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Thanks for this interview with Chris. I find Krista's hesitation about markets very justified, although I think small entrepreneurs in South world countries do quickly move into market niches. I studied the expansion of the internal market in Bolivia decades after the revolution which drove out the patrones. The hacienda system had skimmed off all surplus production from the campesinos. Slowly small markets were set up high in mountain communities. I once had a market lady- barely literate - give me one of the best descriptions of market capitalism I've ever heard. In high poverty areas the smallest niche is quickly filled. Lack of capital is a huge hurdle, which is why programs like Kiva and microlending are so great.
But as soon as someone discovers a profitable niche, not only do other entrepreneurs flock as they are able, but so do the fraudsters. Suppose, in the water sales example, someone drains a sacred spring, or steals water from less powerful farmers, or uses bureaucratic corruption to take public water meant for a slum. And then there's the very effective tax system used in much of Spanish America, where the tax collector's salary comes out of what he collects. Easy to destroy small beginnings. I think this should be paired with an example I saw on, where an Indian entrepreneur is setting up a legal aid style business, providing low cost attorneys to fight corruption in the bureaucracy.