As Peruvian economist Hernando de Soto emphasizes, property rights are needed for sustainable and comprehensive development. A recent article published in The Economist demonstrates this reality in Peru. In a large swath of the country, few landowners have formal titles to their land and those that do find them unclear. According to The Economist, “this ambiguity encourages land grabs, migration and deforestation.” Property rights are not readily enforceable against such threats, leading to a larger informal sector than should otherwise be the case in a country that more than doubled its economic capacity over the past 15 years.
CIPE works with partner organizations throughout the world, as well as in Peru, to develop formal economies with clear property rights. Hernando de Soto’s Institute for Liberty and Democracy has long worked with CIPE to give form and structure to disparate resources, ensuring the legal protection of society’s well-being. As Peru looks to draw private investment to develop its resources, it is worth remembering that “the development of a fair, effective property rights system has broad, positive ramifications for development.”
Published Date: March 27, 2009