According to Hernando De Soto, a Peruvian economist, it takes 13 to 25 years and 168 steps in order to have a house registered in the Philippines.In Haiti, it takes around 12 years and 111 visits to officials to formalize a business.The costs in terms of time and financial resources to have the property right over a home or a business have promoted the development of informal sectors or "extra-legal" sectors in various developing countries.The existence of a large informal sector in numerous developing countries is an example of:
A)corruption.
B)a lack of appropriate institutions.
C)political instability.
D)overpopulation.

Question

Quizplus · Accepted Answer

The large informal sector is often due to a lack of appropriate institutions that can efficiently and effectively formalize property rights and business operations.

According to Hernando De Soto, a Peruvian Economist, It Takes