November 13, 2013
By Bianca Fernet
The emergence of democracies in former dictatorships, theocracies, and aristocracies is widely considered evidence of humanity’s progress towards superior social organisation. From an economic standpoint, democracies for all their quibbling still consistently demonstrate the following strengths (hat tip, Dani Rodrik, Harvard University):
Democracies yield more predictable long-run growth rates.
Democracies produce greater stability in economic performance.
Democracies handle adverse shocks better.
Democracies pay higher wages.
What do we do then, with Kirchnerism?
In many circles, President Cristina Fernández de Kirchner is pinned up as the primary source of Argentina’s many woes. And while she is miles away from blameless, Cristina is possibly even further from the root of Argentina’s cyclical and seemingly inescapable economic demise. She is nothing more than the current face of Peronism, a political and economic model that vastly limits her alternatives.
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