Taking a New Look at U.S.’ Foreign Giving

Re: “Amid Middle East Strife, a New Focus on Economies,” James Flanigan, March 17:

I hope you can give some “ink” to the solution proposed by Hernando de Soto, president of the Institute for Liberty and Democracy in Lima, Peru.

In essence, his concept is to ultimately eliminate the need for foreign aid on the part of the U.S. There is so much potential for internal growth and capital creation in these areas.

However, the legal processes in place make it virtually impossible for ordinary people in these countries to create and expand capital.

De Soto illustrates in elaborate process maps that it typically takes 15 to 20 years to work through the steps to simply own one’s home. This, of course, is the capital base needed to start the process of internal capital expansion.

It also takes 15 to 20 years to (legitimately) own and operate a business in these countries. In the underground, little or no expansion is possible.

If these processes were to be improved, the capital growth in these countries would grow to the point that our foreign aid would no longer be needed.

John Pryor

Bakersfield