Episode 6 — Todd Morley: How Impact Investing Can Formalize the Informal World

In Washington DC this time, Élena sits with legendary investor and Guggenheim Partners co-founder Todd Morley to explore one of the most overlooked forces shaping the global economy: informality. With nearly 70% of the world’s workforce operating outside formal systems, Todd explains why this is not just a humanitarian challenge but the largest untapped economic opportunity on the planet, breaking down how informal markets suppress global GDP, destabilize democracies, and trap billions in poverty. He reveals how data-driven, impact-focused investment models can formalize work, unlock capital, and create measurable, scalable, and profitable growth, offering a bold blueprint for building an economy that works for everyone. -Time Stamps-0:00 – Why Informality Is the World’s Biggest Untapped Economic Opportunity 1:26 – How Todd Discovered the Power of Property Rights and Informality 3:10 – Why Governments Can Fix Poverty Faster Than They Think 4:50 – The Guggenheim Bilbao Effect & Economic Transformation 6:29 – From $12 Shacks to Thriving Cities in Peru 8:36 – Why Some Governments Don’t Want People to Escape Poverty 9:26 – How Property Rights Built the American Middle Class 11:18 – Why Fintech and Microloans Aren’t Enough 11:44 – Private Capital, Public Power & Real Economic Growth 13:27 – How the Reality Check Analysis (RCA) Works 15:16 – The “Bilbao Effect” for Entire Countries 16:36 – The $12 Home That Became Worth $500,000 18:09 – Why ESG Is Failing and What Actually Creates Impact 19:25 – How Property Rights Reduced Child Labor by 27% 20:37 – Why Ignoring Informality Threatens the Global Middle Class 21:40 – Final Thoughts & Call to ActionLearn more, donate, and join our movement at t4action.org