Capitalism Through Despotism

12.07.15 / News / Author:

Suppose a state has established an economic system according to the World Bank and has established a basic legal system, held a non-distortion policy environment, including macroeconomic stability, invested in basic social services and infrastructure, protection to vulnerable groups and defended the environment. Suppose a state achieved through aggressive policies and reforms, controlling inflation, lower interest rates to acceptable levels, lower unemployment levels understandable, open its economy, privatize nationalized companies unnecessarily or monopolizing the construction of infrastructure, the provision of much public area data services, social services and other goods and services that are inefficient, creating a crucial institutional base, strong and not arbitrary, protect.

In due form, public order after the peace agreed with insurgent groups, protect property, to end the economic insecurity at home (avoiding the misery elderly through pension systems, helping to cope with catastrophic illnesses through health insurance and providing assistance in case of loss of work, unemployment insurance), control corruption, increase citizen participation at many of the instances democratic and, in short, that could bridge the wide gap between expected of him and his own ability to respond timely, accommodating, as he said the World Bank itself, its functions to its capacity. Imagine a state that is distilling optimism and attractive for investment. Well, right? Now imagine what would happen next. Faced with such efficiency and such good condition is not an exaggeration to predict the coming massive foreign investment. Nor does it seem strange that domestic investors, instead of producing employment and development in foreign countries back to bring your talk. .

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