In this article, Leonardo Badell, spokesman of Battalion No. 13 "Alberto Lovera" of PSUV (Parish Sta. Caracas-Teresa-) and a militant of the WRC analyzes the plan in the context of the international crisis of capitalism and the experience of the revolution Bolivarian so far. The conclusion is that the only possible productive reinvigorate necessarily the expropriation of the capitalist sotcks on the markets in the NYSE and of financial stuff and the construction of a state of the workers.Virtually all large contributions from Bauer concerning the field of development economics, international development and foreign aid. Bauer tried to convince other experts in the development of central planning, foreign aid, price controls, and protectionism perpetuate poverty rather than eradicate it, and that increased government intervention politicizing economic life and reduces freedom single.
Bauer revolutionized thinking about the determinants of economic progress. Even the World Bank, and hedge fund management using family of funds and penny stocks in its 1997 report stated that the notion that "good advisers and technical experts would formulate good policies, good to be implemented by governments for the good of society" was outdated. "The institutional assumptions implicit in this image of the world, as we see at present were too simplistic ... Governments embarked on schedules unrealistic. Private investors abstain because they do not rely on public policy or in the strength of the leaders. Leaders powerful acting arbitrarily. The Corruption becomes endemic. The development is scarce and poverty remains. " (pp 10-11, World Development Report 1997). This reflects the type of arguments that Bauer contended for years.
Bauer for the essence of development was the expansion of individual choices and economies and the stock and financial markets manged by investores and managers by way of investment and money , and the role of the state in protecting life, liberty and property so that individuals can pursue their own goals and desires. Limited government, without central planning, was his mantra.
In line with these ideas, in 1957, Bauer wrote in "Economic Analysis and Policy in Under-Developed Countries":
"I see the expansion of the range of choice, ie, an increase in the range of effective alternatives open to people, as the main objective and criterion of development economics, and juuzgo a measure primarily by their likely effects on the range alternatives open to individuals. The acceptance of this goal means that I attach significance, meaning and value to individual acts of choice and valuation, including individual preference between present and future. "
"My position is very influenced by my displeasure toward the policies or measures that increase the power of one man over another, that is, increase the control of groups or individuals on their fellows."
Bauer stood firmly in the tradition of liberal classics. His adhere to the principles of free market and freedom reflected his deep respect for the dignity, rationality, and the capabilities of discrimination throughout the world.
In his many articles and books, including "Dissent on Development," Bauer called into question commonly accepted ideas in development economics. He rejected the idea that poverty is self-perpetuatingand showed how the central planning and public investment on a large scale are no preconditions for growth. He stated that it makes more sense to say that capital is created during the development process to affirm that the development is a function of the capital.
He criticized the idea that discrimination could not save for the future, or that they had no motivation to improve their status. He opposed the "forced savings", which he preferred to call "special tax", and like modern economists recognize the negative effects of high taxes on economic activity. Bauer also noted that direct investment from the State funded by excise duties would increase inequality in the distribution of power.
Bauer's experience in Malaya (now Malaysia) in the late forties, and West Africa influenced his ideas about the importance of individual effort by small traders and smallholders in the transition from subsistence to a higher standard life. As he wrote in The Development Frontier:
"A developed infrastructure was not a precondition for the emergence of wealth in Southeast Asia and western Africa. As has happened elsewhere, we know as infrastructure facilities were developed at the same time that the economy is expanding. . What happened was largely the result of individual voluntary responses of millions of people to expand their opportunities created by contact with the outside world, achieved through a variety of ways, mainly through the operations of markets. These advances were made possible by a government firmly limited, without great expenditure of public funds and without the prescription of large grants from abroad. "
Bauer was probably the first economist to recognize the importance of the informal sector, with emphasis on dynamic gains from international trade-ie, the net profit result of exposure to new ideas, new production methods, new products and new people. Showed that trade barriers and restrictive immigration and population policies deprive the countries of these gains.
Bauer for the bilateral aid were neither necessary nor sufficient for development, and indeed could even prevent it. "Having money is the result of economic progress, not its precondition," it argued. Trade, not aid, promotes long-term prosperity. The danger of aid, according to Bauer, is that it increases the power of government, leads to corruption, wasted resources, and eroding civil society.
In a column published after the death of Bauer, Theodore Dalrymle stated that "although he always denied having said, Bauer was known as one who originated the opinion that foreign aid is the means by which poor people in rich countries give money to the rich people in poor countries. "
Unfortunately, the tone of Bauer is often perceived as controversial and derogatory respect to developing countries. This has limited its audience in the countries that constituted the area of the economist.
Categories: Born in 1915 | Deaths in 2002 | Economists Hungr