To me, this question has been answered long ago by the book The mystery of Capital (2000) by Hernando de Soto. The conclusion is, that the administrative and j

To me, this question has been answered long ago by the book The mystery of Capital (2000) by Hernando de Soto. The conclusion is, that the administrative and judicial system needs to work for the poor, too; and there needs to be a process that is somewhat practical to go from black/ gray economy to fully legal status. He and team did historical research how that process was very similar in all countries now rich; and showed by experiment that same process is a rich privilege, or extremely costly and inefficient for everyone else (often due to hesitation to overturn nominal property rights in conflict with factual reality). The experimental study was done in a number of countries in the so called developing world, Egypt, Peru, Malaysia among them iirc, covering quite distinct cultural backgrounds, and consisted in following real life cases (over many years).