The Other Path: The Economic Answer to Terrorism

The Other Path: The Economic Answer to Terrorism

by Hernando De Soto, June Abbott
     
 

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ISBN-10: 0465016103

ISBN-13: 9780465016105

Pub. Date: 09/03/2002

Publisher: Basic Books


In 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

Overview


In 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.

Product Details

ISBN-13:
9780465016105
Publisher:
Basic Books
Publication date:
09/03/2002
Edition description:
Reprint
Pages:
273
Sales rank:
274,076
Product dimensions:
5.38(w) x 7.98(h) x 0.97(d)

Table of Contents

Prefacexi
Part 1
1Introduction3
Migration7
A Hostile Reception10
From Migrants to Informals11
2Informal Housing17
The Informal Acquisition of Property19
The Historical Evolution of Informal Housing33
The Long March toward Private Property55
3Informal Trade59
Types of Informal Trade62
The Historical Evolution of Informal Trade75
The March toward Markets91
4Informal Transport93
Types of Informal Transport94
The Historical Evolution of Informal Transport105
The Mystery of Cyclical Bankruptcies124
Part 2
5The Costs and Importance of the Law131
The Costs of Formality132
The Costs of Access133
The Costs of Informality151
The National Economic Consequences of the Costs of Formality and Informality173
The Law as a Determinant of Development177
6The Redistributive Tradition189
7The Parallel with Mercantilism201
The Characteristics of Mercantilism201
Peru: A Mercantilist Country?208
The Decline of Mercantilism and the Emergence of Informals210
Collapse220
8Conclusion231
The Social Relevance of Legal Institutions231
Violence233
The Survival of Mercantilism235
Political Voluntarism237
Left- and Right-Wing Mercantilists239
The Promise of Human Capital242
An Agenda for Change244
Final Remarks255
Epilogue259
Appendix262
Index265

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