Enlightened Economic Policies
Tuesday, June 05, 2007 - FreeMarketNews.com
Don't expect the likes of Zimbabwe's Robert Mugabe or Venezuela's Hugo Chavez to see the light of day in their present lives, but when a government gets out of the way and allows the free market to "do its thing" the results tend to be, well.. very, very interesting.Dr. Alexander Elder, of Financial Trading Seminars Inc. states:"Today many Asian cities outshine the European ones. What has allowed so many countries to make this huge leap forward? Two factors bear the lion share of responsibility for this progress – the rule of law and the unleashing of private enterprise. It is amazing how the Asian elites have changed their course, turning from centuries of heavy authoritarianism to the current, reasonably relaxed regimes, respectful of property rights and the legal process."They have proven that there is a recipe for building a successful society. Perhaps there is hope for depressed areas of the globe. Perhaps their elites will also recognize that they would be better off if they follow the Asian example.Showing what can be accomplished anywhere on the globe when enlightened economic policies are instituted, Resource Investors' Jackie Steinitz, writing about Tanzania confirms:"Tanzania is geologically well endowed, with deposits of gold, base and ferrous metals, diamonds, gemstones, coal and a number of minerals such as phosphates, gypsum and kaolin. "However during Julius Nyerere's presidency from independence in 1964 until his resignation in 1985 the country was run under a system of African socialism, self-reliance and ujamaa, a policy involving a return to traditional African family life. During this period foreign investors largely withdrew from mining; the sector declined to just 0.8% of GDP. "Since liberalisation in 1986 the country has opened up, welcomed foreign investors and Tanzania now offers a number of advantages for mining. It is a politically stable multi-party democracy, nationals speak just one language (Swahili), there is a strong and transparent mining code, and a favourable tax regime. Foreign investment in the mining sector over the last 10 years has totalled $2.5 billion; gold has boomed with production up from 6,000 kilograms ten years ago to more than 45,000 kilograms in 2005. Mining now accounts for 2.7% of GDP and is projected to account for 10% by 2025."
Don't expect the likes of Zimbabwe's Robert Mugabe or Venezuela's Hugo Chavez to see the light of day in their present lives, but when a government gets out of the way and allows the free market to "do its thing" the results tend to be, well.. very, very interesting.Dr. Alexander Elder, of Financial Trading Seminars Inc. states:"Today many Asian cities outshine the European ones. What has allowed so many countries to make this huge leap forward? Two factors bear the lion share of responsibility for this progress – the rule of law and the unleashing of private enterprise. It is amazing how the Asian elites have changed their course, turning from centuries of heavy authoritarianism to the current, reasonably relaxed regimes, respectful of property rights and the legal process."They have proven that there is a recipe for building a successful society. Perhaps there is hope for depressed areas of the globe. Perhaps their elites will also recognize that they would be better off if they follow the Asian example.Showing what can be accomplished anywhere on the globe when enlightened economic policies are instituted, Resource Investors' Jackie Steinitz, writing about Tanzania confirms:"Tanzania is geologically well endowed, with deposits of gold, base and ferrous metals, diamonds, gemstones, coal and a number of minerals such as phosphates, gypsum and kaolin. "However during Julius Nyerere's presidency from independence in 1964 until his resignation in 1985 the country was run under a system of African socialism, self-reliance and ujamaa, a policy involving a return to traditional African family life. During this period foreign investors largely withdrew from mining; the sector declined to just 0.8% of GDP. "Since liberalisation in 1986 the country has opened up, welcomed foreign investors and Tanzania now offers a number of advantages for mining. It is a politically stable multi-party democracy, nationals speak just one language (Swahili), there is a strong and transparent mining code, and a favourable tax regime. Foreign investment in the mining sector over the last 10 years has totalled $2.5 billion; gold has boomed with production up from 6,000 kilograms ten years ago to more than 45,000 kilograms in 2005. Mining now accounts for 2.7% of GDP and is projected to account for 10% by 2025."
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