Dead Capital and the Poor

Bibliographic Data

ID2687967
AuthorsHernando De Soto (corresponding author)
Year2001
Volume21
Issue1
Pages13-43
Publication date2001-03-01
Open AccessNo
TypeBOOK
VenueSAIS Review (JOURNAL)
Journal identifiersISSN: 1088-3142 • E-ISSN: 1088-3142
PublisherProject MUSE (PUBLISHER • US)
DOI10.1353/sais.2001.0011
OpenAlexW2019055136
LanguageEN
Citations received20

This article argues that capitalism has failed to deliver its benefits to the poor in developing countries because most of their assets are dead capital. Dead capital is property that is informally held and thus cannot be readily converted into capital. Hernando de Soto, author of The Mystery of Capital, explains that the potential value of dead capital in developing and former communist nations is at least $9.3 trillion. De Soto argues that the failure to recognize the economic potential of assets held by the poor is the reason why capitalism has failed to take root in these countries. He proposes that governments should focus on establishing formal property systems that will allow the poor to leverage their assets and participate in the market economy

Business · Communism · Developing country · Development economics · Economic growth · Economic policy · Economic reform · Economics · Geography · Latin Americans · Political science · Politics · Economic Growth and Development · Law

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