WEBVTT FILE

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[music playing]

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-High in the Andes lay the ruins
of the historic royal retreat

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of the Inca Empire.

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Hidden from the outside
world for centuries,

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Machu Picchu was rediscovered in 1911.

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[music playing]

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The indigenous people of Peru
still farm this valley.

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Eusebio Mendes Atau and his family

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live in the small mountain
village of El Palamar.

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They farm the land as did
Eusebio’s father and grandfather

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for the last 100 years.

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They own four bulls, two pigs,
and a few chickens.

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Today Eusebio hauls
his primitive plow up the mountain

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for another day's work.

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Still, he holds no legal title

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to the land on which
his livelihood depends.

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-One day a stranger from the city

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presented Eusebio's
grandfather with a title

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claiming the land was his.

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[music playing]

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-Over the centuries

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this sacred valley of the Incas
has had many owners.

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Stretching more than 2,000 miles

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the empire once controlled the land
from Ecuador to southern Chile.

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Inca Kings extracted
tributes from local farmers

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until Spanish conquistadors

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conquered the land
in the 16th century.

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Since then, Peruvian governments
have often dictated land ownership.

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As a boy, Eusebio
had only one option -

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to work for the man who had claimed
ownership of the land.

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[music playing]

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This afternoon Eusebio’s sons
will help him in the fields.

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Most days Eusebio
and his wife Zenobia

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work from dawn till dusk.

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-In 1969, the Peruvian government

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took the land from
the large property owners,

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but instead of distributing it
to individual farmers

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they established cooperatives.

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And no individual
was allowed to own the land.

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Once again, Eusebio
had only one option.

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To stay on the land he and Zenobia

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would have to work for
the cooperative

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whose directors
were appointed by bureaucrats

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in the capitol of Lima.

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-For years Eusebio and his neighbors

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fought the system without success.

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Nearby, Sebastiana Flores
farms a small plot of land

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with her husband and two sons.

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Another neighbor,
Alejandrina Hue Mandes Chavez,

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farms the land alone.

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Her husband has left
to earn money in the city.

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In their fight to own property,

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Eusebio and his neighbors have allies
they have never met.

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-Two thirds of the world's population

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are locked out of
the capitalist system.

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Four billion people
that have no property right,

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have no recognized
legal business association,

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and no recognized legal means
to identify themselves.

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-Hernando de Soto is president

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of the Institute for
Liberty and Democracy

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headquartered in Lima.

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The Economist magazine calls it

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one of the two most important
research organizations in the world.

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It fights for property rights
and the rule of law

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to ensure that no one gains
special treatment from government.

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Working one-on-one, its field
researchers pave the way for reform.

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We all talk about a global economy
and a global world,

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and yet we know very little about
how two-thirds of the world lives,

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and it is important that
we get acquainted with them

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because they are the majority
of the world's population.

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What you need to participate
in the capitalist game are assets.

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Eusebio's only asset is the land

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but without legal title

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he cannot get a loan to buy
more seed or more land.

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Without legal title he cannot
borrow to educate his children

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or improve his home.

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And without legal title

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he cannot benefit from
the sale of the property,

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nor could his father or grandfather.

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-Eusebio’s dreams are about the beginning

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of a series of complex issues.

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Creating the rule of law is
of course not a silver bullet.

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Development is very complex
like life itself.

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You've got education that's involved,

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you've got health that's necessary,

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you've got enforcement
that is all part of it.

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But if you do not have an order
that tells you who owns what,

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who is where, and who's
accountable for what,

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none of the rest work.