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Failures in the countries of Latin America. Depicting problems of developing countries,The author destroys many myths about Third World countries, translating them in the category
Scientific true.
Extralegal economy
The term "extralegal economy" designate usually such situation: secret, Not registered, illegal companies and the industrial enterprises, not Paying taxes, compete, using dishonest methods, with the companies and The enterprises respecting the law and in due time paying all taxes.
Businessmen of the black market are the pirates covering from treasury of means, which
Could be used for the decision social.it and strengthenings most Society structures. Such type of thinking as proves Ernando it to Soto,
It is absolutely erroneous. In the countries, similar Perus, a problem is not black
The market, and the state. The extralegal economy is spontaneous and creative
Reaction of the people to inability of the state to satisfy basic needs The become impoverished weights. Paradox that the given research executed The institute protecting economic freedom, contains unsurpassed on force
And severity charge to the governments of the third world and at the same time
Shows triviality of radical Marxist criticism economic Backwardness of developing countries.
When legality is the privilege of those who possesses political and The economic power, the poor men excluded from this number have no another
Choice, except lawlessness. That is why the extralegal economy gains in strength, and
- it Soto shows it by means of incontestable proofs. For
Findings-out that such "the legality price" in Peru, Institute of freedom and
Democracies has founded fictitious factory on tailoring, and then has passed all
Procedures of a bureaucratic labyrinth that it officially to register.
Authors of experiment have decided not to give any bribes, except for those, without
Which process could stop completely.
From them extorted bribes in ten cases, but experimenters have paid only
Twice. On registration of fictitious factory 289 days, intensive were required
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