Whilst the books by inequality gurus Piketty and Atkinson are selling by the millions, less attention is paid to an arguably more important work on global inequality. Peruvian economist Hernando de Soto does something which most economists seem to dislike: he gets his hands dirty by actually visiting the countries that he studies.

Torturing
Instead of torturing the data on income or wealth until they finally admit to be unfair, De Soto simply travels to Egypt and ask the people themselves. Not a bad idea, because it becomes clear, pretty much immediately, that the data on capital that Piketty and Atkinson use are completely irrelevant for the developing world.

Developing countries
As an inhabitant of a (relative to Western countries) poor country himself, De Soto knows very well that official statistics on capital don’t sketch an honest picture. Extrapolating official or Western data is just meaningless. If you want to know what is going on in those countries you got to go there. And when you do, as De Soto did, you will find out that capital works fundamentally different in Egypt than in – say – France.

The defining battle of the 20th Century was the fight between communism and capitalism. In the end, capitalism triumphed, but in its wake, it created a small cabal of elites, and endless poverty.

In the forests of India, something exciting is going on. Villagers are regaining property taken from them when the British colonial authorities nationalized their forests. Just as exciting, in urban Kenya and elsewhere, people are doing away with the need for banks by exchanging and saving their money digitally. All over the world, poor people are discovering the blessings of bottom-up capitalism.

Hernando de Soto LIVE talk on Fairness and Justice in the Economy at Zermatt Summit 2011 was voted as one of the best by the participants present!

Following the Theme of Humanizing Globalization : Justice and Solidarity for Sustainability

War, injustice, violence, self-interest, lack of respect and recognition are part of the daily picture cast by the world media. At the same time, in a less visible way, innumerable actors are working for the Common Good, humbly serving others without expecting any personal return. Sustainable peace is to be pursued because each and every human being is longing for it, knowing perfectly that it is a prerequisite for their own blossoming and for the happiness of their families and communities. Who else but the leaders of the world are responsible for establishing such peace? Who else can establish the spirit of justice and solidarity which is the condition for such sustainable peace?