The president elect and I have recently examined three proposals that are very promising in successfully reducing poverty in Anchuria. Both him and I are devoted to reducing poverty in our country as well as providing jobs. As the Secretary for Economic and Development, I believe these three proposals from Yunus, de Soto and Kohli have the potential to spur economic growth and decrease poverty as well as determine the best way to use our resources.
We were influenced by Muhammad Yunus to use nearly all of our oil revenues to provide microcredit programs for the country’s poor. At current oil prices, the Anchurian government receives $410 million in oil revenues. With that $410 billion we could create a small bank, similar to the Grameen bank, …show more content…
This would spur economic growth by making dead capital “come to life.” This would also help those trying to get a loan from a commercial bank that requires collateral. Having uncertainty of ownership decreases the value of the asset and the ability to lend and borrow (de Soto, H. 2000). Having assets be integrated into a formal representational system would be beneficial to our country. It would pave way to capital. Legal property would allow people to have a surplus value over their physical assets and allow owners and entrepreneurs to come up with hypothetical situations that explore profitable uses of their assets (de Soto, H. 2000). Having property rights and titles would help us as a developing nation and allow our citizens to make profitable contracts with others that they might not have gotten the chance to because they had no property. The fact that we have insecure property rights hinders our ability to develop economically and limits the opportunities for our poor citizens (de Soto, H. 2000). When ownership of different parcels isn 't specified nor boundaries or records of property are known, then we cannot know who might use the land productively. We might follow De soto’s advice and record property details, such as owner and location, on paper (de Soto, H. 2000). That way all the resources that are financially and commercially invisible will be known and we’ll know which assets have potential useful economic attributes (de Soto, H. 2000). If we do this, more people will have a sense of connectedness. Property and prosperity go hand in hand. If we want to reduce the number of Anchurians living in poverty then we must strengthen their property rights.
We were influenced by Muhammad Yunus to use nearly all of our oil revenues to provide microcredit programs for the country’s poor. At current oil prices, the Anchurian government receives $410 million in oil revenues. With that $410 billion we could create a small bank, similar to the Grameen bank, …show more content…
This would spur economic growth by making dead capital “come to life.” This would also help those trying to get a loan from a commercial bank that requires collateral. Having uncertainty of ownership decreases the value of the asset and the ability to lend and borrow (de Soto, H. 2000). Having assets be integrated into a formal representational system would be beneficial to our country. It would pave way to capital. Legal property would allow people to have a surplus value over their physical assets and allow owners and entrepreneurs to come up with hypothetical situations that explore profitable uses of their assets (de Soto, H. 2000). Having property rights and titles would help us as a developing nation and allow our citizens to make profitable contracts with others that they might not have gotten the chance to because they had no property. The fact that we have insecure property rights hinders our ability to develop economically and limits the opportunities for our poor citizens (de Soto, H. 2000). When ownership of different parcels isn 't specified nor boundaries or records of property are known, then we cannot know who might use the land productively. We might follow De soto’s advice and record property details, such as owner and location, on paper (de Soto, H. 2000). That way all the resources that are financially and commercially invisible will be known and we’ll know which assets have potential useful economic attributes (de Soto, H. 2000). If we do this, more people will have a sense of connectedness. Property and prosperity go hand in hand. If we want to reduce the number of Anchurians living in poverty then we must strengthen their property rights.