Hernando de Soto

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pages: 515 words: 126,820

Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World by Don Tapscott, Alex Tapscott

Airbnb, altcoin, asset-backed security, autonomous vehicles, barriers to entry, bitcoin, blockchain, Blythe Masters, Bretton Woods, business process, buy and hold, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, cloud computing, cognitive dissonance, commoditize, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, crowdsourcing, cryptocurrency, disintermediation, disruptive innovation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Erik Brynjolfsson, Ethereum, ethereum blockchain, failed state, fiat currency, financial innovation, Firefox, first square of the chessboard, first square of the chessboard / second half of the chessboard, future of work, Galaxy Zoo, George Gilder, glass ceiling, Google bus, Hernando de Soto, income inequality, informal economy, information asymmetry, intangible asset, interest rate swap, Internet of things, Jeff Bezos, jimmy wales, Kickstarter, knowledge worker, Kodak vs Instagram, Lean Startup, litecoin, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, means of production, microcredit, mobile money, money market fund, Network effects, new economy, Oculus Rift, off grid, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, performance metric, Peter Thiel, planetary scale, Ponzi scheme, prediction markets, price mechanism, Productivity paradox, QR code, quantitative easing, ransomware, Ray Kurzweil, renewable energy credits, rent-seeking, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, seigniorage, self-driving car, sharing economy, Silicon Valley, Skype, smart contracts, smart grid, social graph, social intelligence, social software, standardized shipping container, Stephen Hawking, Steve Jobs, Steve Wozniak, Stewart Brand, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, The Wisdom of Crowds, transaction costs, Turing complete, Turing test, Uber and Lyft, uber lyft, unbanked and underbanked, underbanked, unorthodox policies, wealth creators, X Prize, Y2K, Zipcar

“Bitcoin Proves the Libertarian Idea of Paradise Would Be Hell on Earth,” Business Insider, www.businessinsider.com/bitcoin-libertarian-paradise-would-be-hell-on-earth-2013-12#ixzz3kQqSap00. 13. Human Rights Watch, “World Report 2015: Events of 2014,” www.hrw.org/sites/default/files/wr2015_web.pdf. 14. Interview with Hernando de Soto, November 27, 2015. 15. Seymour Martin Lipset, Political Man: The Social Bases of Politics, 2nd ed. (London: Heinemann, 1983), 64. 16. Interview with Hernando de Soto, November 27, 2015. 17. Hernando de Soto, “The Capitalist Cure for Terrorism,” The Wall Street Journal, October 10, 2014; www.wsj.com/articles/the-capitalist-cure-for-terrorism-1412973796, accessed November 27, 2015. 18. Interview with Hernando de Soto, November 27, 2015. 19. Interview with Carlos Moreira, September 3, 2015. 20. Melanie Swan, Blockchain: Blueprint for a New Economy (Sebastopol, Calif.: O’Reilly Media, January 2015), 45. 21.

Further, the publisher does not have any control over and does not assume any responsibility for author or third-party Web sites or their content. Version_1 To Ana Lopes and Amy Welsman for enabling this book, and for understanding that “it’s all about the blockchain.” “A masterpiece. Gracefully dissects the potential of blockchain technology to take on today’s most pressing global challenges.” —Hernando De Soto, Economist and President, Institute for Liberty and Democracy, Peru “The blockchain is to trust as the Internet is to information. Like the original Internet, blockchain has potential to transform everything. Read this book and you will understand.” —Joichi Ito, Director, MIT Media Lab “In this extraordinary journey to the frontiers of finance, the Tapscotts shed new light on the blockchain phenomenon and make a compelling case for why we all need to better understand its power and potential.”

Clippinger, CEO, ID3, Research Scientist, MIT Media Lab Bram Cohen, Creator, BitTorrent Amy Cortese, Journalist, Founder, Locavest J-F Courville, Chief Operating Officer, RBC Wealth Management Patrick Deegan, CTO, Personal BlackBox Primavera De Filippi, Permanent Researcher, CNRS and Faculty Associate at the Berkman Center for Internet and Society at Harvard Law School Hernando de Soto, President, Institute for Liberty and Democracy Peronet Despeignes, Special Ops, Augur Jacob Dienelt, Blockchain Architect and CFO, itBit and Factom Joel Dietz, Swarm Corp Helen Disney, (formerly) Bitcoin Foundation Adam Draper, CEO and Founder, Boost VC Timothy Cook Draper, Venture Capitalist; Founder, Draper Fisher Jurvetson Andrew Dudley, Founder and CEO, Earth Observation Joshua Fairfield, Professor of Law, Washington and Lee University Grant Fondo, Partner, Securities Litigation and White Collar Defense Group, Privacy and Data Security Practice, Goodwin Procter LLP Brian Forde, Former Senior Adviser, The White House; Director, Digital Currency, MIT Media Lab Mike Gault, CEO, Guardtime George Gilder, Founder and Partner, Gilder Technology Fund Geoff Gordon, CEO, Vogogo Vinay Gupta, Release Coordinator, Ethereum James Hazard, Founder, Common Accord Imogen Heap, Grammy-Winning Musician and Songwriter Mike Hearn, Former Google Engineer, Vinumeris/Lighthouse Austin Hill, Cofounder and Chief Instigator, Blockstream Toomas Hendrik Ilves, President of Estonia Joichi Ito, Director, MIT Media Lab Eric Jennings, Cofounder and CEO, Filament Izabella Kaminska, Financial Reporter, Financial Times Paul Kemp-Robertson, Cofounder and Editorial Director, Contagious Communications Andrew Keys, Consensus Systems Joyce Kim, Executive Director, Stellar Development Foundation Peter Kirby, CEO and Cofounder, Factom Joey Krug, Core Developer, Augur Haluk Kulin, CEO, Personal BlackBox Chris Larsen, CEO, Ripple Labs Benjamin Lawsky, Former Superintendent of Financial Services for the State of New York; CEO, The Lawsky Group Charlie Lee, Creator, CTO; Former Engineering Manager, Litecoin Matthew Leibowitz, Partner, Plaza Ventures Vinny Lingham, CEO, Gyft Juan Llanos, EVP of Strategic Partnerships and Chief Transparency Officer, Bitreserve.org Joseph Lubin, CEO, Consensus Systems Adam Ludwin, Founder, Chain.com Christian Lundkvist, Balanc3 David McKay, President and Chief Executive Officer, RBC Janna McManus, Global PR Director, BitFury Mickey McManus, Maya Institute Jesse McWaters, Financial Innovation Specialist, World Economic Forum Blythe Masters, CEO, Digital Asset Holdings Alistair Mitchell, Managing Partner, Generation Ventures Carlos Moreira, Founder, Chairman, and CEO, WISeKey Tom Mornini, Founder and Customer Advocate, Subledger Ethan Nadelmann, Executive Director, Drug Policy Alliance Adam Nanjee, Head of Fintech Cluster, MaRS Daniel Neis, CEO and Cofounder, KOINA Kelly Olson, New Business Initiative, Intel Steve Omohundro, President, Self-Aware Systems Jim Orlando, Managing Director, OMERS Ventures Lawrence Orsini, Cofounder and Principal, LO3 Energy Paul Pacifico, CEO, Featured Artists Coalition Jose Pagliery, Staff Reporter, CNNMoney Stephen Pair, Cofounder and CEO, BitPay Inc.


A Voyage Long and Strange: On the Trail of Vikings, Conquistadors, Lost Colonists, and Other Adventurers in Early America by Tony Horwitz

airport security, Atahualpa, back-to-the-land, Bartolomé de las Casas, Colonization of Mars, Columbian Exchange, dematerialisation, diversified portfolio, Francisco Pizarro, Hernando de Soto, illegal immigration, joint-stock company, out of africa, Ralph Waldo Emerson, trade route, urban renewal

Translations of Biedma, Rangel, Elvas, and Garcilaso, as well as other documents relating to De Soto’s life and expedition, are collected in The De Soto Chronicles: The Expedition of Hernando de Soto to North America in 1539–1543. This indispensable two-volume work includes essays by many of the leading experts on De Soto and Spanish conquest. For a cautionary deconstruction of the sources on De Soto, see The Hernando de Soto Expedition: History, Historiography, and “Discovery” in the Southeast, edited by Patricia Galloway. The best biography of the conquistador is David Ewing Duncan’s Hernando De Soto: A Savage Quest in the Americas. Duncan bridges popular and academic history, writing a biography that is carefully researched, balanced, and also a lively and accessible read. Almost half of the book deals with De Soto’s life before his arrival in La Florida. Charles Hudson’s Knights of Spain, Warriors of the Sun: Hernando de Soto and the South’s Ancient Kingdoms focuses almost exclusively on the La Florida expedition, and is particularly strong on the native societies De Soto encountered.

Castañeda learned all this upon his return to Mexico, where he met members of the Spanish party that had recaptured the woman. The men were survivors of another major expedition, this one led by Hernando de Soto, who had set off from Florida at almost the same time Coronado left Mexico. Several years later, the paths of the conquistadors’ armies—one wandering east, the other straggling west—had almost intersected in the middle of the continent. Of the tattooed woman who witnessed the two greatest expeditions of conquest in North America, and became captive to both, nothing more is known. CHAPTER 8 THE SOUTH DE SOTO DOES DIXIE Knights errant are exempt from all jurisdictional authority . . . their law is their sword, their edicts their courage, their statutes their will. —Miguel de Cervantes, Don Quixote HERNANDO DE SOTO was a self-made conquistador, the first to spend more of his life in the New World than the Old.

New York: Penguin, 1963. Donegan, Kathleen M. “Seasons of Misery: Catastrophe and the Writing of Settlement in Colonial America.” Ph.D. dissertation, Yale University, 2006. Duncan, David Ewing. Hernando de Soto: A Savage Quest in the Americas. Norman: University of Oklahoma Press, 1996. Elliot, J. H. Empires of the Atlantic World: Britain and Spain in America 1492–1830. New Haven: Yale University Press, 2006. ———. Imperial Spain 1469–1716. London: Penguin Books, 1963. Estabrook, Arthur H., and Ivan E. McDougle. Mongrel Virginians: The Win Tribe. Baltimore: The Williams & Wilkins Co., 1926. Ewen, Charles R., and John H. Hann. Hernando de Soto among the Apalachee. Gainesville: University Press of Florida, 1998. Fernández-Armésto, Felipe. Columbus. Oxford: Oxford University Press, 1991. ———. Pathfinders: A Global History of Exploration.


pages: 232

Planet of Slums by Mike Davis

barriers to entry, Branko Milanovic, Bretton Woods, British Empire, Brownian motion, centre right, clean water, conceptual framework, crony capitalism, declining real wages, deindustrialization, Deng Xiaoping, edge city, European colonialism, failed state, Gini coefficient, Hernando de Soto, housing crisis, illegal immigration, income inequality, informal economy, Intergovernmental Panel on Climate Change (IPCC), Internet Archive, jitney, jobless men, Kibera, labor-force participation, land reform, land tenure, liberation theology, low-wage service sector, mandelbrot fractal, market bubble, megacity, microcredit, Nelson Mandela, New Urbanism, Pearl River Delta, Ponzi scheme, RAND corporation, rent control, structural adjustment programs, surplus humans, upwardly mobile, urban planning, urban renewal, War on Poverty, Washington Consensus, working poor

In its first iteration, the new World Bank philosophy, which was influenced by the ideas of the English architect John Turner, stressed a "sites-and-services" (provision of basic "wet" infrastructure and civil engineering) approach to help rationalize and upgrade self-help housing. By the late 1980s, however, the World Bank was championing privatization of housing supply across the board and soon became the most powerful institutional megaphone for the schemas of Hernando de Soto, the Peruvian economist who advocates micro-entrepreneurial solutions to urban poverty. The Friends of the Poor The intellectual marriage in the 1970s between World Bank President Robert McNamara and architect John Turner was supremely odd. The former, of course, had been chief planner of the war in Vietnam, while the latter had once been a leading contributor to the English anarchist paper Freedom.

They divert and sublimate political rage, and make sure it does not build to a head."31 Syrupy official assurances about "enablement" and "good governance" sidestep core issues of global inequality and debt, and ultimately they are just language games that cloak the absence of any macro-strategy for alleviating urban poverty. Perhaps this guilty awareness of the gap between promise and need explains some of the fervor with which international lending institutions and NGOs have embraced the ideas of Hernando de Soto, the Peruvian businessman who has become the global guru of neo-liberal populism. A John Turner for the 1990s, de Soto asserts that Third World cities are not so much starved of investment and jobs as suffering an artificial 29 Ibid., pp. 8-15, 33-35. 30 Ibid., pp. 90-91. 31 Arundhati Roy, The Checkbook and the Cruise Missile: Conversations with Arundhati Boston 2004, p. 82. shortage of property rights.

Payne warns that it even risks "the creation of a large underclass that is denied access to any form of affordable or acceptable housing."33 Peter Ward confirms that titling — or rather, "regularization" — in Mexico City has been a mixed blessing for colonos. "It is not simply a means of extending full property titles to the poor, but increasingly a means of incorporating them into the tax base." The benefits of being able to use homes as legal collateral are counterbalanced by a new visibility to tax collectors and municipal utilities. Regularization also undermines solidarity within the colonias by individualizing the struggle 32 Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, New York 2000, pp. 301-31. 33 Geoffrey Payne, unpublished 1989 report, quoted in Alan Gilbert and Ann Varley, landlord and Tenant: Housing the Poor in Urban Mexico, London 1991, p. 4. for housing and by giving tided homeowners interests that differ from those of other slum residents. "Renters, harassed squatters, displaced downtown tenants," argues Ward, "are likely to be more radical and disposed to anti-government demonstrations than are those who have, in effect, been bought-off by the government through successive housing policies."34 This has even been the case in Sao Paulo, where Workers' Party (PT) administrations, starting in 1989, have tried to regularize and upgrade the "huge illegal city" of the poor.


pages: 348 words: 97,277

The Truth Machine: The Blockchain and the Future of Everything by Paul Vigna, Michael J. Casey

3D printing, additive manufacturing, Airbnb, altcoin, Amazon Web Services, barriers to entry, basic income, Berlin Wall, Bernie Madoff, bitcoin, blockchain, blood diamonds, Blythe Masters, business process, buy and hold, carbon footprint, cashless society, cloud computing, computer age, computerized trading, conceptual framework, Credit Default Swap, crowdsourcing, cryptocurrency, cyber-physical system, dematerialisation, disintermediation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Ethereum, ethereum blockchain, failed state, fault tolerance, fiat currency, financial innovation, financial intermediation, global supply chain, Hernando de Soto, hive mind, informal economy, intangible asset, Internet of things, Joi Ito, Kickstarter, linked data, litecoin, longitudinal study, Lyft, M-Pesa, Marc Andreessen, market clearing, mobile money, money: store of value / unit of account / medium of exchange, Network effects, off grid, pets.com, prediction markets, pre–internet, price mechanism, profit maximization, profit motive, ransomware, rent-seeking, RFID, ride hailing / ride sharing, Ross Ulbricht, Satoshi Nakamoto, self-driving car, sharing economy, Silicon Valley, smart contracts, smart meter, Snapchat, social web, software is eating the world, supply-chain management, Ted Nelson, the market place, too big to fail, trade route, transaction costs, Travis Kalanick, Turing complete, Uber and Lyft, uber lyft, unbanked and underbanked, underbanked, universal basic income, web of trust, zero-sum game

At that same January 2016 meeting: “IBM Delivers Blockchain-as-a-Service for Developers; Commits to Making Blockchain Ready for Business,” IBM, February 16, 2016, https://www-03.ibm.com/press/us/en/pressrelease/49029.wss. CHAPTER SEVEN After a long multi-decade fight with the city: Jorge Salomón, “El barrio Charrúa, una pequeña Bolivia en el sur de Buenos Aires,” El País, February 12, 2016, http://www.elpaisonline.com/index.php/2013-01-15-14-16-26/sociedad/item/204708-el-barrio-charrua-una-pequena-bolivia-en-el-sur-de-buenos-aires. Hernando de Soto estimates that: Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (Basic Books, 2000). 7.7 percent of the population is “unbanked,”: Lori London, “The Top 10 Unbanked and Underbanked Cities,” goEBT, March 29, 2017, https://www.goebt.com/the-top-10-unbanked-and-underbanked-cities/. For the more than 2 billion adults worldwide: Global Findex Database, World Bank, 2014, http://www.worldbank.org/en/programs/globalfindex.

“The reason people don’t go around recording themselves”: Michael J. Casey, “Could the Blockchain Empower the Poor and Unlock Global Growth?” Techonomy, March 7, 2016, http://techonomy.com/2016/03/blockchain-global-growth/. He is working on a pilot in the Republic of Georgia: Laura Shin, Forbes, April 21, 2016, “Republic of Georgia to Pilot Land Titling on Blockchain with Economist Hernando De Soto, BitFury,” https://www.forbes.com/sites/laurashin/2016/04/21/republic-of-georgia-to-pilot-land-titling-on-blockchain-with-economist-hernando-de-soto-bitfury/#3c381e6144da. blockchain startup Ubitquity is partnering with Priority Title & Escrow: “Ubitquity, the Blockchain-Secured Platform for Real Estate Transactions, Partners with US-Based ‘Rising Barn’ for Property Recording,” Ubitquity.io, October 17, 2016, https://www.ubitquity.io/blog/ubitquity_llc_partners_prioritytitle_blockchain_10_17_2016.html.

Below we’ll discuss ways in which this risk might be mitigated. Still, when a ledger is assumed to be an unquestioned truth, the issue of what information gets into it is a serious one. Nonetheless, if we take a macro view and assume that in the vast majority of cases blockchains will be used honestly, the wider benefits of a cryptographically secure asset registry are pretty enticing. Peruvian economist and anti-poverty campaigner Hernando de Soto estimates that the amount of “dead capital,” the pool of untitled property around the world, is worth about $20 trillion. If poor people could use that capital as collateral, he says, the multiplier effect from all that credit flowing through the global economy could create growth rates in excess of 10 percent in developing countries, which account for more than half of world GDP. And it’s not just land.


pages: 246 words: 76,561

Radical Cities: Across Latin America in Search of a New Architecture by Justin McGuirk

A Pattern Language, agricultural Revolution, dark matter, Donald Trump, Enrique Peñalosa, extreme commuting, facts on the ground, Guggenheim Bilbao, Hernando de Soto, housing crisis, illegal immigration, income per capita, informal economy, Jane Jacobs, Kickstarter, lateral thinking, mass immigration, microcredit, Milgram experiment, neoliberal agenda, New Urbanism, place-making, Silicon Valley, starchitect, technoutopianism, unorthodox policies, urban decay, urban planning, urban renewal, urban sprawl, Washington Consensus

It was a choice between what he called ‘the supportive shack’ and ‘the oppressive house’. It was also apparent to Turner that the combined wealth of the poor – if all their assets were capitalised – was far greater than any government’s, and that all the poor needed was assistance in deploying their resources in the ways that suited them best, not in the manner that suited the government. This is a premise that the Peruvian economist Hernando de Soto has reasserted more recently, in calling for slum dwellers to be given land titles. In The Mystery of Capital de Soto writes: ‘Without formal property, no matter how many assets they accumulate or how hard they work, most people will not be able to prosper in a capitalist society.’ But this is not what Turner was arguing. As an anarchist, he was no advocate of standard right-wing economics.

‘My bet,’ writes David Harvey, ‘is that, if present trends continue, within fifteen years all those hillsides now occupied by favelas will be covered by high-rise condominiums with fabulous views over Rio’s bay.’* Harvey’s opinion is that the poor, out of need, are easily persuaded to sell their homes at too cheap a price. * David Harvey, ‘The Right to the City’, in Rebel Cities, Verso, 2012. Jailson’s solution would be not to give the favelados in the Zona Sul the right of ownership, and instead to levy a social rent system. This is a standard and, in my opinion, reasonable foil to Hernando de Soto’s argument that the only thing the favelados lack is access to the capital embedded in their homes.* For it is that very right, and the speculation that accompanies it, that ultimately forces the poor out of the centre of the city. ‘The state has to recognise that housing should have a use value and not an exchange value,’ says Jailson, sounding like a Brazilian David Harvey. ‘They should offer the right of use, not of ownership.

Cable cars have become something of a familiar sight in Latin American cities. In Caracas, Medellín and Rio, it’s as though they have become the default method for negotiating the hilly barrios, comunas and favelas. The origins of the Caracas Metrocable lie in 2001, at a conference on human settlements at the United Nations General Assembly in New York. Brillembourg and Klumpner were in a public debate with Hernando de Soto, questioning his thesis that the slum dwellers should be given legal titles to their houses. Firstly, they argued, it would be more productive to give them cooperative titles over the land rather than private titles that would incur all kinds of taxes that the slum dwellers could ill afford to pay; secondly, what use was a legal title at all to a house at the top of a hill that was inaccessible?


pages: 366 words: 117,875

Arrival City by Doug Saunders

agricultural Revolution, Ayatollah Khomeini, Berlin Wall, Branko Milanovic, call centre, credit crunch, Deng Xiaoping, desegregation, ghettoisation, Gini coefficient, guest worker program, Hernando de Soto, Honoré de Balzac, illegal immigration, immigration reform, income inequality, informal economy, Jane Jacobs, Kibera, land reform, land tenure, low skilled workers, mass immigration, megacity, microcredit, new economy, Pearl River Delta, pensions crisis, place-making, price mechanism, rent control, Silicon Valley, special economic zone, the built environment, The Chicago School, The Death and Life of Great American Cities, upwardly mobile, urban planning, urban sprawl, white flight, working poor, working-age population

Antwi, “Informality, Illegality and Market Efficiency: A Case for Land Market Deregulation in Accra and Lagos” (London, 2004). 27 R. Home and H. Lim, Demystifying the Mystery of Capital: Land Tenure and Poverty in Africa and the Caribbean (London: Glasshouse Press, 2004); Bishwapriya Sanyal, “Intention and Outcome: Formalization and Its Consequences,” Regional Development Dialogue 17, no. 1 (1996). 28 Staffan Granér, “Hernando de Soto and the Mystification of Capital,” Eurozine, no. 13 (Jan. 19, 2007): 6. 29 Donald A. Krueckenberg, “The Lessons of John Locke or Hernando de Soto: What If Your Dreams Come True?” Housing Policy Debate 15, no. 1 (2004): 3. 10 ARRIVING IN STYLE 1 Gerben Helleman and Frank Wassenber, “The Renewal of What Was Tomorrow’s Idealistic City, Amsterdam’s Bijlmermeer High-Rise,” Cities 21, no. 1 (2004); Ronald Van Kempen et al., eds., Restructuring Large Housing Estates in Europe (Bristol: The Policy Press, 2005). 2 Helleman and Wassenber, “The Renewal of What Was Tomorrow’s Idealistic City, Amsterdam’s Bijlmermeer High-Rise,” 8. 3 Maurice Crul and Liesbeth Heering, eds., The Position of the Turkish and Moroccan Second Generation in Amsterdam and Rotterdam (Amsterdam: Amsterdam University Press, 2008), 63–85, 166. 4 Doug Saunders, “Citizen Jane,” The Globe and Mail, Oct. 11, 1997. 5 William H.

One study estimates that in the developing cities of Asia, Latin America, sub-Saharan Africa, and the Arab states, between 25 and 70 percent of the urban population is living on land with no clear title.19 For a great many politicians and economists during the past 20 years, the major issue surrounding arrival cities has been the question of property ownership. That, they believe, is the beginning and the end of the social-mobility issue. The debate began in the 1980s, when a Peruvian economist began a drive to turn that country’s millions of rural-arrival squatters into property owners. Hernando de Soto established a network of formalization committees, which turned the jumble of arrival-city land titles into proper deeds and allowed people to form small businesses in a few days with a couple of forms, rather than the hundreds of days and scores of forms previously required. It was an exercise in immersing the very poor in a real economy. In 1989, de Soto described this process in a book provocatively titled The Other Path.

Perlman, “The Myth of Marginality Revisited: The Case of Favelas in Rio De Janeiro, 1969–2003” (Washington: The World Bank, 2005), 16, 20. 16 Mead and Schwenninger, The Bridge to a Global Middle Class. 17 Eduardo Zepeda et al., “Changes in Earnings in Brazil, Chile and Mexico: Disentangling the Forces Behind Pro-Poor Change in Labour Markets” (Brasilia: IPC-IG [UNDP], 2009). 18 Amartya Sen, Development as Freedom (Oxford: Oxford University Press, 1999). 19 A. Durand-Lasserve and L. Royston, Holding Their Ground: Secure Land Tenure for the Urban Poor in Developing Countries (London: Earthscan, 2002), 3. 20 Hernando de Soto, The Other Path: The Invisible Revolution in the Third World (New York: Harper & Row, 1989). 21 de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (London: Black Swan, 2000), 35. A number of critics have pointed out that this number is unverifiable. 22 L. J. Alston, G. D. Libecap and B. Mueller, Titles, Conflict and Land Use: The Development of Property Rights on the Brazilian Amazon Frontier (Ann Arbor: Michigan University Press, 1999). 23 G.


pages: 320 words: 87,853

The Black Box Society: The Secret Algorithms That Control Money and Information by Frank Pasquale

Affordable Care Act / Obamacare, algorithmic trading, Amazon Mechanical Turk, American Legislative Exchange Council, asset-backed security, Atul Gawande, bank run, barriers to entry, basic income, Berlin Wall, Bernie Madoff, Black Swan, bonus culture, Brian Krebs, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, Chelsea Manning, Chuck Templeton: OpenTable:, cloud computing, collateralized debt obligation, computerized markets, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, crowdsourcing, cryptocurrency, Debian, don't be evil, drone strike, Edward Snowden, en.wikipedia.org, Fall of the Berlin Wall, Filter Bubble, financial innovation, financial thriller, fixed income, Flash crash, full employment, Goldman Sachs: Vampire Squid, Google Earth, Hernando de Soto, High speed trading, hiring and firing, housing crisis, informal economy, information asymmetry, information retrieval, interest rate swap, Internet of things, invisible hand, Jaron Lanier, Jeff Bezos, job automation, Julian Assange, Kevin Kelly, knowledge worker, Kodak vs Instagram, kremlinology, late fees, London Interbank Offered Rate, London Whale, Marc Andreessen, Mark Zuckerberg, mobile money, moral hazard, new economy, Nicholas Carr, offshore financial centre, PageRank, pattern recognition, Philip Mirowski, precariat, profit maximization, profit motive, quantitative easing, race to the bottom, recommendation engine, regulatory arbitrage, risk-adjusted returns, Satyajit Das, search engine result page, shareholder value, Silicon Valley, Snapchat, social intelligence, Spread Networks laid a new fibre optics cable between New York and Chicago, statistical arbitrage, statistical model, Steven Levy, the scientific method, too big to fail, transaction costs, two-sided market, universal basic income, Upton Sinclair, value at risk, WikiLeaks, zero-sum game

David Golumbia, The Cultural Logic of Computation (Cambridge, MA: Harvard University Press, 2009). 220. Wu, The Master Switch, 83, 312, 314; Robert Lee Hale, Freedom through Law (New York: Columbia University Press, 1952). 221. Lanier, Who Owns the Future? (describing the inequality generated by the new digital economy). 222. Hale, Freedom through Law, 541. 4 Finance’s Algorithms: The Emperor’s New Codes 1. Hernando de Soto, The Other Path (New York: Harper & Row, 1989). 2. Hernando de Soto and Karen Weise, “The Destruction of Economic Facts,” Bloomberg Businessweek, April 28, 2011, http://www.businessweek .com /magazine/content /11_19/b4227060634112.htm. 3. As leading fi rms obsessed over short-term profit opportunities, one economist half-jokingly concluded that fi nance’s core competencies were “fi nding fools for counterparties,” evading regulations, and “disguising gambling as hedging.”

