DOCSLIB.ORG

The Unreal Estate

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Unreal Estate The unreal estate For many people around the world, property rights are not well defined, enforced or monitored; resulting in over half of the world’s population living and working on ‘unreal estate’, that is, without the security of property ownership. Basic economic principles outline that secure Panaritis draws on her experience since the early property rights are important for efficiency, 1990s in Latin America. As a World Bank economist, investment and growth; people living and working Panaritis was shocked to find out that in much of the on land with the constant uncertainty of losing their continent, formal bureaucratic processes meant that lands or properties are unlikely to make the long- it could take years, sometimes even decades to term investments that can help create economic establish and register property rights. Much of the growth and eradicate poverty. Farmers, for existing rule of law defining rights in countries such example, are likely to continue farming low-return, as Peru, Columbia, Ecuador, Venezuela and Mexico single period crops, instead of investing in higher- dated back to the mercantilist period of colonisation. return cash crops such as coffee. The reality check Panaritis uses what she calls ‘reality check analysis’ an analytical method to better understand why we have informality and why institutions break down, in order to design effective reform. She used this method in the case of Peru where, with World Bank funding, she helped create a new legal structure from the bottom up where trust and understanding In her book Prosperity Unbound: among local leaders and government officials Building Property Markets With Trust, INSEAD developed. alumna Elena Panaritis presents a holistic Informal property rights (in terms of ownership on approach to combating this lack of formal rights, land and buildings) were fully transformed in just arguing that a new thinking process, combined with three years. They could be registered in just one successful diagnosis and determination for change, day for a processing fee a fraction of previous costs, could transform society. She says informality has and they would be included in a formal system for arisen because of the mismatch between institutions, ever. More than six million people became part of organisations and society’s demands. the formal property market with security of ownership. Shortly after the World Bank left, major Visit INSEAD Knowledge http://knowledge.insead.edu 01 Copyright © INSEAD 2021. All rights reserved. This article first appeared on INSEAD Knowledge (http://knowledge.insead.edu). financial institutions entered the market in Peru of governance but one that keeps many developing offering construction and consumer loans, as well as country leaders in power. Such government a whole new set of formal credit. decision-making elites are content with the situation and the status quo. They personally don’t suffer from Countries with property rights systems which the lack of choice regarding ownership and they are functioned well – such as Canada, Australia and the certainly not economically distressed.” UK – have also adjusted these systems to reflect a bottom-up rather than top-down approach. Panaritis The role of microfinance explains a successful methodology for bottom-up success in her new book. She is currently a social Panaritis sees microfinance as playing an important entrepreneur and is the director of Panel Group, a complementary role to secure property rights, but small investment advisory, that seeks to reform notes that it is not a solution in itself. “[Microfinance] property rights worldwide. is not supposed to suggest major regulatory reforms or establishment of property rights for those who do Speaking to INSEAD Knowledge from her home in not have [any]. So it is not correct to confuse Washington DC, Panaritis addresses the issue of microfinance with regulatory reform at the core of how to bring the nine trillion dollars that are locked governance (which property rights reform would into ‘unreal estate’ into the formal economy. be).” “No one has so far attacked the issue with the Formal property markets are relevant in all practical aim to incorporate this wealth pool of nine societies, says Panaritis, disagreeing with trillion dollars and its owners. Instead, for years and arguments that informality may be a cultural trait. years, we notice ‘solutions’ that only serve as mere “In my experience working in 36 countries, I have palliatives. These solutions result in segmenting the not met people that are unaware of how to trade or problem and many times rendering it worst. More operate in an open market. I have met a lot of often we notice a lot of solutions that are people that are frustrated and feel that they have to philanthropic, feel-good approaches or massive follow some government regulations and are hand-outs with again no deep and sustainable confused by bureaucracy … We need to understand change. The proof is that informality increases the impacts of having the choice of ownership and dramatically and now it starts to permeate even identify the role of institutions, organisations, consolidated developed markets.” history, incentives of the private sector, government and citizens. Solutions have to take into account the Crucial to the process, says Panaritis, is for all interest of all key players and align them. It is only players – entrepreneurs, government and