The experience of “bandit capitalism” or “tyrant capitalism” in postcommunist societies shows that markets cannot work properly without a community of trust and mutual respect. Such a community can be achieved only where there is a rule of law, applied by able and independent judges.
About the Author
Charles Fried is Beneficial Professor of Law at Harvard University Law School. Born in Prague, he has served as Solicitor General of the United States (1985-89) and as an Associate Justice of the Supreme Judicial Court of Massachusetts (1995-99). His publications include Contract as Promise (1981) and Order and Law: Arguing the Reagan Revolution (1991).
The history of twentieth-century European communist parties shows that extremists can be moderated by robust democratic institutions. Without them, however, the inclusion of extremist parties may undermine democracy.
For the first time since the fall of Pinochet, the Chilean right has come to power via free elections. The long-ruling center-left coalition leaves behind many achievements, but also disturbing…