Gary Rodriguez writes in Los Tiempos:
Why countries fail?
Bolivia: The challenge of competitiveness and production, was the theme of the Cainco International Economic Forum 2014 organized by the Chamber of Industry, Commerce, Services and Tourism of Santa Cruz (06/05/2014). A great event that I solace listening to three experts who knew what they were talking about.
Cainco president, Luis Barbery, warned in his speech that while other countries advance, investigate and innovate, in Bolivia we are still wasting time on whether or not to use genetically improved seeds; and that by corruption, weak justice, heavy bureaucracy and informality, the country is ranked 98 among 148 countries, so we barely pass, scraping-with 3.8 out of 7 – in the global competitiveness ranking.
CAF’s consultant Nicolo Gligo talked about vocational education and training, emphasizing the importance of having human capital in quality and sufficient to cause the “change” to be more productive and competitive.
Peter Siegenthaler, chief economist of the World Bank, focused on how to make sustainable inclusive economic development in Latin America, being that – the end of the golden decade for raw materials – we will no longer be flying with a tailwind, and recommended increase private investment, higher productivity and better public policy and entrepreneurship support.
The star of the Forum was James A. Robinson, Professor at Harvard University and author of “Why do countries fail?” To answer the big question: why some nations become rich and others not. Making a historical review, confirmed that -beyond natural resources – what really makes the difference between countries is the quality of their institutions, that is, the rules that govern the economy and politics.
For Robinson, countries that succeed have “inclusive” economic institutions, based standards provide incentives and opportunities for all citizens to create wealth based on the search for their own benefit. By contrast, those countries that fail are the ones who have “extractive” economic institutions, where political and economic power is in a few hands and where policies are coercive, of control and punishment, rather than promotion.
The main consequence of this important forum was to understand that – for a country not to fail – plurality, private property and freedom are essential. Jus to take this into account …
The author is an economist, Master in International Trade.