|
|
|
|
Latin America: A Way Out
By José Piñera
Introduction
The Latin American paradox has always astonished me. United by geography with two of the world's most successful nations, blessed with natural resources of every kind, lacking racial, religious, or language differences giving rise to serious violence, and with an extraordinary culture characterized by its diversity and by its continuity, Latin America could be a continent of peace, stability, and prosperity. But the region remains mired in underdevelopment and political instability.
The political and economic history of Latin America over the last two centuries is in direct contrast with that of the United States. The consequences speak for themselves, as the historian Claudio Véliz points out: "We are in a New World born at almost the same time to the North and to the South, settled by two great societies, springing from the two greatest empires of modern times. One group began poor, in the North, the other rich, in the South. In 500 years the positions have entirely reversed."
The United States generated a GDP of $12 billion in 1820, by 1900 this had risen to $313 billion, and to $10 trillion by 2000, all measured in current money terms. How was this explosion of wealth achieved? In large measure it is due to the institutions and political philosophy bequeathed to the United States by the Founding Fathers (Jefferson, Madison, Hamilton, Adams, Franklin, and Washington among others). The Declaration of Independence, the Constitution, the Bill of Rights, and the Federalist Papers are among the great works that gave such a firm and enduring philosophical, political, moral, and economic foundation to the newborn nation.
Full Text (PDF, 8 pages, 43 KB)