Download PDF The Other Path: The Economic Answer to Terrorism, by Hernando De Soto
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The Other Path: The Economic Answer to Terrorism, by Hernando De Soto
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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.
- Sales Rank: #352568 in eBooks
- Published on: 2008-08-05
- Released on: 2008-08-05
- Format: Kindle eBook
Language Notes
Text: English, Spanish (translation)
From the Publisher
A revolutionary new analysis of the Third World, and a bestseller throughout Latin America. "The best way to understand Latin America's problems and issues is to read The Other Path."--Bill Bradley, U.S. Senate
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 Adviser. His previous book, The Other Path, was a best seller throughout Latin America and the U.S. 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.
Most helpful customer reviews
31 of 33 people found the following review helpful.
Where de Soto started - a brave statement
By Andy Orrock
I love the little jibe provided within the title of Hernando de Soto's "The Other Path." It's a poke at "The Shining Path" (Sendero Luminoso), the Maoist Peruvian terrorist organization that wreaked havoc on de Soto's homeland beginning in 1980. de Soto's attempt in this book is to show that the more effective struggle is to make capitalism more efficient. To those who know de Soto's work, the solutions are well known: build a system of laws that allow one's residents to buy, sell and value property rights; and reduce the complexities and banalities of starting a business.
If you've read de Soto's master work "The Mystery of Capitalism," then there is no new news here. In fact, "The Other Path" will look out-of-date with its yellowing statistics. So why the five stars? As a testament to de Soto's bravery. Think about the guts it took for him to research and publish this book in Peru during the tumultuous and frightening period there. What a statement.
26 of 29 people found the following review helpful.
A Devastating Critique of Centrally Planned Economies
By Robert Huffstedtler
The original version of this book was written in the mid-80's to offer the people and government of Peru specific suggestions to combat Sendero Luminoso by making it possible for ordinary people to have a productive and meaningful participation in the nation's economy. This new printing includes a preface written in 2002 that provides the context and history for non-Peruvian readers and gives some analysis of the successes of the suggested reforms under the Fujimori government.
The first part of the book is a detailed analysis of three sectors of the Peruvian economy: housing, transport, and trade (small manufacturing and retail primarily). In each of these, De Soto demonstrates how the barriers raised by regulation and legal process from both right and left wing governments in Peru have forced the majority of persons participating to do so in informal/illegal ways. The result is that formal activity bears the brunt of taxation and informals have little protection in terms of property rights, contractual instruments, and so on. The net result is that everyone is impoverished. This section of the book can be tough reading because of the amount of detail, but its necessary in order to understand the importance of the second half.
The second half suggests that the Peruvian situation is really the reemergence of mercantilism, not a market economy. De Soto then provides some suggestions to peacefully transitiont to a market economy, and convincing warnings that failure to do so will almost certainly result in a violent transition.
The points that De Soto makes are increasingly significant to non-Peruvians as societies like America have increasingly centralised economies. Ironically, the cover includes blurbs from both Presidents Bush and Clinton. One suspects that netiher of them actually read the book.
11 of 11 people found the following review helpful.
Like Reading Throug Red Tape
By Achaessa
Hernando De Soto's "The Other Path" is a much drier read than its follow up "The Mystery of Capital." I'm glad I read TMC first - it gave a global economic perspective that I could relate to and which interested me in reading more of the author's work. The Other Path is very detailed in its portrayal of Peruvian politics, the intricacies of laws governing property rights and transactions, and the evolution of businesses from extralegal to legal operations. While this very book was the tool used by the Peruvian government to successfully solve its terrorism problem in the 1980s, by legalizing the economic operations of the majority of its marginalized citizens, and while its message and methods are even more relevant in the current climate of global terrorism, the step-by-step detail makes it a tedious read and I couldn't get all the way through. I will, at some point, try again, but I'm glad I read The Mystery of Capital first.
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