Back in 1979, Peruvian economist Hernando de Soto started a silent but powerful research project on poverty in Lima and the largest cities of the development world.
He found out that 2 thirds of the world population lives not only in poverty, but -and because of- without legal identity and property rigths, in what he called the "paralegal economy".
De Soto -author of "The mistery of Capital" and "The other path" -two path-breaking books on developing BOP population's standards of living wne further and his Foundation started to help actively the poor to gain access to social capital: property rights, microfinance, recognition and legal protection for entrepreneurial activities and commerce with astonishing results.
How can we apply De Soto's ideas to our PII ecosystems?
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5 comments:
I think that is really necessary to create new opportunities for all the people, maybe change the game´s rule could change the perspective about the richest people, in other wise, i believe in a world where the people can create new jobs, new business, and new free market.
Critical Succes Factor 1 says "Move Out Of Your Confort Zone" and Critical Succes Factor 5 "Use an Ideal Vision" will help to create new opportunities for poor people is a fact that the rich people are not the devil in the free market, the rules of government ecosystems could change for open new opportunities , which is why it is important to people culturize low income levels about the importance of entrepreneurship.
Hernando de Soto, he mentioned is that opportunities are at the base of the pyramid and this is where direct the efforts of innovation and business development for better living standards, an example is the bank compartamos that supports share financings rural communities to improve their living standards.
Excellent points, Antonio. De Soto provides new tools to make Mega happen. Legal protection and property rights -first recognized in th (now) developed world by the Magna Carta in 1215- are essential for self-sufficiency, quality of life and to make sure nobody will be dependent of external forces -in this case, the will and whim of governments and big money-.
Think of ecotourism and the agribusiness district and "rule-of-law" -protected zones, where small entrepreneurs can have the safeguard and help to prosper.
In which legal topics could DIAPYME and Ecoutourism help small businesses and prosumers in the De Soto way?
We have been in talks with personal in the government to make certain changes in the way of operating the budget, however, the question is in the operating rules of each agency, for example to work with the World Bank is required to align municipal government, the state Congress, the state government, hence the needs of the State of Sonora, passed to the president of the republic, in turn, the World Bank provided financial assistance to development banks, then to the implementing agencies of government . in turn support the government uses agree to its rules of operation of each secretary. From there, we can work to change the mode of operation and this operation will generate substantial changes in the strategic projects for the benefit of business communities in ecosystems of innovation established at a university.
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