The theory of property rights
Peruvian economist, Hernando de Soto has been credited with raising global awareness of the significance of the establishment of property rights to the development of modern economies.
One important aspect of this is the documentation of legal rights of ownership, which enable businesses to gain credit and function effectively. In many less developed countries such documentation is limited, leading to the emergence of large hidden economies and the suppression of formal business activity. The absence of formal property rights is seen as a fundamental cause of poverty and a constraint on economic development.