The master's thesis discusses a development concept inspired by the Peruvian economist Hernando de Soto. It describes this concept and analyzes its potential to work in praxis. It introduces several critical responses addressed from a wide range of stakeholders - from civil society advocates to scholars -- and contends with their critique. Furthermore, the thesis frames this concept within the development paradigm, with a short overview of its evolution from the 50's and an emphasis on the institutional aspect. The last part analyzes results of the property rights formalization reform in Peru. The outcomes of this reform may be of major importance for the development efforts in the future. Although the anticipated connection of formalization and a better access to loans has not been proved yet, there are some other interesting effects to look at.