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MOVING AWAY FROM GOVT PROFESSIONALIZATION... by Krugman

 *Tax Farmers, Mercenaries and Viceroys*
   By PAUL KRUGMAN

   21 August 2006
   The New York Times

   The New York Times Company

   Yesterday The New York Times reported that the Internal Revenue
   Service would
   outsource collection of unpaid back taxes to private debt
   collectors, who would
   receive a share of the proceeds.

   It's an awful idea. Privatizing tax collection will cost far more
   than hiring
   additional I.R.S. agents, raise less revenue and pose obvious risks
   of abuse.
   But what's really amazing is the extent to which this plan is a
   retreat from
   modern principles of government. I used to say that conservatives
   want to take
   us back to the 1920's, but the Bush administration seemingly wants
   to go back
   to the 16th century.

   And privatized tax collection is only part of the great march backward.

   In the bad old days, government was a haphazard affair. There was no
   bureaucracy to collect taxes, so the king subcontracted the job to
   private
   ''tax farmers,'' who often engaged in extortion. There was no
   regular army, so
   the king hired mercenaries, who tended to wander off and pillage the
   nearest
   village. There was no regular system of administration, so the king
   assigned
   the task to favored courtiers, who tended to be corrupt, incompetent
   or both.

   Modern governments solved these problems by creating a professional
   revenue
   department to collect taxes, a professional officer corps to enforce
   military
   discipline, and a professional civil service. But President Bush
   apparently
   doesn't like these innovations, preferring to govern as if he were
   King Louis
   XII.

   So the tax farmers are coming back, and the mercenaries already
   have. There are
   about 20,000 armed ''security contractors'' in Iraq, and they have been
   assigned critical tasks, from guarding top officials to training the
   Iraqi
   Army.

   Like the mercenaries of old, today's corporate mercenaries have
   discipline
   problems. ''They shoot people, and someone else has to deal with the
   aftermath,'' declared a U.S. officer last year.

   And armed men operating outside the military chain of command have
   caused at
   least one catastrophe. Remember the four Americans hung from a
   bridge? They
   were security contractors from Blackwater USA who blundered into
   Falluja --
   bypassing a Marine checkpoint -- while the Marines were trying to
   pursue a
   methodical strategy of pacifying the city. The killing of the four,
   and the
   knee-jerk reaction of the White House -- which ordered an all-out
   assault, then
   called it off as casualties mounted -- may have ended the last chance of
   containing the insurgency.

   Yet Blackwater, whose chief executive is a major contributor to the
   Republican
   Party, continues to thrive. The Department of Homeland Security sent
   heavily
   armed Blackwater employees into New Orleans immediately after Katrina.

   To whom are such contractors accountable? Last week a judge threw
   out a jury's
   $10 million verdict against Custer Battles, a private contractor
   that was
   hired, among other things, to provide security at Baghdad's airport.
   Custer
   Battles has become a symbol of the mix of cronyism, corruption and sheer
   amateurishness that doomed the Iraq adventure -- and the judge
   didn't challenge
   the jury's finding that the company engaged in blatant fraud.

   But he ruled that the civil fraud suit against the company lacked a
   legal
   basis, because as far as he could tell, the Coalition Provisional
   Authority,
   which ran Iraq's government from April 2003 to June 2004, wasn't ''an
   instrumentality of the U.S. government.'' It wasn't created by an act of
   Congress; it wasn't a branch of the State Department or any other
   established
   agency.

   So what was it? Any premodern monarch would have recognized the
   arrangement: in
   effect, the authority was a personal fief run by a viceroy answering
   only to
   the ruler. And since the fief operated outside all the usual rules of
   government, the viceroy was free to hire a staff of political
   loyalists lacking
   any relevant qualifications for their jobs, and to hand out duffel
   bags filled
   with $100 bills to contractors with the right connections.

   Tax farmers, mercenaries and viceroys: why does the Bush
   administration want to
   run a modern superpower as if it were a 16th-century monarchy? Maybe
   people
   who've spent their political careers denouncing government as the
   root of all
   evil can't grasp the idea of governing well. Or maybe it's cynical
   politics:
   privatization provides both an opportunity to evade accountability
   and a vast
   source of patronage.

   But the price is enormous. This administration has thrown away
   centuries of
   lessons about how to make government work. No wonder it has failed at
   everything except fearmongering.







*BBC World Service 16 August 2006 Broadcasting: A Bill Clinton Quote: *
*

Q. How fundamental is the clash of values in war on terror & how long
will it continue?

A. Well, I think the clash of values is more important than the
religious differences. What will they have if they win a war only
because they can force both sides into the killing of civilians? That is
basically what happened in Lebanon . Hezbollah fired all those rockets
and then hid among civilian populations. What kind of world will they be
leaving for their children and grandchildren? Do they really believe
they have the absolute truth and that they cannot accommodate differences?

The central question for our time is not how you worship God, or even
whether you worship God. It's whether you believe in this life you can
be in possession of the absolute truth and you have the right to impose
it on others. We need to remember that too, those of us who are the
targets of terror. Because we are rich, we are strong, we have sometimes
been insensitive to the weak and to the claims of people who couldn't
get high enough on our agenda. So if we want to exhort people and
persuade them as well as prevent them from engaging in terror we have to
act like we believe our common humanity is more important.
*
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