De Soto has documented that in the world of the poor, it takes months or years to get an official title to a home, write legal contracts, or legally open a business. It takes hundreds of steps to set up a corporation. There is no credit. The poor can’t prove that the house they live in, their largest asset, is even theirs.
Since they can’t get into the formal economy, they have set up their own, informal economy. It exists outside the formal written system, but has its own specific rules and processes.
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legal reforms in kenya The Power of the Poor - Paper Walls | |
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