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  • The 2017 Global Award for Entrepreneurship Research goes to Hernando de Soto

    The 2017 Global Award for Entrepreneurship Research goes to Hernando de Soto

    The Global Award for Entrepreneurship Research is the most prominent international award in entrepreneurship research with a price sum of EUR 100,000. De Soto’s analyses have had tremendous influence on policy throughout the world and were a main source of inspiration for the World Bank’s Doing Business program. Read More
  • 2017 Award Winner

    2017 Award Winner

    Hernando de Soto Peru  Institute for Liberty and Democracy For developing a new understanding of the institutions that underpin the informal economy as well as the role of property rights and entrepreneurship in converting the informal economy into the formal sector.   Read More
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McKinsey n CompanyHernando de Soto is the president of the Institute of Liberty and Democracy (ILD), a think tank based in Lima, Peru, that advocates for property rights in developing nations.

October 2012 | McKinsey interview by Rik Kirkland

McKinsey: Tell us about your mission at ILD and why you think it's so important?

Hernando de Soto: ILD specializes in something very broad—namely, how do you go from having a society where the majority of trade, business, and assets are controlled through customary or unconventional systems, rather than through law? How do you take that society and move it to the rule of law.

Now, that’s something you did, of course, in the United States and Europe, but that was in the 18th and 19th centuries. But that’s where we are today—not in terms of automobiles and all that, because we’ve got the same machines you do. Technology gets shared a lot, but societies can be left behind over time. Or only part of the society moves into the rule of law and the rest is outside, which then means that it’s the rule of law for a few who predominate over the anarchy of the informal economy—the rest of us.

So we’ve learned to move people from one sector to the other on the basis of some very interesting successes in Peru and a couple of other countries. We’re basically 18th- and 19th-century specialists because that’s when this phenomenon happened in the United States and in Europe. In Japan, it happened in the 20th century.

To read the complete interview, please visit McKinsey & Company

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