[EM8607]
MANTRA:
least population of least resource/environment corruption
(-from Human Nature and Continuing Human
Existence)
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Jun 7th 2008 Economist Magazine
Finance & Economics
Legal reform and development
The law poor
NEW YORK - A new report says that legal empowerment can help end
poverty
TWO in every three people on the planet—some 4 billion in total—are
“excluded from the rule of law.” In many cases, this begins with the lack of
official recognition of their birth: around 40% of the developing world's five-
year-old children are not registered as even existing.
Later, people will find that the home they live in, the land
they farm, or the business that they start, is not protected by legally
enforceable property rights. Even in the rare cases when they can afford to go
to court, the service is poor. India, for example, has only 11 judges for every
1m people.
These alarming statistics are contained in a report from a
commission on the legal empowerment of the poor, released on June 3rd at the
United Nations. It argues that not only are such statistics evidence of grave
injustice, they also reflect one of the main reasons why so much of humanity
remains mired in poverty. Because they are outside the rule of law, the vast
majority of poor people are obliged to work (if they work at all) in the
informal economy, which is less productive than the formal, legal part of the
economy.
The commission was born out of the theories of Hernando de
Soto, a Peruvian economist whose books, “The Other Path” and “The Mystery of
Capital”, proved unexpected best-sellers—albeit controversial ones. For a long
time there was such disagreement among the commission's members—ranging from
Ernesto Zedillo, a former Mexican president; and Lawrence Summers, a former
American treasury secretary; to Shirin Ebadi, an Iranian human-rights activist
and winner of the Nobel Peace prize; and Anthony Kennedy, a justice on
America's Supreme Court—that it seemed they would be incapable of producing an
agreement.
Perhaps reflecting the need for compromise, the report takes
a much broader view of legal empowerment than Mr de Soto's focus on property
rights. These are just one of four “pillars of legal empowerment”—the others
are access to justice and the rule of law, labour rights and business rights
(which make it easier for poor people to start, own and pass on
businesses).
Unfortunately, the report does not attempt to rank its
recommendations—again, the desire for consensus may have got in the way. Nor
does it suggest how to measure the progress towards legal empowerment. However,
both Kemal Dervis, the head of the UN Development Programme, and Robert
Zoellick, president of the World Bank, are enthusiastic about legal
empowerment, so the report is likely to be taken further. Madeleine Albright, a
former American Secretary of State, who chaired the commission with Mr de Soto,
says she hopes that legal empowerment will now become part of policymaking
jargon, much as “sustainable development” did after it first appeared in a
similar report three decades ago.
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