18 maio 2008

Rio de Janeiro, cidade modelo

É, juro:

Under one model, local gangs have a more or less fixed ability to terrorize a neighborhood. Even if everything is legalized, the gangs will continue local monopolies to maximize tribute, subject of course to constraints from other gangs and the police. In this model, legalizing drugs doesn't do much good. The local gang either shifts its monopoly to another area (milk and sugar, if need be), or de facto the gang's local monopoly on the drug trade continues. The gang busts you if you try to get your supply of crack cocaine from Merck. I call this the Rio de Janeiro model; no, drugs are not formally legal there but I don't think it would much matter if they were.