Hernando de Soto
March 15, 2013 - This Feature Service article is based on an interview at the CIPE offices in Washington, DC on February 11, 2013.
Entrepreneurship is all about combining things from different resources to create wealth, and institutions are crucial to facilitating that combination. What do I mean by “combining things”? Consider Leonard E. Read’s famous example that to build a simple pencil involves numerous countries, countless individuals, and hundreds of different ingredients: from graphite to the Oregon wood which sandwiches it in, to the copper of Chile and the zinc of Peru and the black nickel of South Africa, which hold the eraser close to the pencil itself, to the lacquer that is on the pencil. The wood requires kilning and dyeing. It must be cut and shaped and glued. Or take a look at your watch, which is likely to involve more than 500 parts, also provided by suppliers from all over the world.
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INTERVIEW WITH HERNANDO DE SOTO
TÊTE À TÊTE | March 5, 2013 -- GB discusses wealth creation, the state of the Americas, and lessons for the states of the post-Arab Spring with Peru’s Hernando de Soto
GB: Why does Peru today have the second fastest-growing economy in the Americas (after Panama)?
HDS: What is good about Peru today is that a macroeconomic model that was designed in the early 1990s has endured and been protected, quite systematically, across different governments – all of different political stripes. The result has been, ultimately, Chinese-type growth rates. Of course, Peru does not profit from the type of canal that has made Panama so vital; otherwise, we would have the top growth rate in Latin America.
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