Capitalism and Empowerment

The Tribune has an excellent essay on a new approach to stamping out poverty in Latin America. It is no coincidence that this started in Chile, a laboratory for the free-market "Chicago Boys", and has spread to a few other enlightened countries in Latin America---Brazil and now Mexico:

The premise is simple: The women get money. But unlike traditional welfare plans in other countries that critics say create a culture of dependence, these programs have strict eligibility requirements designed to help the recipients and move them off the rolls once they no longer qualify.

And the sums handed out, experts say, are enough to help poor families but not enough to create a disincentive to work. In Brazil, for example, the average monthly payment is less than $60.

The World Bank, headed by Bush appointee and "neocon" Paul Wolfowitz has been supportive of this and similar ventures which empower individuals, not bureaucrats, and show concrete results. President Bush is currently visiting our neighbors to the south.

One goal of the aid initiative, and of Bush's trip, is to counter the influence of Venezuelan President Hugo Chavez and other leftist leaders who have come to power by promising to champion the neglected poor.

In Brazil, economist Marcelo Neri of the Getulio Vargas Foundation in Rio de Janeiro said the country's Family Fund, or Bolsa Familia, is more effective at easing poverty than raising the minimum wage.

The Democrats could take a few lessons here on how to really improve people's lives. And opening up trade could benefit the entire hemisphere.