#7 Brian is confusing Alvaro with Hernando de Soto, author of
''The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else''
From a review of his book
It's become clear by now the fall of the Berlin Wall and the collapse of communism in most places around the globe hasn't ushered in an unequivocal flowering of capitalism in the developing and postcommunist world. Western thinkers have blamed this on everything from these countries' lack of sellable assets to their inherently non-entrepreneurial ''mindset.'' In this book, the renowned Peruvian economist and adviser to presidents and prime ministers Hernando de Soto proposes and argues another reason: it's not that poor, postcommunist countries don't have the assets to make capitalism flourish. As de Soto points out by way of example, in Egypt, the wealth the poor have accumulated is worth 55 times as much as the sum of all direct foreign investment ever recorded there, including that spent on building the Suez Canal and the Aswan Dam.
No, the real problem is that such countries have yet to establish and normalize the invisible network of laws that turns assets from ''dead'' into ''liquid'' capital. In the West, standardized laws allow us to mortgage a house to raise money for a new venture, permit the worth of a company to be broken up into so many publicly tradable stocks, and make it possible to govern and appraise property with agreed-upon rules that hold across neighborhoods, towns, or regions. This invisible infrastructure of ''asset management''--so taken for granted in the West, even though it has only fully existed in the United States for the past 100 years--is the missing ingredient to success with capitalism, insists de Soto. But even though that link is primarily a legal one, he argues that the process of making it a normalized component of a society is more a political--or attitude-changing--challenge than anything else.
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UN Secretary-General Kofi Annan has named Peruvian Alvaro de Soto as his next Middle East peace envoy. De Soto, who succeeds Terje Roed-Larsen in the post, will act as Annan's envoy to the Quartet for Middle East Peace, as well as his personal representative to the Palestine Liberation Organisation and the Palestinian Authority, the UN said in a statement on Friday.