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The Other Path
 
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The Other Path [Paperback]

Hernando De Soto (Author)
4.5 out of 5 stars  See all reviews (6 customer reviews)
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Book Description

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.

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.

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Customer Reviews

6 Reviews
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Average Customer Review
4.5 out of 5 stars (6 customer reviews)
 
 
 
 
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5.0 out of 5 stars Analyse très détaillée, Feb 12 2012
This review is from: The Other Path (Paperback)
Une analyse très détaillée de la situation péruvienne qui comporte des similitudes à transposer dans de nombreux pays ou la propriété privée pour les gens du peuple est inaccessible.
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3 of 3 people found the following review helpful
4.0 out of 5 stars A Devastating Critique of Centrally Planned Economies, Sep 30 2003
By 
Robert Huffstedtler (Cary, NC United States) - See all my reviews
(REAL NAME)   
This review is from: The Other Path (Paperback)
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.

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3.0 out of 5 stars Agreed -- would have been better first, Jun 13 2003
By 
W. Jamison "William S. Jamison" (Eagle River, Ak United States) - See all my reviews
(REAL NAME)   
This review is from: The Other Path: The Invisible Revolution in the Third World (Hardcover)
I agree that this book would have been more interesting if read before Mystery, but now the mystery is gone.

This is good stuff just the same.

Lots of good points that are useful in a classroom.

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