Friday, October 21, 2005

Nigeriens kept poor by Niger government :: Cafe Hayek

NYT columnist Nicholas Kristof may be locked in TimesSelectDelete prison, but he manages to get this word out through Cafe Hayek. The people of Niger are poor for reasons like this:
local regulations stipulate that companies must give all employees six weeks and two days of paid vacation a year. Not surprisingly, there are almost no employers in Niger.
As Cafe Hayek says, "No amount of aid, mosquito nets, op-eds by Sachs, or serenading of Bono and Paul McCartney will do Nigeriens any good until commerce is allowed to flourish there."

1 Comments:

Blogger Acad Ronin said...

Actually, regulations such as this don't hurt small, local businesses, which ignore them. At worst, the owner may have to pay a small tax in the form of bribes to various officials to go away. However, it does discourage some (perhaps much)foreign investment, which cannot as easily slip under the radar. Because foreign direct investors must be doing some thing different, or the same thing better, if they are to survive against local competitors, the policies discourage the introduction of new products and processes. It is not surprising, then, that economic growth falters.

4:31 AM  

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