 Thank you very much. I want to thank Roberto Stewart and the Society for the kind invitation. I have very deep links with the Society. I'm the Peruvian representative of the Society and few years ago I met some of the founders and I have very good fields about the work and the action that the Society is carrying out since that time. First of all, it is necessary to remark terminological terms precision. We are talking about, of course, informal economy as underground economy as our host explained a few minutes ago. Informal economy or underground economy or heating economy or submarine economy has a lot of different names. It's in fact a very complex social and economic phenomenon. Since the point of view of a simple definition underground economy or informal economy that usually is named in Latin America, it's mostly the kind of activities carrying out outside the law. In some sense, we can difference between those activities in formal or underground from crimes. Informals are not criminals and informal activities or underground activities are not crimes. In some sense activities with legitimacy but carrying out outside the law as a result of a law that impose so costly system that it is impossible to live with. So it is, I think it is correct if we define informality or underground economy or underground activities as those activities with legal goals, but illegal means. Those activities that in fact are not stealing nothing from nobody. Those activities as for instance street sellers in the streets of Latin America buying and selling goods, offering services, but for different reasons, maybe barriers to the access to the market or so costly taxes are carrying out outside the law and without comply with the requirements of a normal legality. So if we accept that definition, we can understand a little bit about our story. Informal activities, underground markets, black markets, hidden economies, super in the economy, have you can have you wish are very characteristic in the third world economies, especially in Latin America, Africa and Asia. Those activities are public, are carrying out in public without any kind of intrusion for the state in a sort of symbiosis, in a sort of living in a peace with activities carrying out in a very formal and characteristic way. In Peru, my country and in Latin America, underground economy has a very important dimension, not only from economic point of view, but also from the sociological point of view. In fact, if we take a few of the most important fields of our life in Peru or Latin America in general is the same thing, we can find that underground economies that not are underground, of course, are over the ground, are totally public, there's not nothing hidden about that. You can see, you can appreciate a very impressive data. In the case of the housing activity, in the case of housing, in Peru more or less 50 percent of housing in urban area belongs to the informal sector because those areas are developing outside the law without complies with zoning, without complies with normal and usual licenses that the government's municipalities, city councils or even the central government or provincial government imposes us the normal way in order to build a neighborhood and construct a house. But not only in the housing area, you can see a very important presence of informal activities in Latin America and also in Peru. In fact, it probably is the most notorious one, but not the only one. If you take every main capital of Latin America, you will find informal housing named by different terms. In Peru it's called Pueblos Jóvenes, Young Towns. In other countries of Latin America it's called Barreadas, Barrios Marginales, Ciudad, Satélite, Cayampa or whatever different name in order to make a difference between the traditional city and the new one. And what is from the libertarian point of view unbelievable with the housing, with the underground housing or informal housing experience, is that in those areas almost does not exist present of the state of the formal state. In those areas, in the formal neighborhoods in Pueblos Jóvenes, like they are called in Peru, who rule the area is the people themselves. You know, for instance, that in Latin America we have this Roman civil system of law. Not the Anglo-Saxon customary law. Well, what is very impressive is that in that area, for instance, normal judges, the professional ones, that deals with the suits in the formal society does not exist. They do not have practical jurisdiction. Of course, they have theoretical one, but they don't have practical jurisdiction over those areas. And the people solve themselves their problems, uses something called Asamblea, which is assembly, but in fact, they act like a jurist trying to solve conflicts between persons without the use, without the use of the formal administration of justice system and without the use of the law, because of course those people, in order to solve the conflict, not only use the assembly, the group of citizens joined every Sunday in a public square in the in the new neighborhood, but also in order to solve the problem, they use customary antecedents. They use customary precedents, not the civil code, not the Peruvian civil code. So it is very important from the social point of view and from our theory of the origin of the institutions in a libertarian perspective appreciate that life laboratory in the cities of Latin America in order to see how it is possible that the pure interaction of the people outside the law and almost against the law can generate an alternative framework and an alternative institutional framework in order to compete against the state and through the competition of the through the competition against the state could create an alternative of evolution and could create also of course we hope an alternative for the new liberty. Also in the commerce field, we have a very important experience of informal activity around the economy black and markets of whatever you want to call that. It is mostly seen as the phenomenon called Benderores ambulantes, street sellers in English. People that sells goods and offer services in the streets almost every