Earlier this month, Argentina's leading conservative
paper, La Nación published an unsigned editorial
comparing the economies of Argentina and Venezuela. The editorial concluded
that as economic freedom declines in Argentina, and as Argentina adopts more of
what Chavez called twenty-first century socialism, it is becoming increasingly similar to Venezuela.
Is this true? Will Argentina suffer the same fate as Venezuela where poverty is
increasing and toilet paper can be a luxury?
The similarities of regulations and economic problems
facing both countries are indeed striking in spite of obvious differences in
the two countries. Yet, when people are confronted with the similarities, it is
common to hear replies like “but Argentina is not Venezuela, we have more
infrastructure and resources.”
Institutional changes, however, define the long-run
destiny of a country, not its short-run prosperity. Imagine that Cuba and North Korea became, overnight, the
two most free-market, limited-government countries in the world. The two
countries would have immediately gained civil liberties and economic freedom,
but they would still have to accumulate wealth and to develop their economies…..ToRead More…
No comments:
Post a Comment