The terrible earthquake disaster in Haiti is resulting in the start of a huge government and private relief effort.
But there are already voices like former president Bill Clinton’s who are calling for a longer-term recovery plan for the Haitian economy through government-business-private “partnerships.” Unfortunately for the people of Haiti this is likely to generate more of the same that has kept them in poverty, rather than the more market-oriented path that other poor countries have been following, and which has been lifting them out of poverty.
I discuss this wrong-headed approach to more of the same type of intervention policy that will prevent Haiti from finally escaping from poverty in a new piece I’ve written on, “Real Economic Reform for a Hurting Haiti.”
The people of Haiti do not need a continuation of government regulation, control, and coerced redistribution. They need what Adam Smith called a “system of natural liberty” in his book, The Wealth of Nations. They need individual liberty, private property rights, impartial rule of law, open, competitive markets, limited government, low taxes, free trade, a non-inflationary monetary system, and a political and economic environment friendly to entrepreneurship and capital formation.
That is the road to real economic recovery to left Haiti out of poverty in the aftermath of this terrible human tragedy.