Maybe Capitalism Isn't the Way After All...

Maybe Capitalism Isn't the Way After All...

Hernando De Soto is a Peruvian Economist who lived in the United States most of his life. De Soto's parents made sure that he visit his home country every year. As a child, De Soto recalls being interested in why certain countries like Peru has such an evident class difference unlike the United States. This man's interest as a child didn't die out as he grew older, De Soto Studied economics and formulating a number of controversial theories concerning the reason why nations are poor and how wealth can be increased in those nations. The Peruvian's theories revolve around empowering the poor, giving them the basic rights that they deserve, property legislation and eliminating "dead capital". De Soto seems to have a winning formula to rectify the economic conditions of 3rd world countries (the actual studies included Egypt) based on the extensive research by his team of economists.

Hernando de Soto.

English: Photograph of Hernando de Soto, which he ...

"AN OLD PORTRAIT OF HERNANDO DE SOTO (ca. 1500-154...

If De Soto's theories were to be applied in the rural, less civilized areas of Egypt, the economic situation in the country would positively improve. Places like Imbaba, Shubra, Menoufeya and many others would improve from the application of De Soto's ideas. In Egypt these places have been considered problematic in the past, thus they have been neglected and left without any supervision. The economic situation in Imbaba is so bad that people do not eat meat or veal but camel meat because it is much cheaper. The specific problem faced in places like Imbaba that De Soto's theories handle eloquently is poverty.

The problem lies in the concept of "dead capital", it is considered capital that is available but can't be used by people. In an interview Hernando De Soto says " Now, you have a lot of assets in developing countries...