Zxcutehikka
This is an interesting question. I suspect the author of the question wants a statist answer: how to build a good economy from scratch, having come to power in some state. There are several quite decent examples in recent history, such as Kakha Bendukidze’s reform of the Georgian economy or Argentina’s economy – under Javier Milei. What unites these cases, and more classical examples of economic miracles – Western German, Japanese, South Korean, Singaporean and so on?
Primarily, it’s that the economies in these countries were completely wrecked before the reforms began. Only when the horse was dead would the bureaucratic horde graciously agree to dismount and say, “Well, alright, reform us, don’t interfere with me, but only weakly, and as soon as the horse gallops again, of course, my time will come, and I’ll push you aside.” And then the reformer more or less carefully dismantled regulatory blockages, allowing the economy to breathe.
Perhaps the only example of an economic miracle that didn’t involve any reforms comes to mind: Hong Kong. There, according to reports, the governor simply sabotaged metropolitan policy and didn’t interfere much with what was happening in the local economy for a long time. And then the metropolis simply handed over Hong Kong to the Chinese socialists.
The path of Hong Kong is just what anyone can use, not only the chosen or unchosen politicians. The business is simple – you just need to ignore government directives and deal with your private affairs. If no one will pay taxes, we’ll get a tax-free economy, which, incidentally, is what the questioner is interested in. Of course, the modern state knows how to cope without taxes. For example, it could simply print money and finance its needs from this source. So it would be good to ignore government funds too.
The problem, however, is that mass ignoring of official wishes doesn’t begin until people realize that the state has botched things. And therefore, at the start of the economy, we have ruins. Worse than that, the level of economic literacy among people at the start is probably shockingly low – otherwise how did our economy end up in ruins? Why “presumably”? Because there’s a more favorable alternative: people are generally more or less literate, and the economy is ruined, for example, by war and economic sanctions. And this is why Russia has a better chance of achieving economic prosperity after forcibly displacing the current government than Cuba or Venezuela.
And the fact is, even if the Venezuelan government is now crushed by the US Army, there’s probably not much good that will come of it – because the local socialists will be convinced they were right all along, it was just a force majeure situation, and now let’s fix our wonderful Bolivarian socialism. Where do I get this certainty? Well, there’s the precedent of Iraq: an external overthrow of a socialist government doesn’t allow the people to become smarter; instead, the people become enraged.
The answer came out sprawling – more like rambling thoughts than a coherent lecture – and political studies isn’t really my forte. But somehow I managed to look at the topic from several angles, and that’s enough bread.
