The mystery of capital, de soto
There are many people living with death properties, I.e. not legalized.
in developing countries, the volume of such death properties is gigantic in the economy,
this is problematic as this informal sectors can’t turn their properties to effective usages such as collatoral which will further contribute to economic development.
this create condition for a large amount of people are living outside of the system. it also create cost of not having effective law which
generate social problems and
undermine economic development.
therefore effective property legal system, I.e neutral law, adapted to needs of majority as well as simple/decentralized/deregulated.
by formalized the property systems;
-it allows economic potential of subjects,
-bring existing information into a single system,
-people become responsible, a
-assets are expandable and accessible, -transform citizens into commercial agents,
-protects transactions.
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