Steven Horwitz Discusses Whether or Not Economies Need More Stimulus on CNBC.

Latin America has historically been an important region for American foreign policy. Billions have been given in the name of economic development, and yet prosperity has eluded millions within its population. So what is the key to developing sustainable economies in Latin America? How have some countries been able to find moderate success in creating prosperity? What role can foreign aid play in facilitating this process? These questions are a matter of life and death for the poor people in Latin America. To delve deeper into the causes and effects of poverty throughout the region, the Mercatus Center at George Mason is pleased to partner with the Millennium Challenge Corporation for a three-day course held exclusively for policy makers. By combining both theory and practice, this course provides policy makers with a strong framework in which to analyze the current economic environment in Latin America.

Since the end of World War II, western governments have tried, with mixed results, to raise living standards in the third world through a multitude of policy prescriptions including aid grants, capital investment, import substitution, infrastructure loans, and debt forgiveness. The results are mixed, but many developing countries are poorer today than they were when these projects were launched. This is because policy makers did not focus on the institutional environment. Strong legal and economic institutions such as enforceable property rights, an impartial judiciary, contracts, and the rule of law are necessary for entrepreneurs to create sustainable prosperity.