     

Staying Power and the American Future: Problems of Primacy,Policy, and Grand Strategy

Many scholars, strategists and pundits contend that the US is in decline. They argue that America's national capabilities are significantly eroding, and that with the rise of important regional powers, its primacy in world affairs is rapidly diminishing as well. Yet America continues to possess significant advantages in critical sectors such as economic size, technology, competitiveness, demography, force size, power projection, military technology, and in the societal capacity to innovate and adapt. This article argues that the nature of material problems has been overstated, and that the US should be able to withstand modest erosion in its relative strength for some time to come without losing its predominant status. Instead, where limits to American primacy do exist, they are as or more likely to be ideational as they are material. The problem inheres as much or more in elite and societal beliefs, policy choices, and political will, as in economic, technological or manpower limitations at home, or the rise of peer competitors abroad.     

The US–India courtship: from Clinton to Bush

While a considerable thaw in Indo–US relations bequeathed by the Cold War took place under Clinton, there are still factors, even after 11 September 2001, which have hindered a relationship with common strategic interests. These factors involve divergences on nuclear proliferation, the emergence of China as a world power, the pace of India's economic liberalisation, and Indo–Pakistan tension. A strategic partnership is achievable, but India will need to keep US interests constantly in focus.     

Reconstruction,the Long Tail and Decentralisation: An Application to Iraq and Afghanistan

In this paper, we examine the current state of knowledge in the economics literature on the conduct of reconstruction activities in Iraq and Afghanistan. As stabilisation and reconstruction missions grow in importance for units deployed to these regions, it becomes more important to understand what activities can promote economic growth at the local level. While military operations focus on interdicting the insurgency, successful counter-insurgency campaigns have typically addressed the conditions conducive to the insurgency. Mitigating the incentives for individuals to participate in an insurgency is imperative. Well-crafted and timed reconstruction activities can, we argue, attenuate these incentives.     

Yugoslavia: The Final Showdown

After a half century of inaction, NATO intervened in Yugoslavia on behalf of Kosovar Albanians. Methodologically speaking, the action represents a new way of making war in the wake of the Cold War's conclusion. A dramatic increase in the politicisation of warfare, which has manifested itself through political campaigns to sell war to the people, is visible in how the US and key NATO allies justified action in 1999. The campaign to sell the war brought together both emotional appeals to alleviate humanitarian suffering and realist dilemmas aimed at preventing wider conflict. Learning from history, I argue that the war against Yugoslavia unfolded as it did because of the political events of the 1990s and, that by understanding that series of events, we can better predict what future conflicts might look like.