In Peru 15% of gross income in extralegal manufacturing is paid out in bribes, says de Soto.

FORBES: Waking Dead Capital

In Peru 276, 000 extralegal entrepreneurs recorded their businesses voluntarily from 1991 to 1994.

FORBES: Waking Dead Capital

But arguably the greater grab for extralegal power was the president's 2012 "recess" appointments overturned by an appellate court to the National Labor Relations Board and Consumer Financial Protection Bureau.

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The Orr Commission for the first time conferred extralegal communal rights on radicalized Israeli Arabs, and so denied the police the right to enforce laws equally on all Israelis.

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Also lost are tax revenues from the extralegal businesses.

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Also lost are tax revenue from the extralegal businesses.

FORBES: A new kind of entitlement

The episode highlighted the extralegal powers of the security forces, which had hired thugs to guard and intimidate Mr Chen and his family, and to keep well-wishers at bay, sometimes by beating them up.

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People who bring their grievances to the central government as petitioners are routinely harassed, beaten and sent to labor camps as troublemakers or locked up in what are known as "black jails" in a kind of extralegal detention.

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After the 2010 Deepwater Horizon oil spill, the Justice Department leaked that it had opened a criminal probe at exactly the time the Obama White House was demanding BP suspend its dividend and cough up billions for an extralegal claims fund.

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As De Soto has said, one of the biggest political challenges facing developing countries is to bring the assets of the extralegal sector into a more inclusive legal property system in which they can become more productive and generate capital for their owners.

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