The Problem with Latin America

It seems that in recent polls that people in Latin America have lost their faith in democracy and free markets. This is a very dangerous view to have.

The Economist reports that the countries "want a fairer distribution of income and a state that gives greater social protection."

It is also found that about half of the people polled are convinced that democracies are good. Most of the places that have rising pro-democracy support, are in placed where there are popular presidents. The biggest fall in democracy was found in Argentina and Chile, even though their economies are growing fast. At least it is only one fifth of the respondents that believe in a authoritarian government.

The reasons for this is because leaders like Hugo Chavez is making people more leftist, which naturally means less markets.

Private businesses are barely trusted more than the government and support privatization. The Economist believes that the main message here is:

"Economic growth and democracy have improved the lives of many Latin Americans. But that in turn seems to have raised their expectations rather then making them more satisfied with the state of their nations."

I was very surprised about this because most people who are poor and work their way up to being rich do not ask for more. They usually realize where they came from and just keep supporting the same formula.

What should we do about Latin America? and How can we keep the free market spirit alive there?

Those are very important questions that will play out in the next 10 years. Could it be the invisible hand is so invisible that the Latin Americans don’t see it?

It sounds funny but many people who support a move towards the left, do not realize that if it wasn’t for capitalism they would not be where they are now.

Published in: on April 7, 2008 at 7:15 pm  Comments (1)  

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  1. […] Post titled “The problem with Latin America.” Possibly related posts: (automatically generated)Is Latin America the future of offshore […]

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