Law and development at the local level : testing the formalization theory of Hernando De Soto

This research project is about how legal institutions influence the lives of informal vendors and explores alternative regulations that can empower them to improve their working conditions. Using empirical information based on fieldwork in the city of Bogotá, this research will explain the importance to find alternative forms of regulations to the traditional formalization approach. Some of the preliminary conclusion shows how the law plays a coordinating role and the organizations of vendors are the main actors regulating the daily lives of the vendors in their business. By interacting with the organizations of vendors and keeping a coordinating role, legal institutions are more effective in regulating the use of the public space.