a new luxury: the ability after seven years of stability to vote based on concerns over corruption and security rather than economics.
The implications for the region of greater economic stability are thus far reaching. Deeper political dialogue over economic issues is one such benefit. Another is the development over an economic base that can advance a necessary social agenda. Latin America's educational, housing, and health infrastructures need improvement. The World Bank estimates that over $3 trillion will be needed over the next 10 years to build the necessary infrastructure for the region. The Inter-American Development Bank points out that the greatest way to increase earnings is to increase education--a long-term investment whose efficacy depends on economic stability.
As important as achieving a larger, more advanced, and effective educational structure, meeting the region's infrastructure needs and advancing the other areas of social investment requires capital, internally and externally generated capital. Dollarization and the stability it brings will contribute to increasing both of those sources. Internally generated funds will increase as businesses grow and new businesses are established and thrive, generating higher tax revenues. External investment will increase, and hurdle rates will decrease, as currency uncertainty is removed from the investment evaluation and allocation. Ultimately, as capital flows more quickly to those countries that dollarize, others will follow suit. Each of these actions reinforces the win-win situation around which successful policies--like successful deals--can and should be created.
If we are to consolidate the gains made by democracy and free markets, we must create a twenty-first century coalition in the United States and elsewhere that understands that globalization requires policies based on the concept of mutual gain. However, such understanding must be bolstered by results to avoid cynicism about politics. To this end, policymakers must ensure that globalization translates into tangible benefits and advancements for working men and women in the world.
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