Transnationalism is a phenomena used to describe the inter-connectivity between people of different nationalities, cultures and economic status (Genest 191). Transnationalism seeks to find a solution to the way people live in the world in terms of their integration in the society. People who proposed this phenomenon seek to structure a world where all people will be comfortable.

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Critiques arose and said that this theory of transnationalism cannot be possible since all people can not have the same standards of living (Thomas 83). Otherwise, people will lack others to do some jobs. They also said that some cultures are incompatible, and people can only tolerate them rather than integrate in to them. Thus, it will not be possible for people to have the same standards of life in these cultures.

De Soto seems to be advocating for Institutional Transnationalism. This is because he says that the poor people are shunned by the rich in the society, and they are always searching for recognition; they want to move to the towns and cities so as to be included in the institutions of the rich. De Soto also says that the legal systems also disadvantage the poor, and this makes the poor seek their own means of survival (The Power of the Poor). Therefore, they come up with their own systems that guide their lives. They construct their rules of business and trade, and they also construct rules that guide their social interactions (Elliott 80).

However, there are some inconsistencies in De Soto’s sentiments since the poor are guided by the same rules that guide the rich; they follow the same law that is set by the government. The poor even pay tax to the government. The wealth of the poor is also controlled by the rich since they have the economic power to own banks and other financial institutions.

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