But if this is the case, which I personally think it is, then why are we witnessing what certainly appears to be a revival of socialist rhetoric and even socialist pseudo-solutions, such as the nationalization of foreign companies?

It should be stressed that de Soto is not arguing that, after the many socialist failures of the twentieth century, capitalism has became historically inevitable and that its expansion would occur according to some imaginary iron clad laws without any need for active intervention. On the contrary, de Soto is fully aware of the enormous obstacles to the expansion of capitalism, especially in regions like South America, and his book is full of dismal statistics tha...

But if this is the case, which I personally think it is, then why are we witnessing what certainly appears to be a revival of socialist rhetoric and even socialist pseudo-solutions, such as the nationalization of foreign companies?

It should be stressed that de Soto is not arguing that, after the many socialist failures of the twentieth century, capitalism has became historically inevitable and that its expansion would occur according to some imaginary iron clad laws without any need for active intervention. On the contrary, de Soto is fully aware of the enormous obstacles to the expansion of capitalism, especially in regions like South America, and his book is full of dismal statistics that demonstrate the uphill battle against bureaucratic red-tape that is involved in getting a business license or even buying a house in many third world countries.

For de Soto, the solution lies in democratizing capital. Minimize state interference. Cut the red-tape. Make it simple to start up a business. Devise ways for the poor to capitalize on their modest assets.

But again, we come back to the same question, only in a different form, Why are the people in Bolivia and Venezuela responding so enthusiastically to the socialist siren-song of Evo Morales and Hugo Chavez, instead of heeding the eminently rational counsel of Hernando de Soto? Why are they clamoring to give even more power and control to the state, instead of seeking to free themselves from the very obstacle that stands in the way of any genuine economic progress?

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