Currencies and the Global Capital Markets Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Currencies and the Global Capital Markets

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: X Y Zebra who wrote (375)	7/30/1998 7:46:00 PM
From: Henry Volquardsen	Read Replies (4) of 3536

Z, We've had this discussion before and I agree with you. One of the mantras of the 90s is that free markets are the solution ot the emerging markets. On a basic libertarian level I have always agreed with this statement. However on further analysis I have come to the conclusion that it is not the solution without one very important co-factor. In fact without that co-factor free markets can be devestating to these countries. That co-factor is the rule of law and a respect for property rights. That may sound like a simplistic statement but think about the situation in much of the world. Perhaps the most 'free' economy in the world is Russia. Yet that country teeters on the brink of ruin. Under the Soviets they had the rule of law but no freedom and that also led to ruin. The difficulty we see in countries such as Mexico does indeed result from the corruption you rightly point out. Corruption is nothing but a failure of the rule of law. None of these countries will be able to develop a middle class until they have both free markets and the rule of law. Henry

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next