Opaque aspects of fi nance keep the leading Internet firms on their toes as surely as the Internet firms’ mysterious ranking mechanisms keep everyone else alert and worried about any possible loss of standing. It is therefore to this final and most forceful aspect of the new political economy—finance—that we now turn our attention. 4 FINANCE’S ALGORITHMS: THE EMPEROR’S NEW CODES I N 20 04 , the Cato Institute awarded Peruvian economist Hernando de Soto the $500,000 Milton Friedman Prize for Advancing Liberty. Despite two assassination attempts by communists, de Soto had tirelessly proselytized market solutions for Peru’s poor. American leaders loved his message, since he credited U.S. prosperity to rock solid financial markets and private property protections.1 By 2011, de Soto was lambasting the American economic system. He said that the financial crisis revealed a “staggering lack of knowledge” about “who owned and owed” in the United States.

Matt Taibbi called Goldman Sachs a “vampire squid;” an ink-squirting octopus of obfuscation would be fitting, too.171 Theoretical justifications for finance’s power focus on “free markets” generating fundamental knowledge about the economy. Without the great brokerages, and “bank holding companies,” how would we price debt, equity, or the more exotic risks assimilated into derivatives?172 Yet the rise of fi nancialization has created enormous uncertainty about the value of companies, homes, and even (thanks to the pressing need for bailouts) the once rock solid promises of governments themselves. Recall Hernando de Soto’s observation at the beginning of this chapter: when the basics of owing and ownership are in dispute, it’s hard for real markets to operate. Finance thrives in this environment of radical uncertainty, taking commissions in cash as investors (or, more likely, their poorly monitored agents) race to speculate on or hedge against an ever less knowable future. Like the employees scrambling to succeed on faceless companies’ job scoring algorithms, or fi rms desperate for search engine optimization, now companies compete to use fi nance fi rms for just the FINANCE’S ALGORITHMS 139 right mix of bets and hedges.


Falling Behind: Explaining the Development Gap Between Latin America and the United States by Francis Fukuyama

Andrei Shleifer, Atahualpa, barriers to entry, Berlin Wall, British Empire, business climate, Cass Sunstein, central bank independence, collective bargaining, colonial rule, conceptual framework, creative destruction, crony capitalism, European colonialism, Fall of the Berlin Wall, first-past-the-post, Francis Fukuyama: the end of history, Francisco Pizarro, Hernando de Soto, income inequality, income per capita, land reform, land tenure, Monroe Doctrine, moral hazard, New Urbanism, oil shock, open economy, purchasing power parity, rent-seeking, Ronald Reagan, The Wealth of Nations by Adam Smith, total factor productivity, trade liberalization, transaction costs, upwardly mobile, Washington Consensus, zero-sum game

In particular, there are two key individuals who brought this project to fruition: Daniel J. Chávez Morán, founder of the foundation, and Roberto Russell, its president. I would also like to thank the individual authors and everyone who participated in the November 2005 seminar in Buenos Aires—also titled “Explaining the Development Gap between Latin America and the United States”—for their thoughtful contributions. In addition to the authors, the seminar participants included Hernando De Soto, John W. Diamond, Pablo Guidotti, Celso Lafer, Juan Pablo Nicolini, Andrés Reggiani, Fernando Rocchi, Julio María Sanguinetti, Catalina Smulovitz, Ernesto Zedillo, and George Zodrow. Thanks are also due to Valeria Sobrino, who provided key logistical support, and Charles Roberts, who translated into English all of the chapters originally written in Spanish. Finally, special recognition is due to Guadalupe Paz, associate director of the Latin American Studies Program at SAIS, for her help in editing the English version of this volume and her general support of the project as a whole.

See, for example, Guido Tabellini, “Culture and Institutions: Economic Development in the Regions of Europe,” unpublished manuscript, Bocconi University, Milan, Italy, 2005. 24. Daron Acemoglu, Simon Johnson, and James A. Robinson, “Colonial Origins of Comparative Development: An Empirical Investigation,” American Economic Review 91 (2001): 1369–1401. 25. Simeon Djankov, Rafael La Porta, Florencio López-de-Silanes, and Andrei Shleifer, “The Regulation of Entry,” Quarterly Journal of Economics 117 (2001): 1–37. See also Hernando de Soto, The Other Path (New York: Harper & Row, 1989). 26. Acemoglu, Johnson, and Robinson, “Colonial Origins of Comparative Development.” 27. Alfred W. Crosby, Ecological Imperialism (New York: Cambridge University Press, 1986). 28. Acemoglu, Johnson, and Robinson, “Colonial Origins of Comparative Development.” 29. Ibid. 30. Ibid., p. 1387. 31. Engerman and Sokoloff, “Factor Endowments, Institutions, and Differential Growth Paths.” 32.

On the other hand, welldesigned efforts to decentralize power to a state and, even better, a municipal level have been important as a means of making government more responsive and accountable. Perhaps the single most important institutional deficit that runs through virtually all Latin American countries has to do with a weak rule of law. This includes not just property rights, but physical security against crime and access to the legal system more generally, particularly for the poor. Hernando de Soto has documented extensively how exclusion from the formal legal system, and the enormous amounts of red tape, inefficiency, and corruption present in it, drives large numbers 278 Conclusion of Latin Americans into the informal sector.11 There, they make use of social capital to run businesses or to squat on property, but without the protection of the state and its laws. This leads to inequalities in treatment, huge inefficiencies, and weak legitimacy for the politicians and parties that preside over the system.


pages: 25 words: 5,789

Data for the Public Good by Alex Howard

23andMe, Atul Gawande, Cass Sunstein, cloud computing, crowdsourcing, Hernando de Soto, Internet of things, Kickstarter, lifelogging, Network effects, openstreetmap, Silicon Valley, slashdot, social intelligence, social software, social web, web application

Principles for Data in the Public Good As a result of digital technology, our collective public memory can now be shared and expanded upon daily. In a recent lecture on public data for public good at Code for America, Michal Migurski of Stamen Design made the point that part of the global financial crisis came through a crisis in public knowledge, citing “The Destruction of Economic Facts,” by Hernando de Soto. To arrive at virtuous feedback loops that amplify the signals that citizens, regulators, executives and elected leaders inundated with information need to make better decisions, data providers and infomediaries will need to embrace key principles, as Migurski’s lecture outlined. First, “data drives demand,” wrote Tim O’Reilly, who attended the lecture and distilled Migurski’s insights. “When Stamen launched crimespotting.org, it made people aware that the data existed.


pages: 423 words: 149,033

The fortune at the bottom of the pyramid by C. K. Prahalad

barriers to entry, business cycle, business process, call centre, cashless society, clean water, collective bargaining, corporate social responsibility, deskilling, disintermediation, farmers can use mobile phones to check market prices, financial intermediation, Hernando de Soto, hiring and firing, income inequality, information asymmetry, late fees, Mahatma Gandhi, market fragmentation, microcredit, new economy, profit motive, purchasing power parity, rent-seeking, shareholder value, The Fortune at the Bottom of the Pyramid, time value of money, transaction costs, wealth creators, working poor

The focus of development aid has also shifted from infrastructure, education, and structural adjustments over the decades. 3. Hernando de Soto. The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. Basic Books, New York. 4. It is important to distinguish the informal, extralegal sector from the private sector even though the informal sector is about entrepreneurship under very hostile conditions. 5. C. K. Prahalad and Allen Hammond. “Serving the World’s Poor, Profitably.” The Harvard Business Review, September 2002. 6. CII-McKinsey Report on Learning from China to Unlock India’s Manufacturing Potential, March, 2002. 7. Hernando De Soto. Presentation at the World Economic Forum, Davos, Switzerland, 2004. 8. Supportive case written by Praveen Suthrum and Jeff Phillips under the supervision of Professor C.

Therefore, aid must be skewed to these sectors. The record of aid and loans from the various donor countries and the World Bank, International Monetary Fund, and other institutions is at best mixed. More recently, the development community is paying attention to the role of the private sector in building markets. There have been few voices of dissent to the dominant logic of the development community. Hernando De Soto, in his path-breaking book, The Mystery of Capital, challenged the assumption that poor countries are poor.3 Poor countries could often be asset-rich but capital-poor. Assets cannot become capital unless the country guarantees a rule of Reducing Corruption: Transaction Governance Capacity 79 law—primarily the law of contracts—whereby the ownership of assets is clear; and because of clear legal title, these assets can be sold, bought, mortgaged, or converted into other assets.

When Cemex organizes women, it not only gives them the tools and the materials required for them to build a kitchen; it also gives them a legal identity. The women are bound to the firm and vice versa. Neither party can break the contract without penalty. That is a proof of legal identity. The importance of legal identity cannot be underestimated. Without it, BOP consumers cannot access the services we take for granted, such as credit. Hernando de Soto documented the problems of a lack of legal identity at the BOP. The status of a “nonperson” in legal terms can confine people to a cycle of poverty. 108 The Fortune at the Bottom of the Pyramid Women Are Critical for Development A well-understood but poorly articulated reality of development is the role of women. Women are central to the entire development process. They are also at the vanguard of social transformation.


pages: 225 words: 61,388

Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa by Dambisa Moyo

affirmative action, Asian financial crisis, Bob Geldof, Bretton Woods, business cycle, buy and hold, colonial rule, correlation does not imply causation, credit crunch, diversification, diversified portfolio, en.wikipedia.org, European colonialism, failed state, financial innovation, financial intermediation, Hernando de Soto, income inequality, information asymmetry, invisible hand, Live Aid, M-Pesa, market fundamentalism, Mexican peso crisis / tequila crisis, microcredit, moral hazard, Ponzi scheme, rent-seeking, Ronald Reagan, sovereign wealth fund, The Chicago School, trade liberalization, transaction costs, trickle-down economics, Washington Consensus, Yom Kippur War

Third, they should continue to press for genuine free trade in agricultural products, which means that the US, the EU and Japan must scrap the various subsidies they pay to their farmers, enabling African countries to increase their earnings from primary product exports. Fourth, they should encourage financial intermediation. Specifically, they need to foster the spread of microfinance institutions of the sort that have flourished in Asia and Latin America. They should also follow the Peruvian economist Hernando de Soto’s advice and grant the inhabitants of shanty towns secure legal title to their homes, so that these can be used as collateral. And they should make it cheaper for emigrants to send remittances back home. In Dead Aid, Dambisa Moyo does not pull her punches. ‘In a perfect world,’ she writes, ‘what poor countries at the lowest rungs of economic development need is not a multi-party democracy, but in fact a decisive benevolent dictator to push through the reforms required to get the economy moving.’

Could it actually be that the countless development agents and agencies and innumerable man-hours deployed to send cash to Africa have been for naught – attempting to address a problem that simply does not exist? That, in fact, the core problem with Africa is not an absence of cash, but rather that its financial markets are acutely inefficient – borrowers cannot borrow, and lenders do not lend, despite the billions washing about. In The Mystery of Capital, the Peruvian economist Hernando de Soto suggests that the value of savings among the poor of Asia, the Middle East and Africa is as much as forty times all the foreign aid received throughout the world since 1945. He argues that were the United States to hike its foreign-aid allocations to the 0.7 per cent of national income (as prescribed by the United Nations at Monterrey), it would take the richest country more than 150 years to transfer to the world’s poor resources equal to those that they already have.


pages: 401 words: 115,959

Philanthrocapitalism by Matthew Bishop, Michael Green, Bill Clinton

Albert Einstein, anti-communist, barriers to entry, battle of ideas, Bernie Madoff, Bob Geldof, Bonfire of the Vanities, business process, business process outsourcing, Charles Lindbergh, clean water, cleantech, corporate governance, corporate social responsibility, Dava Sobel, David Ricardo: comparative advantage, don't be evil, family office, financial innovation, full employment, global pandemic, global village, God and Mammon, Hernando de Soto, high net worth, Intergovernmental Panel on Climate Change (IPCC), invisible hand, James Dyson, John Harrison: Longitude, joint-stock company, knowledge economy, knowledge worker, Live Aid, lone genius, Marc Andreessen, market bubble, mass affluent, microcredit, Mikhail Gorbachev, Nelson Mandela, new economy, offshore financial centre, old-boy network, peer-to-peer lending, performance metric, Peter Singer: altruism, plutocrats, Plutocrats, profit maximization, profit motive, Richard Feynman, risk tolerance, risk-adjusted returns, Ronald Coase, Ronald Reagan, shareholder value, Silicon Valley, Slavoj Žižek, South Sea Bubble, sovereign wealth fund, stem cell, Steve Jobs, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade liberalization, transaction costs, trickle-down economics, wealth creators, winner-take-all economy, working poor, World Values Survey, X Prize

This, says Omidyar, has a “triple-win model: the company whose problem gets solved gets a win; the inventor gets a cash prize; InnoCentive gets a fee.” To further foster entrepreneurship, in 2008 Omidyar Network also started to focus on public policy. “Effective government is crucial to social impact. So we will invest in strengthening governments and institutions,” says Omidyar. He is particularly keen on the agenda of strengthening the property rights of poor people, as described by the Peruvian economist Hernando de Soto in his book The Mystery of Capital. Skoll shares Omidyar’s view that philanthropists can pursue social good through for-profit activities as well as giving, although he chooses not to combine these approaches within a single organization. He believes there is a huge opportunity for leverage by supporting movies with a social message; that, he hopes, will shape public opinion and so shift resources.

While Microsoft may have enjoyed some monopoly power, it has always been exposed to dynamic competitors, from Apple to Google, which meant it had to keep innovating, reducing prices, and generally seeking to please its customers. The rise of the knowledge economy means that a growing number of the new rich can plausibly claim to have made their fortunes without exploiting anyone—the Google guys being perhaps the example par excellence. In principle, that ought to make it easier for society to applaud them and any philanthropy they do. However, not all of today’s new rich can brush off s critique so easily. Hernando de Soto, the Peruvian economist whose bestseller The Mystery of Capital is a powerful call for capitalism to be redesigned to better include the poor, contrasts the form of capitalism in which Gates thrived with what passes for capitalism in many poor or badly run countries. “At the end of the day, the argument Bill Gates can use against anybody in the U.S. is ‘you could have done it, too.’ In America, there is equality of opportunity.

Although the list is too long to include everyone who has given us their valuable time and insights, it includes Patty Stonesifer, Larry Brilliant, Kurt Hoffman, Mary Robinson, Joel Klein, David Blood, Muhammad Yunus, Tom Vander Ark, Bobby Shriver, Steve Gunderson, Judith Rodin, Trevor Nielson, Jamie Drummond, Melissa Berman, Doug Bauer, Diana Aviv, Andrew Hind, Adam Meyerson, Jeffrey Sachs, Amir Dossal, Peter Singer, Linda Rottenberg, Peter Kellner, Hernando de Soto, Diana Leat, Phil Buchanan, Carlos Danel, Bill Drayton, William Zabel, Paul Schervish, Lester Salomon, Joan Di Furia, Vartan Gregorian, Luc Tayart de Borms, Sam Jonah, Volker Then, David Green, David Carrington, Pamela Hartigan, John Elkington, Geoff Mulgan, Rowena Young, Larry Mone, Lael Brainerd, Alex Nicholls, Rob John, Fritz Mayer, Robert Dufton, Carl Schramm, Etienne Eichenberger, Felicitas von Peter, Charles MacCormack, Thomas Tierney, Bruce Lindsay, Michael E.


pages: 267 words: 70,250

Defending the Free Market: The Moral Case for a Free Economy by Robert A. Sirico

Affordable Care Act / Obamacare, barriers to entry, Berlin Wall, corporate governance, creative destruction, delayed gratification, Fall of the Berlin Wall, George Gilder, Gordon Gekko, greed is good, happiness index / gross national happiness, Hernando de Soto, informal economy, Internet Archive, liberation theology, means of production, moral hazard, obamacare, On the Revolutions of the Heavenly Spheres, profit motive, road to serfdom, zero-sum game

He exports goods worth tens of millions of dollars annually, and because his workers can now afford more goods and services, the local economy is enriched.4 Unfortunately, would-be entrepreneurs like Flores are often blocked from putting their imagination and hard work to use. Bureaucratic regulation and a corrupt political culture makes starting a legal business virtually impossible for people in many parts of the world. In his book The Mystery of Capital, the internationally respected development economist Hernando de Soto describes in tragicomic detail the almost surreal amount of red tape and bureaucracy a poor person in the developing world usually has to go through to obtain a business license. De Soto notes that when he began investigating this in the early ’80s, all of the big law firms he consulted in Peru assured him that setting up a formal business to get access to investment capital would be quick and easy.

Fifty-two percent of the world’s population lived in absolute poverty in 1981; by 2005, 25 percent did. 2 Peter Bauer, Dissent on Development: Revised Edition (Harvard University Press, 1971, 1979), 115. 3 Interview with President Paul Kagame in Kigali, Rwanda, PovertyCure, November 30, 2007, http://www.povertycure.org/voices/president-paul-kagame/#paul-kagame-the-entrepreneur-president. 4 Daniel Córdova, “Defeating Poverty Doing Business: The Case of the Flores Family and Topy Top,” in Lessons from the Poor: Triumph of the Entrepreneurial Spirit, ed. Alvaro Vargas Llosa (Independent Institute, 2008), 55–120. 5 Hernando de Soto, The Mystery of Capital (Basic Books, 2000), 190. 6 This segment of her interview is featured in Acton Media’s DVD Series on global poverty, scheduled for release in the second half of 2012. 7 See their website for more information at www.enersahaiti.com. 8 Quoted testimony begins at minute 59 of the March 10, 2010, U.S. Senate Committee on Foreign Relations hearing, available on the Committee website at http://www.foreign.senate.gov/hearings/building-on-success-new-directions-in-global-health. 9 Timothy T.


pages: 471 words: 124,585

The Ascent of Money: A Financial History of the World by Niall Ferguson

Admiral Zheng, Andrei Shleifer, Asian financial crisis, asset allocation, asset-backed security, Atahualpa, bank run, banking crisis, banks create money, Black Swan, Black-Scholes formula, Bonfire of the Vanities, Bretton Woods, BRICs, British Empire, business cycle, capital asset pricing model, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, collateralized debt obligation, colonial exploitation, commoditize, Corn Laws, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, deglobalization, diversification, diversified portfolio, double entry bookkeeping, Edmond Halley, Edward Glaeser, Edward Lloyd's coffeehouse, financial innovation, financial intermediation, fixed income, floating exchange rates, Fractional reserve banking, Francisco Pizarro, full employment, German hyperinflation, Hernando de Soto, high net worth, hindsight bias, Home mortgage interest deduction, Hyman Minsky, income inequality, information asymmetry, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, iterative process, John Meriwether, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, knowledge economy, labour mobility, Landlord’s Game, liberal capitalism, London Interbank Offered Rate, Long Term Capital Management, market bubble, market fundamentalism, means of production, Mikhail Gorbachev, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, mortgage debt, mortgage tax deduction, Myron Scholes, Naomi Klein, negative equity, Nelson Mandela, Nick Leeson, Northern Rock, Parag Khanna, pension reform, price anchoring, price stability, principal–agent problem, probability theory / Blaise Pascal / Pierre de Fermat, profit motive, quantitative hedge fund, RAND corporation, random walk, rent control, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, seigniorage, short selling, Silicon Valley, South Sea Bubble, sovereign wealth fund, spice trade, stocks for the long run, structural adjustment programs, technology bubble, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Bayes, Thomas Malthus, Thorstein Veblen, too big to fail, transaction costs, undersea cable, value at risk, Washington Consensus, Yom Kippur War

The question that remains to be answered is whether or not we have any business exporting this high-risk model to the rest of the world. As Safe as Housewives Quilmes, a sprawling slum on the southern outskirts of Buenos Aires, seems a million miles from the elegant boulevards of the Argentine capital’s centre. But are the people who live there really as poor as they look? As Peruvian economist Hernando de Soto sees it, shanty towns like Quilmes, despite their ramshackle appearance, represent literally trillions of dollars of unrealized wealth. De Soto has calculated that the total value of the real estate occupied by the world’s poor amounts to $9.3 trillion. That, he points out, is very nearly the total market capitalization of all the listed companies in the world’s top twenty economies - and roughly ninety times all the foreign aid paid to developing countries over between 1970 and 2000.

In Castlemilk, too, the recipients of loans are local women. In both El Alto and Castlemilk I heard how men were much more likely to spend their wages in the pub or the betting shop than to worry about making interest payments. Women, I was told repeatedly, were better at managing money than their husbands. Of course, it would be a mistake to assume that microfinance is the holy grail solution to the problem of global poverty, any more than is Hernando de Soto’s property rights prescription. Roughly two fifths of the world’s population is effectively outside the financial system, without access to bank accounts, much less credit. But just giving them loans won’t necessarily consign poverty to the museum, in Yunus’s phrase, whether or not you ask for collateral. Nor should we forget that some people in the microfinance business are in it to make money, not to end poverty. 73 It comes as something of a shock to discover that some microfinance firms are charging interest rates as high as 80 or even 125 per cent a year on their loans - rates worthy of loan sharks.

itemID=32032031. 62 Credit Suisse, ‘Foreclosure Trends - A Sobering Reality’, Fixed Income Research (23 April 2008). 63 See Prabha Natarajan, ‘Fannie, Freddie Could Hurt U.S. Credit’, Wall Street Journal, 15 April 2008. 64 Economic Report of the President 2007, tables B-77 and B-76: http:// www.gpoaccess.gov/eop/. 65 George Magnus, ‘Managing Minsky’, UBS research paper, 27 March 2008. 66 Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (London, 2001). 67 Idem, ‘Interview: Land and Freedom’, New Scientist, 27 April 2002. 68 Idem, The Other Path (New York, 1989). 69 Rafael Di Tella, Sebastian Galiani and Ernesto Schargrodsky, ‘The Formation of Beliefs: Evidence from the Allocation of Land Titles to Squatters’, Quarterly Journal of Economics, 122, 1 (February 2007), pp. 209-41. 70 ‘The Mystery of Capital Deepens’, The Economist, 26 August 2006. 71 See John Gravois, ‘The De Soto Delusion’, Slate, 29 January 2005: http://state.msn.com/id/2112792/. 72 The entire profit is transferred to a Rehabilitation Fund created to cope with emergency situations, in return for an exemption from corporate income tax. 73 Connie Black, ‘Millions for Millions’, New Yorker, 30 October 2006, pp. 62-73. 74 Shiller, ‘Recent Trends in House Prices’. 75 Edward L.


pages: 206 words: 9,776

Rebel Cities: From the Right to the City to the Urban Revolution by David Harvey

Bretton Woods, business cycle, collateralized debt obligation, commoditize, creative destruction, David Graeber, deindustrialization, financial innovation, Guggenheim Bilbao, Hernando de Soto, housing crisis, illegal immigration, indoor plumbing, invisible hand, Jane Jacobs, late capitalism, Long Term Capital Management, market bubble, market fundamentalism, means of production, moral hazard, mortgage debt, mortgage tax deduction, New Urbanism, Ponzi scheme, precariat, profit maximization, race to the bottom, Robert Shiller, Robert Shiller, special economic zone, the built environment, the High Line, The Wealth of Nations by Adam Smith, transcontinental railway, urban planning, We are the 99%, William Langewiesche, Works Progress Administration

The affordable housing problem, l ike the poverty and accessibility problem, has indeed b een moved around. Th ese examples warn us of the existence of a whole battery of seem­ ingly "progressive" solutions that not only m ove the problem around but actually strengthen while simultaneously lengthening the golden chain that imprisons vulnerable and marginalized populations within orbits of capital circulation and accumulation. Hernando de Soto argues influen­ tially that it is the lack of cle ar property rights that holds the poor down in misery in so much of the global south (ignoring the fact that poverty is abundantly in evidence in societies where clear prop erty rights are readily established). To be sure, there will be instances where the grant­ ing of such rights in Rio's favelas or in Lima's slums l ib erates individual energies and entrepreneurial endeavors leading to personal advance­ m ent.

Friedrich Engels, The Housing Question, New York: International Publishers ( 1 935}: 74-7. Marshall Berman, A ll That Is Solid Melts Into A ir, London: Penguin, 1 988. Friedrich Engels, The Housing Question: 23. Usha Ramanathan "I llegality and the Urban Poor:' Economic a n d Political Weekly, July 22, 2006; Rakesh Shukla, "Rights of the Poor: An Overview of Supreme Court;' Economic and Political Weekly, September 2, 2006. Much of this thinking follows the work of Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, New York: Basic Books, 2000; see the critical examina­ tion by Timothy Mitchell, "The Work of Economics: How a Discipline Makes its World;' Archives Europeennes de Sociologie 46: 2 (2005} : 297-320. NOTES TO PAG ES 21 TO 30 1 69 1 9 . Julia Elyachar, Markets of Dispossession: NGOs, Economic Development, and the State in Cairo, Chapel H ill, NC: Duke University Press, 2005. 20.


pages: 233 words: 75,712

In Defense of Global Capitalism by Johan Norberg

anti-globalists, Asian financial crisis, capital controls, clean water, correlation does not imply causation, creative destruction, Deng Xiaoping, Edward Glaeser, Gini coefficient, half of the world's population has never made a phone call, Hernando de Soto, illegal immigration, income inequality, income per capita, informal economy, Joseph Schumpeter, Kenneth Rogoff, land reform, Lao Tzu, liberal capitalism, market fundamentalism, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, open economy, prediction markets, profit motive, race to the bottom, rising living standards, Silicon Valley, Simon Kuznets, structural adjustment programs, The Wealth of Nations by Adam Smith, Tobin tax, trade liberalization, trade route, transaction costs, trickle-down economics, union organizing, zero-sum game

Property rights provide an incentive for foresight and personal initiative, spurring growth and distributing the fruits of it equally, on average, between rich and poor. Thus the introduction of safeguards for private property in a society has a distributive effect as favorable to the poor as a commitment to universal education. Studies indicate that protecting private ownership is the economic reform most conducive to growth.19 The Peruvian economist Hernando de Soto has done more than anyone else to show how poor people lose out in the absence of property rights. In his revolutionary book The Mystery of Capital, he turns the orthodox view of the world’s poor upside down. The problem is not that they are helpless or even that they lack ‘‘property,’’ in the sense of the physical assets themselves. The problem, rather, is that they have no formal rights of ownership.

