The Falklands And Other Dangerous Disputed Territories -- A Market Solution | Steve H. Hanke | Cato Institute: Commentary

The Falklands And Other Dangerous Disputed Territories -- A Market Solution | Steve H. Hanke | Cato Institute: Commentary: 'For the Falklands, the governments of the United Kingdom and Argentina would agree that those Falklanders who were qualified to vote would be allowed to do so in a referendum. The referendum would allow the settlers — who are English-speaking and English by custom, institutions and loyalties — to vote on whether they prefer the status quo, or whether they would agree ("yes") to an Argentine take-over. A super-majority "yes" vote, of say 80%, would be required by the Falklanders to allow Argentina to claim sovereignty.

This is where markets come in. The Falklanders would have to be compensated by Argentina. The referendum would be designed so that Argentina could offer a cash incentive. Before the referendum, Argentina would deposit an amount (let's say USD $500,000) in escrow, in Swiss bank accounts for every man, woman and child who had proven their Falklands residence prior to the referendum.

If the referendum went in Argentina's favor (over 80% of eligible voters casting a "yes" vote), then the funds in escrow would be transferred and Argentina's unambiguous sovereignty over the Falklands would be established. Argentina's cost, in this hypothetical, would be about USD $1.6 billion.'