tag:blogger.com,1999:blog-6824345661289105799.post5092442388689789870..comments2023-11-03T08:36:09.683-05:00Comments on Brooks Wilson's Economics Blog: De Soto on EgyptBrooks M. Wilsonhttp://www.blogger.com/profile/17097849558228531431noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6824345661289105799.post-85827091668376690382011-02-12T22:13:38.292-06:002011-02-12T22:13:38.292-06:00The amount of extralegal business in De Soto's...The amount of extralegal business in De Soto's study is jaw-dropping. For the Egyptian government, the "under-the-table" activities were obviously a hindrance with $400 billion worth of taxable assets. <br /><br />What was less clear was how the legal protection would allow the value of these businesses and homes to grow so rapidly. Obviously there would be the added benefit of legal ramifications for misconduct within a business: refusal to pay for services, refusal to provide services, etc. However, even with the added protections afforded by legal contracts and courts capable enforcing those contracts.<br /><br />As has been discussed, one of the most difficult phases of instituting economic reform is not analyzing the problem and forming a solution but rather convicing the leaders and the public that one particular answer is the most beneficial. With the current upheaval in Egypt, I can see maintaining enough control of the situation to make meaningful changes to be extremely difficult. <br /><br />On the other hand, what better catalyst for change than political instibility. With the plan hinging on improving property rights, gaining popular support can possibly be an "easy" endeavor.James Emmelenoreply@blogger.com