Ensuring property rights for the world's poor could unlock trillions in 'dead capital'. According to Peruvian economist Hernando de Soto, the value of extralegal property globally exceeds 10 trillion dollars. Nobody has ever disputed that property rights matter for investment: experts point to a direct correlation between a nation's wealth and having an adequate property rights system. This is because real estate is a form of capital and capital raises economic productivity and thus creates wealth. Mr de Soto's understanding - that title frees up credit, turning 'dead capital' into 'live capital' - has prompted governments in other countries to undertake large-scale property-titling campaigns.

Presenter: Tim Harford
Producer: Ben Crighton. Show less