The multi million dollar spending sprees that governments hope will drive innovation and improvements in business productivity is in stark contrast with the widespread tendency to maintain the status quo of the markets.

“In 2005 in Costa Rica they wanted to block Skype, in 2015 they want to block Uber.”

The title of the blog in Nacion.com written by Pablo Fonseca, is indicative of a general trend on the part of state officials to protect the status quo, in order to protect the interests of companies or sectors, especially those that are officially regulated.

Governments spend fortunes attempting to boost innovation and improvements in productivity of economies, but are reluctant to accept and channel innovations that threaten “acquired rights” which some corporations claim over the market and consumers.

The rapid advance of new uses of technology is revolutionizing economies around the globe, and some liberal democracies have cultivated privileges which ultimately result in inequality. This is what is happening in Costa Rica and in Uruguay, both countries prisoners to their corporations, who employ all possible means to hold on to those “acquired rights”.

We recommend reading two articles on the subject.

– See La Nación from Costa Rica: “In 2005 in Costa Rica wanted to block Skype in 2015 It Wants to Block Uber”

– See El País from Uruguay: “Uber Yes, Uber No“