{"id":552640,"date":"2021-06-04T14:06:44","date_gmt":"2021-06-04T18:06:44","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=552640"},"modified":"2021-06-04T14:06:47","modified_gmt":"2021-06-04T18:06:47","slug":"5-countries-that-escaped-poverty-by-promoting-capitalism","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/5-countries-that-escaped-poverty-by-promoting-capitalism\/","title":{"rendered":"5 Countries That Escaped Poverty By Promoting Capitalism"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2F5-countries-that-escaped-poverty-by-promoting-capitalism%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=552640&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-960684550.jpg?w=1200&amp;h=800&amp;ixlib=react-9.0.3\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span>\u201cIn general, if any branch of trade, or any division of labour, be advantageous to the public,\u201d <\/span><a href=\"https:\/\/www.adamsmith.org\/adam-smith-quotes\"><span>wrote<\/span><\/a><span> economist Adam Smith in 1776, \u201cthe freer and more general the competition, it will always be the more so.\u201d<\/span><\/p>\n<p><span>As Smith noticed, the promotion of free enterprise unleashes productivity. When entrepreneurs, workers, and businesses are permitted to operate with minimal interference from regulators, high degrees of innovation tend to follow.<\/span><\/p>\n<p><span>The nations that take this principle to heart maintain highly developed and rapidly growing economies. Indeed, many countries have been transformed from impoverishment to prosperity by embracing and protecting free enterprise.<\/span><\/p>\n<p><span>Here are five examples.<\/span><\/p>\n<p><b>South Korea<\/b><\/p>\n<p><span>According to the Heritage Foundation\u2019s 2021 Index of Economic Freedom \u2014 which compares nations with respect to their encouragement of competitive markets \u2014 <\/span><a href=\"https:\/\/www.heritage.org\/index\/country\/southkorea\"><span>South Korea<\/span><\/a><span> boasts 24th place, establishing it in the 7th slot among 39 other nations in Asia.<\/span><\/p>\n<p><span>The Heritage Foundation attributed South Korea\u2019s high position to \u201ca well-educated labor force,\u201d a \u201csound legal framework,\u201d and \u201chigh capacity for innovation,\u201d which have \u201chelped companies to capitalize on the country\u2019s participation in the global trading system.\u201d<\/span><\/p>\n<p><span>Following a century marked by devastation from Japanese occupation, World War II, and the Korean War, most citizens lived in dire poverty. Writing for the Brookings Institution, Kongdan Oh \u2014 who grew up in Korea \u2014 <\/span><a href=\"https:\/\/www.brookings.edu\/articles\/koreas-path-from-poverty-to-philanthropy\/\"><span>recounted<\/span><\/a><span> that \u201cper-capita income was less than $100\u201d in the 1950s and 1960s.&nbsp;<\/span><\/p>\n<p><span>\u201cFood was sometimes scarce in the 1950s,\u201d he explained. \u201cIn the springtime, after the autumn harvest had been eaten and before new crops could be gathered, poor people would scour the hills for edible herbs and plants \u2013 just as they do in North Korea today. Schoolrooms lacked desks and chairs and had little heat in the winter.\u201d<\/span><\/p>\n<p><span>Though the nation depended on foreign aid in the 1950s, Oh credited Peace Corps volunteers from the United States with promoting values such as \u201cthe importance of individual human rights, democracy, and transparent governance.\u201d&nbsp;<\/span><\/p>\n<p><span>Likewise, Harvard University professor Carter Eckert <\/span><a href=\"https:\/\/olemiss.edu\/courses\/pol337\/eckert90.pdf\"><span>explains<\/span><\/a><span> that \u201cKorean entrepreneurs have, in fact, been an important and constitutive part of the country\u2019s modern history, skillfully availing themselves of every major economic opportunity.\u201d&nbsp;<\/span><\/p>\n<p><span>Eckert notes that the only ingredient for economic success that South Korea neglected in the nineteenth century was \u201ca state structure committed to and capable of galvanizing all its valuable international and social resources toward economic growth\u201d \u2014 a problem that was solved by President Park Chung-hee who, though a dictator, sought to encourage economic growth throughout the 1950s and 1960s.&nbsp;<\/span><\/p>\n<p><span>Today, South Korea\u2019s economic explosion is often called the \u201cMiracle on the Han River.\u201d Thanks to its embrace of free markets, South Korea is positioned far better than <\/span><a href=\"https:\/\/www.heritage.org\/index\/country\/northkorea\"><span>North Korea<\/span><\/a><span>, which ranks 178th in the Index of Economic Freedom.