Comments on: How Government Officials Think Your Property is Theirs http://www.therealestatebloggers.com/2006/03/03/how-government-officials-think-your-property-is-theirs/ Real Estate Blog, Mortgage, and Development News Fri, 20 Nov 2009 23:48:48 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Nikolai http://www.therealestatebloggers.com/2006/03/03/how-government-officials-think-your-property-is-theirs/comment-page-1/#comment-610 Nikolai Sat, 04 Mar 2006 02:12:16 +0000 http://therealestatebloggers.com/2006/03/03/how-government-officials-think-your-property-is-theirs/#comment-610 The basic premise of economic development is enforceable property rights. It is THE recommendation to truly help developing countries. Where there is not certainty of property rights and without institutions and law to enforce those rights, "owners" can't use the property as collateral for a loan. Now that it has been determined that an "owners" rights can be overruled by better connected developers, how long before lenders are reluctant to lend lest the property be expropriated in some "Master Plan." Of course, they can just wait and lend to the beneficiaries of the patronage of local "officials." The question is: Who decided shifting to patronage instead of fair and enforceable property rights was a good idea? The basic premise of economic development is enforceable property rights. It is THE recommendation to truly help developing countries. Where there is not certainty of property rights and without institutions and law to enforce those rights, “owners” can’t use the property as collateral for a loan.

Now that it has been determined that an “owners” rights can be overruled by better connected developers, how long before lenders are reluctant to lend lest the property be expropriated in some “Master Plan.” Of course, they can just wait and lend to the beneficiaries of the patronage of local “officials.”

The question is: Who decided shifting to patronage instead of fair and enforceable property rights was a good idea?

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