Adam Smith
1723–1790, Scotland (the Scottish Enlightenment: Kirkcaldy, Glasgow, Edinburgh)
A Toll on the Strait, a Tax on the World’s Poor
When a great power blockades a narrow sea and levies a twentieth of every cargo, it does not merely tax ships; it quietly impoverishes shopkeepers and labourers who will never hear the word Hormuz.
A statesman has announced that his country will “take over” the Strait of Hormuz, reimpose a naval blockade, and exact a twenty per cent toll on all vessels that pass. This narrow channel, we are told, carries about a fifth of the world’s daily oil consumption. The same statesman expects “reimbursement” from other wealthy nations that benefit from this traffic, and declares that his country cannot be expected to do this “for nothing.” His adversary replies that the strait is his territory; his paramilitary strikes “non-compliant” tankers. Both parties, a month ago, agreed to a memorandum promising the free flow of shipping. We now learn that this agreement has entered, with admirable frankness, a “state of crisis.”
Read the essay