citizens – then wealth and empowerment is generated and to understand the central role of property rights in prosperity can start to (be) unbound.” sustainable economic growth and building alliances between these key groups. “It requires focus, Prosperity Unbound: Building Property Markets With vision, conviction and a strong stomach to handle Trust is published by Palgrave Macmillan. breaking through the old modus operandi. In order for this to happen, key players from the government, communities and private sector must Find article at come together.” https://knowledge.insead.edu/economics-politics/the- unreal-estate-2100 The easiest parties to bring into the dialogue are those people living and working on ‘unreal estate’ and the private sector. Convincing policymakers Download the Knowledge app for free and the government is not as simple. “That’s why you need important champions and visionaries among both private investors and in government and policymaking,” says Panaritis. “The reason why some government decision- makers may feel threatened about building secure property rights for everyone and provide a choice of secure ownership across the board, is because empowerment is spread out to citizens. The middle class is becoming wider and stronger as citizens now control their wealth and savings as they wish best. It is this exact fact that makes citizens less controllable by government hand-outs and special programmes. This is of course a short-sighted vision Visit INSEAD Knowledge http://knowledge.insead.edu 02 Copyright © INSEAD 2021. All rights reserved. This article first appeared on INSEAD Knowledge (http://knowledge.insead.edu). Powered by TCPDF (www.tcpdf.org).
Load more

Recommended publications
  • Michael Mcdermott
    LANDSCAPES AND THE MACHINE: ADDRESSING WICKED VALUATION PROBLEMS WHEN NORTH, SOUTH, EAST AND WEST MEET A thesis submitted in fulfillment of the requirements for the award of the degree Doctor of Philosophy by Michael McDermott Faculty of Design, Architecture and Building University of Technology, Sydney Supervisors: Associate Professor Jason Prior and Professor Spike Boydell 2015 Landscapes and the Machine: Addressing Wicked Valuation Problems when North, South, East and West Meet. i ABSTRACT This thesis is about engaging with the dynamic relationship between “landscapes”, “land tenure”, and the “machine”. The first term can be so broad as to mean every process and thing encountered, the second means the way that land is held by a person or group of persons, and the third means things both put together and used by humans to fulfil their wants and needs from the landscape. As a professional valuer I have been traditionally trained to engage at arms-length with the normative behaviour of persons or groups at the intersection of these three concepts, wherein those people and groups were willing but not compelled to engage. Such traditional valuation approaches are increasingly recognised as being insufficient to address wicked valuation problems of the diverse peoples and groups that inhabit the globe from North, South, East to West. This thesis develops a means of engaging with these wicked valuation problems in a suitably knowledgeable and prudent way. To do so the thesis adopts an exploratory approach guided by Whitehead’s process philosophy injunction of a creative advance into novelty. This approach is enacted through a range of data collection and analysis methods.
    [Show full text]
  • Political Economy – a Theoretical and Methodological Framework for Identifying Main Trends in Social Entrepreneurship Development
    SOCIAL DEVELOPMENT DOI: 10.15838/esc.2018.4.58.15 UDC 330.354, LBC 65.053 © Pavlov R.N. Political Economy – a Theoretical and Methodological Framework for Identifying Main Trends in Social Entrepreneurship Development Ruslan N. Pavlov Central Economic and Mathematical Institute of the Russian Academy of Sciences 47, Nakhimovsky Avenue, Moscow, 117418, Russian Federation Е-mail: [email protected] Abstract. The paper discusses some features of the source of social entrepreneurship as a new form of business organization, aimed at implementing social objectives in the context of strengthening neoliberal trends in economic policy and economic theory, rather than at maximizing the owners’ profit. It is demonstrated that, remaining within the framework of the neoliberal ideology which retains its influence in the economic science, it is impossible to create an adequate theory explaining the importance of social entrepreneurship in the context of the process of changing paradigms of economic relations, since under the influence of this ideology false stereotypes are established, which is accompanied by falsification of historical facts. In this context it seems that the methodology of political economy, taking into account the current trends in the transformation of socio-economic relations and the deviation of the trend of social development from the framework of the formally preserved, but declining neoliberal paradigm, is very popular, especially since its problem areas include issues such as the distinction between individual and social forms of production, the relations between the necessary and surplus product, the distribution of surplus value (in case of its occurrence), the issues of individualization and socialization of economic phenomena, the correlation between market and non-market production areas and distribution of the final product, the issue of recognizing the social significance of the result of individual labor.
    [Show full text]
  • Open Letter to WIPO Director General Dr
    Celebrating the 2017 #WorldIPDay Open Letter To WIPO Director General Dr. Francis Gurry We the undersigned are proud to celebrate World IP day with the World Intellectual Property Organization (WIPO). Intellectual property (IP) rights play a crucial role in growing economies, driving innovation, and saving lives. Robust IP systems provide the greatest incentives for innovators to create the next generation of goods and services, artists to produce original works, and entrepreneurs to enter the marketplace. They also allow for the sharing of knowledge and technological advancement. Invention comes out of the shadows with good intellectual property protections. IP Rights Grow the Economy IP-intensive industries are the cornerstone of modern economies. Between the U.S. and E.U., IP- intensive industries employed between 30%-38% of their workforces—more than 127 million jobs. As a matter of fact, these industries are responsible for generating nearly 40% of the combined US & EU gross domestic products. IP-intensive industries in these economies paid workers 46% higher wages than those employed in comparable jobs in non-IP-intensive industries. Similarly, per capita income in countries with robust property right is 21 times more than per-capita income in countries with weak protections. IP Rights Drive Innovation Human ingenuity is boundless, and IP rights create an environment where human creativity can be unleashed. In 2015, a record 2.9 million new patents were filed worldwide—ranging from groundbreaking technological processes to cures of catastrophic disease to modernizations of everyday conveniences. To thrive, innovation must be protected. Enforcement of IP rights prevent production of counterfeits that undermine economic growth and finance criminal organizations.
    [Show full text]
  • S Account of the Greek Crisis: a Self-Incrimination Pt 1
    Yanis VaroufakisâEuros"s Account of the Greek Crisis: a Self-Incrimination Pt 1 https://internationalviewpoint.org/spip.php?article5474 Yanis VaroufakisâEuros"s Account of the Greek Crisis: a Self-Incrimination Pt 1 - Features - Economic and debt crisis - Publication date: Wednesday 25 April 2018 Copyright © International Viewpoint - online socialist magazine - All rights reserved Copyright © International Viewpoint - online socialist magazine Page 1/39 Yanis VaroufakisâEuros"s Account of the Greek Crisis: a Self-Incrimination Pt 1 Proposals Doomed to Fail In his latest book, Adults in the Room [1] Yanis Varoufakis gives us his version of the events that led to the Tsipras governmentâEuros"s shameful capitulation in July 2015. It essentially analyses the period 2009-2015, though it makes incursions into earlier periods. With this voluminous work (550 pages), Yanis Varoufakis shows that he is a gifted narrator. At times he succeeds in moving the reader. His direct and vivid style makes it easy to follow events. From the authorâEuros"s demonstration, we can clearly see that his behaviour and the politico-economic orientation he defended contributed to the disaster. Yanis Varoufakis clearly claims to have played a major role in working out the strategy adopted by a handful of Syriza leaders âEuros" Alexis Tsipras, Yanis Dragasakis, and Nikkos Pappas, essentially âEuros" before their victory in the January 2015 election. Varoufakis does not plead guilty. He is convinced that had Tsipras actually taken the orientation he proposed and which Tsipras had agreed to late in 2014, the result would not have been defeat for the Greek people. Contrary to the conviction Varoufakis expresses, an attentive reading of his book leads to the conclusion that he contributed to that defeat Varoufakis explains how he gradually convinced Tsipras, Pappas, and Dragasakis not to follow the orientation adopted by Syriza in 2012, then in 2014.
    [Show full text]
  • The Formalization of Property Rights in Emerging Markets
    COLUMBIA BUSINESS SCHOOL At the End of the Beginning: The Formalization of Property Rights in Emerging Markets J. Michael Graglia MBA/MA ’03 Columbia Business School School of Advanced International Studies (SAIS), The Johns Hopkins University With Contributions from Elena Panaritis © 2002 by The Trustees of Columbia University in the City of New York. All rights reserved. CHAZEN WEB JOURNAL OF INTERNATIONAL BUSINESS FALL 2002 www.gsb.columbia.edu/chazenjournal Acknowledgments I would like to thank the Chazen Institute for the opportunity to publish this paper, Robert Wegner for countless peer revisions and Shao Ping Yu for all of her work. I am also grateful to Professor Joseph Stiglitz, for whom this paper was initially written. He asked many questions and pointed me to the answers. The paper would not have been possible at all, however, without the generosity of Elena Panaritis, who shared parts of her original work on fixed property rights and market reform. What began as a conversation about her work at the World Bank and an innocuous question about if I could write a small economics of information paper based on her work evolved into a yearlong set of information exchanges, revisions, academic arguments, a new model and more revisions. When it was first described to me, I thought I would be able to summarize the concept in a few pages. Now I realize that what Panaritis did in Peru is an elegant solution to a profoundly complex problem—and after writing at least 20 versions of this paper, I have only just begun to understand how much work this must have been.
    [Show full text]
  • Hellenic Observatory
    HELLENIC OBSERVATORY 2020-2021 NEWSLETTER Photo: © LSE/Nigel Stead Issue 19 2020-21 Newsletter EDITORIAL This last year has been extraordinary and As part of our events programme, we disturbing in so many ways. We hope that launched a separate YouTube channel for our readers and supporters are well and the Hellenic Observatory in 2020 and this that we can all look forward to a better year now hosts recordings of all our past events. ahead. The number and range of events constitutes a remarkable archive. Despite the difficult circumstances of this last year, the Hellenic Observatory has risen On the research front, the pandemic to the challenge and has managed both lockdown meant, of course, that our to sustain its activities and to innovate in researchers and visitors could not meet on various ways. I am very grateful for the campus and interact in person. We did so exceptional efforts of my colleagues in online, though, and we were pleased to host meeting these challenges – the Observatory several new visiting fellows. Our research has an amazing team. calls on Greece and on Cyprus continued to enable high quality projects on important In March 2020 we moved our public events policy challenges to be undertaken. We online. In doing so, we have been able to are grateful for the funding support offered attract larger and wider audiences. Our from the A. C. Laskarides Foundation, first online event – assessing the economic Vassilis Apostolopoulos and the Leventis impact of COVID-19 – attracted a live Foundation for these Calls. In addition, our audience of over 900.
    [Show full text]
  • Where Did the Left Go? by Serge Halimi
    Where did the left go? by Serge Halimi Le Monde Diplomatique, English Edition, November 2011 As capitalism faces the worst economic crisis since the1930s, the parties of the left are silent or embarrassed. The Occupy Wall Street protests in the US are also directed against the Street’s representatives in the Democratic Party and the White House. The protesters probably don’t know that Socialists in France still consider Barack Obama exemplary, since, unlike President Sarkozy, he had the foresight to take action against banks. Is there a misunderstanding? Those who are unwilling or unable to attack the pillars of the neoliberal order (financialisation, globalisation of movements of capital and goods) are tempted to personalise the disaster, to attribute the crisis in capitalism to poor planning or mismanagement by their political opponents. In France it’s Sarkozy, in Italy Berlusconi, in Germany Merkel, who are to blame. And elsewhere? Elsewhere, and not only in the US, political leaders long considered as models by the moderate left also face angry crowds. In Greece, the president of the Socialist International, George Papandreou, is pursuing a policy of extreme austerity: privatisations, cuts in the civil service, and delivering economic and social sovereignty to a ultra-neoliberal “troika”1 . The conduct of the Spanish, Portuguese and Slovenian governments reminds us that the term “left” is now so debased that it is no longer associated with any specific political content. The current French Socialist Party spokesman explains the impossible situation of European social democracy very clearly: in his new book Tourner la page, Benoît Hamon writes: “In the European Union, the European Socialist Party is historically associated, through the compromise linking it with Christian democracy, with the strategy of liberalising the internal market and the implications for social rights and public services.
