The Other Path: The Economic Answer to TerrorismIn this, his classic book on the informal economy of Peru and the reasons why poverty can be a breeding ground for terrorists, Hernando De Soto describes the forces that keep people dependent on underground economies: the bureaucratic barriers to legal property ownership and the lack of legal structures that recognize and encourage ownership of assets. It is exactly these forces, de Soto argues, that prevent houses, land, and machines from functioning as capital does in the West--as assets that can be leveraged to create more capital. Under the Fujimori government, de Soto's Institute for Liberty and Democracy wrote dozens of laws to promote property rights and bring people out of the informal economy and into the legitimate one. The result was not only an economic boon for Peru but also the defeat of the Shining Path, the terrorist movement and black-market force that was then threatening to take over the Peruvian government. In a new preface, de Soto relates his work to the present moment, making the connection between the Shining Path in the 1980's and the Taliban today. |
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Contents
ONE Introduction | 3 |
The Historical Evolution of Informal Housing | 33 |
The Long March toward Private Property | 55 |
Copyright | |
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APRA areas assets authorities began benefits build bureaucratic capital City Council committees Cono Norte contracts cooperatives costs created economic activity efficient El Agustino entrepreneurs established extralegal system fares forced formal business gradually Hernando de Soto housing ILD's incentives increase industry informal activities informal businesses informal markets informal settlements informal trade informal transport operators interests invaders invasion investment labor land leaders legal institutions legal system legislation Lima Lima's Magdalena del Mar market economy mercantilism mercantilist mercantilist system migration minibus operators municipal government negotiate neighborhoods obtain Odrķa Office owners parties percent Peru Peru's Peruvian Photo policies political population privileges problem procedures production property rights protect public thoroughfare recognition redistributive combines reduce regulations residents result rights of ownership route sector Sendero settlement dwellers settlers Shining Path society street vendors urban vehicles vending Villa El Salvador violence
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U.S. Development Aid--An Historic First: Achievements and Failures in the ... Samuel Hale Butterfield No preview available - 2004 |