Hernando de Soto
Hernando de Soto an internationally famed economist, who has significantly increased the opportunities for many marginal families of Peru and other countries, was inducted into the Democracy Hall of Fame International, Division of Economic Analysis and Action, in a festive ceremony, including a reception and lunch on Tuesday, October 14, 2003.
As a Founder and Director of the Institute for Liberty and Democracy, he focused on creating modern legal frameworks that empower the poor of the developing and ex-communist world by providing them with a new, comprehensive legal property system allowing them to turn their assets into leverageable capital. This improvement in property and business laws within nations can potentially impact four billion people who currently are virtually excluded from participating in the global economy, because they do not have legal title to their property on which they live and do business.
His outstanding books, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, and The Other Path, have been translated into many languages as his reputation has spread around the world.
Dr. Walter E. Boek's Remarks About
Private Property and Democracy
for the
Hernando de Soto Induction
into the
Democracy Hall of Fame International
That every citizen has the right to own property, including land, buildings, equipment and businesses, is perhaps the 11th commandment that has not yet been torn down, and it won't be if heroes like Mr. Hernando de Soto continue to change legal systems to conform to the basic values of people. As he has shown, property ownership has to be certified by laws which provide clear title for individuals along with the right to acquire and dispose of it. Citizens's and other residents' property, whether it be where they live, work or relax, must be held sacred. Not only is individual property ownership one of the most important rights in democracies, but private ownership also is absolutely essential in a capitalistic society. As President Hu Jintao of China, has finally discovered, it helps to unlease the energy and genius of humans.
In communistic countries, and those ruled by dictators, almost all property belongs to the government, or to a few privileged lackeys, and extreme measures are taken to prevent citizens from owning any property or business. For example, in the early 1930's Joseph Stalin invited farm workers who wanted to continue to own and operate their own farms to apply for permission. With this technique, he was able to identify those farmers who did not completely believe in his communist government ownership system. He then eliminated these nonbelievers by having them killed.
This emphasizes that one of the greatest fears by those who support nondemocratic societies is the ownership of homes and businesses by the citizens. The westernized belief that every person's home is his/or her castle serves to anchor property owners in the society, and if the laws of the government support property ownership, citizens are protected from government abuse, and human dignity and freedom are greatly enhanced.
The beliefs concerning property ownership, along with the use of it as capital, are part of the glue that holds people together in democracies. We can all thank Mr. de Soto for making it possible for hundreds of thousands of people to join their societies' contributing members and no longer having to tremble when faced by government bureaucrats who were backed up by uncompromising property laws. Mr. de Soto, we are very pleased that you have come here to International Graduate University to allow us to honor you by inducting you into our Democracy Hall of Fame International.
The Honorable Anthony M Kennedy, Associate Justice of the United States Supreme Court speaking at Mr. Hernando de Soto induction on "Private Property at the Legal System"
Inductee Hernando de Soto speaking to these who came to honor him from the stage of the Democracy Hall of Fame International.
