Institutional Inefficiencies in Latin America
Author(s)
Panagiotis Evangelopoulos*
ABSTRACT
In North America the establishment of the institutions of individual liberty and free enterprise demonstrate that prosperity is a function of freedom. Diametrically opposite, Latin America has throughout its history been required to endure attempts at imposing collectivist institutions. The new institutional economic historian approach implies that poor economic performance is attributable to the inefficient institutional framework. Based on this analysis I explain the reasons of the wealth differences between North and Latin America.
In North America the establishment of the institutions of individual liberty and free enterprise demonstrate that prosperity is a function of freedom. Diametrically opposite, Latin America has throughout its history been required to endure attempts at imposing collectivist institutions. The new institutional economic historian approach implies that poor economic performance is attributable to the inefficient institutional framework. Based on this analysis I explain the reasons of the wealth differences between North and Latin America.
Cite this paper
P. Evangelopoulos, "Institutional Inefficiencies in Latin America," Theoretical Economics Letters, Vol. 2 No. 5, 2012, pp. 517-519. doi: 10.4236/tel.2012.25095.
P. Evangelopoulos, "Institutional Inefficiencies in Latin America," Theoretical Economics Letters, Vol. 2 No. 5, 2012, pp. 517-519. doi: 10.4236/tel.2012.25095.
References
[1] D. C. North and R. Thomas, “The Rise of the Western World: A New Economic History,” Cambridge University Press, Cambridge, 1973. doi:10.1017/CBO9780511819438 [2] P. A. David, “New Light on a Statistical Dark Age: US Real Product Growth before 1840,” American Economic Review, Vol. 57, No. 2, 1967, pp. 294-306. [3] T. Peter, “New Economic History,” Penguin Books Ltd., Harmondsworth, 1973. [4] R. W. Fogel, “A Quantitative Approach to the Study of Railroads in American Economic Growth: A Report of some Preliminary Findings,” Journal of Economic History, Vol. 22, No. 2, 1962, pp. 163-197. [5] D. C. North, “Structure and Change in Economic History,” W. W. Norton, New York, 1981. [6] D. C. North, “Institutions, Institutional Change and Economic Performance,” Cambridge University Press, Cambridge, 1990. doi:10.1017/CBO9780511808678 [7] H. de Soto, “The Mystery of Capital,” Basic Books, New York, 2003. [8] H. de Soto, “The Challenge of Connecting Informal and Formal Property Systems. Some Reflections Based on the Case of Tanzania,” In: H. de Soto and F. Cheneval, Eds., Realizing Property Rights, Rüffer and Rub, Zurich, 2006, pp. 18-67. [9] M. Olson, “The Rise and Decline of Nations,” Yale University Press, New Haven and London, 1982.
[1] D. C. North and R. Thomas, “The Rise of the Western World: A New Economic History,” Cambridge University Press, Cambridge, 1973. doi:10.1017/CBO9780511819438 [2] P. A. David, “New Light on a Statistical Dark Age: US Real Product Growth before 1840,” American Economic Review, Vol. 57, No. 2, 1967, pp. 294-306. [3] T. Peter, “New Economic History,” Penguin Books Ltd., Harmondsworth, 1973. [4] R. W. Fogel, “A Quantitative Approach to the Study of Railroads in American Economic Growth: A Report of some Preliminary Findings,” Journal of Economic History, Vol. 22, No. 2, 1962, pp. 163-197. [5] D. C. North, “Structure and Change in Economic History,” W. W. Norton, New York, 1981. [6] D. C. North, “Institutions, Institutional Change and Economic Performance,” Cambridge University Press, Cambridge, 1990. doi:10.1017/CBO9780511808678 [7] H. de Soto, “The Mystery of Capital,” Basic Books, New York, 2003. [8] H. de Soto, “The Challenge of Connecting Informal and Formal Property Systems. Some Reflections Based on the Case of Tanzania,” In: H. de Soto and F. Cheneval, Eds., Realizing Property Rights, Rüffer and Rub, Zurich, 2006, pp. 18-67. [9] M. Olson, “The Rise and Decline of Nations,” Yale University Press, New Haven and London, 1982.