The Other Path: The Economic Answer to Terrorism
Description: The Other Path: The Economic Answer to Terrorism examines how economic development and informal markets can influence social stability and reduce the conditions that foster terrorism. Hernando De Soto presents an analysis of economic factors related to security issues
ISBN: 0465016103
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In a country (Peru) where formal legal systems functioned extremely badly, there was a huge extralegal economy: houses, businesses, transport, etc all of which didn't officially exist and had no legal protection. Providing a route into the legitimate system provided a huge economic benefit for a lot of people and reduced Maoist terrorism.
Bad legal system < Lawlessness / Extralegality < Good legal system.