The Poor Are Not the Problem But the Solution: SudanWatch Blog

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From Sudan Watch Blog:

http://sudanwatch.blogspot.com/

Exclusive interview with Peruvian economist, Hernando de Soto: The poor are not the problem but the solution

May 29,2005

Exclusive interview with Peruvian economist, Hernando de Soto: The poor are not the problem but the solution

"This is an important post. I have been meaning to publish it here for the past two months. The delay is because it needed a few lines of introduction to explain a little about why it is posted at Sudan Watch for future reference.

Here in England, there are some areas where people are experiencing tense situations caused by traditional gypsies and modern day nomads parking their caravans illegally. The travellers who choose to live 'on the road' in their motor homes have few places to park and live in peace because of past Tory policies that withdrew land where 'travellers' used to be allowed to park and reside temporarily.

Wherever the nomads park their caravans illegally, they - and many are families with young children of school age - are forced to move on by the authorities. Whenever nomads park and settle, it creates an emotive mess for government officials to deal with and sort out. Local residents and homeowners object to nomads settling anywhere near their neighbourhoods. Showdowns between government officials, local residents and nomads are sometimes filmed and broadcast on televison news. Terrible scenes involving bailiffs, police, mothers wailing and children crying. Nobody tells them where they can park. They are simply told to move on. It is awful because you know the same scenario is repeated when they arrive at another spot."


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http://sudanwatch.blogspot.com/

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1. This reminds me very much of the people who live along the coasts

where the tsunami hit - and who are now being discouraged from going back to their former homes. You have to wonder why.

For sure the rule of law regarding ownership need to be worked out in many parts of the world.

At first I thought this article was neocon like. But upon further reading it seems the point is that laws are used by elites to keep the poor out of the markets.

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2. DeSoto isn't quite on the US political spectrum.

He's written for years about poverty and how governments (etc.) perpetuate it.

In the '80s he wrote a nifty book trying to demonstrate that one reason the US became prosperous is that there was a solid system of deeds and liens. You get a deed, you can do a search and see if it's clear. If it is, you have an asset; you can borrow against the asset, or sell it safely. You can dump money into obtaining a piece of ground, and the asset won't be taken away from you. (OK, unless you fail to pay rent ... er ... property taxes ... to the government.)

Mexico, Venezuela, Russia, many other countries? The deed system's a nightmare in many parts of the country, or all of it. Many people never have a deed; or multiple people have deeds to the same piece of ground; and, if you do have a deed, and it's the only one, you still can't reliably show there aren't liens against it. So even if you have an asset, it can't easily be proven a trustworthy basis for borrowing.

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3. I have always wondered why bribes worked and lasted so long

in much of the world. I have never heard it said that bribes are a way for the rich to get stability. Food for thought. And of course, those bribery systems of laws cut out the poor from then participating.

I will have to read more.

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4. I'm kicking this. I think it is important. The neocons will dance us

outside of our own hearts if we let them. This de Soto person makes some great points. However he is talking here about the poor having access to their own wealth instead of systems where the rule of law is used as a barrier instead of a leveler.

Very true that the hidden economies make it to the legit economy. People on those beaches in Tsunami victimized nations should have title to the lands the government now wants to move them off of. If you are moved to land off the coast and well into the interior - you are owed some money.