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ChristianKl comments on Natural Selection of Government Systems - Less Wrong Discussion
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I think this analysis ignores a lot of relevant complexity. We will likely never have a state where all decisions will be made on a global level or all decisions be made on a completely local level.
On the other hand we do have many political issues where power can shift to be more globalized or more localized.
At the moment there's debate about TTIP. It would disempower local governments by providing corporations with means to sue governments in Investor-State-Dispute-Settlement (ISDS) proceedings.