Most economists would agree that enforced property rights contribute greatly to economic growth and broad-based prosperity. An enforced private property system gives individuals the right to use their resources as they see best. In the Road to Serfdom, a political treatise, Hayek made the case for private property: “The system of private property is the most important guaranty of freedom, not only for those who own property, but scarcely less for those who do not.”
We take it for granted in America that we have the freedom to own, buy, and sell land. In some developing countries, this is only a dream. In fact, more than a billion households in poor countries still live without secure, documented, publicly registered and tradable rights to their homes. (Forbes, 2015)
In developed countries, the poor hold most of their savings—their wealth—in their homes and land. In developing countries, weak property rights or (no property rights) render the bulk of the savings of the world’s poor illiquid. This is not a small matter since the value of these frozen savings is estimated at well more than $10 trillion. (Forbes, 2015)
It’s extremely challenging to solve this issue. Donors have provided billions of dollars to the governments of poor countries over the last few decades in an attempt to modernize their land registry systems, but have had little success. There has been even less success at validating previously untitled property. In many of these developing countries, lawyers, career bureaucrats and professional surveyors have resisted changing the laws or recognizing registration procedures. The corrupt officials have used any new land registry systems as another way to secure wealth for themselves.
Free market global trading systems can be applied in these countries, but the level of economic success for the poor is hampered by the lack of land ownership. They simply can’t get out of poverty by working on the land for someone else.
The question is, what can be done to help whole countries develop stronger laws about property rights? It seems like an impossible task to some, but one organization has found a possible solution, and is traveling across the globe in attempt to make a difference with this issue. The organization is a Dutch non-profit called Globaland and they are “convinced that poverty and injustice are global problems that can only be solved if people from all over the world are committed to it.” Globaland is sending out volunteers into developing countries to create and translate maps.
The intention is to have the maps translate into political power that is sufficient enough to legalize the property of the occupants. It is considered a community claim, and the hope is to have strength in numbers. Not only will the maps be drawn, but will have names, addresses, and contact information. The hope is to have the registry begin to facilitate credit and real estate markets, which may then unlock the frozen savings and allow the poor to leverage their assets and improve their lives.
To find out more about this endeavor visit http://www.globaland.nl/