For those of you who might think economics is a dry subject, boringly banging on about minutiae of the money supply, incomprehensible equations and piffle about this or that exact method of regulation, go over to Stephen Pollard and read about Hernando de Soto, a Peruvian economist. He’s just been awarded the Milton Friedman Prize for Advancing Human Liberty and thoroughly deserved it is too. It’s hard to sum up his point in just a few words, so read the Wall St Journal piece that Stephen links to. Essentially, the poor parts of the world are poor because inadequate attention is paid to property rights. No rights means no leverage, no leverage means no capitalism.
De Soto really is one of those people who have come across a fundamental truth, one which will change the prospects for the poor of the world if only people listen to him.
You should also take note of the writings of the previous winner of the Prize, Peter ( Lord ) Bauer. ” Trade not Aid ” as even Oxfam now acknowledges is the correct response to current world inequalities. Or as he put it himself ” Foreign aid is a way to take money from poor people in rich countries and give it to rich people in poor countries.”
That’s interesting economics.