Economics

Exporting Capitalism in Latin America

Socialism is on the rise in Latin America. Venezuela’s president/dictator Hugo Chavez has admitted that his goal is to purge the region of American influence. Along with his alliances with the Iranians and North Koreans, Chavez has financed the Bolivian Movement Towards Socialism Party, sent aid to the leftist Sandanista party in Nicaragua, and passively supports the communist FARC terrorists in Columbia.

The Chinese have increased their influence in the region – trading raw materials for finished goods and offering investment in China’s growing infrastructure.

Polls show that the United States’ popularity is falling in many Latin American countries and less than a third of those polled support democracy and free market economies.

How can we combat this growing socialist threat? We can export capitalism. The US – Peru Trade Promotion Agreement will allow free trade between the US and Peru. Consumers in both countries would benefit from the duty-free products.

The agreement would counter Chavez’ anti-American influence in Peru, and bolster an economy that has seen five percent growth and half a million Peruvians rise above poverty since 2001. Nearly half of Peru is still poor, and are vulnerable to the socialist reforms that are sweeping the area.

Peru is a key ally in the region. They have stood against Chavez’ anti-American rhetoric in the Summit of the Americas, have voted in favor of nuclear safeguards in Iran, have condemned North Korea for its offensive nuclear tests, and are partners with the US in combating regional terrorism and narcotics traffic.

It shouldn’t end with Peru, but it is a good place to start. Free trade agreements would boost confidence in democracy and free markets, while combating anti-US sentiment in the region. Instead of a fighting a new cold war with a Union of Latin American Socialist Republics down the road with bullets, we should counter the threat now with economics.

 Chris Carter is the host of “Unto the Breach.”
COPYRIGHT 2007 CHRIS CARTER

Leave a Reply