I'm skeptical about China's success, primarily because of corruption that I can only believe will be rooted out by democracy.Like Friedman, Hayek glimpsed in Pinochet the avatar of true freedom, who would rule as a dictator only for a "transitional period," only as long as needed to reverse decades of state regulation. "My personal preference," he told a Chilean interviewer, "leans toward a liberal dictatorship rather than toward a democratic government devoid of liberalism." In a letter to the London Times he defended the junta, reporting that he had "not been able to find a single person even in much maligned Chile who did not agree that personal freedom was much greater under Pinochet than it had been under Allende." Of course, the thousands executed and tens of thousands tortured by Pinochet's regime weren't talking.Hayek's University of Chicago colleague Milton Friedman got the grief, but it was Hayek who served as the true inspiration for Chile's capitalist crusaders. It was Hayek who depicted Allende's regime as a way station between Chile's postwar welfare state and a hypothetical totalitarian future. Accordingly, the Junta justified its terror as needed not only to prevent Chile from turning into a Stalinist gulag but to sweep away fifty years of tariffs, subsidies, capital controls, labor legislation, and social welfare provisions -- a "half century of errors," according to finance minister Sergio De Castro, that was leading Chile down its own road to serfdom.
Now, the position of many mainstream intellectuals and economists in China, especially during the mid to late 1990's was summed up at the time as "liberty before participation", ie "capitalism now, democracy sometime, maybe." And there's still a powerful school of thought in China to the effect that the advantage of CPC rule is that it enables China to establish a full market economy without the kind of "historic mistakes" like the welfare state or the New Deal that you get when the public is allowed to vote itself the keys to the bank. People who call themselves libertarians in China are likely to be strong supporters of the Communist Party, at least on instrumental grounds.
On the other hand, I was thinking how similar my attitude towards DeMint is to Friedman's towards Pinochet.
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