Hallo,

review dari koran the times hari ini membahas satu buku menarik tentang ekonomi 
terselubung di daerah-daerah kumuh di kota-kota besar dunia. Sangat menarik untuk yang 
biasa bergelut di bidang ekonomi rakyat kecil, atau mungkin saya nya yang ketinggalan 
jaman ya, baru sadar berapa besar potensi penduduk daerah-daerah kumuh  :-) 

bye




Money from nothing 

THE MYSTERY OF CAPITAL 
By Hernando de Soto 
Bantam, �15 
ISBN 0 593 04664 1 


 In 1995 I visited Lima's pueblos j�venes, the
 shanty towns crouched on every inch of the
 dusty hillsides around Peru's capital city.
 Escape to a more comfortable life seemed
 impossible, but in this remarkable book
 Hernando de Soto, chief advisor to Alberto
 Fujimori, Peru's charismatic but complex
 President, performs a breathtaking alchemy. He turns the
 tumbledown shacks and rivulets of sewage that are typical of
 the world's shanty towns into, as he memorably puts it,
 "acres of diamonds". 

 He argues that the poor migrants who have converged on
 cities such as Lima and Port-au-Prince and Manila are not
 ragged no-hopers who deserve our pity but are now the
 world's most dynamic entrepreneurs. Unnoticed by the
 West, they have amassed vast savings; but this wealth is held
 "extra-legally", outside the law, including land registry and
 property ownership law. 

 Having examined "block by block and farm by farm in Asia,
 Africa, the Middle East and Latin America", Sr de Soto and
 his team of researchers estimate that the total value of real
 estate alone held by the poor is $9.3 trillion. This is more
 than twice the total US money supply and nearly as much as
 the total value of all the companies listed on the 20 top world
 stock exchanges. 

 This claim seems too good to be true until one hits upon two
 arresting nuggets of information. In 1995, the Brazilian
 construction industry reported a mere 0.1 per cent growth;
 yet cement sales in the first six months of 1996 soared by
 nearly 20 per cent. The discrepancy is because most
 construction never makes it into the records. The other killer
 fact is that in Lima the value of legal, titled property in its
 most fashionable districts climbs to as high as $1,000 a
 square metre. In Gamarra, an area where much black
 economy manufacturing is done, the value is as much as
 $3,000. 

 So, the poor really are climbing the economic ladder but,
 because prosperous elites refuse to recognise their wealth
 legally, it cannot be used as collateral for loans or mortgages.
 This is a crushing limitation when one considers that the
 single largest source of funds for new businesses in America
 is a mortgage on an entrepreneur's house. "They have," de
 Soto writes, "trillions of dollars in dead capital, but it is as if
 these were isolated ponds whose waters disappear into a
 sterile strip of sand, instead of forming a mighty mass of
 water that can be captured in one unified property system
 and given the form required to produce capital." 

 To prove just how difficult it it is to "crash through the bell
 jars of legal privilege", Sr de Soto's team set up a small
 garment workshop on the outskirts of Lima and then
 embarked on making the business legal. The business was
 registered after 289 days at a cost of $1,231, 31 times the
 monthly minimum wage. To obtain legal authorisation to build
 a house on state-owned land took six years and 11 months,
 requiring 207 administrative steps in 52 government offices.
 And this is by no means the worst example: in Haiti, it takes
 an average of 19 years to gain lawful land. 

 Land and property ownership has long been identified as a
 prerequisite for economic development, but Sr de Soto has
 given vivid flesh to that theory. With the problem identified,
 the solution - creating proper national legal systems as in the
 West - is a matter of political will. In a book which is
 fastidious in its search for the facts but passionate in spirit
 and language, Sr de Soto gives us no less than the blueprint
 for a new industrial revolution that will mobilise the
 entrepreneurial vigour and hidden wealth of the poor and
 tear up the conventional wisdoms of the development debate
 in the process. 



**************************************************************
Danial Irfachsyad
[EMAIL PROTECTED]

Department of Chemistry
University of Southampton
************************************************************** 

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