Wednesday, March 2, 2011

Bryan Caplan on Amy Chua on Markets & Democracy: Not Always a Great Couple?

Very nerdy.

Caplan provides a brief description of Chua's World on Fire: How Exporting Free Market Democracy Breeds Ethnic Hatred and Global Instability. Chua argues that while ethnic minorities often are economic leaders in a society, and are thereby subject to resentment, they benefit most from market reforms.However, because of resentment, they suffer when majority voters promote punitive policies toward them. Caplan challenges her assumptions. However, either way, its a brief reminder that markets and democracy isn't all sweetness and light when it roles in. Think of the North African nations: whither will they go? (I don't know if they have much in the way of ethnic minorities, however.) Thought-provoking.

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