Compare David Dollar and Aart Kraay, Property Rights, Political Rights, and the Development of Poor Countries in the Post-Colonial Period (Washington: World Bank, 2000), http://www.worldbank.org/research/growth/pdfiles/dollarkraay2.pdf and Growth Is Good for the Poor. Concerning the importance of property rights for economic development, see Nathan Rosenberg and L. E. Birdzell, How the West Grew Rich: The Economic Transformation of the Industrial World (New York: Basic Books, 1986). 20. Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (London: Bantam Press, 2000). 21. James Gwartney, Robert Lawson, Chris Edwards, Walter Park, Veronique de Rugy, and Smita Wagh, Economic Freedom of the World 2002 (Vancouver: Fraser Institute, 2002), http://freetheworld.com; Gerald P. O’Driscoll, Edwin J. Feulner, and Mary Anastasia O’Grady, The 2003 Index of Economic Freedom (Washington: Heritage Foundation and Wall Street Journal, 2002), http://www.heritage.org/index/2003. 22.


pages: 457 words: 128,838

The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic Order by Paul Vigna, Michael J. Casey

Airbnb, altcoin, bank run, banking crisis, bitcoin, blockchain, Bretton Woods, buy and hold, California gold rush, capital controls, carbon footprint, clean water, collaborative economy, collapse of Lehman Brothers, Columbine, Credit Default Swap, cryptocurrency, David Graeber, disintermediation, Edward Snowden, Elon Musk, Ethereum, ethereum blockchain, fiat currency, financial innovation, Firefox, Flash crash, Fractional reserve banking, hacker house, Hernando de Soto, high net worth, informal economy, intangible asset, Internet of things, inventory management, Joi Ito, Julian Assange, Kickstarter, Kuwabatake Sanjuro: assassination market, litecoin, Long Term Capital Management, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, McMansion, means of production, Menlo Park, mobile money, money: store of value / unit of account / medium of exchange, Nelson Mandela, Network effects, new economy, new new economy, Nixon shock, offshore financial centre, payday loans, Pearl River Delta, peer-to-peer, peer-to-peer lending, pets.com, Ponzi scheme, prediction markets, price stability, profit motive, QR code, RAND corporation, regulatory arbitrage, rent-seeking, reserve currency, Robert Shiller, Robert Shiller, Ross Ulbricht, Satoshi Nakamoto, seigniorage, shareholder value, sharing economy, short selling, Silicon Valley, Silicon Valley startup, Skype, smart contracts, special drawing rights, Spread Networks laid a new fibre optics cable between New York and Chicago, Steve Jobs, supply-chain management, Ted Nelson, The Great Moderation, the market place, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, tulip mania, Turing complete, Tyler Cowen: Great Stagnation, Uber and Lyft, uber lyft, underbanked, WikiLeaks, Y Combinator, Y2K, zero-sum game, Zimmermann PGP

one relief group, Concern Worldwide: Dipankar Datta, Anne Ejakait, and Monica Odak, “Mobile Phone–Based Cash Transfers: Lessons from the Kenya Emergency Response,” Humanitarian Exchange Magazine, October 2008, http://www.odihpn.org/humanitarian-exchange-magazine/issue-40/mobile-phone-based-cash-transfers-lessons-from-the-kenya-emergency-response. Perhaps inevitably, then, someone like Duncan: Elizabeth Rossiello, interviewed by Paul Vigna, May 9 and 18, 2014. a hacker house called iHub: http://www.ihub.co.ke/. from what Peruvian economist Hernando de Soto calls: Hernando de Soto, The Mystery of Capital (Basic Books, 2000). Jonathan Mohan, who works at Ethereum: Jonathan Mohan, speaking at the Inside Bitcoins conference, New York, April 7, 2014. 9. The Everything Blockchain Joseph Gleason, better known as Fireduck: Joseph Gleason, “Anyone Want to Run My Bitcoin Casino,” Bitcoin Forum, April 17, 2012, posted under “fireduck,” http://www.reddit.com/r/Bitcoin/comments/segz0/anyone_want_to_run_my_bitcoin_casino; identified as Joseph Gleason via Gleason’s Web site, http://1209k.com/bitcoin/faq.php.

This is why the stories coming out of Silicon Savannah are important—not only for Kenya but for the developing world as a whole. “There’s a much bigger story here,” Rossiello says. “We’re just getting started.” The root causes of financial isolation in poor countries go beyond people’s lack of bank accounts and how much it costs to send money. They start with the underprivileged being typically cut off from what Peruvian economist Hernando de Soto calls the “mystery of capital,” the idea that economic growth and the creation of wealth depend on clearly defined and documented property rights. De Soto has done as much as anyone else to further the idea that economic development should focus on documenting poor people’s assets—the homes that slum dwellers rightfully own but for which they have no title; the unlicensed businesses they operate; the under-the-table jobs for which they are paid.


pages: 313 words: 84,312

We-Think: Mass Innovation, Not Mass Production by Charles Leadbeater

1960s counterculture, Andrew Keen, barriers to entry, bioinformatics, c2.com, call centre, citizen journalism, clean water, cloud computing, complexity theory, congestion charging, death of newspapers, Debian, digital Maoism, disruptive innovation, double helix, Douglas Engelbart, Edward Lloyd's coffeehouse, frictionless, frictionless market, future of work, game design, Google Earth, Google X / Alphabet X, Hacker Ethic, Hernando de Soto, hive mind, Howard Rheingold, interchangeable parts, Isaac Newton, James Watt: steam engine, Jane Jacobs, Jaron Lanier, Jean Tirole, jimmy wales, Johannes Kepler, John Markoff, John von Neumann, Joi Ito, Kevin Kelly, knowledge economy, knowledge worker, lateral thinking, lone genius, M-Pesa, Mark Shuttleworth, Mark Zuckerberg, Marshall McLuhan, Menlo Park, microcredit, Mitch Kapor, new economy, Nicholas Carr, online collectivism, planetary scale, post scarcity, Richard Stallman, Shoshana Zuboff, Silicon Valley, slashdot, social web, software patent, Steven Levy, Stewart Brand, supply-chain management, The Death and Life of Great American Cities, the market place, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Whole Earth Catalog, Zipcar

Whatever that might be we will not discover it overnight; it will involve a real struggle against powerful vested interest, conventional wisdom and scepticism, both warranted and not; there will be costs as well as benefits. Cherished institutions and familiar ways of working will be threatened along with the privileged role of professional, authoritative sources of knowledge. The idea that sharing might become the economy’s motive force is deeply unsettling to some because it turns conventional wisdom on its head. From Adam Smith’s Wealth of Nations written in 1749 through to Hernando de Soto’s recent The Mystery of Capital, economists have argued that private property provides the basis for capital – the elixir at the heart of capitalism, which propels its constant growth and renewal. Karl Marx called capital ‘the hen that lays the golden eggs’ – that part of a nation’s assets that allows new ventures to be initiated and productivity increased. A house, parcel of land, piece of machinery or factory becomes capital only if it is fixed in a tangible form, as property, so that it can be used as collateral – to be borrowed against or notionally divided so others can invest in it.

A house, parcel of land, piece of machinery or factory becomes capital only if it is fixed in a tangible form, as property, so that it can be used as collateral – to be borrowed against or notionally divided so others can invest in it. The distinction between assets and capital is a tricky one, but assets are a stock of wealth – like reserves of oil – whereas capital is more like a flow of energy the oil creates when it is refined into petrol. The charismatic Peruvian economist Hernando de Soto argues on this basis that much of the world remains poor because although many people have savings, land and houses, these assets have not been fixed as property and so cannot play the role of capital. The considerable assets of poor economies have not been put into a form – private property – that propels the economy into ceaseless motion, which is what happened in the capitalist West. The answer, for de Soto, is for poorer countries to create systems of private property.


pages: 283 words: 81,163

How Capitalism Saved America: The Untold History of Our Country, From the Pilgrims to the Present by Thomas J. Dilorenzo

banking crisis, British Empire, business cycle, collective bargaining, corporate governance, corporate social responsibility, financial deregulation, Fractional reserve banking, Hernando de Soto, income inequality, invisible hand, Joseph Schumpeter, laissez-faire capitalism, means of production, medical malpractice, Menlo Park, minimum wage unemployment, Norman Mailer, plutocrats, Plutocrats, price stability, profit maximization, profit motive, Ralph Nader, rent control, rent-seeking, Robert Bork, Ronald Coase, Ronald Reagan, Silicon Valley, statistical model, The Wealth of Nations by Adam Smith, transcontinental railway, union organizing, Upton Sinclair, wealth creators, working poor, Works Progress Administration, zero-sum game

Coca-Cola, for example, uses considerably less aluminum in its cans than it did several decades ago. Coca-Cola did this not because it became more environmentally sensitive but because it wanted to increase its profits. One of the most striking demonstrations of the importance of property rights is the fact that the absence of property rights protections is a major cause of world poverty. As Hernando de Soto notes in his book The Mystery of Capital, many of the poorest countries in the world possess enormous amounts of capital, but their ownership is insecure because of faulty or nonexistent property law or property rights protections.10 The value of private savings in the “poor” countries of the world, says de Soto, is forty times the amount of foreign aid they have received since 1945. The problem is that the citizens of poorer countries hold these resources in defective forms: houses built on land whose ownership rights are not adequately recorded, unincorporated businesses with undefined liability, industries located where financiers and investors cannot see them.

The mass murder and economic destruction that were the inevitable consequences of socialism—and that were predicted by Mises and others in the 1920s—are documented in Stephane Courtois et al., eds., The Black Book of Communism (Cambridge: Harvard University Press, 1999). 7. Ludwig von Mises, The Free and Prosperous Commonwealth (New York: Volcker Fund, 1962), 67. 8. Leonard Read, “I, Pencil,” Foundation for Economic Education (http:11209.217.49.168/vnews.php?nid=316). 9. Friedrich Hayek, “The Pretense of Knowledge: Nobel Lecture,” American Economic Review, May 1975. 10. Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (New York: Basic Books, 2000). 11. Ibid., 6. 12. Ibid. 13. Nathan Rosenberg and L. E. Birdzell Jr., How the West Grew Rich: The Economic Transformation of the Industrial World (New York: Basic Books, 1986), 116–17. 14. Israel Kirzner, Competition and Entrepreneurship (Chicago: University of Chicago Press, 1978), 81. 15.


pages: 498 words: 145,708

Consumed: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole by Benjamin R. Barber

addicted to oil, AltaVista, American ideology, Berlin Wall, Bertrand Russell: In Praise of Idleness, Bill Gates: Altair 8800, business cycle, Celebration, Florida, collective bargaining, creative destruction, David Brooks, delayed gratification, Donald Trump, double entry bookkeeping, G4S, game design, George Gilder, Gordon Gekko, greed is good, Hernando de Soto, illegal immigration, informal economy, invisible hand, Joseph Schumpeter, laissez-faire capitalism, late capitalism, liberal capitalism, Marc Andreessen, McJob, microcredit, Naomi Klein, new economy, New Journalism, Norbert Wiener, nuclear winter, Panopticon Jeremy Bentham, pattern recognition, presumed consent, profit motive, race to the bottom, Ralph Nader, road to serfdom, Robert Bork, Ronald Reagan, Saturday Night Live, Silicon Valley, spice trade, Steve Jobs, telemarketer, The Fortune at the Bottom of the Pyramid, the market place, The Wisdom of Crowds, Thomas L Friedman, Thorstein Veblen, trade route, X Prize

These include the experiments proposed by three imaginative economic pioneers: C. K. Prahalad’s strategy of mining “the fortune at the bottom of the [consumer] pyramid” by turning the world’s poor into paying consumers; Muhammad Yunus’s idea for lifting women and their families out of poverty through microcredit, a small-loan program for the impoverished to jump-start market development in communities barred by poverty from market participation; and Hernando de Soto’s inventive idea of addressing poverty by legalizing informal and black-market elements of the private economy that represent real but largely unrealized wealth among populations that are poor in name rather than substance—if their invisible wealth can be unlocked. Each of these proposals, which I will only touch on here, has the virtue of relying on the market itself to cure what seems to be the market’s inability to address global inequalities and use its capitalist potential to treat world poverty and overcome global inequality.

The microcredit strategy has been used throughout the Third World, and been the subject of some experimental work in Third World enclaves inside the First World, in Los Angeles, for example. It depends on a market logic but conceives of the market as part of a larger world of values and norms for which the wealthy are no less responsible than the poor. In a third example of what can be called self-reforming market capitalism, the Peruvian economist and head of the Institute for Liberty and Democracy Hernando de Soto has attracted wide attention for his proposal to confront apparent poverty by finding ways to capture hidden wealth in the world of the poor. Market zealots like Margaret Thatcher and Milton Friedman as well as justice-seeking egalitarians like former Secretary of State Madeleine Albright and former United Nations Secretary-General Javier Pérez de Cuéllar have alike welcomed de Soto’s effort to bring “dead capital” into the real economy by titling untitled assets and thereby empowering the poor to whom the assets belong as players in that economy.

It must reach sustainability as soon as possible, so that it can expand its outreach without fund constraints.” Yunus also gives a high priority to building social capital, which helps sustain individuals in their new endeavors. Muhammad Yunus, “What Is Microcredit?” January 2003, available on-line at www.grameen-info.org/mcredit/. 45. Alan Budd, “A Mystery Solved,” Times Literary Supplement, December 15, 2000. 46. Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (New York: Basic Books, 2000), p. 49. 47. Allen D. Kanner, “Globalization and the Commercialization of Childhood,” Tikkun, vol. 20, no. 5 (2005), p. 49. 48. See Peter W. Singer, Children at War (New York: Pantheon, 2005). Child soldiers used to be a rarity, but now, as Singer shows, they are commonplace in Africa and parts of Southeast Asia.


pages: 501 words: 145,943

If Mayors Ruled the World: Dysfunctional Nations, Rising Cities by Benjamin R. Barber

Affordable Care Act / Obamacare, American Legislative Exchange Council, Berlin Wall, bike sharing scheme, borderless world, Boris Johnson, Bretton Woods, British Empire, car-free, carbon footprint, Cass Sunstein, Celebration, Florida, clean water, corporate governance, crowdsourcing, David Brooks, desegregation, Detroit bankruptcy, digital Maoism, disintermediation, edge city, Edward Glaeser, Edward Snowden, Etonian, failed state, Fall of the Berlin Wall, feminist movement, Filter Bubble, George Gilder, ghettoisation, global pandemic, global village, Hernando de Soto, Howard Zinn, illegal immigration, In Cold Blood by Truman Capote, income inequality, informal economy, information retrieval, Jane Jacobs, Jaron Lanier, Jeff Bezos, London Interbank Offered Rate, Mark Zuckerberg, market fundamentalism, Marshall McLuhan, Masdar, megacity, microcredit, Mikhail Gorbachev, mortgage debt, mutually assured destruction, new economy, New Urbanism, Nicholas Carr, Norman Mailer, nuclear winter, obamacare, Occupy movement, Panopticon Jeremy Bentham, Peace of Westphalia, Pearl River Delta, peer-to-peer, planetary scale, plutocrats, Plutocrats, profit motive, Ralph Waldo Emerson, RFID, Richard Florida, Ronald Reagan, self-driving car, Silicon Valley, Skype, smart cities, smart meter, Steve Jobs, Stewart Brand, Telecommunications Act of 1996, The Death and Life of Great American Cities, The Fortune at the Bottom of the Pyramid, The Wealth of Nations by Adam Smith, Tobin tax, Tony Hsieh, trade route, UNCLOS, UNCLOS, unpaid internship, urban sprawl, War on Poverty, zero-sum game

Making Capitalism Work: Formalizing the Informal Economy The renewal of the alliance between citizens and their local government, rooted in the government’s capacity to provide jobs, regulations, and private-public cooperation and in the citizen’s inclination to participate in local decision making and neighborhood affairs, is the urban key to ameliorating inequality. Social observers and civic advocates like Hernando de Soto, the director of the Institute for Liberty and Democracy in Peru, have long recognized, however, that urban economics is as much about informal power as about city government, as much about the invisible economy as about public jobs or formal corporate institutions. As Katherine Boo poignantly shows, the reality in third-world megacities in Africa, Latin America, and Asia is an informal economy that offers employment to the technically “jobless,” lodging to the technically “homeless,” and hope, however wan and perverse, to the actually “hopeless.”

To be successful as a mitigation tactic, however, it must clearly do more than relabel poverty as “opportunity.” Microfinance, a strategy pioneered by Muhammad Yunus, the founder of the Grameen Bank in Bangladesh, also seeks to bootstrap women out of poverty by recognizing their economic potential when catalyzed by small loans that allow them to turn creativity into new local business ventures.32 In what can be seen as a kind of ingenious amalgam of Richard Florida and Hernando de Soto, Yunus effectively recognizes the human capital represented by women’s creative entrepreneurial energy and releases it with the help of microfinance. Originally aimed primarily at village women, the approach has also been used in cities, including New York, Los Angeles, and San Francisco. By acknowledging and facilitating the special role women play in family and neighborhood in stabilizing society, microfinance becomes a fiscal strategy for urban integration.

Where nationally, citizens vote for leaders without trusting them, urban dwellers in the United States seem to trust their leaders without actually feeling the need to vote for them! See http://www.citymayors.com/news/metrones-Americas.html, May 28, 2013. 26. The Nation devoted a special issue to the question “Can We Trust Government Again,” April 9, 2012, answering: not so much that we do or can, but that we must! 27. Joseph E. Stiglitz, The Price of Inequality, New York: W. W. Norton, 2012, p. 267. 28. Hernando de Soto, cited in Alan Budd, “A Mystery Solved,” Times Literary Supplement, December 15, 2000. 29. De Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, New York: Basic Books, 2000, p. 46. 30. I have offered criticism in depth of de Soto as well as of C. K. Prahalad and Muhammad Yunus (below) in Benjamin Barber, Consumed: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole, New York: W.


pages: 340 words: 91,387

Stealth of Nations by Robert Neuwirth

accounting loophole / creative accounting, big-box store, British Empire, call centre, collective bargaining, corporate governance, full employment, Hernando de Soto, illegal immigration, income inequality, informal economy, invisible hand, Jane Jacobs, jitney, Johannes Kepler, joint-stock company, Joseph Schumpeter, megacity, microcredit, New Urbanism, Pepto Bismol, pirate software, profit motive, Shenzhen was a fishing village, Simon Kuznets, special economic zone, The Wealth of Nations by Adam Smith, thinkpad, upwardly mobile, Vilfredo Pareto, yellow journalism

Every single one of the computer dealers in Ciudad del Este is now a legal, registered, taxpaying company (indeed, Alex reported with a kind of perverse pride that Icompy is now the fiftieth-largest taxpayer in Paraguay), and their imports are all open and on the record and on the books. On the surface, this appears to be a major vindication of the idea advanced more than two decades ago by the Peruvian economist, entrepreneur, and think-tank leader Hernando de Soto. De Soto is one of the pioneers in thinking about System D. His book The Other Path, issued in Spanish in the mid-1980s and in English in 1989, was, essentially, the first mainstream volume to acknowledge the vitality, validity, and value of System D. He offered a simple and intuitive response: simplify the workings of regulations and legal codes to make it easier for System D businesses to join the licensed, registered, incorporated world.

These things are part of the DNA of their system—and, like the Ciudad del Este computer dealers, any merchants who do business at the side of the road will need to see some serious and direct incentives if they are going to consider going legit. The idea that formalization offers an automatic avenue to commercial and social success is captivating, but it hasn’t worked. Even when countries have adopted de Soto’s paradigm, growth has remained elusive. As Princeton sociologist Alejandro Portes told me, “The promise of Hernando de Soto’s ‘Other Path,’ that you would open the markets and lift regulations and the economy would take off because of the energy of these small enterprises, has not materialized.” The main issue here is that de Soto and most other economists view System D from the outside. When your world involves incorporation, registration, and licensing, you see the barriers to achieving these things as the key problem.


pages: 540 words: 168,921

The Relentless Revolution: A History of Capitalism by Joyce Appleby

1919 Motor Transport Corps convoy, agricultural Revolution, anti-communist, Asian financial crisis, asset-backed security, Bartolomé de las Casas, Bernie Madoff, Bretton Woods, BRICs, British Empire, call centre, Charles Lindbergh, collateralized debt obligation, collective bargaining, Columbian Exchange, commoditize, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, deskilling, Doha Development Round, double entry bookkeeping, epigenetics, equal pay for equal work, European colonialism, facts on the ground, failed state, Firefox, fixed income, Ford paid five dollars a day, Francisco Pizarro, Frederick Winslow Taylor, full employment, Gordon Gekko, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, Hernando de Soto, hiring and firing, illegal immigration, informal economy, interchangeable parts, interest rate swap, invention of movable type, invention of the printing press, invention of the steam engine, invisible hand, Isaac Newton, James Hargreaves, James Watt: steam engine, Jeff Bezos, joint-stock company, Joseph Schumpeter, knowledge economy, land reform, Livingstone, I presume, Long Term Capital Management, Mahatma Gandhi, Martin Wolf, moral hazard, Parag Khanna, Ponzi scheme, profit maximization, profit motive, race to the bottom, Ralph Nader, refrigerator car, Ronald Reagan, Scramble for Africa, Silicon Valley, Silicon Valley startup, South China Sea, South Sea Bubble, special economic zone, spice trade, spinning jenny, strikebreaker, the built environment, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thorstein Veblen, total factor productivity, trade route, transatlantic slave trade, transcontinental railway, union organizing, Unsafe at Any Speed, Upton Sinclair, urban renewal, War on Poverty, working poor, Works Progress Administration, Yogi Berra, Yom Kippur War

They had never seen reptiles as large as the iguana, and they puzzled that there were not only no horses or cows in the New World but also no four-legged animals larger than a fox on the islands of the Caribbean. The explorers and conquerors missed the familiar trees of Europe, but they marveled at the exquisite flowering plants of the Caribbean, later determined to number more than thirteen thousand. Horses, cattle, and uninvited rats throve in their new habitat. Hernando de Soto led a four-year expedition across the southeast of the North American continent. With many of his provisions on the hoof, he trekked across what is now North Carolina, Tennessee, Alabama, and Arkansas, leaving behind a host of European pigs to propagate in the New World. Conquistadors, given vast tracts of land, began to raise cattle while the horse made its way north, transforming the culture of the Plains Indians.

Change must come from within, he maintains, but domestic reformers will succeed only with assistance from the industrialized world. Nor does he place faith in globalization per se because the entrance of India and China has made it much harder for latecomers to get into the world marketplace. A former official with the World Bank, Collier recognizes the tyranny of the already tried and urges a revitalized debate on the subject.25 The best ideas for tackling poverty have come from people, like Muhammad Yunus, Hernando de Soto, Amartya Sen, Frances Moore Lappé, Walden Bello, Raj Patel, and Peter Barnes, who want to use the strengths of capitalism in new ways to enhance everyone’s life. This of course is what Marx wanted to do: build on the capitalistic base of wealth to provide for the entire society. He failed to foresee the danger of joining a society’s economic and political power through state ownership of property.

Such capabilities could include women’s being free to discuss contraception, which he found increases the possibility of their society’s making it available to them.29 The basic thrust of Sen’s teachings is to see freedom as a positive force rather than discuss it as the absence of restraint. Governments must assume the responsibility, in his view, to make sure that their citizens have developed their potential. His emphasis has changed the way that aid and deprivation are evaluated. Many poor suffer because their governments fail to address their most basic needs, a neglect less likely to occur where freedom is respected, he says. Hernando De Soto is another warrior in the fight against poverty. A Peruvian economist with strong connections to international banking and engineering firms, he now heads Peru’s Institute for Liberty and Democracy. The institute concentrates on a different way to empower the poor: get them legal title to the land they occupy and the outfits they operate. De Soto has drawn attention to the informal economies worldwide where people cultivate land, improve their dwellings, and run businesses without having title to their property.


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The end of history and the last man by Francis Fukuyama

affirmative action, anti-communist, Ayatollah Khomeini, Berlin Wall, Bonfire of the Vanities, business cycle, centre right, cuban missile crisis, deindustrialization, Deng Xiaoping, Donald Trump, European colonialism, Exxon Valdez, F. W. de Klerk, Fall of the Berlin Wall, Francis Fukuyama: the end of history, full employment, Gini coefficient, Gunnar Myrdal, Hernando de Soto, income inequality, Isaac Newton, Joan Didion, joint-stock company, Joseph Schumpeter, kremlinology, land reform, liberal world order, liberation theology, life extension, linear programming, long peace, means of production, Mikhail Gorbachev, Nelson Mandela, New Journalism, nuclear winter, old-boy network, open economy, post-industrial society, RAND corporation, Ronald Reagan, Socratic dialogue, strikebreaker, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, zero-sum game

These new, democratically elected leaders started from the premise that underdevelopment was not due to the inherent inequities of capitalism, but rather to the insufficient degree of capitalism that had been practiced in their countries in the past. Privatization and free trade have become the new watchwords in place of nationalization and import substitution. The Marxist orthodoxy of Latin American intellectuals has come under increasing challenge from writers like Hernando de Soto, Mario Vargas Llosa, and Carlos Rangel, who have begun to find a significant audience for liberal, market-oriented economic ideas. As mankind approaches the end of the millennium, the twin crises of authoritarianism and socialist central planning have left only one competitor standing in the ring as an ideology of potentially universal validity: liberal democracy, the doctrine of individual freedom and popular sovereignty.

In Brazil, the state not only runs posts and communications, but manufactures steel, mines iron ore and potash, prospects for oil, runs commercial and investment banks, generates electric power, and builds airplanes. These public-sector companies cannot go bankrupt, and use employment as a form of political patronage. Prices throughout the Brazilian economy, and particularly within the public sector, are set less by the market than by a process of political negotiation with powerful unions.23 Or take the case of Peru. Hernando de Soto in his book The Other Path documents how his institute in Lima attempted to set up a fictitious factory according to the formal legal rules established by the Peruvian government. Going through eleven bureaucratic procedures required took 289 days and a total cost of $1,231 in fees and lost wages (including the payment of two bribes), or thirty-two times the minimum monthly wage.24 According to de Soto, regulatory barriers to the formation of new businesses constitute a major obstacle to entrepreneurship in Peru, particularly on the part of poor people, and explains the burgeoning of a huge “informal” (that is, illegal or extra-legal) economy of people unwilling and unable to cope with state-imposed barriers to trade.

