From: Dehede011@aol.com
Date: Thu Jun 19 2003 - 22:05:58 MDT
In a message dated 6/19/2003 3:48:04 PM Central Standard Time, hal@finney.org
writes: The problem for small business in many third world countries is not
lack of capital - otherwise they would do no better when they come to the
United States. The problem is regulation. Most third world countries struggle
with a bewildering maze of regulatory restrictions, applied at multiple levels.
Hernando de Soto shows in one of his books the enormous number of steps
necessary to start a business - it was something like 500 different contacts and
approvals that had to be made.
Hal,
Don't forget that Dr. de Soto also indicated that most of those same
countries had the citizens with the necessary wealth to invest to set those
countries on the road to success. But they are prevented from making those
investments because under their existing legal systems they can't retain legal
title to their investments.
If we pour money into the countries without a decent legal system then
I suppose our money goes down that well known rat hole.
So we are caught between a rock and a hard place. Unless the legal
system changes the people can't help themselves, but they are capable of doing
so otherwise, nor can we effectively help them.
Ron h
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