In This Review

The Other Path: The Invisible Revolution In The Third World
The Other Path: The Invisible Revolution In The Third World
By Hernando de Soto
Harper & Row, 1989, 256 pp
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A best-seller in Latin America, this forcefully argued study suggests that the black market of unregistered businesses, home construction, etc., which dominates Peru's economy is a spontaneous and creative popular response to the state's incapacity to spur production and distribution. De Soto contends that the "informal economy" points the way to resolving the problems of underdevelopment through a reduction of the state and the expansion of free enterprise. Remarkably congruent with Reaganomics, this approach has been propagated vigorously during the 1980s with U.S. government support. It remains to be seen how it will fare in a period of expanding populism in Latin America.