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It's not really political ideology per se, it's really more about prudence and management of resources. Or mismanagement and squandering of resources. Any government of any ideological stripe can do well as well as muck it up.
It's too easy to point to Venezuela and decry socialism. But OTOH, Bolivia has a similar government with policies and they're doing quite well. Also, the economy under Chavez was actually doing fairly well; it's deteriorated under Maduro and a lot of that has to do with bad choices made in terms of monetary policy
Argentina has experienced economic crises over several decades under successive governments that could be considered somewhat left and right of center - it's really more about policies, both fiscal and monetary that have had varying effectiveness. Hard to say really.
Rafael Correa's brand of socialism, if that's what it really was (I have my doubts), was fantastic for the country. He ran into trouble when the price of oil crashed. He was aiming to diversify the economy, so that eventually, it wouldn't be so dependent on oil, but that takes a long time. It takes more than just a couple of Presidencies--8 or 10 years. It takes maybe 20, at least.
But even when oil prices were strong, his problem was twofold: 1. The Indigenous sector opposed him (except for the socialist ones) because he was financing public works and public education (human resources development) with oil development and mining, and 2. The US Embassy was doing everything it could to foment opposition to him, and was very effective at it.
Correa says he's not "Marxist Left", he's "Christian Left". That may be so, but there's not way to know what "Left" tendency his successors would have. OTOH, the other side of the spectrum wants to cut taxes and cause more chaos and instability; the main opponent in the elections this year was the past architect of a bank scandal that wrecked an already shaky economy.
Last edited by Ruth4Truth; 07-27-2017 at 10:41 PM..
Yes Bolivia is doing better than Venezuela because they have been more careful with their spending. But Bolivia's economy isn't as diversified as it could be. Can Evo Morales' socialist polices produce more diversification of the economy or is more market policies needed?
Chile seems to be approaching a transition period.
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The fragmentation of politics reflects the breakdown of the economic consensus in South America’s wealthiest nation. The rapid growth of the past quarter-century has ended and politicians are divided over how to restore the economy’s former dynamism. Some argue that the neoliberal economic model imposed by former dictator Augusto Pinochet is exhausted and what Chile needs now is greater equality and more state intervention to expand beyond raw materials. Others argue the country has already gone too far in its pursuit of equality and the incoming government must do more to promote free markets.
Yes Bolivia is doing better than Venezuela because they have been more careful with their spending. But Bolivia's economy isn't as diversified as it could be. Can Evo Morales' socialist polices produce more diversification of the economy or is more market policies needed?
Chile seems to be approaching a transition period.
Diversification and market economy/socialist economy are two separate issues. Because if you were to just go with the classical trade model based on market principles more strictly, it would make sense for a country to specialize in one major industry because it makes the most sense in terms of near term ROI and comparative advantage. The Dutch Disease phenomena also discourages a country from diversification away from a boom sector (usually commodies such as energy).
Venezuela has tried (and failed) to diversify their economy away from petroleum for decades. It's not just an issue with the Chavez/Maduro regime - they've had boom/bust cycles constantly since the 1970s. Part of the problem is that any Venezuelan government will face popular pressure to use that oil revenue funds to use for public purposes (e.g. buy off political constituents) - and not always in a fiscally prudent way. This has been going on for decades and is NOT limited to the Chavistas.
Diversification of the economy takes a lot of time, effort and political fortitude - it's not a socialist/capitalist dichotomy.
The left has hurt Latin America the most. Just look at Cuba and Venezuela before becoming socialist countries, they were doing better.
It's pointless to go into the oppression Olympics based on political ideology.
Cuba wasn't exactly a picnic pre-Castro. You had 25% illiteracy, poor sugar cane workers who couldn't support themselves 6 months of the year (representing 25% of the population). Poor health care coverage.
Venuezuela also experienced boom and bust cycles pre-Chavez as well.
In my home country the right has been worse. There has been very little left wing governments to speak of. In fact the only some what left leaning government and the best government Guatemala has had so far was overthrown.
There really isnt a right wing in latin america. It's just left wing vs extremely left wing.
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Originally Posted by Ruth4Truth
There was a high percentage of marginalized people. Castro remedied that.
Yea, by making everyone poor.
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