Socialism arose out of concerns about the ills of Capitalism. Major proponents such as Karl Marx envisioned that the oppressed workers would seek a fairer deal by overthrowing the bourgeoisie class and recovering their stolen' surplus value (what capitalists call profit).This would involve an international coalition of workers that would overthrow their oppressors and create a society that caters for the needs of its citizenry. Such revolutionary thought led to the Cuban revolution and a wave of Military rule in Latin America that promised so much and gave so little.

The resignation of Fidel Castro could mark the beginning of the end for socialism in Latin America if the United States displays better diplomacy using the Organization of American States (OAS).Socialism has failed as much as capitalism did by failing to provide for the needs of the people and enriching the few bourgeoisies and impoverishing the poor majority. The situation also reveals, as Lord Acton said, "Absolute power corrupts absolutely".

The rabid corruption and Military misrule that characterized most socialism movements in Latin America show that Socialism is as easily corrupted as Capitalism. The lesson we must learn is that all human systems are imperfect and that no State can live in autarky. Economies must be open to local and foreign investments as this relieves the economic, political and social burden of the State through counterpart funding, syndicating financing, offshore financing. Furthermore, Corruption of local politicians must not be blamed on foreigners as leadership is a reflection of the society in general. Corruption can be prevented or deterred using eGovernment at all levels of Government and also by rewarding honesty adequately with social recognition and financial rewards.

The best diplomatic strategy available to the United States in the face of Fidel Castro's resignation would be an adoption of the welfarist foreign policy towards Latin American States. This extends the domestic policy of the United States to its foreign policy and constitutes a marriage of socialism and capitalism. This disarms the accusation of imperialism leveled against the United States and enables unity which is necessary for the development of Latin America and the entire American Continent. Welfarism entails doing business in a given environment and making provisions for the social effects on society through social responsibility using aid and donations. This has the effect of involving the communities by giving them a sense of ownership of businesses operating in their territory. This could have prevented the Cuban Revolution (which cost America a lucrative sugar trade in Cuba) if it had been applied.

Tax rebates should be given to American banks who engage in offshore financing in Latin America. This should finance online jobs at schools and universities in the continent while developing the technology transfer capacity in the region while reducing trade deficits facing the US government. The adoption of welfarism in Latin America with easy credit access from government grants, subsidies and tax rebates can make socialism retreat to the history books

Learn more about this author, Anthony Ibegbuna.
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