Rule of Law (Jan 20)

Over the past 33 years, about 2% of the orders for our estimating and accounting software have been fraudulent. In the early days it was bounced checks. Then it switched to stolen credit cards. After each rip-off, we gradually refined the fraud-prevention checklist.

TurtleSoft offered expensive Express Mail shipping for many years, because fraudsters almost always used it. They weren’t the ones paying, so why not? Our staff checked those orders much more closely.

Rule of Law lists were helpful when orders came from unknown countries. They’re calculated by Center for Financial Security and World Justice Project. Countries with poor ROL ratings are much more likely to have fraud.

Basically, Rule of Law is a measure of integrity, reliability, truth, fairness, justice, trust. All the good things that (most) religions try to teach. Boy Scout stuff. It means places where power comes from laws, not men. Where leaders are public servants. Not autocrats, demagogues, despots, dictators, kleptocrats, mobs, tyrants, or whatever.

ROL is important when we mail out rare Swiss Army knives (our side business). Orders to Germany (#6) or Netherlands (#7) will get there. Orders to Russia (#92) are 50% likely to be stolen along the way. Anything below that is a black hole. Our current cutoff is roughly #50.

ROL is why Hong Kong residents keep protesting. Their island is #17 on the list. They don’t want to be swallowed into #89 China, where people can just disappear suddenly, and/or have their organs harvested.

The US is only #21 on the latest Rule of Law list. We fell a couple spots during the Trump era. Ahead of us are most of Europe, plus Japan, South Korea, Singapore, New Zealand, Canada.

TurtleSoft actually sold a copy of our accounting software to a legit firm in Nigeria (#109). The order took many weeks to process. People can’t get regular credit cards there, so payment had to go by wire transfer. It took several tries. Everyone involved said “Um, it’s Nigeria. Are you sure you want to do this?” A low ROL rating has real, negative consequences for those who live there. Ditto for visitors.

In construction, Rule of Law means building inspectors who make sure structures are safe and sturdy. Zoning boards that are fair and impartial. Suppliers who don’t sell you defective goods. Employees and subs who care about their work and don’t cheat or steal. Clients who actually pay you. All stuff that makes it easier to run a business.

Rule of Law varies inside the US. I spent a year managing remodeling projects in Boston, at a time when much of the Building Department was under indictment for bribery. The neighborhoods where I worked probably rated somewhere between #52 Jamaica and #62 Brazil. Everything was so much more chaotic and difficult.

One example: a developer that my boss worked for added an illegal basement unit. It was below sea level. Municipal pumps failed during heavy rains at high tide, so the condo filled with neck-deep water and backed-up sewage. My crew had to put the main project on hold, and wade in for emergency repairs. Fun fact: refrigerators float in floods, then topple and do structural damage.

Less fun fact: that part of Boston is a former bay and mud flats, with 4-story brick row houses built atop wood pilings sunk into the muck and fill below. The developer installed sump pumps to keep the new unit dry. Those pilings had lasted 100+ years because they were always under water. Now the water table is lower, so they’re exposed to oxygen, and rotting. If you ever read about building collapses in the South End of Boston, they’re the result of greed and corruption in the 1980s.

I mention all this because on January 6, the US flirted with becoming a government of man and mob, not laws. Rule of Law is still under threat here. Arnold Schwarzenegger explains how easily things can go wrong.

Integrity is not hard-wired into the human genome. It takes effort to maintain it. Often it’s an uphill battle, because there’s all sorts of short-term profit to be made from lying and cheating.

What does seem to be hard-wired is blind loyalty to charismatic leaders. Not in everyone, but enough. It’s surprising how much impact one person can have on a whole country. Many people just seem born to follow, even when it leads to drinking the Kool-Aid. Or posting selfies while chanting slogans and committing felonies. I must have killed a couple days watching videos made by Capitol rioters.

Now that we have a new leader, hopefully we’ll see increasing Rule of Law, not less of it. Maybe we can find better ways to protect ROL. There’s a lot to be said for not becoming a shit-hole country.

Dennis Kolva
Programming Director
TurtleSoft.com

Author: Dennis Kolva

Programming Director for Turtle Creek Software. Design & planning of accounting and estimating software.