The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism
A)until they adopt communism.
B)until property rights are better defined and protected.
C)if they adopt free market economies.
D)until their governments monopolize all means of production in their countries.
E)if they encourage innovation and entrepreneurship.

Question

Quizplus · Accepted Answer

Hernando de Soto argues that developing countries need better-defined and protected property rights in order to fully benefit from capitalism. Without clear property rights, individuals and businesses are unable to invest and innovate, leading to a lack of economic growth and development. Therefore, option B is the best choice.

The Influential Peruvian Development Economist Hernando De Soto Has Argued