Generation Liberty recently took a look at the Venezuelan catastrophe, a South American economy collapsing in the wake of decades of mismanagement by a socialist government; turning an oil-rich nation into a failed state.
However, while Venezuela languishes another South American economy is succeeding: Peru’s economy has seen dramatic improvements by adopting market practices and deregulating industries across the country:
Peru has posted encouraging growth rates (6 percent annually) and modest inflation (2.9 percent annually) thanks to pro-investment, market-friendly policies. The upshot has been a sharp drop in poverty and an economy that is projected to grow another 4 percent this year while neighbors like Brazil and Venezuela are gripped by economic recession caused by government mismanagement.
By opening their country to competition and encouraging people to invest and establish businesses, Peru is now one of the most successful economies in the entire region.
Just how much of a resurgence are everyday Peruvians enjoying? In pre-election polling, only 13 percent of prospective voters listed unemployment as something that “personally affects me.” A mere 4 percent said the same about poverty. This in a country where, according to the World Bank, poverty stood at 56 percent in 2005. That’s remarkable.
The Peru success story sends an optimistic signal to the rest of the world: opening our economies to the global market, encouraging competition and businesses, delivers prosperity.
Meanwhile, this new video from Al Jazeera shows just how desperate the situation is becoming in Venezuela: