The Other Path: The Economic Answer to Terrorism

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Description

In this, his classic book at the informal economy of Peru and the the reason why poverty generally is 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 loss of legal structures that recognize and encourage ownership of assets. It’s exactly these forces, de Soto argues, that prevent houses, land, and machines from functioning as capital does within the West–as assets that may 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 used to be not only an economic boon for Peru but additionally the defeat of the Shining Path, the terrorist movement and black-market force that used to be 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 within the 1980’s and the Taliban as of late.

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