This is the Cato Daily Podcast for Tuesday, October 23rd, 2007, I'm Caleb Brown.

Ecuador has taken a hard turn to the left.

The nation's president, Raphael Correa,

has taken the ideas of Venezuela's Hugo Chavez

and will apply them in a new constitution for Ecuador.

Gabriella Calderon, editor of El Kato.org, says that 21st century socialism will send Ecuador further

away from liberal democracy.

Well, 21st century socialism is sort of a vague concept.

It's been a vague concept.

It's been behind this concept is its main ideologue.

His name is Heinz-Tietrich.

He's a German that now lives in Mexico

and he's probably Chavez's official intellectual behind his regime's ideas.

And basically what 21st century socialism preaches is the erosion of the price system and the establishment of the I guess we would call it in English the time value system that is Mr Dietrich example is that the guy that picks up trash, if it takes

him two hours, he should be paid the same amount that a brain surgeon takes to perform a two-hour

surgery because it takes the same amount of time.

And this basically removes subjective preferences of each individual towards different goods and services.

Ecuador's new president has taken this idea to heart, presumably.

He seems to be trying to be the next Yoko Chavez.

Well, so far there is no evidence to think the opposite. He has, it seems like a

carbon copy of what has happened in Venezuela and the only difference is that it has been happening at a much accelerated pace.

And right now, Raphael Correa managed to get more than 70 seats in the constituent assembly that will write Ecuador's

...