Wednesday, January 04, 2006

On Economic Liberty

Opinion Journal columnist Mary Anastasia O'Grady writes that democracy does not always create prosperity.

She contrasts Estonia with Chile as an example, then observes:

Countries that liberalize quickly and thoroughly achieve resounding successes, politically and economically. Conversely, gradualism risks stagnation and even reversals, because the benefits are not evident enough to impress the electorate and generate a momentum in their favor.

Hopefully, someone will share a cutting with India's regrettably gradualist leaders.

1 comment:

Rohit De said...

The Chilean arguement is old and foolish. The only reason why Chile managed a successful transition was that they had a strong social safety net. While at one level they privatized pensions for the salaried classes (creating a huge amount of investment funds) they also spent more on handouts to the lower income groups.

Is it a coincidence that since Pinochet was toppled Chile has been lurching leftwards.

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