Thursday, August 28, 2008

Roberto Mangabeira Unger

"But Unger doesn’t think Brazil should compete against the likes of China by giving its workers ever-lower wages. And he rejects the neo-Korean model because he wants to start an economic revolution from the ground up, not top down. Instead, Unger proposes that the government both tax and invest heavily. Voting should be made mandatory, as should savings. These measures would buffer the economy from the influence of international investors. This flies against the textbooks that say governments should prostrate themselves to foreign investment. Growth would not come from big business then, but from Brazil’s small enterprises. Instead of a tiny business elite dropping crumbs for the country’s poor, a broad middle class of small business entrepreneurs would form Brazil’s engine of growth. These small enterprises would get access to the credit and tax benefits that big businesses more typically enjoy. The benefits of the market should be shared broadly, not monopolized by big business.

In a way, the idea is very much free-market orthodoxy. Economic decisions would be made on a smaller, more local scale. Individuals know what’s best for themselves and should be encouraged to pursue their own self interest. Why should people cede control of their own destinies to large, distant institutions, be they government, corporations or the World Bank? By giving individuals the tools and freedom to succeed, they can take charge of their own prosperity.

The test for Unger is not only whether his ideas will succeed in the real world, but also whether they will be implemented in the first place. Politics has a way of hammering down the nail that sticks out the highest. Bold ideas that are nurtured in academia get watered down with compromise. But Unger’s appointment is the brightest hope in recent years that a new vision can transform the world. Brazil is an experiment worth watching."


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