A key factor contributing to the dead capital problem in many nations is inefficiency in government enforcement of ownership rights to resources.
A property that is kept nominally, is not recognized by the law, and cannot be converted into cash is referred to in economics as dead capital. The asset's value and/or potential for lending or borrowing against it are both diminished by the lack of confidence surrounding ownership.
People in positions of authority, whether political or cultural, enforce ownership. Owners and holders of property rights are free to do whatever they want with their possessions. This include keeping it, making a profit by renting it out or selling it, as well as giving it to someone else.
Learn more about enforced property rights: https://brainly.com/question/1170280
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