HBD investor: Many countries floundered in various socialist schemes and their economies massively improved when they became less socialist.
None of this is true.
Many countries had problems with centrally planned economies with many or all state firms. This is called either state socialism or Communism and the record is not so wonderful. It isn’t so bad either. Been to Eastern Europe? See all that infrastructure? That was all built by the Communists. Go to Russia and see the same thing. Same in China. Communists built Russia and China up from nothing. They were nothing before, and Communism turned them into superpowers. They also had very high economic growth in industry and agriculture for decades. They massively expanded the nearly nonexistent education system. The Communists made monumental gains in housing in both countries. Health care improved to an incredible degree in both countries.
Now with Communism you can get great economic growth for a while, maybe a few decades, maybe more, but at some point it all starts bogging down in bureaucracy, lack of a pricing mechanism and a market, a lot of people just not working very hard and massive thievery of state property. In addition, the rate of economic growth slows. Although Communist countries usually wipe out poverty, in its place they only allow a relatively low standard of living. People probably want to live better than that. In addition, the collectivization of agriculture has been such a failure in Communist countries that I believe we should stop trying it. Production usually goes down by quite a bit and there are sometimes famines at the start if they try to do it too fast.
Yugoslavian Communism worked very well by the way, and they had a very good standard of living, the highest in Eastern Europe.
In addition, state socialist schemes with central planning had a lot of problems in Syria, India, Tanzania and other places. It just doesn’t work very well.
On the other hand, some form of social democracy is the norm all over the world. It’s not true that social democratic countries did a lot better as they shed most of their social democracy and adopted neoliberalism. The world has been doing that for a long time now and the record is in. It’s been a massive failure.
All of Europe except the UK is voting in Left parties, and at least the people want more social democracy and less neoliberalism. There’s no move towards neoliberalism and away from social democracy in Europe outside of Latvia and the UK.
There is no neoliberal free market capitalism in the Arab World. Arabs actually don’t believe in neoliberalism because Arabs and Muslims are sort of “naturally socialist” people. The Gulf states are huge social democracies. There is a lot of social spending and considerable state involvement in the economy in much of the Arab World.
Iran has been pretty much a socialist country ever since the Revolution. There is vast social spending, and the state is involved in the economy. Afghanistan is collapsed, but Communism was actually pretty popular there. Pakistan has been run by social democratic parties in recent years. India is officially a socialist country. It’s written right into the Constitution. An armed Maoist group is very powerful in India. Communist Parties have been running the states of West Bengal and Kerala for decades. Nepal is run by a coalition government consisting of a socialist party and a Communist party. The large opposition is made up of Maoists. I believe Sri Lanka is run by a social democratic party.
Myanmar’s been socialist forever. Vietnam and Laos are Communist. Cambodia has been run by Communists in recent years. The Philippines is a bad example, but they have free state health care for all, and education is free through the university level. Indonesia recently elected a socialist, a woman. The very popular newly elected president says he is a socialist. An armed Maoist group is very active in the country.
Australia and New Zealand are longstanding social democracies on the Canadian model.
Canada is a longstanding social democracy.
The largest party in Mexico is a member of the Socialist International, and the oil industry is state owned. Education is free through the university level, and health care is also free. El Salvador and Nicaragua are now run by former Marxist guerrillas, the FMLN and the Sandinistas. Costa Rica has been a social democracy since after World War 2. Honduras recently elected a leftwing president who was quickly overthrown in a state-sponsored coup. The military is still in power in Honduras, but everybody hates them.
A socialist party called Lavalas, the party of Jean Bertrande Aristide, continues to be the most popular party in Haiti, even though it has been declared illegal. To show you how popular Lavalas is, in the last election they ran in, they got 92% of the vote. During his short reign, Aristide built more schools than had been built in the entire 190 years before him.
A number of Caribbean island states are members of the Bolivarian economic bloc set up by Venezuela. Most Caribbean political parties are leftwing parties with the words socialist, revolutionary, workers, labor, or popular in them. Cuba is Communist and has a lower infant mortality rate than we do. A few years ago, they also had a longer life expectancy than we did.
Venezuela is still run by the Chavistas, a socialist party. Ecuador is run by a Leftist. Peru recently elected a leftwing Indian, although he has not been able to do much as his hands are tied. Brazil has been electing the socialist PT or Workers Party for many years now. A former Marxist guerrilla was the most recent president, and she was only removed by an illegal US-sponsored legislative coup. Paraguay elected a Leftist Catholic priest, a preacher of Liberation Theology, but he was soon overthrown in a legislative coup. The illegitimate party is now in power.
Uruguay has been a social democracy forever, and it is now governed by a former Marxist guerrilla. Juan Peron put in a social democracy in the 1950’s. Argentina was recently governed by a leftwing husband and wife team who alternated in the Presidency. Chile has been electing presidents from the Socialist Party for about 20 years now. The most recent Socialist, Michelle Bachelet, is a radical, but it remains to be seen what she can do. Chile has a huge class divide, the upper and lower classes want to murder each other, and there are regular violent protests, leftwing versus rightwing street brawls, and riots, lately by students.
In Latin America, radical neoliberalism was imposed for 20 years, and it failed so badly that the whole continent has been electing leftwingers ever since.
I do not know much about Africa, but most African parties have been officially social democratic for a long time now. The Communist Party was recently part of a South African government. If anything has failed in Africa, it is neoliberalism.