NOVANEWS
Posted by: Pedro Ali Alves
Zionist Warcriminal Albrigth wants economic liberalization (free market enslavement under faked prosperity rethoric), for Arab World...
On Tuesday, May 21, the House Committee on Foreign Affairs held a hearing titled “The Call for Economic Liberty in the Arab World.” Mr. Hernando de Soto, President of the Institute for Liberty and Democracy, and the Honorable Madeleine K. Albright, Chair of the Albright Stonebridge Group, testified. The committee’s chairman, Rep. Ed Royce (R-CA), presided.
For the full event notes continue reading or click here for the PDF.
In his opening statement, Chairman Royce said the hearing would look at the economic factors behind the unrest in the Middle East. He stated that a lack of property rights and rule of law, and endemic corruption, had contributed to the economic hardship of tens of millions. Royce said that the uprisings called into question American policies toward Arab governments and presented “an historic opportunity to advance reforms that would economically empower impoverished individuals.” He argued that economic repression led to the protests, which called for economic liberty. Royce said that if we don’t consider the economic forces behind the Arab Spring, “then no amount of U.S. aid will bring prosperity to the region…we need a major shift in how we view these countries.” Rep. Ted Deutch (D-FL) entered Ranking Member Rep. Eliot Engel (D-NY)’s statement into the record. Deutch recounted the barriers to registering businesses and economic struggles in MENA countries. He said the U.S. needs to make “a true commitment to promoting democracy and human rights, substantial economic investment, and a serious attempt to address corruption.” Rep.Ileana Ros-Lehtinen (R-FL) said that there was “no one cause” of the Arab Spring and that tensions had been simmering for years. She cited poverty, unemployment, and most importantly, the lack of any real foundation of democracy as major problems. Ros-Lehtinen argued that the MENA countries cannot grow their economies and build wealth without drastically reforming their governments and laws. She concluded that “we’re stuck in a vicious cycle unless democracy comes to the Middle East.”
Hernando de Soto argued that entrepreneurs need things like titles, limited liability, and property to raise capital and get credit. He revealed that 85% of Arab enterprises did not have these things, with many of them only working in the informal economy, making unemployment numbers a sham. He noted that Bouazizi and other self-immolators were actually protesting the expropriation that is possible without rule of law. De Soto concluded that the U.S. can play a massive role in this area because it was born around the idea of freedom and property. Madeleine Albright stated that “People want to vote but they also want to eat and economic frustration has contributed much to the unrest we see in the Arab world.” She noted that there is an “an intimate connection between legal rights and economic development.” Albright argued that the U.S. can and should help the transitioning countries, including by “bringing people in the Arab region together with the authors of change” around the world. She emphasized that the U.S. “has neither the desire nor the power to dictate what happens in the new Arab democracies – but we can still exert a positive influence by fulfilling requests for technical aid and by remaining steadfast in support of democratic principles.” She concluded that “we will all do better if Arab societies are able to create a new model for governance in their region.”
Royce asked de Soto about his work in Egypt during Mubarak’s rule. De Soto stated that the issue in Egypt was not property rights, but the right to property rights. He added that if you are poor in MENA and truly not employed for more than three months, you would likely die, so most of the people listed as unemployed are actually working, just outside of the formal economy. He said that 380 million Arabs had invented ways of creating wealth. He argued that entrepreneurs are only as good as their legal environment, which is very bad in MENA where civilization was based on bad economic ideas.
Deutch asked Albright about the factors that contribute to successful transitions and what role the U.S. can play. She said that people need access to justice, and emphasized the legal empowerment of the poor. Albright said that elections are necessary but not sufficient, as democracies need rule of law, a legislative branch, and an opposition party. She noted that it is hard to have property rights if there is not a rule of law to enforce them. Albright argued that the U.S. needs to help with governance, and not just its own model. She said economic development has to be encapsulated within political development. She noted that the National Democratic Institute had brought people from Chile and Central Europe to North Africa to consult and help with leaders there, and that “imposing democracy is an oxymoron.”
Ros-Lehtinen, noting that Egypt President Mohammed Morsi and the Muslim Brotherhood had almost a year in power but failed to implement economic reforms, asked Albright if the U.S. should be conditioning its military and economic aid to Egypt. Albright said she would not withdraw funds from Egypt but would like to see more money go to various democratic forces, though the government is making it difficult for some groups to operate. Ros-Lehtinen asked if Albright would advocate for requiring certain benchmarks, and Albright argued that the U.S. should say what it wants, but that she would not have it be a way that the U.S. would cut off aid. Rep. Albio Sires (D-NJ) asked how the U.S. can pressure Egypt on issues like violence against Copts without leveraging the aid and threatening to cut it off. Albright said that by totally cutting off aid, you lose whatever leverage you have had. She said that instead, the U.S. must clearly say what it wants.
Rep. Tom Cotton (R-AK) asked if the U.S., World Bank, and IMF were focusing enough on constitutional issues. De Soto said that elections were important but probably not the most important, especially if they are not held by district. He emphasized the importance of getting voter lists right and getting meaningful feedback, for which there is no international formula. Rep. Ami Bera (D-CA) asked what the U.S. can do to help the Egyptian opposition. De Soto said the U.S. must understand that it is coming from the perspective of having property rights as a result of the development of common law. He added that property will change the relationship between people and government.