    [Show full text]
  • Call for Participants Leadership Academy for Development
    Call for Participants Leadership Academy for Development “THE HOW OF POLICY REFORM” Podgorica, Montenegro, July 1 - 5, 2019 Introduction The Leadership Academy for Development (LAD) is an executive-level training program that trains government officials and business sector leaders from developing countries to help the private sector be a constructive force for economic growth and development. The program is offered in partnership with Stanford University’s Center on Democracy, Development and the Rule of Law (CDDRL), Faculty of Economics at the University of Montenegro (FE Podgorica) and Center for Democratic Transition (CDT). Instructors Francis Fukuyama is Olivier Nomellini Senior Fellow at University's Freeman Spogli Institute for International Studies (FSI) and the Mosbacher Director at FSI's Center on Democracy, Development, and the Rule of Law. He is also a professor (by courtesy) of Political Science. Dr. Fukuyama has written widely on issues in development and international politics. His 1992 book, The End of History and the Last Man, has appeared in over twenty foreign editions. Two of his latest books are on political development, The Origins of Political Order: From Prehuman Times to the French Revolution, and Political Order and Political Decay: From the French Revolution to the Present. Francis Fukuyama received his B.A. from Cornell University in classics, and his Ph.D. from Harvard in Political Science. He was a member of the Political Science Department of the RAND Corporation, and of the Policy Planning Staff of the US Department of State. From 1996-2000 he was Omer L. and Nancy Hirst Professor of Public Policy at the School of Public Policy at George Mason University, and from 2001-2010 he was Bernard L.
    [Show full text]
  • Retrieved From
    Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized IN A CHANGING WORLD LISHED THE WORLD BANK X F 0 R D RSITY PRESS Oxford University Press OXFORD NEW YORK TORONTO DELHI BOMBAY CALCUTtA MADPAS KARACHI KUALA LUMPUR SINGAPORE HONG KONG TOKYO NAIROBI DAR ES SALAAM CAPE TOWN MELBOURNE AUCKLAND and associated companies in BERLIN IBADAN © 1997 The International Bank for Reconstruction and Development I The World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Published by Oxford University Press, Inc. 200 Madison Avenue, New York, N.Y. 10016 Oxford is a registered trademark of Oxford University Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Interior design and typesetting by Barton Matheson Willse & Worthington. Manufactured in the United States of America First printing June 1997 This volume is a product of the staff of the World Bank, and the judgments made herein do not necessarily reflect the views of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.
    [Show full text]
  • Property Rights Index International
    COVERING 98 PERCENT OF THE WORLD GROSS DOMESTIC PRODUCT AND 93 PERCENT OF THE WORLD POPULATION 2016 INTERNATIONAL PROPERTY RIGHTS INDEX EXECUTIVE SUMMARY STUDY BY DR. SARY LEVY-CARCIENTE A Project of 2016 Hernando de Soto Fellow the Property Rights Alliance With Contributions by: Dr. Elena Panaritis, Jorge Constantino Colindres, Matt Regan, Guillermo Peña Panting, Philip Stevens, Mahmoud Farouk, Adel Elhemaily, Hizkia Respatiadi, Dr. Maszlee Malik 2016 IPRI PARTNER ORGANIZATIONS Afghanistan’s Economic and Legal Studies Organization (AELSO), Afghanistan · Foundation for Economic Freedom, Albania · Fundación Atlas 1853, Argentina · Fundación Bases, Argentina · Fundación Liberdad y Progreso, Argentina · Fundación Libertad, Argentina · Institute for Public Affairs, Australia · Mannkall Economic Education Foundation, Australia · My Choice, Australia · Austrian Economics Center, Austria · F.A. v. Hayek Institute, Austria · The Nassau Institute, Bahamas · CPA, Bosnia-Herzegovina · Multi, Bosnia and Herzegovia · Populi, Bolivia · Instituto Liberdade, Brazil · Institute for Market Economics, Bulgaria · Centre Des Affaires Humaines (CEDAH), Burkina Faso · Frontier Centre for Public Policy, Canada · Fundación para el Progreso, Chile · Libertad y Desarrollo, Chile · Cathay Institute of Public Affairs, China · Unirule Institute of Economics, China · Instituto de Ciencia Politica, Colombia · Asociación de Consumidores Libres, Costa Rica · IDEAS, Costa Rica · Centre de Analisis para Políticas Públicas (CAPP), Dominican Republic · Instituto Ecuatoriano
