Liberdom is an initiative of a group of professionals who think that entrepreneurial activity is the true force of economic development and that economic success and social development in developing countries, especially in the first decade of this century, was aided by the consolidation of an institutional framework in which governance and freedom were essential pillars to promote optimal economic performance.

These ideas are supported by a series of investigations that Liberdom has been developing since 2008 and that can be summarized in three hypotheses:

  1. The prosperity occurs when economic agents have the right incentives that encourage efficient use of production inputs and the allocation of resources to creative and innovative activities;
  2. The institutional framework (freedom and good governance) determines these incentives, which should reward and not punish individual entrepreneurship so that business opportunities can be capitalized in the public interest.
  3. Therefore, without the creativity, the initiative and the innovative nature of entrepreneurs, growth and progress of the economies in the long run is impossible regardless of its endowment of production inputs or the ammount of foreign aid.

But, what are the institutions that must be priorized? Liberdom takes into account the political and economic formal institutions. In particular, Liberdom considers that freedom and good governance are the central institutions in development processes. Both are key institutions to promote business and entrepreneurship.

In Liberdom we believe in freedom understood in the strong sense, as an indivisible unit that integrates various aspects, particularly economic freedom, political freedom and civil liberties. The different freedoms interact. The introduction of more freedom in a given area ends up favoring the development of other freedoms. When individual choice, voluntary exchange and the protection of property rights are uninsured is difficult to imagine how a Society can reach the political freedom or civil liberties.

In nations where there is economic freedom, the private sector can support the institutions of civil society. When economic power is not concentrated -whether in public or private hands- and there is fair competition in the markets, it is easier the activity of oposition political parties and of independent media.

Moreover, democracy guarantees property rights and provides countries: institutions; and mechanisms to defend them. A democracy should be much more than simply choosing those who govern us.

In an environment of freedom, the development is based on entrepreneurship. The economic and social development without the protective framework of property rights can not be sustained long term.

Along with freedom, good governance is a key ingredient for entrepreneurial development. A framework of legal certainty, efficient market regulation, active competition policy, government efficiency, strong property rights, transparency, combating corruption and freedom ensures economic growth and prosperity of societies.

The art of government is to achieve the optimal combination between freedom and public intervention. In our view, good governance consist in to promote the creation and strengthening of Institutions oriented to correct market failures, but taking into account transaction costs; that is, by minimizing the cost of reducing the market failure and by incorporating the private initiative in their resolution, even taking into account the possibility of being left in oblivion when their insignificance so recommends.

That is the reason why Liberdom: researches; communicates and disseminates information and activities of other institutions; and has the aim to act in the future on the field.

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