The
Free Market Means Civilization
by
Llewellyn H. Rockwell,
Jr.
Beware
of Christmas appeals to feel guilty about third-world poverty. They
mask a vicious, anticapitalist political agenda: we are supposed
to strike our breast and agonize over American prosperity, while
empowering international agencies to redistribute wealth worldwide.
Don't do it. What poor countries need more than our pathos is American
capital, and that is precisely what the Holiday guilt-mongers most
want to restrict.
The
"progressive" Left, even while wailing about international
poverty, has long decried the Westernization of the "developing
world" the polite term for societies kept poor by socialist
governments. Let a stitch of American clothes or an American movie
cross the border into lands of perpetual poverty, and the Left decries
it as imperialism. Let a corporation open a shop and give people
jobs, and the Left screams exploitation and demands a globocop crackdown.
It
gets worse: the Left feigns great love for the environment (not
actual people, mind you) in poor countries, and wants to restrict
entrepreneurial freedom to preserve a barbaric state of nature.
How a movement that devotes itself to opposing economic development
came to be popular in the first place is beyond me.
It's
all very strange, because poor countries have no greater friend
than foreign capital: it moves in to try to fix up their countries.
Sure, multinational corporations are driven by the profit motive.
It's also true that they seek cheap labor, because that is a main
asset these countries have to offer the world. Make it impossible
for multinationals to employ these people, as the Clinton administration
tried to do, and you condemn the third world to everlasting penury.
We
often hear about slave labor in the third world. But that is not
what multinationals employ. These companies go into poor countries
and open their doors to people desperate to work for a fraction
of what it takes to employ someone in the developed world. It is
a mutually beneficial exchange: the company gets cheap labor and
the citizens of poor countries get to partake in the international
division of labor.
And we are not just talking about jobs, but also growing prosperity
and the plethora of consumer goods that come with economic development.
Imagine, for example, trying to conduct your affairs without a telephone.
That's the fate of 99 percent of the people in Haiti, where the
government monopolizes all regular phone service, and it takes five
years on a waiting list to get yourself hooked up. Thank goodness
for the American company that moved in to establish a private system.
Yes, it is more expensive. But cell phones are hugely popular all
over Haiti, as in many parts of the developing world. They are not
only symbols of success; they are essential to a normal life.
The
New York Times reports that in Paraguay, the number of mobile
phone users increased 88 percent last year. In Venezuela, more than
half the people with phones use mobiles. Use in Zimbabwe increased
800 percent last year, and in Botswana, Rwanda, and the Ivory Coast,
more people use private wireless systems than the government's antiquated
operation. An added appeal is that they are untapped, unlike the
government's phones.
Their
very availability is no accident. It is the result of heroic, and
profitable, efforts by such companies as Western Wireless (love
that name!) in Bellevue, Washington, and InterCel of Reston, Virginia
(which provides service in Congo, Madagascar, and Guinea). They
take the risk, get the job done, and do it on their own dime. "We
go where the big guys fear to tread," says Brad Horvitz of
Western Wireless. God bless him!
It
was once believed that only government could provide "infrastructure"
like communications and travel. But more and more, we are faced
with its overwhelming failure to do so, not only in the developing
world but also right here at home. The main reason for the success
of the internet is that it was entirely taken over by private enterprise,
which brought the power of commercialism to what would otherwise
have been a dead medium used only by "defense" bureaucrats
and professors.
Private
infrastructure responds to consumer needs in a way that public infrastructure
cannot. It doesn't look upon people as tools to be manipulated for
political purposes, but rather seeks to know their needs and serve
them in the most economically efficient manner. Competition between
providers means that prices stay as low as economic conditions make
possible. And innovation is a constant feature of private infrastructure
whereas the mindset of those manning public infrastructure
is still stuck in the days of Stalin and the New Deal.
The
Clinton administration, despite all its talk about innovation and
the internet, was definitely stuck in a Mussolini mindset, where
everything worth doing should be done by the government. Perhaps
that will change under a Bush administration; certainly we are in
desperate need of a change. Regulations have hobbled the ability
of entrepreneurs to provide for essential needs like energy.
The
California power outages are merely one example. We need to open
up Alaska and other lands for oil and gas exploration and extraction,
and allow private companies to build new power plants from sea to
shining sea-shining with new electric lights!
Yes,
environmentalists are horrified at the prospect. But what can you
say about people whose stomachs turn at the very idea of economic
development? I say they have an evil mentality, willing to sacrifice
the welfare of humanity for a strange Rousseauian vision of contentment
in a state of nature. And what is a state of nature? Los Angeles
without lights, Haiti without cell phones, Bangladesh without multinational
corporations, and Panama without jobs. In other words, Hell.
If
it's peace on earth to men of good will that we want this season,
we must reject the nightmare of savage life, and recommit ourselves
to the blessings wrought by private enterprise. The free market,
by replacing the state of nature, brings us civilization itself.
December
22, 2000
Llewellyn
H. Rockwell, Jr., is president of the Ludwig
von Mises Institute in Auburn, Alabama. He also edits a daily
news site, LewRockwell.com.
This article was originally published on Spintechmag.com.
Copyright
© 2000 LewRockwell.com
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