Martin Barrow

These two elements mean that Venezuela’s problem – now that President Trump has deposed Chávez’s dictatorial successor Nicolás Maduro – is not merely one of resources. As @FraserNelson has argued, oil will not save Venezuela. So what can save it? We should learn from historical transitions from socialism to capitalism. Which countries were more successful? Those that implemented fast and comprehensive reforms, known as shock therapy. Those that failed pursued partial, gradualist reforms. The reason shock therapy worked and gradualism failed is political economy: if reforms are not fast and comprehensive enough, interest groups form and resist further change. That is what would save Venezuela: reform on three fronts – from soft to hard budget constraints; from dictatorship to democracy; from collectivism to individualism. ✍️@ManiBasharzad capx.co/how-to-make-ve…