Thursday 25 February 2010

Polar Land Reform?

An interesting issue about land reform that we didn't discuss in class is the difference between communal and individual property rights.

In recent decades, most instances of land reform and land titling projects in the developing world have been driven by the belief that communal property rights do not provide the right incentive structure for the efficient use of land. This belief was expressed by Aristotle over 2,000 years ago:

What is common to many is taken least care of, for all men have greater regard for what is their own than for what they possess in common with others. (Aristotle)

And yet, recent work in economics and political science by Elinor Ostrom has challenged this account. Her work shows that neither form of property rights can by itself secure the best outcomes in all situations.

It is often thought that concerns about communal vs individual property rights are a problem only for the developing world, as communal property rights are a sign of underdeveloped markets and institutions.

Think again


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