vulgar morality : Blogging for the relationship between morality and freedom
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Tuesday, March 08, 2005

ECONOMIC PROSPERITY, POLITICAL FREEDOMInteresting post by Gary Becker at the Posner-Becker blog on the relationship between economic and political freedom.  I have opinions on the matter, and you can read them in the comments of the interesting discussion that follows the post.  Here I will content myself with citing Becker and his theme:

Since both economic and political freedoms are highly valued, it is essential to understand how they interact as nations evolve. The history of different countries during the past century strongly indicates that economic freedoms over time typically push societies toward political freedoms. To take a few examples, South Korea, Taiwan, and Chile all started their economic development under military regimes. Korea and Taiwan both began freeing their economies around 1960 after centralized direction of their economies failed to produce economic growth. Chile began opening its economy under General Pinochet in 1981, also after his centralized approach to the Chilean economy failed. Within two decades, all three nations had achieved, or were moving rapidly toward, political democracies, with vibrant competition for elections among competing parties, and a mainly free press.

The path from political to economic freedom, by contrast, is slower and more uncertain. It took India over four decades to begin to loosen its extensive controls over private companies, labor markets, start-ups, imports from abroad, and numerous other activities. It still has a long way to go. Mexico has had a free press and considerable political freedom for a century or so, but economic freedoms did not begin to evolve until the latter part of the 1980's. Israel has fierce competition among political parties, but continues to have an overly controlled economy.

Not to be outdone, Richard Posner posts his own thoughts on the subject.


9:59:52 PM    comment []

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