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Peruvian economist hernando de soto noted that countries that have weak property rights also struggle to develop strong, innovative economic markets.
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What did de soto mean my strong, innovative economic markets? so according to hernandez de soto, a strong market would be one in which entrepreneurs have legal ownership to property.
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They're also able to obtain credit, sell business, or expand.
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They're also able to obtain legal solutions in court.
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Why would such markets be important for a country that is hoping to raise the standard of living of its residents? the reason is, without these things in place, entrepreneurs are stuck in poverty, living to poor, working conditions.
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Their assets become dead capital in the shadows of the law.
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So desoto thought the legal system acted as a gateway to success.
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But without the support of the legal system and legal right to property and assets, entrepreneurs will be stuck in poverty...