Publisher: Basic Books
Authors: Hernando Desoto Hernando de Soto
List Price: $16.95
Amazon Price: $11.53
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Reviews:
Summary: A Mystery, Revealed
Like Economics in One Lesson, by Hazlitt, The Mystery of Capital is one of those books that opens your eyes with one single lesson: the importance of strong private property ownership rights and its consequences. De Soto argues, not theoretically, but with proven experience that this is the key to unleashing the potential of capital and its benefits. Suffice it to say that De Soto's advice got rid of the guerrilla in Peru by giving their farmers title to their property and therefore desincentivating them from the growth of drug crops. He also has been hired as a consultant to Egypt, the fastest growing economy in the Middle East, since the reforms proposed have been implemented.
This is a must read to all those wishing, wanting, willing to do away with poverty and to protect property, and it does not have to apply to the third world only: the US and Europe could use a good dose of deregulation and less State intervention in property rights in order to combat poverty, inequality and all the evils modern politicians like to talk about but do little to solve. Were I president of a nation one day I would immediately hire De Soto and his team. Can all evils be resolved with property rights? No, but by aligning the incentives correctly most economies would benifit greatly and much corruption would dissappear, eliminating a lot of poverty with it. This book should be a required reading on any economics university program, and De Soto's researched should be further expanded and discussed.
Summary: A Comment regarding the book as well as many of the other reviews
I have read a great many of the reviews and it amazes, amuses, and frustrates me that so many of them criticize the book for not being about that which the book never pretends to be!
It seems that so many wish to attempt to posit their prodigious knowledge at the expense of the book. And I am sure that some appreciate that, although I suspect more are concerned with the intended scope of the book, rather then the personal concerns and baggage of the reviewers.
More evidently have not read the complete title and erroneously have interpreted it as a complete treatise on all things "capital"!
Others cite the premise of the book that many societies have not yet developed the legal infrastructure to provide for legal ownership and property rights related to the historical 'squatters rights', citing that the problem is that countries are under-developed! Such circuitous insight is, at best, well amusing!
And regarding the fact that he responds to Marx's premise, it is not surprising at all when you consider the context of the political reality in de Soto's South America, in particular, with the activity of the Maoist Shining Path.
What would indeed be refreshing are more reviews that address what the book attempts to address, within the stated scope of the book's premise, rather then a review of the emotional baggage of the reviewers who review the text based upon that which they wish it addressed!
The book focuses on a valid and fundamental point that has not previously been adequately addressed! And it presents the basic tenant with many examples from many perspectives. And excellent and deceptively simple book, after reading the premise assumes a quality of a point that is suddenly quite obvious, but which has heretofore not been adequately realized nor addressed!
But in keeping with the spirit of the myriad other reviewers, I guess I should find fault with the book for not delving into the early formative period of Mickey Mantle's life, as I am sure many would appreciate this! But alas, such is not within the author's intended scope of the text!
Summary: Great, refreshing, unique!
How do you make capitalism work? Make all your citizens capitalists!
De Soto argues that the reason why capitalism isnt working in many parts of the developing world is because of an immature system of property rights... In a nutshell, he asserts, the costs of obtaining property are so high (thanks to government over-regulation in most cases...lots of paper work and trips to the capital and fees) that the poor are unable to own property. Unable to obtain property they can't do things like get a loan put on the value of that property so they can develop a business or expand a business.
The book gets back to the roots of capitalism...property. If the poor don't have access to property they can't dig themselves out of poverty and when they can't do that your economy stagnates and falters. Instead their business will remain extralegal and thus benefit far fewer people (and do little in the way of building wealth).
This book illuminates one of the many areas of capitalism that needs to be addressed before it can truly work to eliminate poverty (creating more egalitarian property right laws is only part of the puzzle but a very important piece).
This book is a great read, though the middle part is mostly repeating the central theme over and over. Any fan of capitalism, markets, or fighting poverty should have this book on their shelf.
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