city in Latin America and of course in other countries of third world has a very important group of people working outside the law in the streets. Through that way it is very impressive to see how the streets are the business school of the people of the poor people in Latin America. Streets are a very practical business school because you probably suspect that the access to education is very limited Peru are probably most part of Latin America. So the people learn about a cash flow not in one school learn about in in fact in the streets and that creates and I am convinced totally of that a new class of entrepreneurs among the poorest people of our cities. Remember that since the end of the Second World War in Latin America, especially in Peru and other countries, we had a very profound immigration of a phenomenon. In 1940 Peru was mostly a rural country 45% 35% of the population lived in the cities and the rest in the rural area. In 1980 it was exactly the opposite 65% of the population lived in the urban area and only the 35% in rural areas. Of course as a result of also of agrarian reform that Professor Carlos Sabino made a comment in the last presentation. So in the commerce also exists a very important presence of informal activities. Those guys, the street sellers, don't pay taxes of course and don't comply with the regulation because it is impossible to pay so high taxes and comply with the different licenses that Peruvian state imposed on them. It's the same case with little industries, handicrafts and different artisans that are working outside the law. In order to remark and to present the origins of the problem, a few years ago we conduct a practical research trying to prove our hypothesis. Our hypothesis in front of this problem was the following. If underground economy is important in housing is important in commerce is important in industry is important in every part of relevance of our society the question is how is the most important cause of this? Our hypothesis from inspiring some sense in the economic analysis of law was that cost of a legality probably will be the main cause. Usually we think that the law is neutral that has no costs. That is not true in the works of Ronald Coase, Ronald H. Coase, Nobel Prize winner. We know that law create costs. We know also of course that market has costs, transaction costs, but we also know that law has costs and usually we think about that transaction costs, the cost of use the market, but it is no good remark that also the law has costs and we try to prove the cost of legality. We try first to find how to measure the cost of legality and then we try to present some idea about the cost of legality. And for that we try to make a empirical research. Our objective was the follow. We try to organize to incorporate a little enterprise in order to sell and buy things and our main purpose was to simulate the incorporation. Going through all the bureaucratic offices that exist mandatory for the law, avoiding bribes, taking the time and of course trying to obtain the licenses. All the requirements in order to fulfill the legal procedure. Well, we organize a group of simulators, young students, and we began our exercise. At the end, we find the follow. First, it was necessary to get living licenses because without any of them it was impossible to incorporate legally with the total legal situation, the corporation. It was necessary, went to 45 different offices, including city council, ministers, and government. 347 days, more or less, almost a year, 11 months, something like that, of red tape going back and forth and trying to obtain all the requirements and seals and the licenses that are part of that, of the law, nominally called to deal with incorporation of a little enterprise. Through that way, we show that exist because of the reality. But also we find a very funny situation in order to present also the corruption problem because during that simulation research, we were asked for a bribe more or less seven times. And only, remember it was a little enterprise, and we paid twice because it was impossible to continue without paying it. Remember that our purpose was not pay bribes, was try to measure all the red tape, but if we don't pay at least into opportunities, it was impossible to continue. Of course, the presentation of our simulation was a scandal. In Peru, everybody says that it's false. Everybody among the politicians, of course, but among the people confirm our suspicions. So, law costs and the cost of law is the main cause of underground economy. Through the law, you can create discrimination against the poor people. And remember that it is clear since Douglas North work that exists an inverse proportion between the cost of legality and the income of the population. If you belong to the poorest part of the society, the cost of legality is higher than if you are rich or you have a very important income. So, the cost of legality creates discrimination, especially against the poor people. It is impossible to work with that kind of environment. That kind of environment is like a paper curtain, it's a paper wall that in fact discriminates the poor Peruvians and poor Latin Americas and the poor from every third world country from the access to markets. That's why that people, instead of claiming socialism are claiming back to their liberties through selling goods in the streets to making at least by invasion their own housing settlements and regaining the right for property using the practical way botting with their feet. That experience for us was also very dramatic from the political point of view because it presents the fight against oppression and the fight for liberty as a very practical one as a very simple one. The people know perfectly better than everybody of us what they want for life and what they want for work so the people is trying to obtain liberties, time to create spaces in order to develop their own energies, their own ideas and their own beliefs. With this background which is the future of underground activities in the new millennium what is hard to say but let me present some idea about that since the felt of communism of