Countries going bankrupt is a very new thing. Also, a slight misconception on your part: Countries do not compete for big armament contracts. Corporations that are heavily subsidized by governments do. When a country looks for a new Jet Fighter to equip its Air Force with, they do not ask the US or the EU to submit bids, they ask Lockheed-Martin, Boeing and EADS to submit them. Small, but very important difference.
Countries have been going bankrupt for centuries. The wiki may be enough for you:
http://en.wikipedia.org/wiki/Sovereign_defaultOr if you prefer, the source:
http://www.nber.org/papers/w13946.pdfIt's a minor point though I suppose. Even if this global recession was unique, the knowledge would be known now, that a change is needed.
Now on to the overseas contracts, here is the reason this popped into my head:
http://www.telegraph.co.uk/finance/newsbysector/industry/defence/9656393/David-Cameron-defends-arms-deals-with-Gulf-states.htmlDavid Cameron himself was touring the Middle East pushing that deal. I guess these things are more a partnership between government and business. I think it’s still enough to argue my point. This section near the bottom in particular:
"The defence industry is like any other industry. The Prime Minister has been making the point that we are in a global race.
Other countries will be looking to get these contracts and that is why he is very keen to lend his personal support to try to further the industries of our export companies.” Governments cannot "evolve" into something more efficient without compromising their core missions. The next best model is corporations, and you absolutely do not want a government that runs on for-profit lines (Unless you're a hardcore randian objectivist, in which case you should probably consider retreating from the political discourse to make things easier for the rest of us).
All these rules and procedures are there for a reason. They are there to remove the human element from the decision-making process. If you staff your government with "reasonable people", without strict oversight, you WILL sooner or later find yourself in trouble, because just a few bad apples can severely ruin your country.
The rules may not make sense to the layman. The rules may force inefficiency. The alternative, however, is worse.
But maybe there could be a melding of the two ideas, there’s no need for extremes like letting the sick and elderly die off because they’re a drain on profits, which is the kind of counter I’ve heard when someone says “The government should be run like a business”. But maybe more like a business, with a more business mindset. Instead of cutting away the “unprofitable” people or squeezing benefits and the like, looking instead to efficiency, either by the government making money, or making it easier for people to make money so there’s more money in the tax pot. And certainly cutting wasted expenditure as much as possible. A reprioritising on this I really believe is needed, especially if as you say there is no incentive for governments to be efficient, then there needs to be one. There’s no need for radical change, but a change of focus on what’s important. I’m not even the kind of person who gets angry when the government sends out some money in overseas aid, but I do get annoyed and sometimes genuinely angry when money is spent that doesn’t need to be. Like when the politicians attend functions and meetings and spend way, WAY too much on food and hotels and/or the building the meeting/function is conducted in. I have no problem with these people being comfortable on such occasions, but they’re not royalty, and shouldn’t be treated as such.
I once really considered opening a thread on Barack Obama’s $100,000,000 vacation, but in the end decided it wasn’t my place not being an American. But a British equivalent would have had me climbing the walls!
I fully agree with cutting out the human element, it goes double for government. It’s a shame it has to be that way, but I fully agree that it does. But what do you think about a shift in focus towards efficiency? No more unnecessary expenditure. And by unnecessary I mean in the framework of good government, not the extremes like cutting off help to the disabled and letting them die and the like.
Because they are not mistakes, as far as the people making the decisions are concerned. Keep that in mind: Decisions like this are made by applying procedures and established rules to a situation. Presumably, there's a sound reasoning behind those rules. Most of the time, this works. Sometimes, like here, it blows up in your face.
And this goes back to what I said about the all-salesman company. The people making the decisions are the wrong people to be making them because they are not qualified for such things. They may have had a set of rules to follow, but I question their ability to actually apply the procedures properly.