Rep. Mark Meadows (R-NC) asked whether the MENA Incentive Fund requested in the president’s budget should focus on developing property rights rather than mainly governance. De Soto said yes, because property rights will make democracy viable, and that property the essence of a political issue. He added that the budgets for putting property rights into place at not that big, and emphasized that purely political reforms do not attend to the reason that people protested. Rep.Dana Rohrabacher (R-CA) noted that radical Islamists are not opposed to property rights and entrepreneurship, but de Soto said they will still be under fire if they don’t provide the conditions to allow those things to develop.
For the full event notes continue reading or click here for the PDF.
In his opening statement, Chairman Royce said the hearing would look at the economic factors behind the unrest in the Middle East. He stated that a lack of property rights and rule of law, and endemic corruption, had contributed to the economic hardship of tens of millions. Royce said that the uprisings called into question American policies toward Arab governments and presented “an historic opportunity to advance reforms that would economically empower impoverished individuals.” He argued that economic repression led to the protests, which called for economic liberty. Royce said that if we don’t consider the economic forces behind the Arab Spring, “then no amount of U.S. aid will bring prosperity to the region…we need a major shift in how we view these countries.” Rep. Ted Deutch (D-FL) entered Ranking Member Rep. Eliot Engel (D-NY)’s statement into the record. Deutch recounted the barriers to registering businesses and economic struggles in MENA countries. He said the U.S. needs to make “a true commitment to promoting democracy and human rights, substantial economic investment, and a serious attempt to address corruption.” Rep.Ileana Ros-Lehtinen (R-FL) said that there was “no one cause” of the Arab Spring and that tensions had been simmering for years. She cited poverty, unemployment, and most importantly, the lack of any real foundation of democracy as major problems. Ros-Lehtinen argued that the MENA countries cannot grow their economies and build wealth without drastically reforming their governments and laws. She concluded that “we’re stuck in a vicious cycle unless democracy comes to the Middle East.”
Hernando de Soto argued that entrepreneurs need things like titles, limited liability, and property to raise capital and get credit. He revealed that 85% of Arab enterprises did not have these things, with many of them only working in the informal economy, making unemployment numbers a sham. He noted that Bouazizi and other self-immolators were actually protesting the expropriation that is possible without rule of law. De Soto concluded that the U.S. can play a massive role in this area because it was born around the idea of freedom and property. Madeleine Albright stated that “People want to vote but they also want to eat and economic frustration has contributed much to the unrest we see in the Arab world.” She noted that there is an “an intimate connection between legal rights and economic development.” Albright argued that the U.S. can and should help the transitioning countries, including by “bringing people in the Arab region together with the authors of change” around the world. She emphasized that the U.S. “has neither the desire nor the power to dictate what happens in the new Arab democracies – but we can still exert a positive influence by fulfilling requests for technical aid and by remaining steadfast in support of democratic principles.” She concluded that “we will all do better if Arab societies are able to create a new model for governance in their region.”
Royce asked de Soto about his work in Egypt during Mubarak’s rule. De Soto stated that the issue in Egypt was not property rights, but the right to property rights. He added that if you are poor in MENA and truly not employed for more than three months, you would likely die, so most of the people listed as unemployed are actually working, just outside of the formal economy. He said that 380 million Arabs had invented ways of creating wealth. He argued that entrepreneurs are only as good as their legal environment, which is very bad in MENA where civilization was based on bad economic ideas.
Deutch asked Albright about the factors that contribute to successful transitions and what role the U.S. can play. She said that people need access to justice, and emphasized the legal empowerment of the poor. Albright said that elections are necessary but not sufficient, as democracies need rule of law, a legislative branch, and an opposition party. She noted that it is hard to have property rights if there is not a rule of law to enforce them. Albright argued that the U.S. needs to help with governance, and not just its own model. She said economic development has to be encapsulated within political development. She noted that the National Democratic Institute had brought people from Chile and Central Europe to North Africa to consult and help with leaders there, and that “imposing democracy is an oxymoron.”
Ros-Lehtinen, noting that Egypt President Mohammed Morsi and the Muslim Brotherhood had almost a year in power but failed to implement economic reforms, asked Albright if the U.S. should be conditioning its military and economic aid to Egypt. Albright said she would not withdraw funds from Egypt but would like to see more money go to various democratic forces, though the government is making it difficult for some groups to operate. Ros-Lehtinen asked if Albright would advocate for requiring certain benchmarks, and Albright argued that the U.S. should say what it wants, but that she would not have it be a way that the U.S. would cut off aid. Rep. Albio Sires (D-NJ) asked how the U.S. can pressure Egypt on issues like violence against Copts without leveraging the aid and threatening to cut it off. Albright said that by totally cutting off aid, you lose whatever leverage you have had. She said that instead, the U.S. must clearly say what it wants.
Rep. Tom Cotton (R-AK) asked if the U.S., World Bank, and IMF were focusing enough on constitutional issues. De Soto said that elections were important but probably not the most important, especially if they are not held by district. He emphasized the importance of getting voter lists right and getting meaningful feedback, for which there is no international formula. Rep. Ami Bera (D-CA) asked what the U.S. can do to help the Egyptian opposition. De Soto said the U.S. must understand that it is coming from the perspective of having property rights as a result of the development of common law. He added that property will change the relationship between people and government.
Rep. Mark Meadows (R-NC) asked whether the MENA Incentive Fund requested in the president’s budget should focus on developing property rights rather than mainly governance. De Soto said yes, because property rights will make democracy viable, and that property the essence of a political issue. He added that the budgets for putting property rights into place at not that big, and emphasized that purely political reforms do not attend to the reason that people protested. Rep.Dana Rohrabacher (R-CA) noted that radical Islamists are not opposed to property rights and entrepreneurship, but de Soto said they will still be under fire if they don’t provide the conditions to allow those things to develop.
