This page deals with economics and business issues,concerning Latin America, and the global economy.-
Sunday, October 12, 2014
October the 12: a Note about its meaning
Every year, New York watch the hispanic parade on october 12.It is the day Latin america citizens celebrates the discovery of this land by Christopher Columbus. This time 8000 people showed up with their traditional dances and colorful dresses.
The hispanic community has become increasingly important in the United States in the latest years,which it is clear in their voting share (30%)as a proportion of total voters .This share may still be even higher in the future following the birth rate trend.
But, what is the meaning of October 12?.Well, 522 years later , two civilizations crossed its destiny in this land, to build up a new world, specially for all those who came later on in the XVI century.
In the begining, there was not many chances for anyone in here other than to produce for the Spaniard Kingdom at that time.The State ,was built for the unique aim of managing the rents arising from those productive activities which were more profitable.Some researchers have written that to set the model for the State to do its task, it was followed the same model the natives had before they were displaced by the new conquerors.It did not provide incentives for entrepreneurships activities ,and it has the same hierarquy, which became known centuries later as bureaucracy.-
Almost two hundred years later ,in the north ,first Irish inmigrants ,then british,germans and all of those who wanted to live inspired by freedom, also became part of this new world.They spread the seed of freedom to the colonies in the south, which started to claim independence, after their neighbors in the north got its own .
What about the State? Unfortunaletly it did not work the same process.In latin America there are still strong beliefs about the State ability to manage growth and economic progress, but not that much because of its efficient actions , but because it represent the source of power some groups hardly would quit.
There is a question not to often mentioned concerning to how come that those starting 250 years later in the north, became wealthier and powerful than its southern counterpart with such disadvantage?.They did not have engineering heritage,neither a culture to look up to.A probably difference is in the different role theirs founding fathers gave to the State.-
October the 12 should be an inspiring day to reflect about the difference does it makes, to be really independent with no other limitation ,than the one which set the boundaries with others´s will within a community, instead of being independent but with a constraint, the one which is set by the state and its framework , to impose its will on a community.This is the case in education programs,public health services,and in some Latin America economies, it is also still the case about its economics policies.-
The evidence suggest that those economies with more economic freedom ,are capable of getting better income distribution, than those which have less economic freedom.