Dead capital
Encyclopedia
Dead capital is an economic term related to property which is informally held that it is not legally recognized. The uncertainty of ownership decreases the value of the asset and/or the ability to lend or borrow against it. These lost forms of value are dead capital.
The term dead capital was coined by Peruvian Economist Hernando de Soto Polar.
De Soto estimates there is US$ 9.3 trillion in dead capital globally. The US$ 9.3 trillion are assets owned by poor or middle-class people in emerging economies which can't be realized due to poor policies, procedures or bureaucracy.
, rational under investment.
The term dead capital was coined by Peruvian Economist Hernando de Soto Polar.
De Soto estimates there is US$ 9.3 trillion in dead capital globally. The US$ 9.3 trillion are assets owned by poor or middle-class people in emerging economies which can't be realized due to poor policies, procedures or bureaucracy.
Problems associated with dead capital
Local political instability, corruptionCorruption
Corruption usually refers to spiritual or moral impurity.Corruption may also refer to:* Corruption , an American crime film* Corruption , a British horror film...
, rational under investment.
Groups working to solve the dead capital problem
- World Bank (PSD initiative)
- ILDILD- Organizations :* Institute for Liberty and Democracy, an institution in Lima, Peru* International Labor Defense, a former legal defense organization in USA- Science and technology :...
- Center for Live Capital