Enter up to four countries or regions to see how they compare.
Wednesday, March 28, 2012 8:29 PM. by
De Soto on Egypt's Extra-Legal Economy
In this Wall Street Journal editorial, world-renowned Peruvian economist Hernando de Soto revisited his 2004 study on Egypt’s extralegal economy and how the events unfolding today could have been shaped by the government’s failures to act on key policy recommendations that would have brought Egypt’s citizens and businesses into the legal market.
In the article de Soto notes the 2004 study found:
He then goes on to explain:
The key question to be asked is why most Egyptians choose to remain outside the legal economy? The answer is that, as in most developing countries, Egypt's legal institutions fail the majority of the people. Due to burdensome, discriminatory and just plain bad laws, it is impossible for most people to legalize their property and businesses, no matter how well intentioned they might be.
Suggested Reading on the Arab Spring by Hernando de Soto