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The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else
     

The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else

4.4 8
by Hernando De Soto
 

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"The hour of capitalism's greatest triumph," writes Hernando de Soto, "is, in the eyes of four-fifths of humanity, its hour of crisis." In The Mystery of Capital, the world-famous Peruvian economist takes up the question that, more than any other, is central to one of the most crucial problems the world faces today: Why do some countries succeed at capitalism while

Overview

"The hour of capitalism's greatest triumph," writes Hernando de Soto, "is, in the eyes of four-fifths of humanity, its hour of crisis." In The Mystery of Capital, the world-famous Peruvian economist takes up the question that, more than any other, is central to one of the most crucial problems 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 the transformation from predominantly informal, extralegal ownership to a formal, unified legal property system. In the West we've forgotten that creating this system is also what allowed people everywhere to leverage property into wealth. This persuasive book will revolutionize our understanding of capital and point the way to a major transformation of the world economy.

Editorial Reviews

Economist
The most intelligent book yet written about the current challenge of establishing capitalism in the developing world.
Commentary
". . .de Soto convincingly demonstrates, the road to worldwide prosperity requires not restraining capitalism but making it universal.
Globe and Mail
. . .a significant contribution to understanding how the poorest nations can use their own legal system to manage their way out of poverty.
Bookpage
. . .a challenging and fresh thinking theory that flies in the face of traditional notions of Third World poverty.
Raleigh News & Observer
It is one of the most provocative and potentially important works on development to appear in some time.
Industry Standard
An increasingly important economist provides a fascinating lesson in why capitalism works by looking at the places where it doesn't.
Laurence Minoral
If a nonmathematician can win a Nobel Prize in Economics, I nominate de Soto.
—(Editor-in-Chief, Forbes Global)
Business Week
. . . [de Soto] performs a valuable service. .
Los Angeles Times Book Review
. . .impassioned and thoughtful. .
Kirkus Reviews
A provocative and revolutionary analysis of the nature of capital, the ineffectiveness of capitalistic reform in developing nations, and the ways in which those countries can harness their latent economic potential.

Product Details

ISBN-13:
9780465004010
Publisher:
Basic Books
Publication date:
03/20/2007
Sold by:
Hachette Digital, Inc.
Format:
NOOK Book
Pages:
288
Sales rank:
543,372
File size:
4 MB

What People are Saying About This

Ronald Coase
A very great book...powerful and completely convincing. It will have a salutary effect on the views held on economic development. (Ronald Coase, Nobel Laureate in Economics)
Lord David Owen
Fresh thinking is rare - this book has the capacity to transform economies . . .. (Lord David Owen, Former Foreign Secretary of the United Kingdom, European Union Chairman of the International Conference on the Former Yugoslavia)
William F. Buckley Jr.
This book changes our understanding of where capital comes from. The consequences could be world-shattering. (William F. Buckley Jr., Founder-Editor of the National Review)
Jeane Kirkpatrick
Following on his extraordinary and highly original book The Other Path... this book, too, is another tour de force. (Jeane Kirkpatrick, Former U.S. Ambassador to the United Nations)
Javier Perez de Cuellar
A crucial contribution. A new proposal for change that is valid for the whole world. (Javier Perez de Cuellar, Former Secretary of the United Nations)
Lady Margaret Thatcher
It should be compulsory reading for all in charge of the 'Wealth of Nations. (Lady Margaret Thatcher, Former Prime Minister of the United Kingdom)
Francis Fukuyama
. . . one of the few new and genuinely promising approaches to overcoming poverty to come along in a very long time.(Francis Fukuyama, author of The End of History and The Last Man)
Senator Bill Bradley
For policy-makers, international investors, and those who care about the challenges of developing countries. . .

Meet the Author

Hernando de Soto is President of the Institute for Liberty and Democracy (ILD), headquartered in Lima, Peru. He was named one of the five leading Latin American innovators of the century by Time magazine in its May 1999 issue on "Leaders for the New Millennium." De Soto played an integral role in the modernization of Peru's economic and political system as President Alberto Fujimori's Personal Representative and Principal Adviser. His previous book, The Other Path, was a best seller throughout Latin America and the U.S. He and ILD are currently working on the practical implementation of the measures for bringing the poor into the economic mainstream introduced in The Mystery of Capital. He lives in Lima, Peru.

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The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else 4.4 out of 5 based on 0 ratings. 8 reviews.
SyedBK More than 1 year ago
Belonging to a developing nation, can hardly not agree. Very good book. Perhaps what the author proposes is the first step towards a developed nation.
Scott-in-Utah More than 1 year ago
Makes understanding economic problems in the Second and Third Worlds (sorry, still the best shorthand descriptions available!), this book is a must read. And, altho' wrriten 12 years ago, explains the current problems with foreclosures- the inability to properly record transfers of property after the Crash of '08.Short, pointed and easy to follow.
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Guest More than 1 year ago
I have been hearing about this book for at least 5 years, and it was supposed to be an amazing, viewpoint-changing experience, so I figured that I should probably get around to reading it. I can't say that it radically changed my views of capitalism in respect to other competing economic systems, but the author does do an excellent job of explaining exactly why the 3rd world always seems to miss out on capitalistic expansions. While 'the West' keeps getting richer, other people miss out and stay relatively poor. Why is this? Are they stupid? Are they lazy? No, they aren't stupid and they aren't lazy. The problem is that everyone seems to have forgotten that capitalsim is all about capital (hence the name). And in the 3rd world, most people are not allowed to develop capital because they don't own official property. Why? I liked the flow chart that showed how it would take literally 18 years to follow all the legal channels to buy property legally in Haiti. It is so ridiculous, that nobody outside of the system bothers trying to get on the inside, so they just squat on land and 'own' it in this fashion. Because they lack legal title, however, they can't use that land or house as collateral for a loan, a basic thing Americans like me take for granted. I must say that I had never thought about it before, but it totally makes sense. My only problem with this book is that it felt too long. It's only about 230 pages sans end notes and index, so it isn't physically that long, but it really only takes the author about 150 pages to make his point, and the rest of the book is him hammering the same point over and over and over again. It gets tedious, but this is still an important book for everyone who cares about helping the poor attain the benefits of the global economic system.
Guest More than 1 year ago
While the world's leaders struggle to find answers to the problems of poverty and ponder ways to administer aid monies effectively, Mr DeSoto offers some refreshingly basic ideas. First and foremost, simplify titles to land ownership. If a person has clear title to their land, they can borrow against it. Something we take for granted in the US, clear title is a rarity in the developing world. Secondly, streamline the process of registering your business. Most of the developing world operates illegally because it takes an inordinate amount of resources, both in hours and in dollars, to go through the process of registering a business. Simple ideas, sensational output. A must read for international policy afficianados.