In any case, import substitution was particularly indiscriminate in Latin America, and was continued long after it could be justified for the protection of new industries. 22 On this point, see Albert O. Hirschman, “The Turn to Authoritarianism in Latin America and the Search for Its Economic Determinants,” in David Collier, ed., The New Authoritarianism in Latin America (Princeton, N.J.: Princeton University Press, 1979), p. 85. 23 On the public sector in Brazil, see Baer (1989), pp. 238-273. 24 Hernando de Soto, The Other Path: The Invisible Revolution in the Third World (New York: Harper and Row, 1989), p. 134. 25 In the Foreword to ibid., p. xiv. 26 Quoted in Hirschman (1979), p. 65. 27 See Sylvia Nasar, “Third World Embracing Reforms to Encourage Economic Growth,” New York Times (July 8, 1990), pp. A1, D3. Chapter 10. In the Land of Education 1 Nietzsche, The Portable Nietzsche (New York: Viking, 1954), p. 231. 2 Seymour Martin Lipset, “Some Social Requisites of Democracy: Economic Development and Political Legitimacy,” American Political Science Review 53 (1959): 69-105.


pages: 356 words: 103,944

The Globalization Paradox: Democracy and the Future of the World Economy by Dani Rodrik

affirmative action, Asian financial crisis, bank run, banking crisis, bilateral investment treaty, borderless world, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, central bank independence, collective bargaining, colonial rule, Corn Laws, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, Doha Development Round, en.wikipedia.org, endogenous growth, eurozone crisis, financial deregulation, financial innovation, floating exchange rates, frictionless, frictionless market, full employment, George Akerlof, guest worker program, Hernando de Soto, immigration reform, income inequality, income per capita, industrial cluster, information asymmetry, joint-stock company, Kenneth Rogoff, land reform, liberal capitalism, light touch regulation, Long Term Capital Management, low skilled workers, margin call, market bubble, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, microcredit, Monroe Doctrine, moral hazard, night-watchman state, non-tariff barriers, offshore financial centre, oil shock, open borders, open economy, Paul Samuelson, price stability, profit maximization, race to the bottom, regulatory arbitrage, savings glut, Silicon Valley, special drawing rights, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tobin tax, too big to fail, trade liberalization, trade route, transaction costs, tulip mania, Washington Consensus, World Values Survey

In contrast to these holistic approaches encompassing a very long list of reforms, others attempted to come up with a new big fix. The hedgehogs’ big idea this time was not trade; it had to be something else. But the reasoning took a similar form: “Poor countries are poor primarily because they lack X: give them X and we will have solved the problem of world poverty.” For the Peruvian economist and activist Hernando de Soto, X was formal titles to property. Give poor people a piece of paper which gives them legal ownership rights over their house or their land, he thought, and you will turn them into entrepreneurs and successful capitalists.27 For the Bangladeshi economist and banker Muhammad Yunus, X was credit. Give each entrepreneur a small loan (a “microcredit”), he argued, and you will unleash a process of growth and development from below.28 Both of these ideas inspired active movements and found large numbers of practitioners worldwide.

., Stabilization and Reform in Latin America: A Macroeconomic Perspective on the Experience Since the Early 1990s, IMF Occasional Paper, Washington, DC, February 2005, p. xiv. 25 Anne O. Krueger, “Meant Well, Tried Little, Failed Much: Policy Reforms in Emerging Market Economies,” Remarks at the Roundtable Lecture at the Economic Honors Society, New York University, New York, March 23, 2004. 26 Arvind Panagariya, “Think Again—International Trade,” Foreign Policy (November–December 2003). 27 Hernando de Soto, The Mystery of Capital (New York: Basic Books, 2000). 28 Muhammad Yunus, Banker to the Poor: Micro-Lending and the Battle Against World Poverty (New York: Public Affairs, 2003). 29 William Easterly, The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good (New York: Penguin, 2006). 30 This approach, called “the Growth Diagnostics framework,” was developed by Ricardo Hausmann, Andres Velasco, and myself.


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Reinventing the Bazaar: A Natural History of Markets by John McMillan

"Robert Solow", accounting loophole / creative accounting, Albert Einstein, Alvin Roth, Andrei Shleifer, Anton Chekhov, Asian financial crisis, congestion charging, corporate governance, corporate raider, crony capitalism, Dava Sobel, Deng Xiaoping, experimental economics, experimental subject, fear of failure, first-price auction, frictionless, frictionless market, George Akerlof, George Gilder, global village, Hernando de Soto, I think there is a world market for maybe five computers, income inequality, income per capita, informal economy, information asymmetry, invisible hand, Isaac Newton, job-hopping, John Harrison: Longitude, John von Neumann, Kenneth Arrow, land reform, lone genius, manufacturing employment, market clearing, market design, market friction, market microstructure, means of production, Network effects, new economy, offshore financial centre, ought to be enough for anybody, pez dispenser, pre–internet, price mechanism, profit maximization, profit motive, proxy bid, purchasing power parity, Ronald Coase, Ronald Reagan, sealed-bid auction, second-price auction, Silicon Valley, spectrum auction, Stewart Brand, The Market for Lemons, The Nature of the Firm, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, War on Poverty, Xiaogang Anhui farmers, yield management

Whereas in affluent countries the vast majority of economic actors are able to call upon the state for support, in poorer countries many cannot. What is the role of the state? The large amount of shadow activity shows that markets can function where the state is not merely absent but even disruptive. Does this mean that the state is irrelevant to markets? Would the market participants supply for themselves all the market-supporting mechanisms they need, if only the state stayed out of things? Hernando de Soto, in his deservedly famous book The Other Path, depicted Peru’s vigorous shadow economy as a democratic system, run by the people themselves quite independently of the state.25 Unlicensed entrepreneurs developed informal passenger transportation, to such an extent that in the 1980s officially licensed operators ran just 10 percent of Lima’s mass-transit vehicles. Innumerable street vendors sold food, cigarettes, and so on without permits and without paying taxes.

Shadow businesses have ad hoc rights to the land they occupy. But these rights are not as secure as they would be under an effective legal system, for there is some risk of expropriation. As a result, entrepreneurs are reluctant to make expensive, immobile investments in plant and equipment, investments that might enable them to grow beyond simple processing into manufacturing advanced goods. Operating outside the law “involves tremendous costs,” Hernando de Soto concluded. “The apparent chaos, waste of resources, invasions, and everyday courage are the informals’ desperate and enterprising attempts to build an alternative system to the one that has denied them its protection.” The shadow economy has its limits. When you examine the shadow economy anywhere, from Lima to New York, what is most striking is its dynamism: its bustling, life-sustaining energy.


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Zero-Sum Future: American Power in an Age of Anxiety by Gideon Rachman

Asian financial crisis, bank run, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Bonfire of the Vanities, borderless world, Bretton Woods, BRICs, capital controls, centre right, clean water, collapse of Lehman Brothers, colonial rule, currency manipulation / currency intervention, deindustrialization, Deng Xiaoping, Doha Development Round, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, full employment, global reserve currency, greed is good, Hernando de Soto, illegal immigration, income inequality, invisible hand, Jeff Bezos, laissez-faire capitalism, Live Aid, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, moral hazard, mutually assured destruction, Naomi Klein, Nelson Mandela, offshore financial centre, open borders, open economy, Peace of Westphalia, peak oil, pension reform, plutocrats, Plutocrats, popular capitalism, price stability, RAND corporation, reserve currency, rising living standards, road to serfdom, Ronald Reagan, shareholder value, Sinatra Doctrine, sovereign wealth fund, special economic zone, Steve Jobs, Stewart Brand, The Chicago School, The Great Moderation, The Myth of the Rational Market, Thomas Malthus, trickle-down economics, Washington Consensus, Winter of Discontent, zero-sum game

At the World Economic Forum in Davos, he approached Carla Hills, the U.S. trade representative, with the idea of negotiating a free-trade agreement between Mexico and the United States. The resulting North American Free Trade Agreement (NAFTA) was implemented in 1994.5 Latin America did not simply passively receive lessons in free-market economics from the rest of the world. Prominent regional economists like the Peruvian Hernando de Soto became important contributors to the new liberal economics, with De Soto doing much to argue the case for the importance of property rights for the poor.6 Nonetheless, the new economics pursued across the continent came with the approval of the International Monetary Fund and the World Bank. Since both mighty institutions were based in Washington, the free-market prescription became known as the “Washington Consensus”—a phrase dreamed up by John Williamson, an economist at the Institute for International Economics.7 Across Latin America, government pursued the new consensus policies: cutting tariffs and taxes, making life easier for foreign investors, allowing markets to set interest and exchange rates, cutting regulation, privatizing.

This section draws heavily on the work of Michael Reid, a former colleague of mine at the Economist. 2. Ibid., 121. 3. Timothy Garton Ash is eloquent on the importance of roundtable negotiations as part of the peaceful transition to democracy in Central Europe. 4. Reid, Forgotten Continent, 123. 5. Maxwell Cameron and Brian Tomlin, The Making of NAFTA: How the Deal Was Done (Ithaca, N.Y.: Cornell University Press, 2000), 2. 6. See Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (London: Black Swan, 2001). 7. Williamson’s own account of what he meant can be found in John Williamson, “A Short History of the Washington Consensus,” Fundación CIDOB paper, presented at a conference titled “From the Washington Consensus Towards a New Global Governance,” Barcelona, September 24, 2004.


State-Building: Governance and World Order in the 21st Century by Francis Fukuyama

Asian financial crisis, Berlin Wall, Bretton Woods, centre right, corporate governance, demand response, Doha Development Round, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, George Akerlof, Hernando de Soto, information asymmetry, liberal world order, Live Aid, Nick Leeson, Pareto efficiency, Potemkin village, price stability, principal–agent problem, rent-seeking, road to serfdom, Ronald Coase, structural adjustment programs, technology bubble, The Market for Lemons, The Nature of the Firm, transaction costs, Washington Consensus, Westphalian system

the missing dimensions of stateness 21 negative effects of excessive state scope are in the long-run counterbalanced by the positive effects of greater administrative capacity.3 The New Conventional Wisdom Much of what has been laid out about the importance of state strength is now taken for granted within the development policy community, whose mantra since at least 1997 has been the dictum that “institutions matter” (World Bank 1997, World Bank 2001). The concern over state strength, which goes under a variety of headings including “governance,” “state capacity,” or “institutional quality,” has always been around under different titles in development economics. It was highlighted in Hernando de Soto’s book The Other Path (1989), which reminded the development community of the importance of formal property rights and, more broadly, of the consequences of well-functioning legal institutions for efficiency. De Soto (1989, 134) sent his researchers to find out how long it took to get a small business license in Lima, Peru; 10 months, 11 offices, and $1231 later, they came back with legal authorization to start a business.


pages: 401 words: 122,457

Salt: A World History by Mark Kurlansky

British Empire, clean water, Deng Xiaoping, domestication of the camel, haute cuisine, Hernando de Soto, Honoré de Balzac, invention of movable type, long peace, Mahatma Gandhi, spice trade, The Wealth of Nations by Adam Smith, trade route

Deep holes, almost caves, were formed by the constant licking. The lick at the end of the road, because it had a salt supply, was a suitable place for a settlement. Villages were built at the licks. A salt lick near Lake Erie had a wide road made by buffalo, and the town started there was named Buffalo, New York. When Europeans arrived, they found a great deal of salt making in North American villages. In 1541, Spanish explorer Hernando de Soto, traveling up the Mississippi, noted: “The salt is made along a river, which, when the water goes down, leaves it upon the sand. As they cannot gather the salt without a large mixture of sand, it is thrown into certain baskets they have made for the purpose, made large at the mouth and small at the bottom. These are set in the air on a ridge pole; and water being thrown on, vessels are placed under them wherein it may fall, then being strained on the fire it is boiled away, leaving salt at the bottom.”

Eighteenth Annual Report of the United States Geological Survey to the Secretary of the Interior, 1896–97, Washington: Government Printing Office, 1897. Halbouty, Michel T. Salt Domes: Gulf Region, United States, and Mexico. Houston: Gulf Publishing, 1967. Osborne, Roger. The Floating Egg: Episodes in the Making of Geology. London: Pimlico, 1998. General History Barber, Elizabeth Wayland. The Mummies of Ürümchi. New York: W. W. Norton, 1999. Bourne, E. G. Narratives of the Career of Hernando De Soto. Vol. I. Ed. E. G. Bourne. New York, 1904. Boutin, Emile. La Baie de Bretagne et sa contrebande. Laval: Siloë, 1993. Chadha, Yogesh. Gandhi: A Life. New York: John Wiley and Sons, 1997. Chalmers, Harvey. The Birth of the Erie Canal. New York: Bookman Associates, 1960. Condor, George E. Stars in the Water: The Story of the Erie Canal. Garden City, N.Y.: Doubleday, 1974. Cunliffe, Barry.


pages: 386 words: 122,595

Naked Economics: Undressing the Dismal Science (Fully Revised and Updated) by Charles Wheelan

"Robert Solow", affirmative action, Albert Einstein, Andrei Shleifer, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, business cycle, buy and hold, capital controls, Cass Sunstein, central bank independence, clean water, collapse of Lehman Brothers, congestion charging, creative destruction, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, Daniel Kahneman / Amos Tversky, David Brooks, demographic transition, diversified portfolio, Doha Development Round, Exxon Valdez, financial innovation, fixed income, floating exchange rates, George Akerlof, Gini coefficient, Gordon Gekko, greed is good, happiness index / gross national happiness, Hernando de Soto, income inequality, index fund, interest rate swap, invisible hand, job automation, John Markoff, Joseph Schumpeter, Kenneth Rogoff, libertarian paternalism, low skilled workers, Malacca Straits, market bubble, microcredit, money market fund, money: store of value / unit of account / medium of exchange, Network effects, new economy, open economy, presumed consent, price discrimination, price stability, principal–agent problem, profit maximization, profit motive, purchasing power parity, race to the bottom, RAND corporation, random walk, rent control, Richard Thaler, rising living standards, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, Sam Peltzman, school vouchers, Silicon Valley, Silicon Valley startup, South China Sea, Steve Jobs, The Market for Lemons, the rule of 72, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, transcontinental railway, trickle-down economics, urban sprawl, Washington Consensus, Yogi Berra, young professional, zero-sum game

Families and entrepreneurs make significant investments in their “properties.” But there is a crucial difference between those assets and their counterparts in the developed world: The owners have no legal title to the property. They cannot legally rent it, subdivide it, sell it, or pass it on to family. Perhaps most important, they cannot use it as collateral to raise capital. Peruvian economist Hernando de Soto has argued convincingly that these kinds of informal property arrangements should not be ignored. He reckons that the total value of property held but not legally owned by poor people in the developing world is worth more than $9 trillion. That is a lot of collateral gone to waste, or “dead capital” as he calls it. To put that number in perspective, it is 93 times the amount of development assistance that the rich countries provided to the developing world over the past three decades.

And since selling soft drinks from a machine constitutes retail trade, there are assorted fire, health, and safety inspections.10 Excessive regulation goes hand in glove with corruption. Government bureaucrats throw up hurdles so that they can extort bribes from those who seek to get over or around them. Installing a vending machine in Moscow becomes much easier if you hire the right “security firm.” What about opening a business elsewhere in the developed world? Again, Peruvian economist Hernando de Soto has done fascinating work. He and fellow team members documented their efforts to open a one-person clothing stall on the outskirts of Lima as a legally registered business. He and his researchers vowed that they would not pay bribes so that their efforts would reflect the full cost of complying with the law. (In the end, they were asked for bribes on ten occasions and paid them twice to prevent the project from stalling completely.)


pages: 316 words: 117,228

The Code of Capital: How the Law Creates Wealth and Inequality by Katharina Pistor

"Robert Solow", Andrei Shleifer, Asian financial crisis, asset-backed security, barriers to entry, Bernie Madoff, bilateral investment treaty, bitcoin, blockchain, Bretton Woods, business cycle, business process, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collateralized debt obligation, colonial rule, conceptual framework, Corn Laws, corporate governance, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, cryptocurrency, Donald Trump, double helix, Edward Glaeser, Ethereum, ethereum blockchain, facts on the ground, financial innovation, financial intermediation, fixed income, Francis Fukuyama: the end of history, full employment, global reserve currency, Hernando de Soto, income inequality, intangible asset, investor state dispute settlement, invisible hand, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Rogoff, land reform, land tenure, London Interbank Offered Rate, Long Term Capital Management, means of production, money market fund, moral hazard, offshore financial centre, phenotype, Ponzi scheme, price mechanism, price stability, profit maximization, railway mania, regulatory arbitrage, reserve currency, Ronald Coase, Satoshi Nakamoto, secular stagnation, self-driving car, shareholder value, Silicon Valley, smart contracts, software patent, sovereign wealth fund, The Nature of the Firm, The Wealth of Nations by Adam Smith, Thorstein Veblen, time value of money, too big to fail, trade route, transaction costs, Wolfgang Streeck

Property rights confer title to an owner and allow her to remove an asset she owns from the pool of assets that are in the possession of a bankrupt debtor, no matter how loudly other creditors might protest. Collateral law works in a similar way. The holder of a mortgage, pledge, or other security interest may not have full title to the asset, but she has a stronger right than creditors without such protection, 14 c h a P te r 1 i.e., the unsecured creditors.49 Bankruptcy can therefore be called the acid test for the legal rights that have been created long before bankruptcy loomed. Hernando de Soto, a life-long advocate for bringing property rights to the poor, has suggested that these rights can turn “dead land” into “life capital,” because owners can mortgage their land or other assets to obtain investment capital.50 And yet, this is only half of capital’s full story. Without additional legal safeguards, debtors risk losing their assets to creditors if and when they default on their payments, even if this happens through no fault of their own.

The German civil code followed only in 1900, almost three decades after Germany’s unification in 1871. 49. Note that the terms “collateral” and “security” or “secured interests” are often used interchangeably. For an analysis of the legal techniques and practices of collateral in global capital markets, see Annelise Riles, Collateral Knowledge: Legal Reasoning in the Global Financial Markets (Chicago: University of Chicago Press, 2011). 50. See also Hernando De Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (New York: Basic Books, 2003), p. 46, arguing that property rights can turn “dead” land into “life” capital. 51. This feature of legal personality has been dubbed “asset shielding” or “asset partitioning.” See Henry Hansmann and Reinier Kraakman, “The Essential Role of Organizational Law,” Yale Law Journal 110, no. 3 (2000):387–475, and Henry Hansmann, Reinier Kraakman, and Richard Squire, “Law and the Rise of the Firm,” Harvard Law Review 119, no. 5 (2006):1333–1403.


pages: 520 words: 129,887

Power Hungry: The Myths of "Green" Energy and the Real Fuels of the Future by Robert Bryce

addicted to oil, Bernie Madoff, carbon footprint, Cesare Marchetti: Marchetti’s constant, cleantech, collateralized debt obligation, corporate raider, correlation does not imply causation, Credit Default Swap, credit default swaps / collateralized debt obligations, decarbonisation, Deng Xiaoping, en.wikipedia.org, energy security, energy transition, flex fuel, greed is good, Hernando de Soto, hydraulic fracturing, hydrogen economy, Indoor air pollution, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, James Watt: steam engine, Menlo Park, new economy, offshore financial centre, oil shale / tar sands, oil shock, peak oil, Ponzi scheme, purchasing power parity, RAND corporation, Ronald Reagan, Silicon Valley, smart grid, Stewart Brand, Thomas L Friedman, uranium enrichment, Whole Earth Catalog, WikiLeaks

PAUL GETTY, one of the world’s first billionaires, once declared that “the meek shall inherit the Earth, but not its mineral rights.”1 Getty—who made his first million dollars in the Oklahoma oil fields—was on to something. Although dozens of economists have written about the critical role that private-property rights play in building wealth in developing countries (among the more notable: Peruvian economist Hernando de Soto), few, if any, have considered the importance of private ownership of mineral rights.2 And fewer still have written about America’s anomalous status as the only country on the planet that allows individuals, rather than the state or the crown, to own the minerals beneath their feet. The private ownership of mineral rights in the United States is a key—but perennially overlooked—reason why the nation has become so prosperous, and why the American oil and gas industry continues to lead the world in developing new technologies to extract hydrocarbons.

In July 2008, total production was 1.734 trillion cubic feet, or about 57.6 billion cubic feet per day. 25 Energy Information Administration, “Natural Gas Navigator,” http://tonto.eia.doe.gov/dnav/ng/hist/rngcld.htm. 26 Ibid. Chapter 24 1 For more on mineral rights, see Robert Bryce, “The Meek Need Mineral Rights,” Energy Tribune, December 26, 2007, http://www.energytribune.com/articles.cfm?aid=737. 2 For more on de Soto, see Dario Fernandez-Morera, “Hernando de Soto Interview,” Reason.com, November 30, 1999, http://www.reason.com/news/show/32213.html. 3 This is my estimate. In 1992, the Environmental Protection Agency estimated that 1.2 million wells had been abandoned. See Roberto Suro, “Abandoned Oil and Gas Wells Become Pollution Portals,” New York Times, May 3, 1992, http://www.nytimes.com/1992/05/03/us/abandoned-oil-and-gas-wells-become-pollution-portals.html.


The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good by William Easterly

airport security, anti-communist, Asian financial crisis, bank run, banking crisis, Bob Geldof, Bretton Woods, British Empire, call centre, clean water, colonial exploitation, colonial rule, Edward Glaeser, end world poverty, European colonialism, failed state, farmers can use mobile phones to check market prices, George Akerlof, Gunnar Myrdal, Hernando de Soto, income inequality, income per capita, Indoor air pollution, invisible hand, Kenneth Rogoff, laissez-faire capitalism, land reform, land tenure, Live Aid, microcredit, moral hazard, Naomi Klein, Nelson Mandela, publication bias, purchasing power parity, randomized controlled trial, Ronald Reagan, Scramble for Africa, structural adjustment programs, The Fortune at the Bottom of the Pyramid, the scientific method, The Wealth of Nations by Adam Smith, transaction costs, War on Poverty, Xiaogang Anhui farmers

This is of course a vast oversimplification. Western social scientists don’t begin to comprehend fully the complex process of state formation and rule of law in the West, so they shouldn’t be too quick to predict how it will work anywhere else. Property Rights Property rights also determine whether markets work. Do I have title to the land, building, and equipment making up my taco stand? Hernando de Soto noted in his great book The Mystery of Capital that the majority of land occupied by the poor urban majorities in the developing world does not have legal title—nobody owns it. Only if I felt secure that I would keep my taco stand would I invest in more sanitary food-processing equipment. I can borrow from a bank to purchase such equipment only if I have title to the property to put down as collateral.

Searchers found solutions that laid the basis for a miracle. Devoid of revenue bases, it declared a 3 percent tax on the value of land on July 8, 1873. What was more revolutionary was that the emperor declared all land, which had been allocated by village custom, to be the private property of those who farmed it. The government issued certificates of ownership.3 Land could be bought and sold, and used as collateral for loans—the famous Hernando de Soto formula for unlocking the “mystery of capital.” Although externally imposed land reforms have often been disasters, a homegrown reform that respected local custom was more successful. However, when the land tax was insufficient to cover state spending, the inexperienced rulers printed money. Inflation resulted. Matsukata Masayoshi, the architect of the land reform, became finance minister in October 1881.


The Age of Turbulence: Adventures in a New World (Hardback) - Common by Alan Greenspan

"Robert Solow", addicted to oil, air freight, airline deregulation, Albert Einstein, asset-backed security, bank run, Berlin Wall, Bretton Woods, business cycle, business process, buy and hold, call centre, capital controls, central bank independence, collateralized debt obligation, collective bargaining, conceptual framework, Corn Laws, corporate governance, corporate raider, correlation coefficient, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, cuban missile crisis, currency peg, Deng Xiaoping, Dissolution of the Soviet Union, Doha Development Round, double entry bookkeeping, equity premium, everywhere but in the productivity statistics, Fall of the Berlin Wall, fiat currency, financial innovation, financial intermediation, full employment, Gini coefficient, Hernando de Soto, income inequality, income per capita, invisible hand, Joseph Schumpeter, labor-force participation, laissez-faire capitalism, land reform, Long Term Capital Management, Mahatma Gandhi, manufacturing employment, market bubble, means of production, Mikhail Gorbachev, moral hazard, mortgage debt, Myron Scholes, Nelson Mandela, new economy, North Sea oil, oil shock, open economy, Pearl River Delta, pets.com, Potemkin village, price mechanism, price stability, Productivity paradox, profit maximization, purchasing power parity, random walk, reserve currency, Right to Buy, risk tolerance, Ronald Reagan, shareholder value, short selling, Silicon Valley, special economic zone, stocks for the long run, the payments system, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, total factor productivity, trade liberalization, trade route, transaction costs, transcontinental railway, urban renewal, working-age population, Y2K, zero-sum game

We cannot find exceptions to this rule, no matter where we look." With the media in authoritarian regimes tending toward selfcensorship, market-interventionist policies—the most prevalent cause of disrupted distribution of food—go unreported and uncorrected until too late. The importance of property rights is a larger issue than that of creating incentives to invest by established business or even incentives for inventors tinkering in a garage. Hernando de Soto, the Peruvian economist, came to the Federal Reserve in January 2003 to brief me on a seemingly radical idea to elevate the standard of living of a significant segment of the world's impoverished. One of the aspects of my job was meeting with foreign visitors who passed through my office when they were in town. These opportunities were a valuable source of information for me and the Fed staff members who often sat in on the meetings.

In the endeavor to modernize, many provincial and local Chinese authorities in their version of creative destruction periodically confiscate peasants' land for development. Riots have been widespread. Granting clear legal ownership rights to peasants for the land they till would go a very long way toward putting an end to such discontent.* Though the means to get there may not be altogether clear, Hernando de Soto's goal is a very appealing one. Protection of property has always been a moving target as the law continually tries to keep up with the nature of economic change. Even in the *"Recognition" of property rights by China's National Congress of t h e People in March 2007 shied away from granting unequivocal rights to rural land. 254 More ebooks visit: http://www.ccebook.cn ccebook-orginal english ebooks This file was collected by ccebook.cn form the internet, the author keeps the copyright.

