Countries such as Singapore, South Korea, and Chile have enjoyed enormous success by embracing capitalism and developing their economies. But while capitalism may open the way for democracy, it has not always proved possible to create free markets under universal suffrage. Electorates that are not dominated by a property-owning middle class are often swayed by populist agendas, which emphasize state control rather than liberal reforms. Corrupt states are often to blame for sluggish growth, so why do electorates in such nations put their trust in them? Why does the presence of corruption heighten the electoral appeal of socialism rather than free enterprise?

Harvard economist Rafael Di Tella, who has just published a paper on these questions, will present his findings at this event. William Easterly of New York University will respond, and AEI’s Henry Wendt Scholar in Political Economy, Nicholas Eberstadt, will moderate.