Two in every three people on the planet-some 4 billion in total-are "excluded from the rule of law." In many cases, this begins with the lack of official recognition of their birth: around 40% of the developing world's five-yearold children are not registered as even existing.

Later, people will find that the home they live in, the land they farm, or the business that they start, is not protected by legally enforceable property rights. Even in the rare cases when they can afford to go to court, the service is poor. India, for example, has only 11 judges for every 1million people.

These alarming statistics are contained in a report from a commission on the legal empowerment of the poor, released on June 3rd at the United Nations. It argues that not only are such statistics evidence of grave injustice, they also reflect one of the main reasons why so much of humanity remains mired in poverty. Because they are outside the rule of law, the vast majority of poor people are obliged to work (if they work at all) in the informal economy, which is less productive than the formal, legal part of the economy.

The Economist, June 7th 2008.

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