Recognize that having secure property rights leads to savings and then to new capital which then begins the advancement towards prosperity.
Monday, June 17, 2013
Always - New Capital Is A Good Start!
In an economy that is undeveloped (although
this principle operates as well in advanced economies) the first steps
taken should be to encourage and nurture capital. Unprotected property rights
are very often the reason people do not save. Any steps that secure property
rights and foster trustworthiness lead to the emergence of new capital. New
capital advances productivity and then the development process begins.
Divine Economy Theory Policy #9: New Capital Is A Good Start
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1 comment:
A book written by Hernando De Soto titled The Mystery Of Capital proves beyond a shadow of a doubt that by having a property rights registry and having proerty rights properly defined and defended is what can cause an undeveloped nation to become developed nation. As such if that were to be the norm then it would not be necessary to provide wasteful foreign aid to these contries wherein the money is consumed by the government and not go for the sue of developing an economy.
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