Capital Of Mystery Book Report

1526 Words 7 Pages
I will discuss why economic growth happened in developed countries and didn’t in the rest of world based on 2 books, which I read. To discuss this, I will point out theory of these books, merit and demerit for our world today and how these can be related to discuss we had in a class room. To begin with, I will start with theories of Capital of Mystery. The author, Hernando De Soto, claims capital is the only way to make nations growth and 6 mysteries of capital. He explains about how to generate capital, every property, such as, houses and lands should be appropriately documented, stored which can connect assets. This is called representational process. Because of this process, assets become valuable of not themselves, but also on documented papers, so it can be used as collateral for credit. Because of this process, credit history, an accountable address, reliability, utilities and securities are able to being created, which is sold in secondary market. Therefore, capital can be made. Also, I will describe at greater length below about this process. this formal property system is able to transfer assets into capital by organizing for useful social and …show more content…
This book explores how development counties and grow by comparing with economic and government history of successful countries and unsuccessful countries. In this book, he explains a lot of framework for developing countries to be able to success like advanced countries. The reason there are many frameworks is economists can not identify what factors are attributed with accomplishments of economic growth. He believes that any countries can achieve. There are possibilities for them to become middle income countries form low-income countries. Finally he claims that nations can grow depending on what they have and how they

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