Bild på författaren.

För andra författare vid namn Hernando de Soto, se särskiljningssidan.

5 verk 1,532 medlemmar 12 recensioner

Om författaren

Hernando de Soto is President of the Institute for Liberty and Democracy, headquartered in Lima, Peru. A frequent advisor to heads of state worldwide, he was named one of the five leading Latin American innovators of the 20th century by Time Magazine
Foto taget av: Photograph of Hernando de Soto, which he had taken by Flavia Gandolfi, for the jacket of his second book, The Mystery of Capital By I4LD 1 and Flavia Gandolfi - Institute for Liberty and Democracy, CC BY-SA 3.0,

Verk av Hernando de Soto


Allmänna fakta

Vedertaget namn
Soto, Hernando de
Arequipa, Peru
Lima, Peru



The developing countries are not poor, they have a lot of wealth, they just cannot make their wealth part of the legal system denoted as property rights. As they do not have legal access to their assets, they cannot use these assets in a variety of ways such as mark them as collateral or transfer them easily. Capital is the ability to use asset for more than the physical purpose, and the poor do not have access to these uses. That is what makes the capitalism in the West work and fail everywhere is, that the West has given property legal status which allows the asset to be used in more ways than the physical properties.

Capital is defined by the potential use of an asset. This potential use can only be accessed via legal ways, while many in developing countries are in the extralegal situation. By providing property rights, usually starting with documenting the assets, the assets can be traded in more than just local circles. Documenting the assets is a way of representing its potential value, much like other forms of representations humans have created to express conceptual and non-physical properties. Documenting the assets make the invisible wealth, visible.

Operating in the extralegal has costs, which is why people who are given the opportunity to make their assets legal, do so gladly. Extralegality is seen as more of a norm, due to the high difficulty that many countries make it to become or stay legal. An integrated legal system facilitates accountability of the individual, reducing the need for trust developed locally. All extralegal arrangements have their enforcement mechanisms and close groups, while an integrated property system destroys the close groups it creates more networks.

Developing countries have entrepreneur ingenuity and gargantuan of wealth, what they do not have is ready access to the legal system. The problem becomes that the written law is not the peoples’ law. Governments fail to adapt the legal system for various groups. Rather than adapting to the extralegals, many governments have begun outlawing and prosecuting them. Many countries are in the same stage that the US was in history. Over time, the US integrated the extralegal code with the official one.

This book is a fantastic read about property rights. For countries to recognize and utilize their wealth, lawyers and leaders need to take charge of integrating the legal system. This is a difficult and turbulent process but is necessary to turn assets into capital.
… (mer)
Eugene_Kernes | 9 andra recensioner | Jun 4, 2024 |
I have had the privilege of meeting the Hernando de Soto back in 2006 while attending training at his Institute for Liberty and Democracy in Lima. I can count among those who have also implemented in practice the theories that de Soto puts forward in the book, through my involvement in a joint policy research program on property rights in Albania. It is enriching and fascinating book to read, as well as both well researched and written. I am also proud to have contributed to editing its translation into Albanian.… (mer)
Indrit | 9 andra recensioner | Dec 12, 2019 |
Excellent overview of how we use property to create capital and how most of the world does not have a system for documenting ownership. Most people live in an extralegal system. Has recommendations for changing the systems so that real capitalism can work.
ShadowBarbara | 9 andra recensioner | Jan 27, 2017 |
In this, his classic book on the informal economy of Peru and the reasons why poverty can be a breeding ground for terrorists, Hernando De Soto describes the forces that keep people dependent on underground economies: the bureaucratic barriers to legal property ownership and the lack of legal structures that recognize and encourage ownership of assets. It is exactly these forces, de Soto argues, that prevent houses, land, and machines from functioning as capital does in the West--as assets that can be leveraged to create more capital. Under the Fujimori government, de Soto's Institute for Liberty and Democracy wrote dozens of laws to promote property rights and bring people out of the informal economy and into the legitimate one. The result was not only an economic boon for Peru but also the defeat of the Shining Path, the terrorist movement and black-market force that was then threatening to take over the Peruvian government. In a new preface, de Soto relates his work to the present moment, making the connection between the Shining Path in the 1980's and the Taliban today. (Google books)… (mer)
miningjid | 1 annan recension | Dec 8, 2013 |



Du skulle kanske också gilla

Associerade författare



Tabeller & diagram