Despite the widespread adoption of democratic elections andcivilian rule, and despite the development of nascent marketeconomies, Latin America is less stable and prosperous than it was10 years ago. If the Bush Administration wants to help alleviatesome the problems in the Western Hemisphere before they demandattention as the Middle East does, it must begin to support deeperreforms, update its security policy, and better articulate itsinterests in the region.
Trade does not erode the manufacturing sector as critics claim. Infact, trade strengthens the manufacturing sector because it expandsmarkets for U.S. goods, provides manufacturers with access tolower-priced inputs, and increases productivity.
Corruption is a symptom, not the root, of the problem. Theperceived problem is unethical or corrupt private-sector behavior;the real problem is government action and regulations that causesuch behavior. The optimal solution is economic freedom with astrong rule of law to foster a culture of investment, job creation,and institutional respect, all of which are essential factors inmassively improving living standards.