In a land not far removed in time from the collective farm, loosely articulated urban property rights appear to be enforced; otherwise, foreign investment in real estate, factories, and securities would long since have dried up. Investors behave as though they expect to get returns on their investments and return of principal. And they have.* Chinese citizens have been granted the right to own and sell homes, creating a major opportunity to accumulate capital. Hernando de Soto, I assume, is pleased. And in March 2007, the National People's Congress passed a more comprehensive right of ownership that grants the same legal protection of property that is granted to the state. But the right to own property still falls far short of the status of property rights in developed countries. Property rights require not only a statute but an administrative and judicial system that enforces the law.


pages: 225 words: 54,010

A Short History of Progress by Ronald Wright

Albert Einstein, Atahualpa, Bretton Woods, British Empire, clean water, Columbian Exchange, cuban missile crisis, Francis Fukuyama: the end of history, Haber-Bosch Process, Hernando de Soto, invention of agriculture, James Watt: steam engine, Jane Jacobs, land reform, Mahatma Gandhi, mass immigration, nuclear winter, out of africa, Parkinson's law, Ronald Reagan, Thomas Malthus, urban sprawl

Inca Garcilaso died in 1616, the same year as Shakespeare and Cervantes. 30. For Adair’s quote and more on the Cherokees and Iroquois, see Wright, Stolen Continents, chaps. 4 and 5. A century after Franklin, Friedrich Engels was equally impressed by the Iroquois, noting among other things the balance of power between the sexes (ibid., p. 117). 31. Thirty-metre. 32. Societies of this type were seen by the Spaniards under Hernando de Soto throughout the Southeast, and the French found equally developed hierarchies along the Mississippi. Impressive earthen pyramids can still be seen at Cahokia, near modern St. Louis; at Etowah, near Atlanta; and at several other eastern sites. 33. European nations, including Britain, became more democratic than at any time since their humble beginnings a thousand years before. At home, that is; democracy was not for the empires. 34.


pages: 271 words: 52,814

Blockchain: Blueprint for a New Economy by Melanie Swan

23andMe, Airbnb, altcoin, Amazon Web Services, asset allocation, banking crisis, basic income, bioinformatics, bitcoin, blockchain, capital controls, cellular automata, central bank independence, clean water, cloud computing, collaborative editing, Conway's Game of Life, crowdsourcing, cryptocurrency, disintermediation, Edward Snowden, en.wikipedia.org, Ethereum, ethereum blockchain, fault tolerance, fiat currency, financial innovation, Firefox, friendly AI, Hernando de Soto, intangible asset, Internet Archive, Internet of things, Khan Academy, Kickstarter, lifelogging, litecoin, Lyft, M-Pesa, microbiome, Network effects, new economy, peer-to-peer, peer-to-peer lending, peer-to-peer model, personalized medicine, post scarcity, prediction markets, QR code, ride hailing / ride sharing, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, SETI@home, sharing economy, Skype, smart cities, smart contracts, smart grid, software as a service, technological singularity, Turing complete, uber lyft, unbanked and underbanked, underbanked, web application, WikiLeaks

As is standard with cryptocurrency code, decentralized governance software, too, would be open source and forkable, so that anyone can create his own blockchain nation and government services in this collaborative platform for DIYgovernance. In the area of titling and deeds, as Bitcoin is to remittances, decentralized blockchain government services is to the implementation of a property ownership registry, and could be the execution of the detailed plans set forth by development economists such as Hernando de Soto.113 Decentralized blockchain-based government services such as public documents registries and titling could be a useful tool for scaling the efforts already in place by organizations such as de Sotos’s Institute for Liberty and Democracy, or ILD, which has programs to document, evaluate, and diagnose the extralegal sector and bring it into alignment with the legal system. A universal blockchain-based property registry could bring much-needed ownership documentation, transferability, transactability, value capture, and opportunity and mobilization to emerging markets where these structures do not exist or are nascent (and simultaneously, potential business for its blockchain service cousin, dispute resolution).


pages: 462 words: 150,129

The Rational Optimist: How Prosperity Evolves by Matt Ridley

"Robert Solow", 23andMe, agricultural Revolution, air freight, back-to-the-land, banking crisis, barriers to entry, Bernie Madoff, British Empire, call centre, carbon footprint, Cesare Marchetti: Marchetti’s constant, charter city, clean water, cloud computing, cognitive dissonance, collateralized debt obligation, colonial exploitation, colonial rule, Corn Laws, creative destruction, credit crunch, David Ricardo: comparative advantage, decarbonisation, dematerialisation, demographic dividend, demographic transition, double entry bookkeeping, Edward Glaeser, en.wikipedia.org, everywhere but in the productivity statistics, falling living standards, feminist movement, financial innovation, Flynn Effect, food miles, Gordon Gekko, greed is good, Hans Rosling, happiness index / gross national happiness, haute cuisine, hedonic treadmill, Hernando de Soto, income inequality, income per capita, Indoor air pollution, informal economy, Intergovernmental Panel on Climate Change (IPCC), invention of agriculture, invisible hand, James Hargreaves, James Watt: steam engine, Jane Jacobs, John Nash: game theory, joint-stock limited liability company, Joseph Schumpeter, Kevin Kelly, Kickstarter, knowledge worker, Kula ring, Mark Zuckerberg, meta analysis, meta-analysis, mutually assured destruction, Naomi Klein, Northern Rock, nuclear winter, oil shale / tar sands, out of africa, packet switching, patent troll, Pax Mongolica, Peter Thiel, phenotype, plutocrats, Plutocrats, Ponzi scheme, Productivity paradox, profit motive, purchasing power parity, race to the bottom, Ray Kurzweil, rent-seeking, rising living standards, Silicon Valley, spice trade, spinning jenny, stem cell, Steve Jobs, Steven Pinker, Stewart Brand, supervolcano, technological singularity, Thales and the olive presses, Thales of Miletus, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade route, transaction costs, ultimatum game, upwardly mobile, urban sprawl, Vernor Vinge, Vilfredo Pareto, wage slave, working poor, working-age population, Y2K, Yogi Berra, zero-sum game

No wonder nearly five million Egyptians have decided to build illegal dwellings instead. Typically, a Cairo house owner will build up to three illegal storeys on top of his house and rent them out to relatives. Good for him. However, entrepreneurs who start businesses in the West usually finance them with mortgages, and you cannot get a mortgage on an illegal dwelling. The Peruvian economist Hernando de Soto estimates that Africans own an astonishing $1 trillion in ‘dead capital’ – savings that cannot be used as collateral because they are invested in ill-documented property. He draws an instructive parallel with the young United States in the early nineteenth century, where the formal codified law was fighting a rearguard action against an increasingly chaotic confusion of informal squatters’ rights to property.

They include: Bruce Ames, Terry Anderson, June Arunga, Ron Bailey, Nick Barton, Roger Bate, Eric Beinhocker, Alex Bentley, Carl Bergstrom, Roger Bingham, Doug Bird, Rebecca Bliege Bird, the late Norman Borlaug, Rob Boyd, Kent Bradford, Stewart Brand, Sarah Brosnan, John Browning, Erwin Bulte, Bruce Charlton, Monika Cheney, Patricia Churchland, Greg Clark, John Clippinger, Daniel Cole, Greg Conko, Jack Crawford, the late Michael Crichton, Helena Cronin, Clive Crook, Tony Curzon Price, Richard Dawkins, Tracey Day, Dan Dennett, Hernando de Soto, Frans de Waal, John Dickhaut, Anna Dreber, Susan Dudley, Emma Duncan, Martin Durkin, David Eagleman, Niall Ferguson, Alvaro Fischer, Tim Fitzgerald, David Fletcher, Rob Foley, Richard Gardner, Katya Georgieva, Gordon Getty, Jeanne Giaccia, Urs Glasser, Indur Goklany, Allen Good, Oliver Goodenough, Johnny Grimond, Monica Guenther, Robin Hanson, Joe Henrich, Dominic Hobson, Jack Horner, Sarah Hrdy, Nick Humphrey, Anya Hurlbert, Anula Jayasuriya, Elliot Justin, Anne Kandler, Ximena Katz, Terence Kealey, Eric Kimbrough, Kari Kohn, Meir Kohn, Steve Kuhn, Marta Lahr, Nigel Lawson, Don Leal, Gary Libecap, Brink Lindsey, Robert Litan, Bjørn Lomborg, Marcus Lovell-Smith, Qing Lu, Barnaby Marsh, Richard Maudslay, Sally McBrearty, Kevin McCabe, Bobby McCormick, Ian McEwan, Al McHughen, Warren Meyer, Henry Miller, Alberto Mingardi, Graeme Mitchison, Julian Morris, Oliver Morton, Richard Moxon, Daniel Nettle, Johann Norberg, Jesse Norman, Haim Ofek, Gerry Ohrstrom, Kendra Okonski, Svante Paabo, Mark Pagel, Richard Peto, Ryan Phelan, Steven Pinker, Kenneth Pomeranz, David Porter, Virginia Postrel, C.S.


Guns, germs, and steel: the fates of human societies by Jared M. Diamond

affirmative action, Atahualpa, British Empire, California gold rush, correlation does not imply causation, cuban missile crisis, discovery of the americas, European colonialism, Francisco Pizarro, Hernando de Soto, invention of movable type, invention of the wheel, invention of writing, James Watt: steam engine, Maui Hawaii, QWERTY keyboard, the scientific method, trade route

"On the next morning a messenger from Atahuallpa arrived, and the Governor said to him, 'Tell your lord to come when and how he pleases, and that, in what way soever he may come I will receive him as a friend and brother. I pray that he may come quickly, for I desire to see him. No harm or insult will befall him.' "The Governor concealed his troops around the square at Cajamarca, dividing the cavalry into two portions of which he gave the command of one to his brother Hernando Pizarro and the command of the other to Hernando de Soto. In like manner he divided the infantry, he himself tak- ing one part and giving the other to his brother Juan Pizarro. At the same time, he ordered Pedro de Candia with two or three infantrymen to go with trumpets to a small fort in the plaza and to station themselves there with a small piece of artillery. When all the Indians, and Atahuallpa with them, had entered the Plaza, the Governor would give a signal to Candia and his men, after which they should start firing the gun, and the trumpets should sound, and at the sound of the trumpets the cavalry should dash out of the large court where they were waiting hidden in readiness.

When we in the United States think of the most populous New World societies existing in 1492, only those of the Aztecs and the Incas tend to come to our minds. We forget that North America also supported popu- lous Indian societies in the most logical place, the Mississippi Valley, which contains some of our best farmland today. In that case, however, conquis tadores contributed nothing directly to the societies' destruction; Eurasian germs, spreading in advance, did everything. When Hernando de Soto became the first European conquistador to march through the southeast- ern United States, in 1540, he came across Indian town sites abandoned two years earlier because the inhabitants had died in epidemics. These epi- demics had been transmitted from coastal Indians infected by Spaniards visiting the coast. The Spaniards' microbes spread to the interior in advance of the Spaniards themselves.


pages: 537 words: 158,544

Second World: Empires and Influence in the New Global Order by Parag Khanna

"Robert Solow", Admiral Zheng, affirmative action, anti-communist, Asian financial crisis, Bartolomé de las Casas, Branko Milanovic, British Empire, call centre, capital controls, central bank independence, cognitive dissonance, colonial rule, complexity theory, continuation of politics by other means, crony capitalism, Deng Xiaoping, different worldview, Dissolution of the Soviet Union, Donald Trump, Edward Glaeser, energy security, European colonialism, facts on the ground, failed state, flex fuel, Francis Fukuyama: the end of history, friendly fire, Gini coefficient, global reserve currency, global supply chain, haute couture, Hernando de Soto, illegal immigration, income inequality, informal economy, invisible hand, Islamic Golden Age, Khyber Pass, Kickstarter, knowledge economy, land reform, low cost airline, low skilled workers, mass immigration, means of production, megacity, Monroe Doctrine, Nelson Mandela, oil shale / tar sands, oil shock, open borders, open economy, Parag Khanna, Pax Mongolica, Pearl River Delta, pirate software, Plutonomy: Buying Luxury, Explaining Global Imbalances, Potemkin village, price stability, race to the bottom, RAND corporation, reserve currency, rising living standards, Ronald Reagan, Silicon Valley, Skype, South China Sea, special economic zone, stem cell, Stephen Hawking, Thomas L Friedman, trade route, trickle-down economics, uranium enrichment, urban renewal, Washington Consensus, women in the workforce

The government has simultaneously quadrupled the internal and external debt, while hospitals have crumbled, their managers fired for voting against him in a 2004 referendum. Price controls have made meat scarce. Chávez scored points when the Caracas mayor seized an exclusive golf course to build housing for the poor, but urban squalor persists as ever. Despite over $20 billion in annual oil revenue, per capita GDP is at best half the level of 1954. Venezuela remains what economist Hernando de Soto calls a “society of accomplices.” Chávez went after the state oil company, PDVSA, dismantling its technocracy, which had so skillfully created the nation’s entire system of public utilities a generation ago. His surrogate, military-managed apparatus now produces over one million barrels less than peak capacity. PDVSA also operated independently of the government, while Chávez has created his own treasury ministry (Banco de Tesoros) from which he fattens his European bank accounts.

While traveling in the region, I learned a great deal from Andrew Wilson, Berik Otemurat, Fabrizio Vielmini, Josh Machleder, Alexander Sosnin, Assel Rustemova, Oraz Jandosov, Azamat Ablazimov, Kassymzhomart Tokaev, Murat Auezov, Yerbol Suleimenov, Meiirzhan Mashan, Adil Abishev, Azamat Abdymomunov, Nikolay Kuzmin, Kadyr Toktogulov, Nicolas Ebnother, Rosa Oltambaeva, Edil Baissalov, Shakirat Toktosunova, Elbek Khojayev, Catherine Eldridge, Susan Carnduff, Farkhad Tolipov, Jeff Erlich, Steve Labensky, Jon Purnell, Ulugbek Ishankhodjaev, Abdujabar Abduvakhitov, and Ulugbeck Khasanoff. As a Latin America neophyte, I am very thankful for the assistance of Moises Naim, Carlos Lozada, Javier Corrales, Kai Poetschke, Bill Hinchberger, David de Ferranti, Hernando de Soto, Shahnaz Radjy, Meredith Davenport, Maria Hutcheson, Timothy O’Neil-Dunne, Jan Boyer, Andres Oppenheimer, Jenny Caplan, Jose Yunis, Juan Enriquez, Hillary Batjer-Johnson, Erica Breth, Moises Benamor, Michael Shifter, Lorena Barbaria, Gilberto Dupas, Paulo Roberto de Almeida, Rubens Barbosa, Eiiti Sato, Amado Cervo, Shepard Forman, Adriana Abdenur, David Henschel, Nathalie Cely, Cecelia Zarate, Maria Teresa Petersen, Peter Schechter, Blas Pérez Henríquez, Sylvie Naville, Joerg Schimmel, Pedro Burelli, Michael Penfold, Dante Pesce, Steve Reifenberg, and Katty Kauffman.


The Great Turning: From Empire to Earth Community by David C. Korten

Albert Einstein, banks create money, big-box store, Bretton Woods, British Empire, business cycle, clean water, colonial rule, Community Supported Agriculture, death of newspapers, declining real wages, different worldview, European colonialism, Francisco Pizarro, full employment, George Gilder, global supply chain, global village, God and Mammon, Hernando de Soto, Howard Zinn, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, joint-stock company, land reform, market bubble, market fundamentalism, Monroe Doctrine, Naomi Klein, neoliberal agenda, new economy, peak oil, planetary scale, plutocrats, Plutocrats, Project for a New American Century, Ronald Reagan, Rosa Parks, sexual politics, shared worldview, social intelligence, source of truth, South Sea Bubble, stem cell, structural adjustment programs, The Chicago School, trade route, Washington Consensus, wealth creators, World Values Survey

Adventurers Most of us know the period of Europe’s drive for colonial expansion primarily by the names of the great adventurers commissioned and financed by their sovereigns to carry out great voyages of discovery, plunder, and slaughter. In search of a westward sea route to the riches of Asia, Christopher Columbus (1451–1506) landed on the island of Hispaniola (present-day Haiti and the Dominican Republic) in the West Indies in 1492 and claimed it for Spain. Hernando De Soto (1496–1542) made his initial mark trading slaves in Central America and later allied with Francisco Pizarro to take control of the Inca Empire based in Peru in 1532, the same year the Portuguese established their first settlement in Brazil. De Soto returned to Spain one of the wealthiest men of his time, although his share in the plunder was only half that of Pizarro.3 By 1521, Hernán Cortés had claimed the Mexican Empire of Montezuma for Spain.

See John Perkins, Confessions of an Economic Hit Man (San Francisco: Berrett-Koehler, 2004), for an insider account of exactly how it worked. 18. For detailed documentation on the real purpose and consequence of contemporary trade agreements, see Korten, When Corporations Rule the World; International Forum on Globalization, ed. John Cavanagh and Jerry Mander, Alternatives to Economic Globalization: A Better World Is Possible (San Francisco: Berrett-Koehler, 2002); Lori Wallach and Patrick Woodall, 3. Ibid., s.v. “Hernando de Soto.” 4. The Reader’s Companion to American History, s.v. “America in the British Empire” (by Richard S. Dunn), Houghton Mifflin College Division, online edition, http:// college.hmco.com/history/ readerscomp/rcah/html/ ah_003000_americainthe.htm (accessed October 22, 2005). 5. Encyclopaedia Britannica 2003, deluxe ed. CD, s.v. “Privateer.” NOTES 368 Whose Trade Organization? Comprehensive Guide to the WTO (New York: New Press, 2003); and Jerry Mander and Edward Goldsmith eds., The Case against the Global Economy and for a Turn to the Local (San Francisco: Sierra Club Books, 1996). 19.


Globalists: The End of Empire and the Birth of Neoliberalism by Quinn Slobodian

Asian financial crisis, Berlin Wall, bilateral investment treaty, borderless world, Bretton Woods, British Empire, business cycle, capital controls, central bank independence, collective bargaining, David Ricardo: comparative advantage, Deng Xiaoping, desegregation, Dissolution of the Soviet Union, Doha Development Round, eurozone crisis, Fall of the Berlin Wall, floating exchange rates, full employment, Gunnar Myrdal, Hernando de Soto, invisible hand, liberal capitalism, liberal world order, market fundamentalism, Martin Wolf, Mercator projection, Mont Pelerin Society, Norbert Wiener, offshore financial centre, oil shock, open economy, pattern recognition, Paul Samuelson, Pearl River Delta, Philip Mirowski, price mechanism, quantitative easing, random walk, rent control, rent-seeking, road to serfdom, Ronald Reagan, special economic zone, statistical model, The Chicago School, the market place, The Wealth of Nations by Adam Smith, theory of mind, Thomas L Friedman, trade liberalization, urban renewal, Washington Consensus, Wolfgang Streeck, zero-sum game

He also cited Hayek’s 1952 book, The Sensory Order, on “the self-­steering system.” See Tumlir, “National Sovereignty, Power and Interest,” 4. Tumlir, “Strong and Weak Ele­ments,” 55. 356 NOTES TO PAGES 255–258 212. 213. 214. 215. Petersmann, Constitutional Functions and Constitutional Prob­lems, 16. Ibid., 19. Ibid., 403. Tumlir expressed hope that Mestmäcker would pres­ent on the idea of the economic constitution at a conference in Peru or­ga­nized by Hernando de Soto, to which Tumlir successfully invited Hayek to speak. Tumlir to Hayek, April 10, 1979, Hayek Papers, Duke, box 53, folder 28. De Soto received a master’s in international law and economics from the Gradu­ate Institute in Geneva in 1967 and worked at GATT thereafter. The November 1979 conference launched his Institute for Liberty and Democracy, which in the early 2000s would lead a multimillion-­dollar World Bank program to formalize property rights in Peru.

Mario Vargas Llosa, “In Defense of the Black Market,” New York Times, February 22, 1987; Peter H. Schuck and Robert E. Litan, “Regulatory Reform in the Third World: The Case of Peru,” Yale Journal on Regulation 4, no. 1 (1986): 58; Timothy Mitchell, “How Neoliberalism Makes Its World: The Urban Property Rights Proj­ect in Peru,” in Mirowski and Plehwe, The Road from Mont Pèlerin, 389–390. For De Soto’s most influential works, see Hernando De Soto, The Other Path: The Invisible Revolution in the Third World (New York: Harper and Row, 1990); de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (New York: Basic Books, 2000). Tumlir, “International Economic Order and Demo­cratic Constitutionalism,” 81. Ibid. Ibid. Tumlir, “Strong and Weak Ele­ments,” 33. See, among many articles on this theme, E.


pages: 524 words: 155,947

More: The 10,000-Year Rise of the World Economy by Philip Coggan

"Robert Solow", accounting loophole / creative accounting, Ada Lovelace, agricultural Revolution, Airbnb, airline deregulation, Andrei Shleifer, anti-communist, assortative mating, autonomous vehicles, bank run, banking crisis, banks create money, basic income, Berlin Wall, Bob Noyce, Branko Milanovic, Bretton Woods, British Empire, business cycle, call centre, capital controls, carbon footprint, Carmen Reinhart, Celtic Tiger, central bank independence, Charles Lindbergh, clean water, collective bargaining, Columbian Exchange, Columbine, Corn Laws, credit crunch, Credit Default Swap, crony capitalism, currency peg, debt deflation, Deng Xiaoping, discovery of the americas, Donald Trump, Erik Brynjolfsson, European colonialism, eurozone crisis, falling living standards, financial innovation, financial intermediation, floating exchange rates, Fractional reserve banking, Frederick Winslow Taylor, full employment, germ theory of disease, German hyperinflation, gig economy, Gini coefficient, global supply chain, global value chain, Gordon Gekko, greed is good, Haber-Bosch Process, Hans Rosling, Hernando de Soto, hydraulic fracturing, Ignaz Semmelweis: hand washing, income inequality, income per capita, indoor plumbing, industrial robot, inflation targeting, Isaac Newton, James Watt: steam engine, job automation, John Snow's cholera map, joint-stock company, joint-stock limited liability company, Kenneth Arrow, Kula ring, labour market flexibility, land reform, land tenure, Lao Tzu, large denomination, liquidity trap, Long Term Capital Management, Louis Blériot, low cost airline, low skilled workers, lump of labour, M-Pesa, Malcom McLean invented shipping containers, manufacturing employment, Marc Andreessen, Mark Zuckerberg, Martin Wolf, McJob, means of production, Mikhail Gorbachev, mittelstand, moral hazard, Murano, Venice glass, Myron Scholes, Nelson Mandela, Network effects, Northern Rock, oil shale / tar sands, oil shock, Paul Samuelson, popular capitalism, popular electronics, price stability, principal–agent problem, profit maximization, purchasing power parity, quantitative easing, railway mania, Ralph Nader, regulatory arbitrage, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, Scramble for Africa, Second Machine Age, secular stagnation, Silicon Valley, Simon Kuznets, South China Sea, South Sea Bubble, special drawing rights, spice trade, spinning jenny, Steven Pinker, TaskRabbit, Thales and the olive presses, Thales of Miletus, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade route, transaction costs, transatlantic slave trade, transcontinental railway, Triangle Shirtwaist Factory, universal basic income, Unsafe at Any Speed, Upton Sinclair, V2 rocket, Veblen good, War on Poverty, Washington Consensus, Watson beat the top human players on Jeopardy!, women in the workforce, Yom Kippur War, zero-sum game

But plenty of other countries have shown that state capitalism is prone to great corruption. Energy-rich countries are subject to the “resource curse” in which so much money is available from the oil and gas industries that the elite simply focuses on taking the “rents” from that business; other sectors are neglected. In many countries, it is simply too hard to open a business. In the 1980s, the economist Hernando de Soto tried to open a small garment workshop in Lima, Peru. To get legal authorisation took 289 days of work, at an average of six hours a day. The cost was 31 times the monthly minimum wage. In many countries, it is very time-consuming and expensive for someone to get legal ownership to their land; in Haiti, it took 19 years, de Soto found. But without legal title, it has historically been difficult in developing countries for people to get credit, since banks often insist on collateral, in the form of property.24 This is a real barrier to economic growth.

“Top five reasons to end US sugar subsidies”, Americans for Tax Reform, November 15th 2015, https://www.atr.org/top-five-reasons-end-us-sugar-subsidies 21. “The entrepreneurial state”, Schumpeter, The Economist, August 31st 2013 22. See Mariana Mazzucato, The Entrepreneurial State: Debunking Public vs Private Sector Myths 23. Jonathan Haskel and Stian Westlake, Capitalism Without Capital: The Rise of the Intangible Economy 24. Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else 25. Source: http://www.doingbusiness.org/rankings 26. Source: https://data.oecd.org/gga/general-government-spending.htm Chapter 16 – A truly global economy: the developing world, 1979–2007 1. Radelet, The Great Surge, op. cit. 2. Yuen Yuen Ang, How China Escaped the Poverty Trap 3. Fenby, The Penguin History of Modern China, op. cit. 4.


pages: 226 words: 52,069

Bacon: A Love Story: A Salty Survey of Everybody's Favorite Meat by Heather Lauer

British Empire, haute cuisine, Hernando de Soto, if you build it, they will come, index card, Ronald Reagan

In an effort to keep the unruly hogs at bay, the residents of Manhattan erected a wall along the northern edge of the settlement. And the street that eventually bordered the wall was called Wall Street. Now that this area of New York City is overrun with stockbrokers and hedge fund managers, some might say the swine problem was never really solved. Americans believe that we have Christopher Columbus and Hernando de Soto to thank for all the bacon, ribs, and tenderloins we enjoy, as they had pigs with them on their ships. Back when it took multiple weeks to cross the Atlantic Ocean on a journey to the New World, pigs were a popular travel companion (nowadays, not so much—unfortunately most airlines won’t let you carry a pig on the plane even if it’s small enough to fit underneath the seat in front of you, and U.S.


pages: 777 words: 186,993

Imagining India by Nandan Nilekani

addicted to oil, affirmative action, Airbus A320, BRICs, British Empire, business process, business process outsourcing, call centre, clean water, colonial rule, corporate governance, cuban missile crisis, deindustrialization, demographic dividend, demographic transition, Deng Xiaoping, digital map, distributed generation, farmers can use mobile phones to check market prices, full employment, ghettoisation, glass ceiling, global supply chain, Hernando de Soto, income inequality, informal economy, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, knowledge economy, land reform, light touch regulation, LNG terminal, load shedding, low cost airline, Mahatma Gandhi, market fragmentation, mass immigration, Mikhail Gorbachev, Network effects, new economy, New Urbanism, open economy, Parag Khanna, pension reform, Potemkin village, price mechanism, race to the bottom, rent control, rolodex, Ronald Reagan, school vouchers, Silicon Valley, smart grid, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, trickle-down economics, unemployed young men, upwardly mobile, urban planning, urban renewal, women in the workforce, working poor, working-age population

And unlike many countries, India has not recognized the “right to property” as a fundamental one since 1978, which makes it far more difficult for landowners to contest development plans and to ensure that the growth and expansion of markets do not steamroll over their livelihood. Reforms in land titling and property rights, and linking such titles into the national I.D. system, would be a big step for our land markets. And this would provide powerful momentum toward more inclusive markets—the economist Hernando de Soto noted that the right to property and clear land titles are essential for bringing down poverty.5 Land is particularly useful for the poor since it is a source of funds, a starting fuel for economic mobility, and instrumental as collateral for obtaining loans from banks. But bringing IT into India’s land markets presents a classic clash of the old and the new. Much of our land legislation and data come from methods used in British India.

