In the foreword to a report on property rights around the world, Peruvian economist Hernando De Soto noted, “Countries that have weak property rights also struggle to develop strong, innovative economic markets.”
a. What did De Soto mean by “strong, innovative economic markets”?
b. Why would such markets be important for a country that is hoping to raise the standard of living of its residents? What do property rights have to do with developing
such markets?