A Sad Tale of Two Nations....

Chile was recently (Saturday, February 26, 2010) rocked by the fifth largest earthquake since seismic records began being kept in 1900 at 8.8 on the Richter Scale.

The quake, which lasted an interminable 3 minutes, damaged over 1.5 MILLION homes and the death toll is approaching 1,000, but Chile has, so far, eschewed any foreign assistance, because it’s been one of the most earthquake-safe countries, ever since it suffered the largest earthquake since records were kept, back in 1960 with a quake that measured an incredible 9.5 on the Richter Scale.

It’s hard not to notice the huge difference between the way Chile has dealt with an even larger quake than the one that absolutely devastated Haiti about a month ago.

First, while the Caribbean does have a tectonic fault line running through it, Haiti has not been an earthquake prone nation, as Chile has.

Secondly, Haiti has long had a dysfunctional government, and as a result, a population with a 60% illiteracy rate and virtually no entrepreneurialism to spur economic advancement. Moreover, it’s had no sustainable agricultural policies and as a result has depleted much of its once rich soil.

Chile went from an economic basket-case under the Allende regime to the “Jewel of South America” when it adopted the free market policies advocated by the late, great Milton Friedman!

As a result, even though a Center-Left government now rules Chile, there have been few “economic reforms” that tinkered with the Friedman Plan that has served that nation well for decades now!

Because of that prosperity, coupled with Chile’s being so earthquake prone, Chile has been able to not only recognize a problem but had the wherewithal to deal with it effectively.

THAT is the primary reason for the huge difference in the way Chile has dealt with a larger, potentially more devastating earthquake than the one that decimated Haiti.