Synopses & Reviews
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.
Review
"Though [de Soto] is hardly the first to study the underground economy, no one has delved into it more thoroughly or heralded its possibilities more enthusiastically." Fortune
Review
"The Other Path is a major work, one destined to change the way the world understands wealth and poverty." Forbes
Review
"This is an important book. It not only gives a detailed analysis of the informal economy in Peru but also suggests solutions to the nation's economic difficulties. It offers new hope to Latin Americans fearful for their countries and their personal well-being." Christian Science Monitor
Review
"The Other Path is a considerable achievement. It should jolt Latin American governments and serve as a guide for all those concerned with helping the poorest of the poor." The Economist
Synopsis
A classic work on the economic answer to terrorism, by an acclaimed economist who has put his ideas into practice. "Brilliant. Original. A masterfully conceived book." --Hugh Thomas
About the Author
Hernando de Soto, President of the Institute for Liberty and Democracy in Lima, Peru, was named one of the Five Latin American Innovators of the Twentieth Century by Time magazine.