The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else

[Ms DD]

Anyone read this book?

 

The Peruvian economist Hernando De Soto notes: "The cities of the Third World and the former communist countries are teeming with entrepreneurs. You cannot walk through a Middle Eastern market, hike up to a Latin American village, or climb into a taxicab in Moscow without someone trying to make a deal with you. The inhabitants of these countries possess talent, enthusiasm, and an astonishing ability to wring profit out of practically nothing."

 

He claims that it's possible to keep such people down only if governments dedicate themselves to the pursuit of really bad policies for decades at a time.

 

In essence his assertions are that bad policies can ensure poverty, good policies spark wealth creation. He maintains that kleptocrats and egalitarians want to keep their countries poor by:

 

1- discouraging investment i.e nationalisation of all major Industries.

2- printing paper money (a problem we have in Somalia). Hyperinflation is one of the easiest and most popular ways to dismantle an economy.

 

The second point i have major problem with: money creation by an entity (not properly formed govt) which is basicly free to print, create as much as or as little as it like, based on one weak currency which everyone poor is forced to accept ...is armed robbery.

 

 

and other rotten policies.

 

I am in 2 minds over this. On one hand, i can see the attraction of capitalism, on the other hand, i am not too sure.

[Haashim]

n essence his assertions are that bad policies can ensure poverty, good policies spark wealth creation.

Very True. However, neither Socilaism (communism) nor capitalism can claim they've pure good poliocies. therfore, i think combination of both theories is the best solution.

 

take China as an example ....

[Captain Xalane]

Originally posted by Cambarro:

 

I am in 2 minds over this. On one hand, i can see the attraction of capitalism, on the other hand, i am not too sure.

Che Guevara might have something to say about this.This is his field.

 

Getting back to the topic,in my own view,like many others,i perceive capitalism as exploitation of man by man.Pple are trying to make a living in every way they can possibly think of due to their failed economy of their countries and i think that is not capitalism,that is managing,more like trying to make ends meet or maybe trying to survive for the day,thats what those pple that the author mentioned are doing.As of why Capitalism is failing in the west,the answer might be that maybe the west is running out of 'nations to exploit' though economic imperialism is the plague that is eating up the third world.

[-Lily-]

Cambaro do your own homework.

[me]

^^^hehehhehe Qarxis

[Sophist]

" n essence his assertions are that bad policies can ensure poverty, good policies spark wealth creation"

 

This was first stipulated by Amartya Sen (former Trinity Master, Cambridge) in his seminal work freedom as a development.

[Legend of Zu]

What is your take on this good Sophist since you're a capitalist in the making (joke)?

Will love to hear your thoughts on this.

 

Cheers