Page 20 - CSA Speaker Bulletin September 2017 | CSA Celebrity Speakers
P. 20


    An Economic Answer
          to Terrorism

After nearly two decades in                 more efficient means of enforcement”       bureaucratic walls.
            print, the fundamental pillars  (De Soto; 248).                            Overall, problems were out of hand,
            of Peruvian economist and ex-                                              so why not support a tighter grip?
political adviser Hernando de Soto’s        Despite a multi-partisan past, De          While De Soto could have supported
bestseller, The Other Path, continues       Soto’s analysis led many to argue          additional regulation, he countered
to resonate with modern economic            that his work does uphold logical          this trend, explaining that that
security affairs. His argument that         argument. One point includes               method proves counterproductive.
over-bearing bureaucracy hinders            his stated economic beliefs and            When society’s poor cannot turn to
developing economies’ success are           the strong relationship of trust           official authorities for permission
channeled through 1980’s Peru case          envisioned being beneficial amid           to grow – for example, through
studies that offer further comparative      legal and illegal influences. This is      residential development or small
perspective to modern crisis.               particularly the case when involving       businesses – due to over bureaucracy,
                                            the areas of minimal property rights,      they occasionally turn toward illegal
However, De Soto stood at a cross           underground economies and general          authorities. In dealing with the
roads during his political career that      lack of security – elements that many      Shining Path, De Soto identified
also puts the clarity of his arguments      developing world citizens experience.      terrorist groups’ strategy in
at risk. While he worked to reform                                                     economically enabling faster growth
such regulations, he also worked for        No Re-Inventing the Wheel                  when government red tape would
those behind them.                                                                     not. This is costly in the big picture,
                                            First, De Soto encourages developing       as the ironic increase of law also fed
“Simplification means using                 countries not to re-invent the wheel       the increase of criminal organizations.
techniques already well known as            regarding economic elevation, but          Read more. n
“de-bureaucratization” in developed         to look toward their second and first
countries,” De Soto states, “These          world counterparts. As a political         *** Reproduced by courtesy of
include replacing rules which specify       adviser in Fujimori-era Peru and head      Ailana Navarez, Editor-in-Chief
how to fulfill certain requirements         of his organization, the Institute for     of Pulsamerica Magazine
by rules stating the ends to be             Liberty and Democracy, De Soto
achieved. This would lighten the            witnessed firsthand the tribulations       Hernando de Soto is
burden on those who must obey the           of developing countries attempting         currently President of the
laws in question, because instead of        to correct impoverished and insecure       think-tank, Institute for
having to meet certain requirements         circumstances via overt regulation.        Liberty and Democracy (ILD)
before they can do something, they          Peruvians were experiencing daily          based in Peru. The ILD has
will instead be monitored afterward         constraints, such as “house but not        been described as one of the
to see whether they are complying           titles; crops but not deeds; businesses    most important think-tanks
with the law. Such procedures, which        but not statues of incorporation”.         in the World and Mr de Soto
emphasize ex post de facto monitoring       The government was having trouble          as the "World's Greatest
rather than prior paperwork, reduce         regulating unofficial endeavors, and       Living Economist”.
red tape without abandoning                 the common man was having trouble
necessary controls but also provide         progressing in the face of rigid official

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