Prahalad, The Fortune at the Bottom of the Period, Wharton School Publishing, 2004. 3 Simon Szreter, “The Right of Registration: Development, Identity Registration, and Social Security, A Historical Perspective,” World Development 35, 2007. 4 Jos Mooij,“Smart Governance? Politics in the Policy Process in Andhra Pradesh, India,” Working Paper 228, Overseas Development Institute, October 2003. 5 Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, Basic Books, 2003. CHANGING EPIDEMICS: FROM HUNGER TO HEART DISEASE 1 Katherine Ashenburg, The Dirt on Clean: An Unsanitized History, North Point Press, 2007. 2 Mark Harrison, Public Health in British India, Cambridge University Press, 1994. 3 David Arnold, The Tropics and the Traveling Gaze: India, Landscape, and Science, 1800-1856, University of Washington Press, 2006. 4 Ghanshyam Shah, Public Health and Urban Development:The Plague in Surat, Sage Publications, 1997. 5 Mark Harrison, Public Health in British India, Cambridge University Press, 1994. 6 Ira Klein, “Plague, Policy and Popular Unrest in British India,” Modern Asian Studies, November 1988. 7 Mark Harrison, Public Health in British India, Cambridge University Press, 1994. 8 A.


pages: 330 words: 77,729

Big Three in Economics: Adam Smith, Karl Marx, and John Maynard Keynes by Mark Skousen

"Robert Solow", Albert Einstein, banking crisis, Berlin Wall, Bretton Woods, business climate, business cycle, creative destruction, David Ricardo: comparative advantage, delayed gratification, experimental economics, financial independence, Financial Instability Hypothesis, full employment, Hernando de Soto, housing crisis, Hyman Minsky, inflation targeting, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Arrow, laissez-faire capitalism, liberation theology, liquidity trap, means of production, microcredit, minimum wage unemployment, money market fund, open economy, paradox of thrift, Pareto efficiency, Paul Samuelson, price stability, pushing on a string, rent control, Richard Thaler, rising living standards, road to serfdom, Robert Shiller, Robert Shiller, rolodex, Ronald Coase, Ronald Reagan, school choice, secular stagnation, Simon Kuznets, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, Tobin tax, unorthodox policies, Vilfredo Pareto, zero-sum game

These economists corrected the errors of Marx and the classical economists, and brought about a permanent revolution. As noted earlier, the cost-of-production approach to price theory had put economics in a box, a box containing a bombshell that could annihilate the classical system of natural liberty. It would take a revolutionary breakthrough in economic theory to rejuvenate the dismal science and restore the foundations of Adam Smith's model. That is the subject of chapter 4. 9. Peruvian economist Hernando de Soto has written several popular books on the need for legal and economic reforms in Latin America and developing countries in general. See Soto (2002, 2003). Scottish economist Adam Smith (1723-90) was a professor of moral pi In 1776, Adam Smith published the "crown jewel" of economics, Tt Nations. "It contains the most important substantive proposition in al the pursuit of self-interest under conditions of competition." 1 N Q V I 8 >«•• f M Nature md CkQi WKALfH of A AT I % IIW Miffy J » m * ' — - J u l . 4* w • • ft * .. — J .


pages: 280 words: 83,299

Empty Planet: The Shock of Global Population Decline by Darrell Bricker, John Ibbitson

affirmative action, agricultural Revolution, Berlin Wall, BRICs, British Empire, Columbian Exchange, commoditize, demographic dividend, demographic transition, Deng Xiaoping, Donald Trump, en.wikipedia.org, full employment, gender pay gap, ghettoisation, glass ceiling, global reserve currency, Gunnar Myrdal, Hans Rosling, Hernando de Soto, illegal immigration, income inequality, James Watt: steam engine, Jeff Bezos, John Snow's cholera map, Kibera, knowledge worker, labor-force participation, Mark Zuckerberg, megacity, New Urbanism, nuclear winter, off grid, offshore financial centre, out of africa, Potemkin village, purchasing power parity, reserve currency, Ronald Reagan, Silicon Valley, South China Sea, statistical model, Steve Jobs, Steven Pinker, The Wealth of Nations by Adam Smith, Thomas Malthus, transcontinental railway, upwardly mobile, urban planning, working-age population, young professional, zero-sum game

They have also accepted addresses in some favelas as state-recognized residences. In São Paulo, having a residential address is extremely important. It confirms a person’s citizenship, gets them an ID, and makes it possible to participate in the formal economy and receive the limited government services that exist in Brazil.232 The Brazilian government, following the recommendations of the Peruvian economist Hernando de Soto, has in some cases granted property rights to favela dwellers, who make up about 20 percent of the urban population. However, critics contend that this simply leads to gentrification as developers purchase and redevelop the properties, pushing the poor to the extreme edges of the city, making it harder for them to get to work or access services.233 One thing Brazilians will tell you about favelas without hesitation is that they are dangerous places.


pages: 295 words: 92,670

1494: How a Family Feud in Medieval Spain Divided the World in Half by Stephen R. Bown

Atahualpa, Bartolomé de las Casas, British Empire, charter city, Eratosthenes, European colonialism, Francisco Pizarro, Hernando de Soto, Peace of Westphalia, spice trade, The Wealth of Nations by Adam Smith, trade route, UNCLOS

Roving bands of privately funded adventurers scoured the Americas from Florida to Peru, searching for another source of easy treasure. The Mayan city-states in the Yucatán Peninsula and Guatemala were subjugated by Pedro de Alvarado in 1523, and Francisco Pizarro led his band of privateers south to Peru in 1531. By 1533, Pizarro had defeated the Inca Empire and conquered the city of Cuzco by treacherously capturing Emperor Atahualpa. In Florida, Hernando de Soto led an expedition in search of the Fountain of Youth and the Seven Cities of Cibola in 1539. In all these endeavours, the native peoples of the Americas—enslaved, starved, displaced and ravaged by disease—suffered horribly. Many were killed outright, others were compelled to labour, chained in work gangs or bent under the lash in silver mines in Peru and Mexico. To still their consciences and justify their actions, conquistadors read aloud the Requerimiento—a document first devised during Ferdinand’s reign to justify the conquest on religious grounds.


pages: 346 words: 90,371

Rethinking the Economics of Land and Housing by Josh Ryan-Collins, Toby Lloyd, Laurie Macfarlane

"Robert Solow", agricultural Revolution, asset-backed security, balance sheet recession, bank run, banking crisis, barriers to entry, basic income, Bretton Woods, business cycle, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, Corn Laws, correlation does not imply causation, creative destruction, credit crunch, debt deflation, deindustrialization, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, full employment, garden city movement, George Akerlof, ghettoisation, Gini coefficient, Hernando de Soto, housing crisis, Hyman Minsky, income inequality, information asymmetry, knowledge worker, labour market flexibility, labour mobility, land reform, land tenure, land value tax, Landlord’s Game, low skilled workers, market bubble, market clearing, Martin Wolf, means of production, money market fund, mortgage debt, negative equity, Network effects, new economy, New Urbanism, Northern Rock, offshore financial centre, Pareto efficiency, place-making, price stability, profit maximization, quantitative easing, rent control, rent-seeking, Richard Florida, Right to Buy, rising living standards, risk tolerance, Second Machine Age, secular stagnation, shareholder value, the built environment, The Great Moderation, The Market for Lemons, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, transaction costs, universal basic income, urban planning, urban sprawl, working poor, working-age population

In the UK and much of the Western world, the mid-twentieth century rise of individual homeownership also spread landownership to large sections of the population, with broadly beneficial consequences for economic growth, resilience and equality (Saunders, 2016), at least up until the 1970s. The power of private property has also led some economists to identify it as the key to tackling entrenched poverty in developing economies. Hernando de Soto (2000) argued that granting poor slum dwellers legal title to their informally held homes and business properties would enable a massive transfer of land from the pre-modern state of possession to full private property and trigger broad-based economic growth as the newly entitled owners leveraged their property to fund business expansion. More intangibly, the independence – from community as well from rulers – that individual landownership brings has made it a moral aspiration for some.


pages: 346 words: 89,180

Capitalism Without Capital: The Rise of the Intangible Economy by Jonathan Haskel, Stian Westlake

"Robert Solow", 23andMe, activist fund / activist shareholder / activist investor, Airbnb, Albert Einstein, Andrei Shleifer, bank run, banking crisis, Bernie Sanders, business climate, business process, buy and hold, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, cognitive bias, computer age, corporate governance, corporate raider, correlation does not imply causation, creative destruction, dark matter, Diane Coyle, Donald Trump, Douglas Engelbart, Douglas Engelbart, Edward Glaeser, Elon Musk, endogenous growth, Erik Brynjolfsson, everywhere but in the productivity statistics, Fellow of the Royal Society, financial innovation, full employment, fundamental attribution error, future of work, Gini coefficient, Hernando de Soto, hiring and firing, income inequality, index card, indoor plumbing, intangible asset, Internet of things, Jane Jacobs, Jaron Lanier, job automation, Kenneth Arrow, Kickstarter, knowledge economy, knowledge worker, laissez-faire capitalism, liquidity trap, low skilled workers, Marc Andreessen, Mother of all demos, Network effects, new economy, open economy, patent troll, paypal mafia, Peter Thiel, pets.com, place-making, post-industrial society, Productivity paradox, quantitative hedge fund, rent-seeking, revision control, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Coase, Sand Hill Road, Second Machine Age, secular stagnation, self-driving car, shareholder value, sharing economy, Silicon Valley, six sigma, Skype, software patent, sovereign wealth fund, spinning jenny, Steve Jobs, survivorship bias, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Tim Cook: Apple, total factor productivity, Tyler Cowen: Great Stagnation, urban planning, Vanguard fund, walkable city, X Prize, zero-sum game

But the fiber, routers, processors, and base stations may not be the most important aspect of this infrastructure—what will really make them valuable is the development of new tools and habits of using them to connect and work together. These trends increase the importance of communications and connections between people and between businesses, and of the infrastructure that enables this. Standards, Frameworks, and Norms Economists have long known that effective rules, institutions, and norms can encourage investment. Conversely, Hernando de Soto memorably showed how bad institutions—specifically, weak property rights—discouraged poor people in the developing world from investing in their own houses, developing businesses, and thereby escaping poverty (Soto 2001). The invention of the limited liability corporation encouraged business investment by safeguarding business owners’ assets from repossession if the company failed. Intangible investment is also affected by institutional infrastructure, both formal and informal.


pages: 313 words: 91,098

The Knowledge Illusion by Steven Sloman

Affordable Care Act / Obamacare, Air France Flight 447, attribution theory, bitcoin, Black Swan, Cass Sunstein, combinatorial explosion, computer age, crowdsourcing, Dmitri Mendeleev, Elon Musk, Ethereum, Flynn Effect, Hernando de Soto, hindsight bias, hive mind, indoor plumbing, Isaac Newton, John von Neumann, libertarian paternalism, Mahatma Gandhi, Mark Zuckerberg, meta analysis, meta-analysis, obamacare, prediction markets, randomized controlled trial, Ray Kurzweil, Richard Feynman, Richard Thaler, Rodney Brooks, Rosa Parks, single-payer health, speech recognition, stem cell, Stephen Hawking, Steve Jobs, technological singularity, The Coming Technological Singularity, The Wisdom of Crowds, Vernor Vinge, web application, Whole Earth Review, Y Combinator

Economies are dreadfully complex (that’s why economics is known as the “dismal science”). Most individuals have only the most superficial understanding of them. Yet economies chug along merrily because they don’t depend on individuals’ understanding. An economy works because we each do our own little part. The economy is a great example of the hive mind, an incredibly complex system that emerges from the cooperation of many individual minds. Here’s what the Peruvian economist Hernando de Soto has to say about the underpinnings of an economy: “Remember, it is not your own mind that gives you certain exclusive rights over a specific asset, but other minds thinking about your rights in the same way you do. These minds vitally need each other to protect and control their assets.” In chapter 8 we talked about how the beliefs of a community are powerful, strong enough to make intelligent people believe outrageous things.


pages: 342 words: 94,762

Wait: The Art and Science of Delay by Frank Partnoy

algorithmic trading, Atul Gawande, Bernie Madoff, Black Swan, blood diamonds, Cass Sunstein, Checklist Manifesto, cognitive bias, collapse of Lehman Brothers, collateralized debt obligation, computerized trading, corporate governance, Daniel Kahneman / Amos Tversky, delayed gratification, Flash crash, Frederick Winslow Taylor, George Akerlof, Google Earth, Hernando de Soto, High speed trading, impulse control, income inequality, information asymmetry, Isaac Newton, Long Term Capital Management, Menlo Park, mental accounting, meta analysis, meta-analysis, MITM: man-in-the-middle, Nick Leeson, paper trading, Paul Graham, payday loans, Ralph Nader, Richard Thaler, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, Saturday Night Live, six sigma, Spread Networks laid a new fibre optics cable between New York and Chicago, Stanford marshmallow experiment, statistical model, Steve Jobs, The Market for Lemons, the scientific method, The Wealth of Nations by Adam Smith, upwardly mobile, Walter Mischel

Andrew’s loyalty since 1997 is rivaled only by that of my wife and dog; this is the fourth book the four of us have done together. Thank you, once again, to everyone at Profile Books. Numerous people talked to me about the various topics in this book. I am especially grateful for conversations with Bill Ackman, Julian Alexander, Michael Ashner, Lanny Breuer, Yaron Brook, Jeff Campbell, Dana Carney, Kathy Casey, Walker Clark, Simon Copleston, Jeff Critchfield, Patrick Daniels, Hernando de Soto, Sanford DeVoe, Gurpreet Dhaliwal, Andrew Dittmer, Jesse Eisinger, Anne Erni, Allen Farrell, Jerome Fons, Mary Fricker, Koji Fukumura, Maria Gavrilovic, Gordon Gerson, Jonathan Glater, Francesco Guerrera, Scott Harrison, Margaret Heffernan, Sheena Iyengar, James Jacoby, Rob Jafek, Roy Katzovicz, Adam Kolber, Eric Kolchinsky, Unni Krishnan, Steve Kroft, Stephen Labaton, Irene LaCota, Vice Chancellor Travis Laster, Angel Lau, Donald Lawrence, Joe Lonsdale, Angel Lopez, John Lovi, Jeff Madrick, Peter McLeod, Ralph Nader, Chuck O’Kelley, André Perold, Stephen Porges, Ernesto Reuben, Christine Richard, Darren Robbins, John Rogers, Jennifer Schenker, Todd Simkin, Robert P.


pages: 298 words: 95,668

Milton Friedman: A Biography by Lanny Ebenstein

"Robert Solow", affirmative action, banking crisis, Berlin Wall, Bretton Woods, business cycle, Deng Xiaoping, Fall of the Berlin Wall, fiat currency, floating exchange rates, Francis Fukuyama: the end of history, full employment, Hernando de Soto, hiring and firing, inflation targeting, invisible hand, Joseph Schumpeter, Kenneth Arrow, Lao Tzu, liquidity trap, means of production, Mont Pelerin Society, Myron Scholes, Pareto efficiency, Paul Samuelson, Ponzi scheme, price stability, rent control, road to serfdom, Robert Bork, Ronald Coase, Ronald Reagan, Sam Peltzman, school choice, school vouchers, secular stagnation, Simon Kuznets, stem cell, The Chicago School, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Wealth of Nations by Adam Smith, Thorstein Veblen, zero-sum game

And in the real economic world, there is a free lunch, an extraordinary free lunch, and that free lunch is free markets and private property.14 The first Milton Friedman Prize for Advancing Liberty was given on May 9, 2002, at the Cato Institute’s twenty-fifth anniversary dinner in Washington. The prize, which includes a $500,000 cash award, is given every other year to an individual who has made a major contribution to advancing liberty. Its first three recipients have been, in 2002, British economist Peter Bauer, who unfortunately died before it was presented; in 2004, Hernando de Soto, the South American advocate of libertarian ideas; and, in 2006, former Estonian prime minister Mart Laar, who implemented free market reforms in his country. Friedman demonstrated his attachment to exact expression in his extemporaneous talk on Bauer at the 2002 dinner: It was a “shame”—no, he corrected himself—“tragedy”15 that Bauer died before the award could be presented to him. While in Washington for the dinner, Milton and Rose had lunch at the White House.


Pale Rider: The Spanish Flu of 1918 and How It Changed the World by Laura Spinney

Albert Einstein, British Empire, colonial rule, dark matter, Donald Trump, Downton Abbey, experimental subject, Francisco Pizarro, global pandemic, Hernando de Soto, invisible hand, John Snow's cholera map, Louis Pasteur, Mahatma Gandhi, Nelson Mandela, placebo effect, trade route, urban renewal

Finding that the world grew cooler in the late Roman era, for example, they suggest that the Plague of Justinian–a pandemic of bubonic plague that killed approximately 25 million people in Europe and Asia in the sixth century AD–led to vast tracts of farmland being abandoned and forests growing back. Trees extract carbon dioxide from the atmosphere, and this reforestation led to so much of the gas being sequestered in wood that the earth cooled (the opposite of the greenhouse effect we are witnessing today). Similarly, the massive waves of death that Cortés, Francisco Pizarro (who conquered the Inca Empire in Peru) and Hernando de Soto (who led the first European expedition into what is now the United States) unleashed in the Americas in the sixteenth century caused a population crash that may have ushered in the Little Ice Age.6 The effect wasn’t reversed until the nineteenth century, when more Europeans arrived and began to clear the land again. The Little Ice Age was probably the last time a human disease affected the global climate, however.


pages: 311 words: 17,232

Living in a Material World: The Commodity Connection by Kevin Morrison

addicted to oil, barriers to entry, Berlin Wall, carbon footprint, clean water, commoditize, commodity trading advisor, computerized trading, diversified portfolio, Doha Development Round, Elon Musk, energy security, European colonialism, flex fuel, food miles, Hernando de Soto, Hugh Fearnley-Whittingstall, hydrogen economy, Intergovernmental Panel on Climate Change (IPCC), Kickstarter, Long Term Capital Management, new economy, North Sea oil, oil rush, oil shale / tar sands, oil shock, out of africa, Paul Samuelson, peak oil, price mechanism, Ronald Coase, Ronald Reagan, Silicon Valley, sovereign wealth fund, the payments system, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, uranium enrichment, young professional

Pollution is part of the metabolism of the economy. Production starts with the depletion of resources and ends with pollution. ‘In order to put an economic value on the environment, it has to become a commodity through government legislation, by creating property rights that entitle the holder to ownership of the underlying asset and permits allowing the right to pollute,’ said Daly. Peruvian economist Hernando De Soto writes in his book The Mystery of Capital that the use of documents to prove ownership is one of the main conditions for the success of capitalism in the West. In developed nations, writes De Soto, every parcel of land, every building, every piece of equipment or store of inventories is represented by a property document. These documents reflect an asset that can then be turned CLIMATE | 137 into collateral for credit and are the foundation for creating securities such as equities or mortgage-backed bonds that can be sold in secondary markets, which in turn generates capital (De Soto, 2000).


pages: 422 words: 113,525

Whole Earth Discipline: An Ecopragmatist Manifesto by Stewart Brand

agricultural Revolution, Asilomar, Asilomar Conference on Recombinant DNA, back-to-the-land, biofilm, borderless world, Buckminster Fuller, business process, Cass Sunstein, clean water, Community Supported Agriculture, conceptual framework, Danny Hillis, dark matter, decarbonisation, demographic dividend, demographic transition, Elon Musk, Exxon Valdez, failed state, Geoffrey West, Santa Fe Institute, glass ceiling, Google Earth, Hans Rosling, Hernando de Soto, informal economy, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), invention of agriculture, invention of the steam engine, Jane Jacobs, jimmy wales, Kevin Kelly, Kibera, land tenure, lateral thinking, low earth orbit, M-Pesa, Marshall McLuhan, megacity, microbiome, New Urbanism, orbital mechanics / astrodynamics, out of africa, Paul Graham, peak oil, Peter Calthorpe, Richard Florida, Ronald Reagan, Silicon Valley, smart grid, stem cell, Stewart Brand, The Fortune at the Bottom of the Pyramid, Thomas Malthus, University of East Anglia, uranium enrichment, urban renewal, wealth creators, Whole Earth Catalog, Whole Earth Review, William Langewiesche, working-age population, Y2K

All that the keepers of the formal economy have to do, Neuwirth says, is meet the squatters halfway—help them secure their tenure and give them time to gradually join the formal world, which will no doubt be reshaped by their joining it. Program by program, nation by nation, the world is learning how to engage the boundless resourcefulness of urban squatters. One idea put forward early was Hernando de Soto’s. In his seminal 1989 book, The Other Path, he was the first to honor the way the informal economy works, based on research in the squatter communities of Lima. His theory was that squatters could break out of poverty if only they could get bankable title to their shacks. The idea has been tried, but it mostly doesn’t work in urban slums: The practice doesn’t help with credit, it encourages building owners to become absentee landlords, and it attracts rich raiders.


pages: 391 words: 117,984

The Blue Sweater: Bridging the Gap Between Rich and Poor in an Interconnected World by Jacqueline Novogratz

access to a mobile phone, Ayatollah Khomeini, Berlin Wall, business process, business process outsourcing, clean water, failed state, Fall of the Berlin Wall, half of the world's population has never made a phone call, Hernando de Soto, Kibera, Lao Tzu, market design, microcredit, Nelson Mandela, out of africa, Ronald Reagan, sensible shoes, side project, Silicon Valley, Skype, The Fortune at the Bottom of the Pyramid, transaction costs, zero-sum game

Lovins (Earthscan Publications) Development as Freedom by Amartya Sen (Anchor) The End of Poverty: Economic Possibilities for Our Time by Jeffrey D. Sachs (Penguin Press) The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits by C.K. Prahalad (Wharton School Publishing) Making Globalization Work by Joseph E. Stiglitz (W.W. Norton) The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else by Hernando de Soto (Basic Books) Pathologies of Power: Health, Human Rights, and the New War on the Poor by Paul Farmer (University of California Press) Philanthrocapitalism: How the Rich Can Save the World by Matthew Bishop and Michael Green (Bloomsbury Press) Plan B 2.0: Rescuing a Planet Under Stress and a Civilization in Trouble by Lester R. Brown (W.W. Norton) Portfolios of the Poor: How the World’s Poor Live on $2 a Day by Daryl Collins, Jonathan Morduch, Stuart Rutherford, and Orlanda Ruthven (Princeton University Press) The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good by William Easterly (Penguin Books) Wikinomics: How Mass Collaboration Changes Everything by Don Tap-scott and Anthony D.


pages: 349 words: 114,038

Culture & Empire: Digital Revolution by Pieter Hintjens

4chan, airport security, AltaVista, anti-communist, anti-pattern, barriers to entry, Bill Duvall, bitcoin, blockchain, business climate, business intelligence, business process, Chelsea Manning, clean water, commoditize, congestion charging, Corn Laws, correlation does not imply causation, cryptocurrency, Debian, Edward Snowden, failed state, financial independence, Firefox, full text search, German hyperinflation, global village, GnuPG, Google Chrome, greed is good, Hernando de Soto, hiring and firing, informal economy, intangible asset, invisible hand, James Watt: steam engine, Jeff Rulifson, Julian Assange, Kickstarter, M-Pesa, mass immigration, mass incarceration, mega-rich, MITM: man-in-the-middle, mutually assured destruction, Naomi Klein, national security letter, Nelson Mandela, new economy, New Urbanism, Occupy movement, offshore financial centre, packet switching, patent troll, peak oil, pre–internet, private military company, race to the bottom, rent-seeking, reserve currency, RFC: Request For Comment, Richard Feynman, Richard Stallman, Ross Ulbricht, Satoshi Nakamoto, security theater, selection bias, Skype, slashdot, software patent, spectrum auction, Steve Crocker, Steve Jobs, Steven Pinker, Stuxnet, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trade route, transaction costs, twin studies, union organizing, wealth creators, web application, WikiLeaks, Y2K, zero day, Zipf's Law

A secure system of property rights also reduces uncertainty and encourages investments, creating favorable conditions for an economy to be successful. Empirical evidence suggests that countries with strong property rights systems have economic growth rates almost twice as high as those of countries with weak property rights systems, and that a market system with significant private property rights is an essential condition for democracy. According to Hernando de Soto, much of the poverty in the Third World countries is caused by the lack of Western systems of laws and well-defined and universally recognized property rights. De Soto argues that because of the legal barriers poor people in those countries can not utilize their assets to produce more wealth. It sounds sensible, doesn't it? The theory of strong private property rights, as the basis for democracy and prosperity is attractive.


pages: 385 words: 118,314

Cities Are Good for You: The Genius of the Metropolis by Leo Hollis

Airbnb, banking crisis, Berlin Wall, Boris Johnson, Broken windows theory, Buckminster Fuller, call centre, car-free, carbon footprint, cellular automata, clean water, cloud computing, complexity theory, congestion charging, creative destruction, credit crunch, Credit Default Swap, crowdsourcing, Deng Xiaoping, digital map, East Village, Edward Glaeser, Enrique Peñalosa, Firefox, Frank Gehry, Geoffrey West, Santa Fe Institute, Gini coefficient, Google Earth, Guggenheim Bilbao, haute couture, Hernando de Soto, housing crisis, illegal immigration, income inequality, informal economy, Internet of things, invisible hand, Jane Jacobs, Kickstarter, knowledge economy, knowledge worker, Long Term Capital Management, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, Masdar, mass immigration, megacity, negative equity, new economy, New Urbanism, Occupy movement, openstreetmap, packet switching, Panopticon Jeremy Bentham, place-making, Ray Oldenburg, Richard Florida, sharing economy, Silicon Valley, Skype, smart cities, smart grid, spice trade, Steve Jobs, technoutopianism, the built environment, The Chicago School, The Death and Life of Great American Cities, The Great Good Place, the High Line, The Spirit Level, The Wisdom of Crowds, Thomas Malthus, trade route, traveling salesman, urban planning, urban renewal, urban sprawl, walkable city, white flight, Y2K, Yom Kippur War

Every redevelopment plan, as they pointed out, was not what it appeared: when politicians and developers claim to be helping Dharavi, they often mean that they want to sell something. Dharavi offers an alternative, a rebuke even, to the mall and the air-conditioned business park beyond. Thus the Slum Rehab Schemes of the government were all market solutions and did not actually address the real needs of the neighbourhood. In the 1990s the Peruvian economist Hernando de Soto proposed that the slum dwellers’ right to the city was linked with access to the formal marketplace. If only the poor could trade with the rest of the city, they would soon integrate. De Soto suggested that each slum dweller should be given land rights over their informal property. This simple act of legal rubber-stamping, legitimising what had already taken place, would release ‘trillions of dollars, all ready to put to use … transformed into real capital’.19 Ironically this policy has already been adopted by the many left-wing parties in Latin America as well as the Indian Communist Party, but de Soto’s promise turns out not to be what it seems.


pages: 369 words: 121,161

Alistair Cooke's America by Alistair Cooke

Albert Einstein, Alistair Cooke, British Empire, Charles Lindbergh, double entry bookkeeping, full employment, Gunnar Myrdal, Hernando de Soto, imperial preference, interchangeable parts, joint-stock company, Maui Hawaii, Ralph Nader, Ralph Waldo Emerson, Spread Networks laid a new fibre optics cable between New York and Chicago, strikebreaker, The Wealth of Nations by Adam Smith, transcontinental railway, Triangle Shirtwaist Factory, urban sprawl, wage slave, Works Progress Administration

He sailed down and around the Florida Keys and up to the Gulf Coast, but found neither gold nor a fountain. After him, the Spanish made frequent, unauthorized, raids into Florida for slaves to work the West Indies; and they mounted several official expeditions to seek out the rumored piles of gold. They were all defeated by the native Indians, who had learned a lively detestation of the slave raiders, and on one of the last of these fruitless voyages the body of the commander, Hernando de Soto, was buried by his men in the Mississippi River to save it from desecration by the Indians. But these setbacks did not disabuse the Spanish of their belief in a whole literature woven around the mystical legend that declared that somewhere in the New World there was that ‘terrestrial paradise,’ an actual Heaven on earth that would redeem the hard life of the true believer here below. In many Spanish books written by scholars and divines who had never been to sea, the most confident and bizarre accounts were given of the land to the north of New Spain.