<\/span><\/p>\n<p><b>Uruguay<\/b><\/p>\n<p><span>The Index of Economic Freedom gives <\/span><a href=\"https:\/\/www.heritage.org\/index\/country\/uruguay\"><span>Uruguay<\/span><\/a><span> 44th place \u2014 the second-highest ranking in South America.<\/span><\/p>\n<p><span>The World Bank <\/span><a href=\"https:\/\/www.worldbank.org\/en\/country\/uruguay\/overview#1\"><span>attributes<\/span><\/a><span> Uruguay\u2019s economic success to \u201ca solid social contract and economic openness,\u201d which \u201cpaved the way to poverty reduction and the promotion of shared prosperity that Uruguay successfully followed in the last decade.\u201d&nbsp;<\/span><\/p>\n<p><span>From 2006 to 2018, moderate poverty as a percentage of the population dropped from 32.5% to 8.1%. Meanwhile, extreme poverty \u201chas practically disappeared\u201d \u2014 only 0.1% of the population lives in such conditions.<\/span><\/p>\n<p><span>From 1973 to 1985, however, Uruguay was controlled by a military dictatorship. As Encyclopedia Britannica <\/span><a href=\"https:\/\/www.britannica.com\/place\/Uruguay\/The-military-regime\"><span>notes<\/span><\/a><span>, the nation\u2019s leadership limited economic growth by amassing foreign debt.<\/span><\/p>\n<p><span>Following the end of the regime, President Luis Alberto Lacalle sought economic reforms. In 1991, Lacalle brought Uruguay into Mercosur \u2014 a South American trade bloc. The new government also <\/span><a href=\"http:\/\/countrystudies.us\/uruguay\/65.htm\"><span>prioritized<\/span><\/a><span> reforms in the justice system, purging the courts of officials installed by the military \u2014 a move that returned the rule of law and fostered the \u201csolid social contract\u201d which sets Uruguay apart from its neighbors.&nbsp;<\/span><\/p>\n<p><b>Singapore<\/b><\/p>\n<p><a href=\"https:\/\/www.heritage.org\/index\/country\/singapore\"><span>Singapore<\/span><\/a><span> \u2014 a small island city-state in Asia \u2014 ranks 1st in the world for economic freedom.<\/span><\/p>\n<p><span>Heritage lauds the nation\u2019s \u201cbusiness-friendly regulatory environment and a very low unemployment rate,\u201d as well as its ruling party that has consistently \u201cchampioned economic liberalization and international trade.\u201d&nbsp;<\/span><\/p>\n<p><span>According to the World Bank, Singapore rapidly <\/span><a href=\"https:\/\/www.worldbank.org\/en\/country\/singapore\/overview\"><span>developed<\/span><\/a><span> \u201cfrom a low-income country to a high-income country.\u201d Since its separation from Malaysia in 1965, Singapore has maintained an average GDP growth rate of 7.7%. At its moment of <\/span><a href=\"https:\/\/www.bis.org\/review\/r150807b.htm\"><span>independence<\/span><\/a><span>, Singapore\u2019s GDP per capita was $500; today, it is over $65,000.&nbsp;<\/span><\/p>\n<p><span>Anthony Kim \u2014 the Research Manager for the Index of Economic Freedom \u2014 <\/span><a href=\"https:\/\/nationalinterest.org\/feature\/why-%E2%80%9Ceconomically-free%E2%80%9D-singapore-stands-alone-165024\"><span>explained<\/span><\/a><span> in The National Interest that Singapore \u201cforged its free-market path to prosperity at a time when many of the world\u2019s most prominent intellectuals and political leaders were touting many different models.\u201d<\/span><\/p>\n<p><span>\u201cThe foundations of Singapore\u2019s economic resilience and competitiveness include strong protection of property rights and effective enforcement of anti-corruption laws,\u201d continued Kim. \u201cThe efficient government provides good public services with low tax rates. The regulatory environment is flexible and transparent, encouraging vibrant commercial activity. A strong tradition of openness to global trade and investment has long boosted productivity while facilitating the emergence of a more dynamic and competitive financial sector.\u201d<\/span><\/p>\n<p><b>United Arab Emirates<\/b><\/p>\n<p><span>The <\/span><a href=\"https:\/\/www.heritage.org\/index\/country\/unitedarabemirates\"><span>United Arab Emirates<\/span><\/a><span> maintains a rank of 13th in the Index of Economic Freedom; in the Middle East, it surpasses all of its neighbors \u2014 including <\/span><a href=\"https:\/\/www.heritage.org\/index\/country\/israel\"><span>Israel<\/span><\/a><span> \u2014 in its devotion to free markets.<\/span><\/p>\n<p><span>Notably, the United Arab Emirates has the best possible tax burden index position \u2014 a reality driven by its lack of an income tax and federal-level corporate tax. Though the nation\u2019s tax burden amounts to only 0.1% of total domestic income, its public debt only accounts for 26.6% of GDP.