Degrees of lawlessness

No nation lives strictly by the letter of its laws. That is well known. But the degree of such discrepancies matters a lot. It makes a difference, for instance, whether the informal economy accounts for around 40 % of GDP, as is the case in Pakistan, or whether the figure is close to 10 %, as in Austria. For obvious reasons, there are no precise figures.

Wherever informal business relations shape people’s lives as much as work in the formal sector, organised crime will flourish. Corruption will be wide-spread and even murder will not be unusual. That is not only evident in warlord attrocities in Congo or Afghanistan. Mexican drug cartels, the Camorra in Naples and gangs in South Central Los Angeles operate in much the same way.

Indeed, there is reason to begin to worry about democracy wherever tax evasion and flight of capital are commonplace or where jobs without legal status and social protection are considered normal. The reasons are that the state needs resources to take care of the public interest, and that people who do not enjoy rights cannot be expected to display much civic commitment. The more people feel that anything that serves their interests is justified, the less room there is for discursive political deliberation; and an agenda for protecting the environment or the provision of public goods becomes unthinkable.

It is difficult to strike the right balance between sensible and feasible regulation on the one hand and maximum personal freedoms on the other. One thing is certain: unless there is some sense of social equilibrium with opportunities for everyone, only the strong and rich will enjoy any meaningful liberty at all, as the weaker members of society will be totally at their mercy. Not everything that may seem desirable in terms of justice and fairness, however, is implementable. Over-regulation by well-intended but unworkable laws also results in the erosion of state authority. India and Italy are striking examples.

In Germany too, corruption and informal employment have become familiar facts of life. The construction industry is known for especially tough practices, and only very few private household workers have a permit of work or residence. Illegal migration is a pan-European phenomenon, but policymakers shy from drafting new rules that would be both sensible and viable.

Politicians from rich nations like to discuss inadequate governance in poor countries. They have a point, lawlessness does inflict particular distress on marginalised and impoverished people. Moreover, without law and order, peace and stability are fragile at best, and public goods cannot be provided.

The sad truth, however, is that enlightened rhetoric does not mean
that speakers are living up to the standards proclaimed. The governments of donor nations could do a lot to boost their credibility. It would help if they convincingly outlawed torture completely, if they implemented credible and cohesive policies on trade and migration, and if they finally started fulfilling their duties to fight climate change.