Hermando De Soto's influential book the Mystery of Capital offers a simple yet beguiling message:capitalism can be made to work for the poor through formalising their property rights in houses,land and small businesses.Yet this paper presents evidence from south Africa to suggest that many of De Soto's policy prescriptions may be inappropriate for the poorest and most vulnerable,and could have negative impacts on their security and well-being.

Hermando De Soto's influential book the Mystery of Capital offers a simple yet beguiling message:capitalism can be made to work for the poor through formalising their property rights in houses,land and small businesses.Yet this paper presents evidence from south Africa to suggest that many of De Soto's policy prescriptions may be inappropriate for the poorest and most vulnerable,and could have negative impacts on their security and well-being.