No nation can have a strong market economy as long as most of its people remain on the outside just looking in. The existence of such massive exclusion generates two parallel economies, legal and extralegal. An elite minority enjoys the economic benefits of the law and globalization, while the majority of entrepreneurs are stuck in poverty, where their assets –adding up to more than US$ 10 trillion worldwide– languish as dead capital in the shadows of the law. To survive, to protect their assets, and to do as much business as possible, the extralegals create their own rules. But because these local arrangements are full of shortcomings and are not easily enforceable, the extralegals also create their own social, political and economic problems that affect the society at large.
Since the fall of the Berlin Wall, responsible nations around the developing world have worked hard to make the transition to a market economy –and have paid for their efforts with bitter disappointment. Populist leaders have used this failure of the free market system to thrive and wipe out poverty in the developing world to beat their “anti-globalization” drums. But the ILD believes that the real enemy is within –in the flawed legal systems of developing nations that make it virtually impossible for the majority of their people –and their assets– to gain a stake in the market. The people of these countries have talent, enthusiasm, and an astonishing ability to wring a profit out of practically nothing.
THE REAL ENEMY: BAD LAWS
What the poor majority in the developing world do not have, is easy access to the legal system, which, in the advanced nations of the world and for the elite in their own countries, is the gateway to economic success. For it is in the legal system where property documents are created and standardized according to law. That documentation builds a public memory that permits society to engage in such crucial economic activities as identifying and gaining access to information about individuals, their assets, their titles, rights, charges and obligations; establishing the limits of liability for businesses; knowing an asset’s previous economic situation; assuring protection of third parties; and quantifying and valuing assets and rights. These public memory mechanisms in turn facilitate such opportunities as access to credit, the establishment of systems of identification, the creation of systems for credit and insurance information, the provision for housing and infrastructure, the issue of shares, the mortgage of property, and a host of other economic activities that drive a modern market economy.
Last Updated on Thursday, 23 February 2012 17:54
On June 26th following an invitation from the Government of Afghanistan, an ILD delegation headed by CEO Manuel Salazar and supported by Operations Manager Luis Triveño, and International Affairs Manager Gabriel Daly visited Kabul for a three day meeting with His Excellency The Minister of Urban Development Mohd Yousaf Pashtun.
Last Updated on Sunday, 19 August 2012 12:46
This is the quickest way to contact the ILD. Please include your name, e-mail and phone number(s). Privacy. The personal information you enter in this form will not be used for anything unrelated to its content.
Last Updated on Thursday, 13 September 2012 14:44