LECTURE - Capital & Poverty, Part 2 - Hernando de Soto, "The Mystery of Capital"


This lecture focuses on Hernando de Soto’s claim that a major contributor to poverty in the developing world is not so much a lack of property itself as a lack of the legal means to represent property as financial assets that can be used to create capital, the wealth that people use to create more wealth.

Part 2 - Professor Russell discusses de Soto's research into the effects of access to formal vs informal legal structures, including the famous finding that the average time to establish a small business in Peru would be 300 work days.