Name: Tutor: Course: Date: Book report: The mystery of capital (why capitalism triumphs in the west and fails everywhere else) by Hernando De SotoIntroductionA variety of books, like The Noblest Triumph by Tom Bethell and the Property and Freedom by Richard (Harvard historian) have increased our understanding of the pivotal role the property has in both freedom and the economic development, However, after it had won nine awards that were prestigious (right from the mainstream economic as well as public affairs organisations), The Mystery of Capital, Written by Hernando de Soto and the most current property trilogy, is viewed as one of the most outstanding books elaborating the economic aspects in a simpler, breath taking way.
As the Institute of Liberty and Democracy’s president in Peru, De Soto and his research team have studied to a great extent various countries’ informal sectors and the extralegality existing there, hence the thesis of this book is completely mind-blowing more so in the case where the future influence of the book is put in to consideration. There has never been such a book thesis that greatly initiates direct arguments as the one proposed by Dr.
Hernando De Soto, and therefore, with the given rave reviews of this book, his second one, we are forced to meet head-on his claims and express our view and skills in these claims. With the absence of the greatly qualified adherents of such literatures, I have given myself this duty. The Mystery of CapitalThe most outstanding aspect of this book is the way De Soto further expands on how the secure, permanent, and established property rights greatly affects the development of the capita proper, which signifies the use of one’s property as a way of getting credit for generation of further investments According to him therefore, the property produces a multiplier effect which definately generates economic growth.
De Soto as well argues that this role of property was much investigated and realized by Marx, thereby providing the foundation for the critique of the capitalism by the Marxists. Although, as argued by De Soto, Marx actually got it in the opposite way: it is specifically this function, precisely depicted by the word capitalism, which has proved to be helpful in saving and protecting the people who belong to the lower class level in the society, especially since they too have abilities of their property being acknowledged by the law, and as such can be recognised in the capitalist equation hence enjoy benefits related to material prosperity.
This is among the lessons the West learnt while there was industrial revolution, and which is a necessary lesson yet to be learned by the third world countries today, since the exact revolution that happened in the West more than a hundred years back is currently taking place the third world. Still there is much to this, as De Soto, in the book, claims of teaching us a vital lesson, greatly and more abundantly than the previous presentation in his earlier book The Other Path, this is the extralegality he refers to, the unrecognized property’s informal sector as well as the associated judicial institutions that are more of do-it-yourself institutions, and Which was a global phenomenon that only got defeated in the West around 19th century, as he suggests when he says that the chief cause of the West’s capitalism success and splutter of capitalism in other parts of the globe is due to the way most western nation’s assets are all integrated in to a unitary system of representation.