Friday 12 April 2019

What is kidnap insurance?

a post by Anja Shortland for the OUP blog


‘Coins Currency’ by Stevepb. Public domain via Pixabay

Millions of people live and work in areas where they cannot rely on the state to keep them safe. Instead, their security is provided by armed groups: for example, community or clan militias, warlords, rebel movements, drug cartels, or mafias – i.e. local strongmen that can defend their territory against intruders and keep order within it. But their deal with the population usually goes far beyond providing physical security. When armed groups protect property rights, facilitate trade, and offer fair dispute resolution, the local economy grows and with it the protectors’ tax base. As long as the interactions are long-term, the strongmen gain legitimacy and profit from developing a reputation for effective protection, good governance and non-punitive taxation.

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