Questioning the mythologies of Hernando de Soto
De Soto’s influential book The mystery of capital offers a simple yet beguiling message: capitalism can be made to work for the poor, through formalising their property rights in houses, land and small businesses. This approach resonates strongly in the South African context, where private property works well for those who inhabit the so-called ‘first economy’. Evidence from South Africa, however, suggests that many of de Soto’s policy prescriptions may be inappropriate for the poorest and most vulnerable in our society, and have negative impacts on their security and well-being.