Ernesto Zedillo on Latin America:
Not every fiscal problem is the same throughout the region, however. Some countries raise high amounts of revenue but spend even more. Others spend more frugally but proportionally collect less in taxes. All spend too little on basic infrastructure. The general goal must be to achieve fiscal consolidations--either by axing current expenditures or by collecting more taxes. This would enable governments to apply countercyclical macroeconomic policies and to invest more in human and physical infrastructure.Next in importance is guaranteeing the rule of law, under which falls the protection of property rights and the relentless fight against corruption. The rule of law is an essential requirement for the development of credit markets and other important aspects of a modern economy. Finally, the removal of internal and external barriers to competition must be part of any must-do list of public policy. Latin American economies need fewer and better regulations and must be more open to foreign competition and investment.
{Emphasis mine}
Yeah. I'd agree with that. But only if it came from some other horse's mouth.
Particularly the bit about, "the relentless fight against corruption." That's a laugh.
You have to admit that I might be allowed a wee bit of incredulity when it comes to anything Zedillo says. If the name Ernesto Zedillo isn't ringing a bell, well, let me inform you: he was the last PRI (The Institutional Revolutionary Party---an oxymoron if there ever was one) President of Mexico. The guy that Vincente Fox replaced. He was also the guy who lost control of the government for the PRI, which is why he's hanging out in New Haven now, as the Director for the Yale Center For the Study of Globalization, and not in Mexico City. I can't think that Mexico is a good place for him to be right about now. Good thing Yale coughed up a job, eh?
Remember the days in Mexico when elections were rigged, the state treasury was a bank account for anyone other than the people of Mexico, revolts were slapped down quickly, Rambo-style, and drug dealers told the politicians what to do as long as some cash changed hands? Well, that was the PRI's fault. It wasn't so much "Institutional Revolution" that they were peddling, but rather institutional corruption. Systemic, top to bottom, institutional corruption. Ernesto was a member of the PRI. He was their last president, and while he knowingly did do some things to weaken his own party to bring about its demise, he was still a party man. And knowingly participated in the raping and looting of his own country.
Why Forbes gives this guy column inches, I haven't the foggiest idea. I don't believe a word he says.
{Hat Tip: Fausta}
Posted by Kathy at January 17, 2005 12:07 PM