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  • The 2017 Global Award for Entrepreneurship Research goes to Hernando de Soto

    The 2017 Global Award for Entrepreneurship Research goes to Hernando de Soto

    The Global Award for Entrepreneurship Research is the most prominent international award in entrepreneurship research with a price sum of EUR 100,000. De Soto’s analyses have had tremendous influence on policy throughout the world and were a main source of inspiration for the World Bank’s Doing Business program. Read More
  • 2017 Award Winner

    2017 Award Winner

    Hernando de Soto Peru  Institute for Liberty and Democracy For developing a new understanding of the institutions that underpin the informal economy as well as the role of property rights and entrepreneurship in converting the informal economy into the formal sector.   Read More
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Much of this is due to an absence of basic property rights, as economist Hernando de Soto argues throughout his popular book, The Mystery of Capital. If the global poor don’t have the legal means or incentives to trade beyond families and small communities, so-called “globalization” will still leave plenty behind.

In a recent lecture, de Soto distilled this basic argument rather well. The full remarks are worth noting, but his point on the lack of internal trade deserves more attention than it receives:

'Forget about globalization — real globalization. To be sure, the world has become smaller and more interconnected for many people and businesses. International commerce, the media, the Internet, and advances in computer and information technology have changed the world. “Globalization” is on everyone’s agenda. But if, as I have argued, most of the businesses and entrepreneurs in the world are on the outside looking in, operating outside the legal system in a parallel, extralegal economy, then four billion or so people around the world are in no position to take part in globalization...'

To read the complete article, please visit Action Institute Power Blog.

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