Abstract

The article considers the main critical arguments regarding Hernando de Soto’s ideas, primarily related to the problem of property rights, in the Russian-language and English-language literature. The author argues that: 1) Hernando de Soto uses the model of Homo Economicus and does not pay attention to social, cultural and political factors; 2) his concept of property has evolutionary and Eurocentric bias; 3) legalization of the informal property is not a panacea for the problem of poverty; 4) property formalization leads to property redistribution and considerable economical and social costs for the poor; 5) poor people have a restricted access to a bank loan after formalization of the property.

Keywords: property rights, Hernando de Soto, informal property, formalization of property rights