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PERUVIAN economist Hernando de Soto met Housing Minister Lindiwe Sisulu
yesterday to discuss SA’s problems in housing the poor, and said
he would assist “SA in any way I can”, if asked.
De Soto met Sisulu last night at a reception also attended by Banking
Council GM Cas Coovadia, FirstRand Bank CEO Paul Harris and other business
people.
Sisulu’s spokesman said the ministry would “appreciate his
assistance as one of the leading housing theorists in the world”
and would try to make plans to work with De Soto.
De Soto has become one of the most influential economists when it comes
to dealing with poverty in developing countries, and has worked closely
with governments in Peru, Mexico and Tanzania.
His Institute for Liberty and Democracy has been rated as one of the
top two global think-tanks, according to the Economist magazine.
Speaking yesterday at a conference organised by Investec Asset Management,
De Soto conceded he did not have in-depth knowledge of SA’s economic
framework. He said, however, “I know the sickness” of two
separate economies, one for the rich and the other for the poor, which
were struggling to integrate.
SA’s economic framework appeared, at first glance, to exhibit similar
characteristics to many other poor countries, he said, as there was
“lots of migration towards big cities like Johannesburg, yet most
of the people are excluded from the legal system”.
De Soto said in other developing countries, his research showed that
more than 70% of inhabitants were typically excluded from the formal
legal system, which meant they did not enjoy property rights.
He said once those individuals were “legalised”, and could
exercise legal property rights, it became easier to assimilate those
excluded into the mainstream economy.
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Newsletter:
3 February 2012 to 10 February 2012 - Krugersdorp, Gauteng, South Africa
