[x]

Peter Bauer and others made some of the same points twenty years ago. There was some enthusiasm for markets in Latin America afterwards. Certainly something must have changed during those years years. Someone should do a survey of what's happened since then. I suspect Latin American countries did start to do better when they turned towards the free market in the '80s and '90s. But 1) political traditions and temptations are too strong too overcome and 2) when there's a downturn, somebody takes the bump. It's inevitable that most people who go into government will want more government, and that most people concerned with "development" will want to get jobs and money out of it. There's also some nostalgia for leftism in cultures where it's been strong in the past.

[KC Burke]

See my post at 17, but your point as to why the Free Market is faulty in Peru or elsewhere is exactly what prompted De Soto to do the studies outlined in his book. Be sure to view Commanding Heights in replay or on-line if you haven't seen it.

[nicollo]

Thanks, x, for the as usual valid perspective.

As for Latin America, with the Chilean exception, they instituted economic reforms without political reforms. I watched the Mercosur countries go through it in the late 80s and early 90s. A waste of good economic theory.