e -
The industrial revolution was about bringing in the displaced farmer into the industrial economy.
The next revolution necessary to kick-start the world economy is to bring the INFORMAL economy into the FORMAL economy. I am not about about the informal economy is the sense understood of the underground economy in the US, Sweden or Germany, or Italy.
It already downed on us that mass migration will not happen. So what is the option? The world have to put the mass of paupers to work. Just what China is doing, right? Slowly bringing in those outside the gates of the economy into its fold.
It is not about aid or band-aid. It is about putting people to work productively.
Of course there is still be that trickle South to North migration. Green Card´in Germnay H-1B visas in the US and Dekasseguis to Japan. But that won't do. It is just not enough.
What those guys were discussing in Doha, Qatar, this week were not the right issues. The right issues is not movement of goods. The right issues are: HOW CAN YOU BRING THE PAUPER TO PRODUCE!!!
Here is an author with a different approach to the same problem -
amazon.com
The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else
by Hernando De Soto, Hernando De Soto
Editorial Reviews
Amazon.com
It's become clear by now the fall of the Berlin Wall and the collapse of communism in most places around the globe hasn't ushered in an unequivocal flowering of capitalism in the developing and postcommunist world. Western thinkers have blamed this on everything from these countries' lack of sellable assets to their inherently non-entrepreneurial "mindset." In this book, the renowned Peruvian economist and adviser to presidents and prime ministers Hernando de Soto proposes and argues another reason: it's not that poor, postcommunist countries don't have the assets to make capitalism flourish. As de Soto points out by way of example, in Egypt, the wealth the poor have accumulated is worth 55 times as much as the sum of all direct foreign investment ever recorded there, including that spent on building the Suez Canal and the Aswan Dam.
No, the real problem is that such countries have yet to establish and normalize the invisible network of laws that turns assets from "dead" into "liquid" capital. In the West, standardized laws allow us to mortgage a house to raise money for a new venture, permit the worth of a company to be broken up into so many publicly tradable stocks, and make it possible to govern and appraise property with agreed-upon rules that hold across neighborhoods, towns, or regions. This invisible infrastructure of "asset management"--so taken for granted in the West, even though it has only fully existed in the United States for the past 100 years--is the missing ingredient to success with capitalism, insists de Soto. But even though that link is primarily a legal one, he argues that the process of making it a normalized component of a society is more a political--or attitude-changing--challenge than anything else.
With a fleet of researchers, de Soto has sought out detailed evidence from struggling economies around the world to back up his claims. The result is a fascinating and solidly supported look at the one component that's holding much of the world back from developing healthy free markets. --Timothy Murphy
From The Industry Standard
"An increasingly important economist provides a fascinating lesson in why capitalism works by looking at the places where it doesn't."
Raleigh News & Observer, December 12, 2000
"It is one of the most provocative and potentially important works on development to appear in some time."
From Booklist
The author, president of an influential Peruvian think tank and a prominent Third World economist, sets out to solve the mystery of why some people in the world can create capital and others cannot. Outside the West, in countries as different as Russia and Peru, it is not religion, culture, or race issues that are blocking the spread of capitalism but the lack of a legal process for making property systems work. Implementing major legal change so as to establish a capitalist order involves changing peoples' beliefs, and de Soto contends this is a political rather than a^B legal responsibility. He believes such a change can be achieved if governments seriously focus upon the needs of their poor citizens for a legally integrated property system that can convert their work and savings into capital. Political action is necessary to ensure that government officials seriously accept the real disparity of living conditions among their people, adopt a social contract, and then overhaul their legal system. Mary Whaley
Copyright © American Library Association. All rights reserved
Time [2/05/01]
". . .a must-read among the globalization jet set."
Commentary, January/February 2001
". . .[de Soto] convincingly demonstrates, the road to worldwide prosperity requires not restraining capitalism but making it universal."
Javier Perez de Cuellar, former Secretary General of the United Nations
"A crucial contribution. A new proposal for change that is valid for the whole world."
America [2/19/01]
"De Soto has traced a distinctive path to a global marketplace that puts the yearnings of the poor above all else."
Ronald Coase, Nobel Laureate in Economics
"A very great book...powerful and completely convincing. It will have a most salutary effect on the views held on economic development."
Milton Friedman, Nobel Laureate in Economics
"Hernando de Soto has demonstrated in practice that titling hitherto untitled assets is an extremely effective way to enable the less privileged to take full advantage of their opportunities and to promote economic development of society as a whole. He offers politicians a project which can be personally satisfying, contribute to the welfare of their country, and at the same time enhance their own political standing, a wonderful combination."
Francis Fukuyama Author of "The End of History and The Last Man"
"De Soto has singlehandedly been fomenting a revolution in the Third World,....The Mystery of Capital documents his rich practical insights from decades of experience in the field, and constitutes one of the few new and genuinely promising approaches to overcoming poverty to come along in a very long time."
Lord David Owen, Former Foreign Secretary of the United
"Fresh thinking is rare... [It] explains how economies fail that have not first created the vital legal structures..."
Lady Margaret Thatcher, Former Prime Minister of the United Kingdom
"The Mystery of Capital has the potential to create a new, enormously beneficial revolution, for it addresses the single greatest source of failure in the Third World and ex-communist countries - the lack of a rule of law that upholds private property and provides a framework for enterprise. It should be compulsory reading for all in charge of the 'Wealth of Nations'."
Walter Wriston, Chairman emeritus, Citigroup
"This book is first class. It makes a very solid case for a way to improve the lot of people in the developing world."
Niall Ferguson, author of The Pity of War and Cash Nexus
"[A] brilliant and illuminating book. Its empirical foundations are truly exceptional.
Times of London
"Fastidious in its search for the facts but passionate in spirit and language...the blueprint for a new industrial revolution."
Laurence Minoral, Editor-in-Chief, Forbes Global, 1/08/01
"If a nonmathematician can win a Nobel Prize in Economics, I nominate de Soto."
Book Description
From the most important economist in the Third World, a revolutionary and practical plan for transforming underperforming economies-based on the forgotten history of how wealth was created in the West.
"The hour of capitalism's greatest triumph," writes Hernando de Soto, "is, in the eyes of four-fifths of humanity, its hour of crisis." In The Mystery of Capital, the world-famous Peruvian economist takes up the question that, more than any other, is central to one of the most crucial problems the world faces today: Why do some countries succeed at capitalism while others fail?
In strong opposition to the popular view that success is determined by cultural differences, de Soto finds that it actually has to do with the legal structure of property and property rights. Every developed nation in the world at one time went through the transformation from predominantly informal, extralegal ownership to a formal, unified legal property system, but in the West we've forgotten that creating this system is also what allowed people everywhere to leverage property into wealth. This persuasive book will revolutionize our understanding of capital and point the way to a major transformation of the world economy.
Book Info
Contents include the mystery of capital, the five mysteries of capital, the mystery of political awareness, the missing lessons of U.S. history, and more. DLC: Capitalism.
About the Author
Hernando de Soto is President of the Institute for Liberty and Democracy (ILD), headquartered in Lima, Peru. He was named one of the five leading Latin American innovators of the century by Time magazine in its May 1999 issue on "Leaders for the New Millennium." De Soto played an integral role in the modernization of Peru's economic and political system as President Alberto Fujimori's Personal Representative and Principal Advisor. His previous book, The Other Path, was a best seller throughout Latin America as well as in Washington, D.C. He and ILD are currently working on the practical implementation of the measures for bringing the poor into the economic mainstream introduced in The Mystery of Capital. He lives in Lima, Peru.
Regards, Don |
