[Cincinatus' Wife]

The credit goes to the people of Venezuela. They'd had enough of Castro II.

4-10-02 San Diego Union-Tribune Ruining Venezuela - An example of how not to help the poor [Full Text] Time may be running out on the stormy tenure of ex-paratrooper Hugo Chavez as Venezuela's president. Rumors of a coup and speculation on constitutional means of removing the autocratic Chavez are common fare on the streets of Caracas these days.

There is an object lesson in all this.

Chavez, elected president in 1998 after failing to seize power in a 1992 coup d'etat, styles himself a left-wing nationalist. He proclaims his admiration for Cuba's Fidel Castro and reportedly aids neighboring Colombia's Marxist guerrillas. Chavez' so-called "Bolivarian revolution" (after Latin America's 19th century liberator, Simn Bolivar) was supposed to raise living standards for the estimated 60 percent of Venezuelans who live in poverty.

But neither Chavez nor his ill-conceived "revolution" has delivered on its promises. Quite the contrary.

Despite oil wealth that makes Venezuela the No. 4 petroleum exporter in the world and the No. 3 exporter to the United States, the country's mismanaged economy is slumping badly. A zero growth rate is likely this year and inflation could reach 20 percent. The government's budget deficit is large and growing, credit is tight, and foreign investment is down.

Amid the political turmoil which Chavez has incited, Venezuela now suffers from capital flight and a brain drain, as some of the country's brightest move to Miami.

Having alienated most of his country''s influential interest groups - business, trade unions, landowners, the military, the Catholic Church and the press - Chavez is fast running out of supporters. His public approval ratings have fallen from 80 percent in 1999 to 24 percent in February.

Chavez' 49 economic laws imposed by decree last year sharply increased government intervention in Venezuela's already over-regulated economy. Chavez' current drive to put his political cronies in charge of the state-controlled oil industry is prompting spreading strikes. His land reform program looks more like organized theft. Private property rights, so essential to economic development, are declining in Chavez' Venezuela.

Chavez' thuggish tactics also threaten his country's political and civil institutions. He bullies political opponents. He incites mob violence against Venezuela's newspapers and broadcast media, which increasingly oppose his destructive strong-arm rule.

In effect, the results are in on Chavez' brand of left-wing populism and strong-arm government as an answer to poverty and social ills in Latin America. It doesn't work: Not in Chavez' Venezuela, not in Argentina under Juan Pern in the 1950s, not in Peru under that country's left-leaning military junta of the 1970s, not in Sandinista Nicaragua in the 1980s nor, indeed, anywhere. [End]

[dennisw]

Psssst. Don't tell the Arabs. Let them believe it was the CIA. Anyway I believe the CIA was involved even if not the biggest factor. Those days are gone......But can return!

[MindBender26]

CW,

And the problem is......?

[Kermit]

Here's how to fight poverty in third world countries:

These people who write on third world development are so friggin' stupid, they haven't learned anything in 50 years. They've been coming up with magical thoughts for 50 years on "development". State planning was the solution. Exports were the solution. Democracy was the solution. World Banks loans to governments were the solution. Aid is still the solution according to Bush and his latest scheme. Now, they pretend that "globalization" was the solution.

But they are blind. They write about ending poverty, without ever talking about property.

Poverty = lack of wealth
Wealth = property
Ending poverty = getting property in the hands of the poor.

D'oh!

Here's the way to go about it. I recommend to everyone to read this book, it'll open your eyes and immunize you against the type of nonsense in this article.

Click Here for page at Amazon.com.

The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else
by Hernando De Soto, Hernando De Soto

Our Price: $16.00


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Paperback - 288 pages 1st edition (August 2002)
Basic Books; ISBN: 0465016154


In-Print Editions: Hardcover (1st)

Amazon.com Sales Rank: 23,363
Popular in: Latin America (#13) , Peru (#8) . See more

Editorial Reviews
Amazon.com
It's become clear by now the fall of the Berlin Wall and the collapse of communism in most places around the globe hasn't ushered in an unequivocal flowering of capitalism in the developing and postcommunist world. Western thinkers have blamed this on everything from these countries' lack of sellable assets to their inherently non-entrepreneurial "mindset." In this book, the renowned Peruvian economist and adviser to presidents and prime ministers Hernando de Soto proposes and argues another reason: it's not that poor, postcommunist countries don't have the assets to make capitalism flourish. As de Soto points out by way of example, in Egypt, the wealth the poor have accumulated is worth 55 times as much as the sum of all direct foreign investment ever recorded there, including that spent on building the Suez Canal and the Aswan Dam.

No, the real problem is that such countries have yet to establish and normalize the invisible network of laws that turns assets from "dead" into "liquid" capital. In the West, standardized laws allow us to mortgage a house to raise money for a new venture, permit the worth of a company to be broken up into so many publicly tradable stocks, and make it possible to govern and appraise property with agreed-upon rules that hold across neighborhoods, towns, or regions. This invisible infrastructure of "asset management"--so taken for granted in the West, even though it has only fully existed in the United States for the past 100 years--is the missing ingredient to success with capitalism, insists de Soto. But even though that link is primarily a legal one, he argues that the process of making it a normalized component of a society is more a political--or attitude-changing--challenge than anything else.

With a fleet of researchers, de Soto has sought out detailed evidence from struggling economies around the world to back up his claims. The result is a fascinating and solidly supported look at the one component that's holding much of the world back from developing healthy free markets. --Timothy Murphy --This text refers to the Hardcover edition.

From The Industry Standard
"An increasingly important economist provides a fascinating lesson in why capitalism works by looking at the places where it doesn't." --This text refers to the Hardcover edition.

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