Hugonomics

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Venezuela certainly reduced inequality, but it hardly seems to have resulted in more economic growth. It's not hard to guess why. Chávez's moves to reduce inequality weren't the only relevant parts of his economic strategy. His hostile attitude toward wealthier countries, combined with the threat of nationalization, undoubtedly discouraged foreign investment. While neighboring countries modernized their regulations and improved their business climates, Venezuela maintained a reputation as one of the toughest places in the world to run a company.

Economic growth and rising incomes aren't everything, however. Economists are taught to care most about wellbeing, which can and should be gauged in other ways. And here's the kicker: If there is one area where Chávez appears to have succeeded, it is in enhancing human development as measured by the United Nations. Even though Peru's incomes grew much more quickly between 2000 and 2010, Venezuela passed its neighbor in the U.N.'s favored metric.

Could Chávez have done even better with higher economic growth? Perhaps, but we'll never know for sure. Instead, we'll see whether Venezuela can cement its progress in human development atop a rather shaky set of economic foundations.

Fonte: Hugonomics - Daniel Altman teaches economics at New York University's Stern School of Business and is chief economist of Big Think.