STAGE 5: Capital Formation
Formulate and help implement recommendations for relating newly legalized property to opportunities in larger national and
international markets where it can be leveraged to generate additional wealth, create capital, and achieve sustainable development.
Other Information:
Once in place, these various systems will pave the way to the Reform Program’s –and the country’s– ultimate objective: Capital
Formation. In this final stage, trained multidisciplinary professionals will formulate and help implement recommendations
for relating newly legalized property to opportunities in larger national and international markets where it can be leveraged
to generate additional wealth, create capital, and achieve sustainable development. THE FRUITS OF A REFORMED SYSTEM OF LAW
Credit and mortgage applications; Collections systems for credit, rates, and taxes; Housing and infrastructure; Insurance
and information services; Identification systems; and The use of property to enhance accountability. The recommendations for
Capital Formation will also facilitate good governance –by providing reliable information about market behavior, property
status, and the extent of the rule of law. Capital formation requires opportunities and rewards. What usually keeps the institutional
wheel running are two related elements (i) the security of different forms of capital assets, and (ii) the belief in the future
security of the outcomes of these capital assets. Without them, capital formation is perilous. At this stage, we work on building
locks to prevent institutional setbacks and on the incentives to make good practices prevail and evolve. No matter how careful
and appropriate a given set of reforms might be, new problems are bound to arise down the road. The legal system, therefore,
must be reformed in such a way as to be able to respond to unforeseen problems and challenges; the new institutional wheel
must run in a way to satisfy all its constituents –ordinary citizens, firms in expanded markets as well as administrative
authorities that support property rights. Challenging existing institutional maps and routes is central to good governance,
but to make such challenges productive and not simply a political weapon, we work hard to provide a new system that can be
upgraded constantly and that can generate its own reforms. We are quite conscious that capital formation is an evolving phenomenon.
Without the ability to respond to new challenges and to benefit from an institutional memory, no legal system, no matter how
elegantly reformed it might appear, will provide sustainable legal empowerment for all its people
Indicator(s):
|