Poisoned Wells: The Dirty Politics of African Oil by Nicholas Shaxson

Asian financial crisis, Berlin Wall, blood diamonds, business climate, clean water, colonial rule, energy security, Exxon Valdez, failed state, Fall of the Berlin Wall, Hernando de Soto, income per capita, inflation targeting, Kickstarter, Martin Wolf, mobile money, Nelson Mandela, offshore financial centre, old-boy network, Ronald Reagan, Scramble for Africa, Yom Kippur War, zero-sum game

As far as they were concerned, it was all there already. They had only to take. They believed that, by being what they were, they had earned the right to take; and the higher the officer, the greater the crookedness— if that word had any meaning. . . . I was nervous of getting involved, because a government that breaks its own laws can easily break you. 53 P o i s o n e d We l l s The Peruvian economist Hernando de Soto, in his best-selling book The Mystery of Capital, argues that property rights are the bedrock upon which the edifice of capitalism is built. In Angola after independence, property was nationalized, chaotically. This ministry was given responsibility for that building, but nobody told them that another ministry had allocated it to someone else. Property rights became an ephemeral concept, a set of dull and shadowy ideas without real substance.


pages: 472 words: 117,093

Machine, Platform, Crowd: Harnessing Our Digital Future by Andrew McAfee, Erik Brynjolfsson

"Robert Solow", 3D printing, additive manufacturing, AI winter, Airbnb, airline deregulation, airport security, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, artificial general intelligence, augmented reality, autonomous vehicles, backtesting, barriers to entry, bitcoin, blockchain, British Empire, business cycle, business process, carbon footprint, Cass Sunstein, centralized clearinghouse, Chris Urmson, cloud computing, cognitive bias, commoditize, complexity theory, computer age, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, Dean Kamen, discovery of DNA, disintermediation, disruptive innovation, distributed ledger, double helix, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Ethereum, ethereum blockchain, everywhere but in the productivity statistics, family office, fiat currency, financial innovation, George Akerlof, global supply chain, Hernando de Soto, hive mind, information asymmetry, Internet of things, inventory management, iterative process, Jean Tirole, Jeff Bezos, jimmy wales, John Markoff, joint-stock company, Joseph Schumpeter, Kickstarter, law of one price, longitudinal study, Lyft, Machine translation of "The spirit is willing, but the flesh is weak." to Russian and back, Marc Andreessen, Mark Zuckerberg, meta analysis, meta-analysis, Mitch Kapor, moral hazard, multi-sided market, Myron Scholes, natural language processing, Network effects, new economy, Norbert Wiener, Oculus Rift, PageRank, pattern recognition, peer-to-peer lending, performance metric, plutocrats, Plutocrats, precision agriculture, prediction markets, pre–internet, price stability, principal–agent problem, Ray Kurzweil, Renaissance Technologies, Richard Stallman, ride hailing / ride sharing, risk tolerance, Ronald Coase, Satoshi Nakamoto, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, slashdot, smart contracts, Snapchat, speech recognition, statistical model, Steve Ballmer, Steve Jobs, Steven Pinker, supply-chain management, TaskRabbit, Ted Nelson, The Market for Lemons, The Nature of the Firm, Thomas Davenport, Thomas L Friedman, too big to fail, transaction costs, transportation-network company, traveling salesman, Travis Kalanick, two-sided market, Uber and Lyft, Uber for X, uber lyft, ubercab, Watson beat the top human players on Jeopardy!, winner-take-all economy, yield management, zero day

First, the parties involved have ironed out all details about the trade financing: insuring the goods while they’re in transit, identifying exactly when ownership is transferred, and so on. Second, all involved parties have satisfied themselves that they have received identical sets of properly signed legal documents related to this financing. Posting all documentation for the Ornua–Seychelles Trading transaction on the blockchain reduced a seven-day process to four hours. In June of 2016 the Republic of Georgia announced a project in conjunction with economist Hernando de Soto to design and pilot a blockchain-based system for land title registry in the country. It is expected that moving elements of the process onto the blockchain can reduce costs for homeowners and other users, while also reducing possibilities for corruption (since the land records, like everything else on the blockchain, will be unalterable). Why Not Get Smart about Contracts? As it became apparent that the blockchain could be used to record all kinds of transactions, not just those related to Bitcoins, it also became clear to some that a distributed ledger was the ideal home for digital “smart contracts.”


pages: 1,205 words: 308,891

Bourgeois Dignity: Why Economics Can't Explain the Modern World by Deirdre N. McCloskey

Airbnb, Akira Okazaki, big-box store, Black Swan, book scanning, British Empire, business cycle, buy low sell high, Capital in the Twenty-First Century by Thomas Piketty, clean water, Columbian Exchange, conceptual framework, correlation does not imply causation, Costa Concordia, creative destruction, crony capitalism, dark matter, Dava Sobel, David Graeber, David Ricardo: comparative advantage, deindustrialization, demographic transition, Deng Xiaoping, Donald Trump, double entry bookkeeping, en.wikipedia.org, epigenetics, Erik Brynjolfsson, experimental economics, Ferguson, Missouri, fundamental attribution error, Georg Cantor, George Akerlof, George Gilder, germ theory of disease, Gini coefficient, God and Mammon, greed is good, Gunnar Myrdal, Hans Rosling, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, Hernando de Soto, immigration reform, income inequality, interchangeable parts, invention of agriculture, invention of writing, invisible hand, Isaac Newton, Islamic Golden Age, James Watt: steam engine, Jane Jacobs, John Harrison: Longitude, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Arrow, knowledge economy, labor-force participation, lake wobegon effect, land reform, liberation theology, lone genius, Lyft, Mahatma Gandhi, Mark Zuckerberg, market fundamentalism, means of production, Naomi Klein, new economy, North Sea oil, Occupy movement, open economy, out of africa, Pareto efficiency, Paul Samuelson, Pax Mongolica, Peace of Westphalia, peak oil, Peter Singer: altruism, Philip Mirowski, pink-collar, plutocrats, Plutocrats, positional goods, profit maximization, profit motive, purchasing power parity, race to the bottom, refrigerator car, rent control, rent-seeking, Republic of Letters, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scientific racism, Scramble for Africa, Second Machine Age, secular stagnation, Simon Kuznets, Social Responsibility of Business Is to Increase Its Profits, spinning jenny, stakhanovite, Steve Jobs, The Chicago School, The Market for Lemons, the rule of 72, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, total factor productivity, Toyota Production System, transaction costs, transatlantic slave trade, Tyler Cowen: Great Stagnation, uber lyft, union organizing, very high income, wage slave, Washington Consensus, working poor, Yogi Berra

Declines of income are rare exceptions, and we pray that soon even such countries will reform in a bourgeois ideological direction, and join the blade of the hockey stick, in the way again of China and India—once also grotesquely mismanaged against “capitalism” in the name of the poor, a mismanagement that locked the poor into poverty. We bleeding-heart libertarians wholly approve, incidentally, of the one-time-and- never-again attack on property called “land reform,” such as Hernando de Soto’s proposal to give property rights to squatters in slums.13 We lament that land reform has not happened in every country in Latin America. But we lament, too, that our colleagues on the left have assailed de Soto’s poor-friendly proposals with the same arguments that the left long applied, equally mistakenly, to the enclosure movement in eighteenth-century England—namely, that private property hurts poor people.14 No, it doesn’t.

The British enrichment—out of Holland—came above all from a particular kind of bourgeois-admiring ideology. Ogilvie again provides a crucial fact, that rent-seeking guilds were unusually weak in Holland and Britain after 1500 by comparison to Italy or Germany or Spain.16 In London or Amsterdam you could set up in business with a relatively free hand, which is the crucial condition of entry that the Peruvian economist Hernando de Soto has brought to attention.17 In France from the sixteenth century onward, by contrast, L’État closely regulated the betterments of the bourgeoisie, and tempted it with offers to acquire for ready cash a tax-free nobility of the robe. The Dutch and eventually the British ideology came gradually to be one of betterment free from monopolizing guilds or interfering autocrats. The new ideology made wholly honorable the fiddling by ordinary folk with air pumps and steam engines and looms and pottery.


The New Enclosure: The Appropriation of Public Land in Neoliberal Britain by Brett Christophers

Boris Johnson, Capital in the Twenty-First Century by Thomas Piketty, Corn Laws, credit crunch, cross-subsidies, Diane Coyle, estate planning, ghettoisation, Hernando de Soto, housing crisis, income inequality, invisible hand, land reform, land tenure, land value tax, late capitalism, market clearing, Martin Wolf, New Journalism, New Urbanism, off grid, offshore financial centre, performance metric, Philip Mirowski, price mechanism, price stability, profit motive, Right to Buy, Skype, sovereign wealth fund, special economic zone, the built environment, The Wealth of Nations by Adam Smith, Thorstein Veblen, urban sprawl, wealth creators

All of these features, moreover, underwrite the fact that land is bankers’ favoured form of collateral: collateral is security pledged for payment of a loan, and land is, in all senses of the term, secure. It endures. And through its functioning as collateral, crucially, land-as-wealth helps beget further wealth. In mobilizing land as collateral for credit, which can be used to finance the production of goods and services, ‘the West’, argues the economist Hernando de Soto, ‘injects life into assets and makes them generate capital’. This, for de Soto, constitutes the eponymous Mystery of Capital.2 Last but not least, land is readily divisible, as any locus of capitalist wealth-embodiment must be, lest wealth not be distributable, measurable, and able, in Marx’s words, ‘to fluctuate, to decrease and to increase, to fly from one hand to another’. As Marx also says, ‘private property rests altogether on partitioning’; and since capitalism’s earliest days, land, in its divisibility, has represented privatizable property par excellence.1 Land and pleasure Lest we forget, however, land is not only about economy, and landownership is therefore also important other than for strictly economic considerations.


pages: 790 words: 150,875

Civilization: The West and the Rest by Niall Ferguson

Admiral Zheng, agricultural Revolution, Albert Einstein, Andrei Shleifer, Atahualpa, Ayatollah Khomeini, Berlin Wall, BRICs, British Empire, business cycle, clean water, collective bargaining, colonial rule, conceptual framework, Copley Medal, corporate governance, creative destruction, credit crunch, David Ricardo: comparative advantage, Dean Kamen, delayed gratification, Deng Xiaoping, discovery of the americas, Dissolution of the Soviet Union, European colonialism, Fall of the Berlin Wall, Francisco Pizarro, full employment, Hans Lippershey, haute couture, Hernando de Soto, income inequality, invention of movable type, invisible hand, Isaac Newton, James Hargreaves, James Watt: steam engine, John Harrison: Longitude, joint-stock company, Joseph Schumpeter, Kickstarter, Kitchen Debate, land reform, land tenure, liberal capitalism, Louis Pasteur, Mahatma Gandhi, market bubble, Martin Wolf, mass immigration, means of production, megacity, Mikhail Gorbachev, new economy, Pearl River Delta, Pierre-Simon Laplace, probability theory / Blaise Pascal / Pierre de Fermat, profit maximization, purchasing power parity, quantitative easing, rent-seeking, reserve currency, road to serfdom, Ronald Reagan, savings glut, Scramble for Africa, Silicon Valley, South China Sea, sovereign wealth fund, special economic zone, spice trade, spinning jenny, Steve Jobs, Steven Pinker, The Great Moderation, the market place, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Thorstein Veblen, total factor productivity, trade route, transaction costs, transatlantic slave trade, undersea cable, upwardly mobile, uranium enrichment, wage slave, Washington Consensus, women in the workforce, World Values Survey

But they have been left out for a reason. Does the selection reflect the biases of a middle-aged Scotsman, the archetypal beneficiary of Western predominance? Very likely. But I cherish the hope that the selection will not be disapproved of by the most ardent and eloquent defenders of Western values today, whose ethnic origins are very different from mine – from Amartya Sen to Liu Xiaobo, from Hernando de Soto to the dedicatee of this book. A book that aims to cover 600 years of world history is necessarily a collaborative venture and I owe thanks to many people. I am grateful to the staff at the following archives, libraries and institutions: the AGI Archive, the musée départemental Albert Kahn, the Bridgeman Art Library, the British Library, the Charleston Library Society, the Zhongguo guojia tushuguan (National Library of China) in Beijing, Corbis, the Institut Pasteur in Dakar, the Deutsches Historisches Museum in Berlin, the Geheimes Staatsarchiv Preussischer Kulturbesitz at Berlin-Dahlem, Getty Images, the Greenwich Observatory, the Heeresgeschichtliches Museum in Vienna, the Irish National Library, the Library of Congress, the Missouri History Museum, the musée du Chemin des Dames, the Museo de Oro in Lima, the National Archives in London, the National Maritime Museum, the Başbakanlık Osmanlı Arşivleri (Ottoman Archives) in Istanbul, PA Photos, the Peabody Museum of Archaeology and Ethnology at Harvard, the Archives Nationales du Sénégal in Dakar, the South Carolina Historical Society, the School of Oriental and African Studies, the Sülemaniye Manuscript Library and of course Harvard’s incomparable Widener Library.


pages: 476 words: 148,895

Cooked: A Natural History of Transformation by Michael Pollan

biofilm, bioinformatics, Columbian Exchange, correlation does not imply causation, creative destruction, dematerialisation, Drosophila, energy security, Gary Taubes, Hernando de Soto, hygiene hypothesis, Kickstarter, Louis Pasteur, Mason jar, microbiome, peak oil, Ralph Waldo Emerson, Steven Pinker, women in the workforce

If a sandwich can be said to have terroir, that quality of place that the French believe finds its way into the best wines and cheeses, this sandwich had it, a sense of place and history you could taste. Since the Europeans first set foot on these shores, the pig has been the principal meat animal in this part of the country. Indeed, the words “meat” and “pork” have been synonymous for most of Southern history. The Spanish conquistador Hernando de Soto brought the first pigs to the American South in the sixteenth century. For centuries, the descendants of those hogs ranged freely in the Carolinas, feeding themselves on the abundant mast produced by the oak-and-hickory forest. This means that, at least before pigs were confined to farms, the flavors of the Eastern hardwood forest could find their way into their meat by two routes: first as acorn and hickory nuts and then as wood smoke.


pages: 331 words: 60,536

The Sovereign Individual: How to Survive and Thrive During the Collapse of the Welfare State by James Dale Davidson, Rees Mogg

affirmative action, agricultural Revolution, bank run, barriers to entry, Berlin Wall, borderless world, British Empire, California gold rush, clean water, colonial rule, Columbine, compound rate of return, creative destruction, Danny Hillis, debt deflation, ending welfare as we know it, epigenetics, Fall of the Berlin Wall, falling living standards, feminist movement, financial independence, Francis Fukuyama: the end of history, full employment, George Gilder, Hernando de Soto, illegal immigration, income inequality, informal economy, information retrieval, Isaac Newton, Kevin Kelly, market clearing, Martin Wolf, Menlo Park, money: store of value / unit of account / medium of exchange, new economy, New Urbanism, Norman Macrae, offshore financial centre, Parkinson's law, pattern recognition, phenotype, price mechanism, profit maximization, rent-seeking, reserve currency, road to serfdom, Ronald Coase, Sam Peltzman, school vouchers, seigniorage, Silicon Valley, spice trade, statistical model, telepresence, The Nature of the Firm, the scientific method, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, trade route, transaction costs, Turing machine, union organizing, very high income, Vilfredo Pareto

., p.115. 15. See Mancur Olson, The Logic of Collective Action (Cambridge: Harvard University Press, 1965). 16. Josep R. Liobera, The God of Modernitv.. The Development of Nationalism in Western Europe (Oxford: Berg Publishers, 1994), pp. ix-x. 17. Ibid., p. xiii. 18. See William McNeill, Polyethnicitv and National Unity in World History (Toronto: University of Toronto Press, 1986). 19. Ibid., p.7. 20. Hernando de Soto, The Other Path (New York: Harper & Row, 1989). 21. Ibid. 22. Ibid., p.6. Chapter 6. The Megapolitics of the Information Age: The Triumph of Efficiency over Power 1. Neil Munro, "The Pentagon's New Nightmare: An Electronic Pearl Harbor," Washington Post, July 16, 1995, p. C3. 2. Thomas Hobbes, Leviathan, chap. 13 of "The Natural Condition of Man as Concerning Their Felicity and Misery." 3.


pages: 497 words: 153,755

The Power of Gold: The History of an Obsession by Peter L. Bernstein

Albert Einstein, Atahualpa, Bretton Woods, British Empire, business cycle, California gold rush, central bank independence, double entry bookkeeping, Edward Glaeser, Everybody Ought to Be Rich, falling living standards, financial innovation, floating exchange rates, Francisco Pizarro, German hyperinflation, Hernando de Soto, Isaac Newton, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, large denomination, liquidity trap, long peace, money: store of value / unit of account / medium of exchange, old-boy network, Paul Samuelson, price stability, profit motive, random walk, rising living standards, Ronald Reagan, seigniorage, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, trade route

The Conquerors, as Prescott calls them, found only empty streets as they entered Caxamalca. After a short distance, they came to an immense open plaza surrounded by low buildings containing capacious halls, presumably barracks for the Inca's soldiers. Pizarro was determined to occupy this area. Pizarro immediately dispatched a small force toward the Indian encampment, commanded by his brother Hernando Pizarro and his senior colleague Hernando de Soto. De Soto would later make his mark exploring in Florida for the Fountain of Youth; he died in 1542 on the shores of the Mississippi, having found neither the Fountain of Youth nor any North American gold, but he would have a Chrysler car model of the 1930s named after him. In addition, there was one Indian member of this detachment, who had been taught enough Spanish to act as interpreter.


pages: 501 words: 145,097

The Men Who United the States: America's Explorers, Inventors, Eccentrics and Mavericks, and the Creation of One Nation, Indivisible by Simon Winchester

British Empire, Charles Lindbergh, clean water, colonial rule, discovery of the americas, distributed generation, Donner party, estate planning, Etonian, full employment, Hernando de Soto, hive mind, invention of radio, invention of the telegraph, James Watt: steam engine, Joi Ito, Khyber Pass, Menlo Park, plutocrats, Plutocrats, transcontinental railway, Works Progress Administration

Instead the Europeans first discovered the three rivers that did drain directly into the ocean—the Colorado,* the Columbia, and the Mississippi. The Mississippi was the first of the three to be seen. A sinuous line approximating its position had already been marked on Spanish maps made as early as 1513; it was most probably first properly viewed six years later, in 1519. There was the certain and definitive encounter with the river twenty years later still, when Hernando de Soto, plundering and destroying his way across the southeastern quadrant of the country, stood on a limestone bluff just south of where Memphis lies today and, astonished, saw the great brown river unwinding slowly hundreds of feet below. These men, the first Europeans definitely to see America’s defining river, assembled crude log barges and managed to cross the stream, which at this point was “almost halfe a league broad,” and as an English translation of one the conquistadores’ diaries had it, . . . if a man stood still on the other side, it could not be discerned whether he were a man or no.


pages: 497 words: 144,283

Connectography: Mapping the Future of Global Civilization by Parag Khanna

"Robert Solow", 1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, commoditize, complexity theory, continuation of politics by other means, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, digital map, disruptive innovation, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, Ethereum, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, fixed income, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial cluster, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, LNG terminal, low cost airline, low cost carrier, low earth orbit, manufacturing employment, mass affluent, mass immigration, megacity, Mercator projection, Metcalfe’s law, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, off grid, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Parag Khanna, Peace of Westphalia, peak oil, Pearl River Delta, Peter Thiel, Philip Mirowski, plutocrats, Plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day

As the world’s urban masses become the overwhelming majority of the global population, the so-called youth bulge is not an impending challenge but an actual one. If it is not put to work today, then it will not earn enough income to stabilize socially and settle professionally. An estimated 30–40 percent of the world population works in the informal economy, a supply-demand universe if ever there was one. Hernando de Soto, the pioneering advocate of property rights for the poor, has pointed out that most of the self-immolating Arabs during early 2011 were extralegal entrepreneurs cut off from the capital they needed to start businesses capable of surviving food price shocks and petty local corruption. They represent the industrious yet dispossessed youth I’ve seen loitering around Morocco, Libya, Egypt, Jordan, Pakistan, and elsewhere—those who would choose jobs over jihad if the former were offered but take the path that provides them shelter and respect.


pages: 474 words: 149,248

The Blood of Heroes: The 13-Day Struggle for the Alamo--And the Sacrifice That Forged a Nation by James Donovan

active measures, colonial rule, El Camino Real, financial independence, Francisco Pizarro, Hernando de Soto, illegal immigration, invention of gunpowder

(France, Spain’s chief rival in North America, claimed Louisiana, the Mississippi Valley, and Canada.) Since Cortés had conquered the Aztec empire in 1521, Mexico City had become the center of Spain’s empire in the New World. The wealth of the Aztecs, and that of the Incas of Peru, had funded Spanish wars and further voyages of exploration. But after two major expeditions in the mid-1500s—Coronado’s epic trek across much of the American Southwest, and Hernando de Soto’s journey through the Southeast, neither of them finding the fabled cities of gold or any wealth at all—Spain abandoned any further exploration into the far northern frontier of its colonies. In 1690, the church-controlled Spanish authorities decided to establish missions near the Rio Grande to Christianize the natives there, not just for altruistic reasons but also for political reasons, to help guard New Spain’s borders.


Eastern USA by Lonely Planet

1960s counterculture, active transport: walking or cycling, Affordable Care Act / Obamacare, Albert Einstein, Berlin Wall, bike sharing scheme, Bretton Woods, British Empire, car-free, carbon footprint, centre right, Charles Lindbergh, collective bargaining, cuban missile crisis, desegregation, Donald Trump, East Village, Fall of the Berlin Wall, Frank Gehry, glass ceiling, Guggenheim Bilbao, haute cuisine, Hernando de Soto, illegal immigration, immigration reform, information trail, interchangeable parts, jitney, Kickstarter, license plate recognition, Mason jar, mass immigration, McMansion, megacity, Menlo Park, new economy, New Urbanism, obamacare, Ralph Waldo Emerson, Ronald Reagan, Rosa Parks, Saturday Night Live, Silicon Valley, Skype, the built environment, the High Line, the payments system, transcontinental railway, union organizing, Upton Sinclair, upwardly mobile, urban decay, urban planning, urban renewal, urban sprawl, walkable city, white flight, Works Progress Administration, young professional

The entire state is dotted with exceptionally well-presented state parks and tiny, empty roads crisscrossing dense forests that let out onto surprising, sweeping vistas and gentle pastures dotted with grazing horses. The rural towns of Mountain View and Eureka Springs hold quirky charm. Don’t be fooled by talk of Wal-Mart or backwoods culture. As one local put it, ‘Say what you want about Arkansas, but it’s a outdoor paradise.’ History Caddo, Osage and Quapaw Native Americans had permanent settlements here when Spaniard Hernando de Soto visited in the mid-1500s. Frenchman Henri de Tonti founded the first white settlement in 1686. After the 1803 Louisiana Purchase, Arkansas became a US territory, and slave-holding planters moved into the Delta to grow cotton. Poorer immigrants from Appalachia settled in the Ozark and Ouachita plateaus. On the edge of the frontier, lawlessness persisted until the Civil War. Reconstruction was difficult, and development only came after 1870 with the expansion of railroads.

