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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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