No judges, cannot solve anything legal related - could provoke increased violence

criminal cases, disputes, divorces...

overcrowded prisons

cannot register businesses or settle business disputes

incentivizes crime - you can get away with breaking the law

inability to enforce anti trust laws or any competitive measures

state collapse

might increase bribes - if wealthy, can pay for trial to happen

less investment - decrease in AD

higher prices and less quantity of goods, more unemployment

LRAS shifting left - a lack of legal, leads to degradation of infrastructure, physical capital

Corruption=undermined public trust

Unclear property laws=makes it more difficult to buy real estate, less foreign investment, slow resolution of property disputes

"The slow pace of justice delivery frustrates litigants and erodes confidence in the legal system. The judiciary's limited resources, inadequate funding, and poor management exacerbate the problem. Corruption is another significant obstacle which has undermined the integrity of the legal system, making it difficult for ordinary citizens to access justice. The corrupt practices discourage people from seeking legal remedies thereby perpetuating impunity and injustice."

red tape motivates corruption - people will try to circumvent the system - tax evasion

decreased social trust in government

cannot invest the money back

Cannot reinvest this money into merit goods

complicated and not transparent Tax system, frequent changes in tax law=low investment, bureaucracy, inefficiency and corruption

High VAT rate (20%)= avoiding payment

No wealth taxation=rich stays rich

Worsens gender inequality

Physical access to a bank is difficult

Banking costs being high

Harder to start a business

Issue of informal savings - money can be lost, can be stolen

High banking costs - shift left AS

Limited access to credit for small businesses= hinders economic growth, hard to secure loan

Robbers and crooks - violence

Not enough capital to have a sufficient bank system

If you want to sell or rent, easy to prove and do

Gender perspective - cannot inherit or own property in some countries - cannot build generational wealth

Lawlessness and lack of responsibility

More privatization means more stability - people understand their own land VS other peoples land

Hence, regional stability, will try not to take other people's land

Strengths/weaknesses/challenges?

Government-owned land ?

Inequality - should people stick to wha they own?

Rule of law - weak - might have laws but do not/cannot enforce them, corruption

Amazon's indigenous threatened by farmers

Economic boom put pressure on their lands

Damage on environment and indigenous peoples

Area of indigenous people

Titling - FUNAI - gave documents

Weak rule of law - inability to respect the titles - corruption

Increased mortality rate

Bad infrastructure and services -

Dependent on men - banking, cannot have wealth - houses, businesses

Culture around gender - patriarchy

Remittances - send money back

But specialized workers leave

Nepotism and corruption - lack of transparency

No/little licenses/government oversight

Low wages for highly skilled jobs

corruption in government and with companies - favoritism/monopoly - cartel

emigration and capital flight

favoritism - no bidding/competition - might lead to inefficient producer

impacts of protests - not paying taxes, boycotts

censorship -

lower satisfaction, productivity

political instability - higher crime, higher poverty

higher unemployment, particularly for brown and black people

inability to access to merit goods - healthcare, education

increased informal labor - loss of tax revenue

poverty cycle - low levels of human capital, low income, low investment, etc, etc...

opportunity cost from loss of unemployment, underemployment

• Mass protests and civil disobedience erupted.

• Violent crackdowns by the military, thousands killed/arrested.

• Armed resistance formed, leading to ongoing conflict.

Economic collapse – GDP shrank 18% in 2021.

Foreign businesses withdrew= increasing unemployment and poverty.