course everybody of us were very excited with when communism went down but since that time today the term globalization it presents for the international press the way in which liberty is gaining the war all around our planet but it is necessary to take a little bit of precaution about this because globalization to me today not only is the space of liberty it could be also the space of new interventionism globalization could be socialization in international way why? Because I suggest the following thesis governments learn and learn fast and politicians of course and I can appreciate that the government are passing their powers to some kind of international levels and concentrate at that levels so much force than any individual state the states around the world are trying to organize some kind of super state even most powerful than any individual state itself you can see that in different fields intervention the new right of intervention any government has the right of intervention but this new authority international authority the new brother has the right of intervention the case of Kosovo I don't want it's not my subject I don't know nothing about former Yugoslavia but let me think on the problem in the following way why not Peru or Colombia or whatever different country if political correctness is different in each country Geneva thinks that Peruvian Japanese or different people are not good because I don't know spicy food or maybe smoke cigars and why not invite them of course the right of control is also passing from the national state to the super national state discussion about internet you know they are trying to restrict the access of internet it is hard but it is not impossible they can control the CPU the units they can control also the telephone lines it is impossible to introduce through hardware some political limitations in order to keep some biases outside the net some from the childhood whatever they want I see also other dangers of course in Latin America for us is continuous the problem of drugs Peru and Colombia and Bolivia has constantly the menace of US government against them because drugs control and in fact the government of the United States thinks that it has the right in order to evaluate how is the behavior of the different nations about drugs but why not about cholesterol if cholesterol can kill more people than drugs or why not about literature it is not any kind of reason in order to not expect that kind of limitation for our liberty so I have fear I have fear of course rational fear in order to be very critical about globalization especially because I am seeing how international bureaucracies are trying to reinforce the power the powers of the state through international organizations you can see how the utopia the socialist utopias trying to be carrying out for those kind of organizations and that means in practical ways limits our individual liberties so probably in the future there will be not only more informals or underground activities but also different informal activities why not think about some informals developing an alternative internet if internet is controlled by the state why not think about also some freedom fighters if that super national authority by invades their own lands why don't think about biases resistors like Sandra Spooner says biases are not crimes but of course socialist think that biases are crimes the people who have biases also will try to resist against those new bureaucrats or new kind of authorities trying to impose some kind of regulations against them so what could be my final word about this problem is the following underground economy informal activities in Latin America and Peru presents very complex and enthusiastic phenomenon because informals are in some sense people, poor people trying to gain for them the privilege and the benefits of work freely and use that freedom in order to improve their own lives but probably as I am saying the cause of legality will increase during the globalization times and I hope, I hope not but I think that could be a paramount that if cost of legality in international terms go up during the globalization times probably we could expect more informal activities and more informals all around the world so probably much of us in that situation could be working outside the law working outside that international law trying to regain our rights for ourselves the principal message of informality is poor people believe in liberty and know the benefits of liberty they try to reindicate private property in public land and creating new neighborhoods they are trying to reindicate also the right to be entrepreneurs and making at the streets in the streets in a huge more in which they try to sell different goods and they are also reindicating principles liberty as the way in order to improve personal life that message is very powerful for all of us because I suspect that in a new millennium liberty will have new enemies enemies hidden behind some very naïve principles globalization justice but terrible enemies think about that world in which international organization decide if it is possible to invade one country for moral reasons think about that world in which judges has not jurisdiction limits and as today you can present a suit against one Tobacco American Tobacco Company in United States from part of one Latin American country and Latin American government think about also new and more complex regulations trying to restrict the distribution of knowledge distribution of ideas and distribution of opinions it could be a terrible world so I am very happy that our society exists I hope that our society could be the best instrument, the best way in order to make part of the resistance against the enemy of liberty and try to save in it from those people so we are in the I think we are in the very hard time the new millennium for the society the new millennium for libertarians and the new millennium for all of us is just the beginning the beginning of the fight for liberty, the fight for freedom and a fight for the individual rights which are the only valuable thing that exists in our society. Thank you very much.