Even imaginative governments are limited

Here in Thailand there is a grim insurgency by Islamic fascists in the deep south of the country. As one response, the Thai Government has put up tv screens in coffee shops and bars in an effort to distract potential militants. I myself believe that the role of tv, movies, and pornography in weaning people (men, I mean) away from militarism has been underestimated, so I do approve of this government inititiave. Unfortunately, simply the fact that it has been undertaken by government could be its downfall. Partly because anything the government does is bound to be deliberately misinterpreted to the impressionable, partly because in putting up these public tv screens the government has exposed itself to ridicule if the insurgency continues.

The private sector is much freer to experiment with initiatives of this sort. If Social Policy Bonds targeting the insurgency were issued, bondholders could go further than government, for instance by screening raunchy DVDs. They would not be deterred by fear of ridicule if they failed and, most important, they would have incentives to terminate failed initiatives as soon as their failure becomes apparent, and concentrate on finding successes. I cannot see this Thai Government, nor any other, being so ready to admit that their ideas are ineffectual and to explore and implement new ones.