<\/span><\/p>\n<p><span>Since its formation in 1971, the size of the United Arab Emirates\u2019 economy has <\/span><a href=\"https:\/\/gulfnews.com\/uae\/uae-economy-36-times-bigger-since-1971-union-1.431538\"><span>multiplied<\/span><\/a><span> by a factor of 36. On average, it carried annual GDP growth rates of 13.2%.<\/span><\/p>\n<p><span>Although its growth began with the discovery of massive oil reserves, the United Arab Emirates\u2019 liberal tax and investment climates lead multinational corporations to <\/span><a href=\"https:\/\/capital.com\/economy-of-the-uae\"><span>establish<\/span><\/a><span> regional headquarters in its cities. As a result, the economy has diversified significantly; as of 2019, sectors such as manufacturing, commerce and hotels, real estate, construction, transportation, and finance compose a collective 55% of the nation\u2019s economic output.<\/span><\/p>\n<p><span>The United Arab Emirates\u2019 free-market philosophy differentiates it from other resource-rich countries. The socialist nation of <\/span><a href=\"https:\/\/www.heritage.org\/index\/country\/venezuela\"><span>Venezuela<\/span><\/a><span> \u2014 which also has abundant natural resources \u2014 ranks 177th in the Index of Economic Freedom.<\/span><\/p>\n<p><b>Ireland<\/b><\/p>\n<p><a href=\"https:\/\/www.heritage.org\/index\/country\/ireland\"><span>Ireland<\/span><\/a><span> ranks 5th in the world and 1st in Europe for free enterprise.<\/span><\/p>\n<p><span>Heritage explains that \u201cproperty rights are well protected, and secured interests in property, both chattel and real estate, are recognized and enforced.\u201d Ireland also benefits from an independent legal system and relative freedom from public corruption.<\/span><\/p>\n<p><span>Although most nations in Europe are experiencing economic stagnation, Ireland\u2019s markets continue to <\/span><a href=\"https:\/\/www.economist.com\/finance-and-economics\/2015\/11\/19\/celtic-phoenix\"><span>grow<\/span><\/a><span>. In 2019, Ireland saw GDP growth of 5.5%; meanwhile, the United Kingdom, Germany, and Italy saw GDP growth of 1.5%, 0.6%, and 0.3%, respectively.<\/span><\/p>\n<p><span>Often called the \u201cCeltic Tiger,\u201d Ireland began matching other European powers\u2019 economic development in the 1990s.&nbsp;<\/span><\/p>\n<p><span>Explaining his nation\u2019s prosperity in The Irish Times, Garret FitzGerald <\/span><a href=\"https:\/\/www.irishtimes.com\/opinion\/what-caused-the-celtic-tiger-phenomenon-1.950806\"><span>states<\/span><\/a><span> that Ireland\u2019s technology and manufacturing boom was aided by \u201can unprecedented increase of almost one-half in our workforce, a process that involved bringing into paid employment very many people who had previously been outside the labour force, viz. unemployed people, students, or women who had been working in the home.\u201d&nbsp;<\/span><\/p>\n<p><span>These individuals \u201chad until then been dependants, either supported by bread-winning parents or spouses, or, in the case of the unemployed, by the State through social payments.\u201d<\/span><\/p>\n<p><span>University College Dublin economist Brendan Walsh <\/span><a href=\"https:\/\/www.ucd.ie\/economics\/research\/workingpapers\/2004\/WP04.12.pdf\"><span>confirmed<\/span><\/a><span> that \u201ca stricter approach to unemployment benefit claimants,\u201d \u201cdeclining union power,\u201d and \u201ca reduction in the tax wedge on earnings\u201d made Ireland\u2019s economic miracle \u201crelatively understandable.\u201d<\/span><\/p>\n<p><i><span>The views expressed in this piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/span><\/i><\/p>\n<p><i><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <\/span><\/i><a href=\"https:\/\/www.dailywire.com\/subscribe\"><i><span>member<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cIn general, if any branch of trade, or any division of labour, be advantageous to the public,\u201d wrote economist Adam Smith in 1776, \u201cthe freer and more general the competition, &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1896044,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-552640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/552640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=552640"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/552640\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1896044"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=552640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=552640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=552640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}