Governments oftentimes are spectacularly incompetent. And when that happens, it creates an opening for the private sector to step up in rather unexpected ways.
I’ve even created a semi-serious, semi-satirical series to commemorate these examples.
- The libertarian paradise of Mexico
- The libertarian paradise of Nigeria
- The libertarian paradise of Somalia
- The libertarian paradise of Germany
- The libertarian paradise of Argentina
- The libertarian paradise of South Africa
None of these places are libertarian, of course, but each of them illustrate how markets can provide surprising benefits. In most of the examples, markets are even providing so-called public goods.
Today, we’re going to revisit South Africa because of a remarkable report in the Wall Street Journal.
Written by Alexandra Wexler, it shows how the private sector is providing road repair, fire protection, and traffic control.
South African insurers are joining other private companies in taking over public services, such as security, healthcare, education and mail delivery… Insurance companies…have decided that it is cheaper for them to fill in where the state has fallen short. …Discovery Ltd., a $5.5 billion financial-services company, says its Pothole Patrol—made up of eight repair vehicles and 40 staff—has filled in 150,000 potholes in South Africa’s economic capital of Johannesburg… Discovery in June 2022 also joined with a private fire service, Fire Ops SA, to launch its Fire Force service. …Discovery says the blue firetruck responded to 172 building fires between Fire Force’s launch through the end of January. …On Feb. 20, the blue Discovery-branded truck was dispatched to a fire in Johannesburg’s leafy Highlands North suburb, where Fire Ops’ Captain Wade Hugo said his team had the blaze under control about 15 minutes before the city’s fire services arrived at the scene. …OUTsurance Group Ltd., a $3 billion financial services company, first started deploying men and women on motorbikes, known as pointsmen, in 2005. They direct traffic in four municipalities, including Johannesburg and South Africa’s wine capital, Stellenbosch, when traffic lights break down and roads are congested.
Sounds to me like South Africa’s local governments should be abolished and replaced by the private sector.
David Friedman and Bryan Caplan certainly would agree.
P.S. There’s been a big decline in economic liberty in South Africa over the past two decades, thanks to eroding property rights, higher taxes, and other bad policies. Smart South Africans of all races should probably think about moving to Botswana.
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Image credit: South African Tourism | CC BY 2.0.
