The world watched in horror as first Haiti and then Chile were struck by deadly earthquakes. There was an outpouring of sympathy and donations to aid the rescue and recovery.
But did you notice the sharp contrast in the amount of damage? It is hard to imagine, but scientists say the quake that hit Chile was 800 times more powerful than the one that struck Haiti. How can that be? After all, the Haitian quake killed possibly 200,000 people, compared with only several hundred believed to have died in Chile — even though Chile has a far greater population than Haiti and its bigger quake hit near some population centers.
There is no one explanation for the difference in casualties. Some would point out that Chile is more used to earthquakes than Haiti and therefore was better prepared.
But undoubtedly one underlying reason why Haiti suffered so much more than Chile is that Chile enjoys a freer — and therefore wealthier — economy than Haiti.
The Heritage Foundation’s 2010 Index of Economic Freedom ranks Chile as the 10th-freest economy in the world, just two places behind the United States. Chileans are free to start businesses without undue government interference, and their property rights are protected. Contracts are secure, and the rule of law is strong.
By contrast, Haiti ranks No. 141 in the world. Corruption is rampant, and the rule of law is weak. Because of excessive regulation, it takes an average 195 days to start a business, compared with a worldwide average of only 35 days.
The most obvious result of these very different systems is that Chile is a wealthy country, while Haiti is the poorest nation in the Western Hemisphere, with poor construction.
It is no surprise, therefore, that Chile not only had the resources to build stronger buildings, better able to withstand earthquakes, but had extensive and well-trained emergency service providers capable of responding rapidly when the earthquake hit. Its need for outside assistance in the days since the quake has been far less than Haiti’s.
It is commendable that the world rushed aid to both devastated Haiti and Chile after the quakes struck. But it is tragic that Haiti’s corrupt, heavily regulated economy has stymied the economic growth that could have prevented many deaths when disaster struck.