The theory of property rights
 |
Peruvian economist,
Hernando de Soto has been credited with raising global
awareness of the significance of the establishment of property
rights to the development of modern economies. |
| One important aspect of this is the
documentation of legal rights of ownership, which enable
businesses to gain credit and function effectively.In many less
developed countries such documenation is limited, leading to the
emergence of large hidden economies and the suppression of
formal business activity. The absence of formal property rights
is seen as a fundamental cause of poverty and a constraint on
economic development. |