    [Show full text]
  • Connected to the World
    2010/2011 ANNUAL REPORT Connected to the World THE ELLIOTT SCHOOL OF INTERNATIONAL AFFAIRS THE GEORGE WASHINGTON UNIVERSITY 2010/2011 ANNUAL REPORT I 10 1 11 2 12 3 13 4 14 5 15 6 16 7 17 8 18 9 19 COVER PHOTOS COURTESY OF ELLIOTT SCHOOL STUDENTS 1 A fishing boat at Kokrobite Beach on the coast 9 Rebecca Remis collecting rubber in southern of Ghana. Photo courtesy of Laura Kaplan, Xishuangbanna, China. Rebecca studied an Elliott School International Development in Yunnan, China during Fall 2010. Studies student. Laura and her classmates Emily Brown, Kristin Cullison, and Laura 10 Katie Morehead at an elephant sanctuary Wilson were in Ghana researching land in Kerala, India. Katie was studying rights as part of their capstone project. in Singapore during the Spring 2011 semester and visited India on a break. 2 Elliott School sophomore Jeremy Iloulian in front of the Marine Bay Sands in Singapore. 11 The Washington Monument during a Jeremy and fellow GW students Sheng snowstorm. Photo courtesy of Will Hendricks. Zhou, Lillian Ruskin, Mark Haber, Chris 12 Elliott School alumnus John Allison (B.A. ’08) Longman, and Ryan Wayne won three of four poses with a miniature George Washington diplomacy awards at the World Model UN cutout in his UH-60 Blackhawk helicopter. Tournament in Singapore in March 2011. 13 Thomas London enjoying a rugby match with his 3 An Ecuadorian mother helps her son learn to host brother while studying abroad in Tokyo. read. Photo courtesy of Andrea Cristina Ruiz, who started a nonprofit organization to develop 14 Lauren Marcell holding a baby she had just reading programs in rural Ecuadorian schools.
    [Show full text]
  • Yanis Varoufakis's Account of the Greek Crisis: a Self-Incrimination Pt 1
    Yanis Varoufakis's Account of the Greek Crisis: a Self-Incrimination Pt 1 https://internationalviewpoint.org/spip.php?article5474 Yanis Varoufakis's Account of the Greek Crisis: a Self-Incrimination Pt 1 - Features - Economic and debt crisis - Publication date: Wednesday 25 April 2018 Copyright © International Viewpoint - online socialist magazine - All rights reserved Copyright © International Viewpoint - online socialist magazine Page 1/38 Yanis Varoufakis's Account of the Greek Crisis: a Self-Incrimination Pt 1 Proposals Doomed to Fail In his latest book, Adults in the Room [1] Yanis Varoufakis gives us his version of the events that led to the Tsipras government's shameful capitulation in July 2015. It essentially analyses the period 2009-2015, though it makes incursions into earlier periods. With this voluminous work (550 pages), Yanis Varoufakis shows that he is a gifted narrator. At times he succeeds in moving the reader. His direct and vivid style makes it easy to follow events. From the author's demonstration, we can clearly see that his behaviour and the politico-economic orientation he defended contributed to the disaster. Yanis Varoufakis clearly claims to have played a major role in working out the strategy adopted by a handful of Syriza leaders âEuros" Alexis Tsipras, Yanis Dragasakis, and Nikkos Pappas, essentially âEuros" before their victory in the January 2015 election. Varoufakis does not plead guilty. He is convinced that had Tsipras actually taken the orientation he proposed and which Tsipras had agreed to late in 2014, the result would not have been defeat for the Greek people. Contrary to the conviction Varoufakis expresses, an attentive reading of his book leads to the conclusion that he contributed to that defeat Varoufakis explains how he gradually convinced Tsipras, Pappas, and Dragasakis not to follow the orientation adopted by Syriza in 2012, then in 2014.
    [Show full text]