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Institutional Inefficiencies in Latin America
Department of Economics, University of Peloponnese, Tripolis, Greece
- 1 Department of Economics, University of Peloponnese, Tripolis, Greece
Theoretical Economics Letters·Volume 02 (2012)·Pages 517–519·Published 19 December 2012·DOI10.4236/tel.2012.25095
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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.
KeywordsIndividual LibertyFree EnterpriseCollectivismEconomic Development
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