Florida Highlights Marvel at the bright-painted works of art in Miami’s museums and galleries (Click here) Paddle among the alligators and saw grass of the Everglades (Click here) Be swept up in the nostalgia and thrill rides of Walt Disney World (Click here) Join Mallory Square’s sunset bacchanal in Key West (Click here) Snorkel and dive the USA’s most extensive coral reef at John Pennekamp (Click here) Relax on the sugar sand beaches of Sarasota’s Siesta Key (Click here) Ponder the symbolism of the Hallucinogenic Toreador at St Petersburg’s Salvador Dalí Museum (Click here) Growl like a pirate among the historic Spanish buildings of St Augustine (Click here) Road-trip through the fun-loving beach towns and quiet silken sands of the Panhandle (Click here) History Florida has the oldest recorded history of any US state, and also the most notorious and bizarre. The modern tale begins with Ponce de León, who arrived in 1513 and claimed La Florida (for the Easter ‘Feast of Flowers’) for Spain. Supposedly, he was hunting for the mythical fountain of youth (the peninsula’s crystal springs), while later Spanish explorers like Hernando de Soto sought gold. All came up empty handed. FLORIDA FACTS »Nickname Sunshine State »Population 18.8 million »Area 53,927 sq miles »Capital city Tallahassee (population 168,979) »Other cities Jacksonville (821,780), Tampa (335,700) »Sales tax 6% (some towns add 9.5% to 11.5% to accommodations and meals) »Birthplace of Author Zora Neale Hurston (1891–1960), actor Faye Dunaway (b 1941), musician Tom Petty (b 1950), author Carl Hiaasen (b 1953) »Home of Cuban Americans, manatees, Mickey Mouse, retirees, key lime pie »Politics sharply divided between Republicans and Democrats »Famous for theme parks, beaches, alligators, art deco »Notable local invention frozen concentrated orange juice (1946) »Driving distances Miami to Key West 160 miles, Miami to Orlando 235 miles Within two centuries, Florida’s original native inhabitants – who formed small tribes across a peninsula they’d occupied for over 11,000 years – were largely decimated by Spanish-introduced diseases.


pages: 603 words: 182,781

Aerotropolis by John D. Kasarda, Greg Lindsay

3D printing, air freight, airline deregulation, airport security, Akira Okazaki, Asian financial crisis, back-to-the-land, barriers to entry, Berlin Wall, big-box store, blood diamonds, borderless world, Boris Johnson, British Empire, business cycle, call centre, carbon footprint, Cesare Marchetti: Marchetti’s constant, Charles Lindbergh, Clayton Christensen, cleantech, cognitive dissonance, commoditize, conceptual framework, credit crunch, David Brooks, David Ricardo: comparative advantage, Deng Xiaoping, deskilling, digital map, disruptive innovation, edge city, Edward Glaeser, failed state, food miles, Ford paid five dollars a day, Frank Gehry, fudge factor, full employment, future of work, Geoffrey West, Santa Fe Institute, George Gilder, global supply chain, global village, gravity well, Haber-Bosch Process, Hernando de Soto, hive mind, if you build it, they will come, illegal immigration, inflight wifi, intangible asset, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), intermodal, invention of the telephone, inventory management, invisible hand, Jane Jacobs, Jeff Bezos, Joan Didion, Kangaroo Route, Kickstarter, knowledge worker, kremlinology, low cost airline, Marchetti’s constant, Marshall McLuhan, Masdar, mass immigration, McMansion, megacity, Menlo Park, microcredit, Network effects, New Economic Geography, new economy, New Urbanism, oil shale / tar sands, oil shock, peak oil, Pearl River Delta, Peter Calthorpe, Peter Thiel, pets.com, pink-collar, pre–internet, RFID, Richard Florida, Ronald Coase, Ronald Reagan, Rubik’s Cube, savings glut, Seaside, Florida, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, spinning jenny, starchitect, stem cell, Steve Jobs, supply-chain management, sustainable-tourism, telepresence, the built environment, The Chicago School, The Death and Life of Great American Cities, The Nature of the Firm, thinkpad, Thomas L Friedman, Thomas Malthus, Tony Hsieh, trade route, transcontinental railway, transit-oriented development, traveling salesman, trickle-down economics, upwardly mobile, urban planning, urban renewal, urban sprawl, walkable city, white flight, white picket fence, Yogi Berra, zero-sum game

In Memphis: “When Firestone and International Harvester left, taking with them good blue-collar, union jobs, there was a question in the air: ‘Well, now what are we going to be?’ ” The one asking that question is Dexter Muller, whose office at the Greater Memphis Chamber of Commerce is only a few doors down from the Cotton Exchange on Front Street. The view from his window is a snapshot of the city’s transportation history: Cotton Row below, the muddy Mississippi beyond, and, in the distance, the long span of the Hernando de Soto Bridge bearing six lanes of truck traffic to and from points west. His unrepentant drawl and modest pompadour mark him as a native who grew up in the Age of Elvis. He is a third-generation Memphian; his grandfather was a cotton trader, and mother a local belle, while his father moved here from New York in 1937 to build a paper plant for Kimberly-Clark, only to see it promptly swept away in a flood.


pages: 662 words: 180,546

Never Let a Serious Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown by Philip Mirowski

"Robert Solow", Alvin Roth, Andrei Shleifer, asset-backed security, bank run, barriers to entry, Basel III, Berlin Wall, Bernie Madoff, Bernie Sanders, Black Swan, blue-collar work, Bretton Woods, Brownian motion, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, constrained optimization, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, dark matter, David Brooks, David Graeber, debt deflation, deindustrialization, do-ocracy, Edward Glaeser, Eugene Fama: efficient market hypothesis, experimental economics, facts on the ground, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, full employment, George Akerlof, Goldman Sachs: Vampire Squid, Hernando de Soto, housing crisis, Hyman Minsky, illegal immigration, income inequality, incomplete markets, information asymmetry, invisible hand, Jean Tirole, joint-stock company, Kenneth Arrow, Kenneth Rogoff, Kickstarter, knowledge economy, l'esprit de l'escalier, labor-force participation, liberal capitalism, liquidity trap, loose coupling, manufacturing employment, market clearing, market design, market fundamentalism, Martin Wolf, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Naomi Klein, Nash equilibrium, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, oil shock, Pareto efficiency, Paul Samuelson, payday loans, Philip Mirowski, Ponzi scheme, precariat, prediction markets, price mechanism, profit motive, quantitative easing, race to the bottom, random walk, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, school choice, sealed-bid auction, Silicon Valley, South Sea Bubble, Steven Levy, technoutopianism, The Chicago School, The Great Moderation, the map is not the territory, The Myth of the Rational Market, the scientific method, The Wisdom of Crowds, theory of mind, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, Tobin tax, too big to fail, transaction costs, Vilfredo Pareto, War on Poverty, Washington Consensus, We are the 99%, working poor

6 The Red Guide to the Neoliberal Playbook For someone who has just spent a few hundred pages arguing that the economics profession has been proven hopelessly corrupt by virtue of its behavior during the crisis, and that the Neoliberal Thought Collective has managed to weather the crisis by expanding to fill the entire space of political discourse left void by the dereliction of the economists, I am now going to do something a little counterintuitive: I am going to start by agreeing (in a limited way) with one famous Mont Pèlerin member, Hernando de Soto. In a retrospective on the crisis, he insisted, “the recession wasn’t about bubbles but about the organization of knowledge.”1 Of course, this was not entirely unexpected, coming from a member of the NTC: it has persistently been an outlier in the history of reactionary movements, a political formation built upon a realization that their own core foundational commitments were epistemological, rather than simply “conservative” or capitalist or traditionalist;2 but I think it is more revealing than perhaps he himself would concede.


pages: 650 words: 204,878

Reminiscences of a Stock Operator by Edwin Lefèvre, William J. O'Neil

activist fund / activist shareholder / activist investor, bank run, British Empire, business process, buttonwood tree, buy and hold, clean water, Credit Default Swap, Donald Trump, fiat currency, Hernando de Soto, margin call, Monroe Doctrine, new economy, pattern recognition, Ponzi scheme, price stability, refrigerator car, reserve currency, short selling, technology bubble, trade route, transcontinental railway, traveling salesman, Upton Sinclair, yellow journalism

So I just said to her: “You foolish little girl, you keep your hands off this deal.” 16.4 Livermore inadvertently funded his wife’s misadven ture with a $500 bill. That places the time at 1918 or later, as the first $500 bill was issued that year. The bill featured an engraving of pioneering Virginian John Marshall, who was secretary of state under President John Adams, then a Congressman, and later chief justice of the Supreme Court from 1801 to 1835. On the back was pictured the Spanish explorer Hernando de Soto discovering the Mississippi in 1541. In 1928, another $500 bill went into circulation featuring President William McKinley. Bills over $100 were removed from circulation in 1969 by order of President Richard Nixon as part of a broad effort to battle the Mafia. Other high-denomination bills formerly in circulation included the $1,000 (featuring Grover Cleve land), $5,000 (James Madison), $10,000 (Salmon P.


pages: 686 words: 201,972

Drink: A Cultural History of Alcohol by Iain Gately

barriers to entry, British Empire, California gold rush, corporate raider, delayed gratification, Deng Xiaoping, Edward Lloyd's coffeehouse, Fellow of the Royal Society, Gordon Gekko, greed is good, Haight Ashbury, Hernando de Soto, imperial preference, invisible hand, joint-stock company, Jones Act, Louis Pasteur, megacity, music of the spheres, Norman Mailer, Peace of Westphalia, post-work, refrigerator car, Ronald Reagan, South Sea Bubble, spice trade, strikebreaker, the scientific method, Tim Cook: Apple, trade route, traveling salesman, Upton Sinclair, V2 rocket, working poor

While the Spanish were careful, as usual, to write down the diets of the people they came across on the Terra Firma, alcohol only appears on their own provision lists, or in expressions of grief over its absence. For instance, the destruction of communion wine by belligerent Indians near Mobile was ranked an equal loss to that of gunpowder, bullets, and valiant comrades by Rodrigo Rangel, a participant in Hernando de Soto’s crazed 1539 drive from Cape Canaveral to the Mississippi River. Although they found no evidence of indigenous tippling, both the Spaniards and the French had commented on the potential of the land for making wine. Every tree seemed draped with vines; indeed, the original name for the Island of Orleans opposite Quebec was Bacchus Island. It is a matter of dispute as to whether it was the French or Spanish who were the first to make an American vintage.


A Terrible Glory by James Donovan

California gold rush, Hernando de Soto, joint-stock company, Monroe Doctrine, transcontinental railway

THE LINE, WHICH had existed almost since the white man had begun to penetrate the vastness to the west, was the result of more than three centuries of clashes between Europeans and the native population. Spanish conquistadors had clashed constantly with the native inhabitants of Florida during their many expeditions in search of gold and other treasures. In the epic Battle of Mabila in 1540, in the area later known as Alabama, Hernando de Soto and several hundred Spaniards had destroyed an entire army of thousands of Indians to the last man. To the north, in the swampy Tidewater region of Virginia, the two-hundred-village-strong Powhatan Confederacy had aided the ill-prepared English settlers at Jamestown since their arrival in 1607. The generous Indians had brought food to the starving colonists, given freely of their considerable agricultural knowledge, and generally made it possible for the English to survive the first few years of the settlement’s existence.


pages: 740 words: 217,139

The Origins of Political Order: From Prehuman Times to the French Revolution by Francis Fukuyama

Admiral Zheng, agricultural Revolution, Andrei Shleifer, Asian financial crisis, Ayatollah Khomeini, barriers to entry, Berlin Wall, blood diamonds, California gold rush, cognitive dissonance, colonial rule, conceptual framework, correlation does not imply causation, currency manipulation / currency intervention, demographic transition, Deng Xiaoping, double entry bookkeeping, endogenous growth, equal pay for equal work, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Francisco Pizarro, Hernando de Soto, hiring and firing, invention of agriculture, invention of the printing press, Khyber Pass, land reform, land tenure, means of production, offshore financial centre, out of africa, Peace of Westphalia, principal–agent problem, RAND corporation, rent-seeking, Right to Buy, Scramble for Africa, selective serotonin reuptake inhibitor (SSRI), spice trade, Stephen Hawking, Steven Pinker, the scientific method, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, trade route, transaction costs, Washington Consensus, zero-sum game

See Francis Fukuyama and Sanjay Marwah, “Comparing East Asia and Latin America: Dimensions of Development,” Journal of Democracy 11, no. 4 (2000): 80–94. 4 On the decline in inequality in the 2000s in Latin America, see Luis Felipe Lopez-Calva and Nora Lustig, eds., Declining Inequality in Latin America: A Decade of Progress? (Washington, D.C.: Brookings Institution Press, 2010). 5 On the general problem of informality, see Hernando De Soto, The Other Path: The Invisible Revolution in the Third World (New York: Harper, 1989); and Santiago Levy, Good Intentions, Bad Outcomes: Social Policy, Informality, and Economic Growth in Mexico (Washington, D.C.: Brookings Institution Press, 2008). 6 See, for example, the chapter on Chile in Hirschman, Journeys Toward Progress, pp. 161–223. 7 An “electoral authoritarian” regime validates itself through elections, but in a highly manipulated process that does not permit a true level playing field for democratic contestation.


pages: 828 words: 232,188

Political Order and Political Decay: From the Industrial Revolution to the Globalization of Democracy by Francis Fukuyama

Affordable Care Act / Obamacare, Andrei Shleifer, Asian financial crisis, Atahualpa, banking crisis, barriers to entry, Berlin Wall, blood diamonds, British Empire, centre right, clean water, collapse of Lehman Brothers, colonial rule, conceptual framework, crony capitalism, deindustrialization, Deng Xiaoping, disruptive innovation, double entry bookkeeping, Edward Snowden, Erik Brynjolfsson, European colonialism, facts on the ground, failed state, Fall of the Berlin Wall, first-past-the-post, Francis Fukuyama: the end of history, Francisco Pizarro, Frederick Winslow Taylor, full employment, Gini coefficient, Hernando de Soto, Home mortgage interest deduction, income inequality, information asymmetry, invention of the printing press, iterative process, Kickstarter, knowledge worker, labour management system, land reform, land tenure, life extension, low skilled workers, manufacturing employment, means of production, Menlo Park, Mohammed Bouazizi, Monroe Doctrine, moral hazard, Nelson Mandela, new economy, open economy, out of africa, Peace of Westphalia, Port of Oakland, post-industrial society, post-materialism, price discrimination, quantitative easing, RAND corporation, rent-seeking, road to serfdom, Ronald Reagan, Scientific racism, Scramble for Africa, Second Machine Age, Silicon Valley, special economic zone, stem cell, the scientific method, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, too big to fail, trade route, transaction costs, Tyler Cowen: Great Stagnation, Vilfredo Pareto, women in the workforce, World Values Survey, zero-sum game

For Friedrich Hayek’s arguments against rationalist planning and in favor of spontaneous order, see Law, Legislation and Liberty (Chicago: University of Chicago Press, 1976), and The Constitution of Liberty (Chicago: University of Chicago Press, 2011). 2. See Robert H. Frank, The Darwin Economy: Liberty, Competition, and the Common Good (Princeton: Princeton University Press, 2011). 3. On the limitations of the contemporary microfinance movement, see David Roodman, Due Diligence: An Impertinent Inquiry into Microfinance (Washington, D.C.: Center for Global Development, 2012). On extending property rights to the poor, see Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (London: Bantam Press, 2000). 4. Amartya Sen, Development as Freedom (New York: Knopf, 1999), p. 27. 5. For a much longer discussion of the role of recognition and dignity in politics, see Fukuyama, The End of History and the Last Man, pp. 162–208. 6. On China’s challenges in moving from middle- to high-income status, see the World Bank, China 2030: Building a Modern, Harmonious, and Creative Society (Washington, D.C.: World Bank, 2013). 7.


Parks Directory of the United States by Darren L. Smith, Kay Gill

1919 Motor Transport Corps convoy, Asilomar, British Empire, California gold rush, clean water, cuban missile crisis, desegregation, Donner party, El Camino Real, global village, Golden Gate Park, Hernando de Soto, indoor plumbing, mass immigration, Maui Hawaii, oil shale / tar sands, Ronald Reagan, Sand Hill Road, Torches of Freedom, trade route, transcontinental railway, Works Progress Administration

★89★ DE SOTO NATIONAL MEMORIAL 3000 75th St NW Bradenton, FL 34209 Web: www.nps.gov/deso/ Phone: 941-792-0458; Fax: 941-792-5094 Size: 27 acres. History: Authorized on March 11, 1948. Location: At the northern terminus of 75th St. NW in Bradenton, Florida. Visitors can reach the park from I-75 or I-275. Facilities: Visitor center (u), museum/exhibit, self-guided tour/trail. Activities: Nature walk, interpretive programs. Special Features: The landing of Spanish explorer Hernando de Soto in Florida in 1539 and the first extensive organized exploration of what is now the southern United States by Europeans are commemorated here. With an army of 600 soldiers, Soto had come to the new world with a license from the King of Spain to explore, colonize, and pacify the Indians of the area known as ‘‘La Florida’’. ★92★ DELAWARE WATER GAP NATIONAL RECREATION AREA 1 River Rd Bushkill, PA 18324 Web: www.nps.gov/dewa/ Phone: 570-588-2435; Fax: 570-588-2780 Size: 66,740 acres.

Location: In the community of Parkin, at the junction of US 64 and AR 184 north. Facilities: Interpretive trails; visitor center with exhibit area, archeological laboratory, and gift shop; picnic area, playground, enclosed pavilion. Activities: Interpretive programs. Special Features: A National Historic Landmark, Park interprets the Mississippi Period Native American village located here from AD 1000 to 1550 and visited by the Hernando de Soto expedition in 1541. The mound site is jointly managed by Arkansas State Parks and the Arkansas Archeological Survey as a research station, museum, and interpretive center. ★1492★ PETIT JEAN STATE PARK 1285 Petit Jean Mountain Rd Morrilton, AR 72110 Web: www.petitjeanstatepark.com Phone: 501-727-5441 Size: 2,656 acres. Location: Exit 108 off I-40 at Morrilton, 9 miles south on AR 9, then 12 miles west on AR 154.

.): LA 2540 Gold Head Branch: FL 1996 Gold mining (Colorado): CO 1144 Gold Rush (California): CA 365, 1532; UT 1054 Golden Gate Bridge: CA 125 Golden Isles: GA 85 Golden and Silver Falls: OR 3866 11. Special Features Index PARKS DIRECTORY OF THE UNITED STATES—5th EDITION Henry Reuss: WI 1059 Henry Wadsworth Longfellow: MA 228 Heritage Hill: WI 4732 Heritage House: TX 4307 Herkimer (Nicholas): NY 3528 Hermon MacNeil: IN 146 Hernando de Soto: AR 1491 Hetch Hetchy Reservoir: CA 1139 Hiawatha: MI 2809 Hickok (James Butler ‘‘Wild Bill’’): NE 3176 Hickory Run Boulder Field: PA 4007 High Point Monument: NJ 3316 Highland Park: MI 1190 Highway of Waterfalls: OR 1237 Hill Annex Mine: MN 2907 Hill Shoals Creek Falls: GA 1157 Hillsman House: VA 4525 Historic Savanna Portage Trail: MN 2935 Historic Trail of Stones: IN 2345 Hohokam Culture: AZ 58, 179 Holten (Frank): IL 2228 Holyoke: MA 2700 Homolovi Indians: AZ 1127 Hood Museum of Art: NH 1206 Hooper Springs Park: ID 1162 Hoosic Tunnel: MA 2761 Hoover (Herbert): IA 178 Hopewell Culture: LA 2537 Hopewell Indians: OH 182 Hopi Indians: AZ 375 Horatio Gates: NY 3493 Horicon Marsh: WI 776 Horsehead Cliffs: VA 4533 Horsetail Falls: WA 1232 Horton (Henry H.): TN 4252 Hot Springs: AR 185 Hotel du Pont: DE 1153 Houghton County Historical Museum: MI 207 Houseman (Jacob): FL 1969 Houston Zoological Gardens: TX 4871 Howard Arden Edwards: CA 1515 Howard Steamboat Museum: IN 1172 Howe House: VA 4504 Hoyt Arboretum: OR 4951 Hubbard House: OH 1226 Hubbard Museum of the American West: NM 1209 Hubbell Trading Post: AZ 187 Huckleberry Mountain: OR 547 Hudson Bay Company: WA 134 Hudson (Henry): NJ 3304 Hudson-Meng Bison Bonebed Site: NE 532 Hudson River Trail: NY 3523 Hudson River Valley: NY 1101 Hudson’s Bay Company: WA 134 Huffman Prairie Flying Field: OH 88 Hull (Cordell): TN 4239 Humpback Mountain: NC 1220 Hunter (William and Amanda): MO 3009 Huntington (Anna Hyatt): CT 1825; SC 4121, 4141 Huron Dunes: MI 2837 Hyde Street Pier: CA 316 Hyner Mountain Snowmobile Trail: PA 4010 I Ice Age: KY 2462; WI 390 Ice Age National Scenic Trail: WI 469, 5119 Ice Age National Scientific Reserve: WI 1059, 4722, 4738, 4748 Ice Age Paleo Indians: GA 271 Icefields Parkway: AB 408 Ichetucknee Springs: FL 1968 Ida Saxton McKinley: OH 110 Idaho Batholith: ID 463 Ide (William B.): CA 1766 Ignacio Zaragoza: TX 4333 Illinois Indians: MO 3010 Illinois and Michigan Canal: IL 384, 1102, 2231, 2248, 2323 Illinois and Michigan Canal State Trail: IL 2214, 2323 Illinois River: IL 1167, 1169 Incline Village: NV 1203 Independence Hall: PA 188 Independence Mine: AK 1354 Indian Heaven Wilderness Area: WA 497 Indian Medicine Wheel: WY 460 Indian River Lagoon: FL 1155 Indian Wars: KS 120; NE 3145 Indianapolis Motor Speedway: IN 1171 Indiangrass Wildlife Sanctuary: TX 4810 Industrial Revolution: MA 229; PA 1098, 1103, 1109, 1111, 1112; RI 1094 Inscription Rock: OH 3701 Inside Passage: AK 1123 Interloken National Recreation Trail: NY 490 Internment camps: CA 235; ID 241 Inuit: NU 407 Inupiaq culture: AK 969 Iron Mission Museum: UT 4418 Iron Plantation: PA 183 Iroquois Hill: KY 4892 Iroquois Indians: PA 4075 Isaac Shelby: KY 2482 Ishi: CA 1543 Ishi Wilderness: CA 517 Isle au Haut: ME 3 J J.


pages: 850 words: 254,117

Basic Economics by Thomas Sowell

affirmative action, air freight, airline deregulation, American Legislative Exchange Council, bank run, barriers to entry, big-box store, British Empire, business cycle, clean water, collective bargaining, colonial rule, corporate governance, correlation does not imply causation, cross-subsidies, David Brooks, David Ricardo: comparative advantage, declining real wages, Dissolution of the Soviet Union, diversified portfolio, European colonialism, fixed income, Fractional reserve banking, full employment, global village, Gunnar Myrdal, Hernando de Soto, hiring and firing, housing crisis, income inequality, income per capita, index fund, informal economy, inventory management, invisible hand, John Maynard Keynes: technological unemployment, joint-stock company, Just-in-time delivery, Kenneth Arrow, knowledge economy, labor-force participation, land reform, late fees, low cost airline, low cost carrier, low skilled workers, means of production, Mikhail Gorbachev, minimum wage unemployment, moral hazard, offshore financial centre, oil shale / tar sands, payday loans, price discrimination, price stability, profit motive, quantitative easing, Ralph Nader, rent control, road to serfdom, Ronald Reagan, Silicon Valley, surplus humans, The Bell Curve by Richard Herrnstein and Charles Murray, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, transcontinental railway, Vanguard fund, War on Poverty

{830} Deepak Lal, Reviving the Invisible Hand: The Case for Classical Liberalism in the Twenty-First Century (Princeton: Princeton University Press, 2006), p. 136. {831} Nikolai Shmelev and Vladimir Popov, The Turning Point: Revitalizing the Soviet Economy (New York: Doubleday, 1989), p. 49. {832} Peter Bauer, Equality, the Third World, and Economic Delusion (Cambridge, MA: Harvard University Press, 1981), p. 102. {833} “No Title,” The Economist, March 31, 2001, p. 20. {834} Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (New York: Basic Books, 2000), p. 20. {835} Ibid., pp. 33–34. {836} Thomas Sowell, Migrations and Cultures, Chapter 6. {837} Hudson Institute Center for Global Prosperity, The Index of Global Philanthropy and Remittances, 2013: With a Special Report on Emerging Economies (Washington: Hudson Institute, 2013), p. 9


Cuba Travel Guide by Lonely Planet

Bartolomé de las Casas, battle of ideas, business climate, car-free, carbon footprint, cuban missile crisis, G4S, glass ceiling, haute cuisine, Hernando de Soto, Kickstarter, Monroe Doctrine, new economy, ride hailing / ride sharing, Ronald Reagan, transatlantic slave trade, transcontinental railway, transfer pricing, urban planning

Castillo de la Real Fuerza FORT OFFLINE MAP GOOGLE MAP On the seaward side of Plaza de Armas is one of the oldest existing forts in the Americas, built between 1558 and 1577 on the site of an earlier fort destroyed by French privateers in 1555. The west tower is crowned by a copy of a famous bronze weather vane called La Giraldilla . The original was cast in Havana in 1632 by Jerónimo Martínez Pinzón and is popularly believed to be of Doña Inés de Bobadilla, the wife of gold explorer Hernando de Soto. The original is now kept in the Museo de la Ciudad, and the figure also appears on the Havana Club rum label. Imposing and indomitable, the castle is ringed by an impressive moat and today shelters the Museo de Navegación OFFLINE MAP GOOGLE MAP (admission CUC$3; 9am-5pm) , which opened in 2008 and displays interesting exposés on the history of the fort and Old Town, and its connections with the erstwhile Spanish Empire.


USA Travel Guide by Lonely, Planet

1960s counterculture, active transport: walking or cycling, Affordable Care Act / Obamacare, Albert Einstein, Asilomar, Bay Area Rapid Transit, Berlin Wall, Big bang: deregulation of the City of London, big-box store, bike sharing scheme, Bretton Woods, British Empire, Burning Man, California gold rush, call centre, car-free, carbon footprint, centre right, Charles Lindbergh, Chuck Templeton: OpenTable:, cuban missile crisis, desegregation, Donald Trump, Donner party, East Village, edge city, El Camino Real, Fall of the Berlin Wall, feminist movement, Frank Gehry, glass ceiling, global village, Golden Gate Park, Guggenheim Bilbao, Haight Ashbury, haute couture, haute cuisine, Hernando de Soto, Howard Zinn, illegal immigration, immigration reform, information trail, interchangeable parts, intermodal, jitney, Kickstarter, license plate recognition, Mars Rover, Mason jar, mass immigration, Maui Hawaii, McMansion, Menlo Park, Monroe Doctrine, new economy, New Urbanism, obamacare, off grid, Ralph Nader, Ralph Waldo Emerson, RFID, ride hailing / ride sharing, Ronald Reagan, Rosa Parks, Saturday Night Live, Silicon Valley, South of Market, San Francisco, starchitect, stealth mode startup, stem cell, supervolcano, the built environment, The Chicago School, the High Line, the payments system, trade route, transcontinental railway, union organizing, Upton Sinclair, upwardly mobile, urban decay, urban planning, urban renewal, urban sprawl, walkable city, white flight, working poor, Works Progress Administration, young professional, Zipcar

The entire state is dotted with exceptionally well-presented state parks and tiny, empty roads crisscrossing dense forests that let out onto surprising, sweeping vistas and gentle pastures dotted with grazing horses. The rural towns of Mountain View and Eureka Springs hold quirky charm. Don’t be fooled by talk of Wal-Mart or backwoods culture. As one local put it, ‘Say what you want about Arkansas, but it’s a outdoor paradise.’ History Caddo, Osage and Quapaw Native Americans had permanent settlements here when Spaniard Hernando de Soto visited in the mid-1500s. Frenchman Henri de Tonti founded the first white settlement in 1686. After the 1803 Louisiana Purchase, Arkansas became a US territory, and slave-holding planters moved into the Delta to grow cotton. Poorer immigrants from Appalachia settled in the Ozark and Ouachita plateaus. On the edge of the frontier, lawlessness persisted until the Civil War. Reconstruction was difficult, and development only came after 1870 with the expansion of railroads.

Florida Highlights Marvel at the bright-painted works of art in Miami’s museums and galleries (Click here) Paddle among the alligators and saw grass of the Everglades (Click here) Be swept up in the nostalgia and thrill rides of Walt Disney World (Click here) Join Mallory Square’s sunset bacchanal in Key West (Click here) Snorkel and dive the USA’s most extensive coral reef at John Pennekamp (Click here) Relax on the sugar sand beaches of Sarasota’s Siesta Key (Click here) Ponder the symbolism of the Hallucinogenic Toreador at St Petersburg’s Salvador Dalí Museum (Click here) Growl like a pirate among the historic Spanish buildings of St Augustine (Click here) Road-trip through the fun-loving beach towns and quiet silken sands of the Panhandle (Click here) History Florida has the oldest recorded history of any US state, and also the most notorious and bizarre. The modern tale begins with Ponce de León, who arrived in 1513 and claimed La Florida (for the Easter ‘Feast of Flowers’) for Spain. Supposedly, he was hunting for the mythical fountain of youth (the peninsula’s crystal springs), while later Spanish explorers like Hernando de Soto sought gold. All came up empty handed. FLORIDA FACTS » Nickname Sunshine State » Population 18.8 million » Area 53,927 sq miles » Capital city Tallahassee (population 168,979) » Other cities Jacksonville (821,780), Tampa (335,700) » Sales tax 6% (some towns add 9.5% to 11.5% to accommodations and meals) » Birthplace of Author Zora Neale Hurston (1891–1960), actor Faye Dunaway (b 1941), musician Tom Petty (b 1950), author Carl Hiaasen (b 1953) » Home of Cuban Americans, manatees, Mickey Mouse, retirees, key lime pie » Politics sharply divided between Republicans and Democrats » Famous for theme parks, beaches, alligators, art deco » Notable local invention frozen concentrated orange juice (1946) » Driving distances Miami to Key West 160 miles, Miami to Orlando 235 miles Within two centuries, Florida’s original native inhabitants – who formed small tribes across a peninsula they’d occupied for over 11,000 years – were largely decimated by Spanish-introduced diseases.