logo
pagesback-cover
177
Reddit meter
all mentions

The Mystery of Capital

288 pages, 2001

economics & politics

economics & politics

987 books
business & management

business & management

1082 books
Takeaways
Description

A renowned economist's classic book on capitalism in the developing world shows how property rights are the key to overcoming poverty. The hour of capitalism's greatest triumph writes Hernando de Soto, is, according to four-fifths of humanity, its hour of crisis. 

In The Mystery of Capital, the world-famous Peruvian economist takes up one of the most pressing questions the world faces today: Why do some countries succeed at capitalism while others fail? In strong opposition to the popular view that success is determined by cultural differences, de Soto finds that it actually has everything to do with the legal structure of property and property rights. 

Every developed nation in the world at one time went through a transformation from predominantly extralegal property arrangements, such as squatting on large estates, to a formal, unified legal property system. In the West, we've forgotten that creating this system is what allowed people everywhere to leverage property into wealth. This persuasive book revolutionized our understanding of capital and points the way to a major transformation of the world economy. 

The Power of Property Rights

In 'The Mystery of Capital', Hernando de Soto explores the importance of property rights. He argues that they are the key to economic success and prosperity. Without clear and enforceable property rights, people can't leverage their assets to create wealth. So, if you're interested in economics, this book will give you a fresh perspective on the role of property rights.

The Invisible Assets

De Soto digs into the concept of 'dead capital' - assets that people own but can't use to generate wealth because they lack formal property rights. He estimates that there's trillions of dollars of 'dead capital' in developing countries. This book will make you see the hidden potential in these invisible assets.

The Importance of Legal Framework

The author emphasizes the need for a strong legal framework to support property rights. Without it, people can't prove ownership, get loans, or start businesses. This book will make you realize how crucial a well-functioning legal system is for economic development.

The Solution to Poverty

Hernando de Soto suggests that the solution to poverty lies in unlocking the 'dead capital'. By giving people legal ownership of their assets, we can empower them to create wealth and lift themselves out of poverty. If you're looking for innovative solutions to poverty, you should definitely check out this book.

The Role of Capitalism

In 'The Mystery of Capital', he argues that capitalism is not just about having capital. It's about having the ability to use that capital effectively. And for that, you need property rights. This book will make you see capitalism in a new light.

Quotes 5

The Mystery of Capital has the potential to create a new, enormously beneficial revolution, for it addresses the single greatest source of failure in the developing and post-communist world.

Bill ClintonBill Clinton - 42nd U.S. President

The Mystery of Capital offers a revolutionary perspective on the roots of modern economies and provides powerful insight into the current economic state of developing nations.

Margaret ThatcherMargaret Thatcher - Former UK Prime Minister

Hernando de Soto's The Mystery of Capital offers a fresh and insightful perspective on the issues of poverty and underdevelopment in the world's poor countries.

Milton FriedmanMilton Friedman - Economist, Statistician

The Mystery of Capital is a groundbreaking book that has the potential to reshape our understanding of economic development.

Madeleine AlbrightMadeleine Albright - Former U.S. Secretary

The Mystery of Capital is a must-read for anyone interested in understanding the root causes of poverty and how to address them.

Thomas FriedmanThomas Friedman - Journalist, Author
Bill ClintonMargaret ThatcherMilton FriedmanMadeleine AlbrightThomas Friedman

Recommendations

1
authorJordan Peterson

Jordan Peterson

educatormedia personalityscientistauthor

The Mystery of Capital found in libraries

1
71 books

Best Books For Personal Finance

Organize and track your wallet and the flow of your money with the Best Books for Personal Finance.