By The Economist Group
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Mr de Soto tells a story to illustrate the point. On farms in Bali, there are few fences to mark the boundaries between properties. But the dogs know. Cross from one farmer’s land to his neighbour’s, and a different dog barks. The challenge for governments in poor countries is to take the information contained in those yelps and fashion from it a clear and enforceable set of laws. The alternative is to stay poor. *“The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else”.
Last year, when he dismissed two ministers, and then accused them of corruption, he refused to explain himself to parliament, and now objects to its efforts to question him about the two financial scandals, trotting out constitutional experts and damning the exercise as illegitimate. To be fair, Mr Wahid has good reason to question parliament’s motives. Its 500 members clearly want to flex their muscles by showing that he serves at their pleasure, whether the constitution says so or not. Moreover, many of them are schemers out to weaken whoever is in power, so they can continue to plunder the state.
Mr Powell has also supported the European Union’s plans to set up a European rapid-reaction force. And he has been seeking to change American policy towards Iraq by trying to unite the fractured Gulf war coalition behind a new sanctions regime, which would reduce economic sanctions in exchange for toughening the control of exports with military uses. On the other side stand Donald Rumsfeld, the secretary of defence, and his deputy, Paul Wolfowitz. Mr Rumsfeld is more sceptical than Mr Powell of the Europeans’ military ideas (which he fears might damage NATO), and Mr Wolfowitz is openly dismissive of the efficacy of any Iraqi sanctions regime.