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The Essential Ingredient for Liberty and Progress

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The Essential Ingredient for Liberty and Progress PROPERTY RIGHTS: THE ESSENTIAL INGREDIENT FOR LIBERTY AND PROGRESS Proceedings of a Conference Sponsored by the American Institute for Economic Research November 4-5, 2004 ECONOMIC EDUCATION BULLETIN Published by AMERICAN INSTITUTE for ECONOMIC RESEARCH Great Barrington, Massachusetts About A.I.E.R. MERICAN Institute for Economic Research, founded in 1933, is an independent scientific and educational organization. The In- A stitute’s research is planned to help individuals protect their per- sonal interests and those of the Nation. The industrious and thrifty, those who pay most of the Nation’s taxes, must be the principal guardians of Ameri- can civilization. By publishing the results of scientific inquiry, carried on with diligence, independence, and integrity, American Institute for Economic Research hopes to help those citizens preserve the best of the Nation’s heri- tage and choose wisely the policies that will determine the Nation’s future. The Institute represents no fund, concentration of wealth, or other spe- cial interests. Advertising is not accepted in its publications. Financial sup- port for the Institute is provided primarily by the small annual fees from several thousand sustaining members, by receipts from sales of its publica- tions, by tax-deductible contributions, and by the earnings of its wholly owned investment advisory organization, American Investment Services, Inc. Experience suggests that information and advice on economic sub- jects are most useful when they come from a source that is independent of special interests, either commercial or political. The provisions of the charter and bylaws ensure that neither the Institute itself nor members of its staff may derive profit from organizations or busi- nesses that happen to benefit from the results of Institute research. Institute financial accounts are available for public inspection during normal work- ing hours of the Institute. You can receive AIER’s twice monthly Research Reports and monthly Economic Education Bulletin by entering a Sustaining Membership for only $16 quarterly or $59 annually. If you wish to receive only the Economic Edu- cation Bulletin, you may enter an Education Membership for $25 annually. ECONOMIC EDUCATION BULLETIN Vol. XLV No. 5 May 2005 Copyright © 2005 American Institute for Economic Research ISBN 0-913610-37-2 Economic Education Bulletin (ISSN 0424–2769) (USPS 167–360) is published once a month at Great Barrington, Massachusetts, by American Institute for Economic Research, a scientific and educational organization with no stockholders, chartered under Chapter 180 of the General Laws of Massachusetts. Periodical postage paid at Great Barrington, Massachusetts and additional offices. Printed in the United States of America. Subscrip- tion: $25 per year. POSTMASTER: Send address changes to Economic Education Bulle- tin, American Institute for Economic Research, Great Barrington, Massachusetts 01230. Contents Foreword ................................................................................... iii Program..................................................................................... v Participants ............................................................................... vii Introduction.............................................................................. 11 AIER’s Founders and Environs ............................................. 19 PRIVATE PROPERTY AND HUMAN NATURE Tom Bethell ............................................................................. 25 COMMENTARY Walker F. Todd ....................................................................... 37 PROPERTY RIGHTS, NATURAL RESOURCES, AND THE ENVIRONMENT Richard L. Stroup.................................................................... 43 COMMENTARY Lee Hoskins............................................................................. 63 THE IMPORTANCE OF PROPERTY RIGHTS IN THE COMMON LAW TRADITION Richard A. Posner................................................................... 67 COMMENTARY Howard Segermark ................................................................. 77 PROPERTY RIGHTS IN DEVELOPMENT FINANCE Gerald P. O’Driscoll, Jr., and Lee Hoskins ........................... 81 A SURVEY AND COMMENTARY ON THE PROPERTY RIGHTS ENVIRONMENT IN LATIN AMERICA Mary Anastasia O’Grady .................................................... 97 COMMENTARY Robert Skidelsky...................................................................... 107 COMMENTARY Ian Vasquez............................................................................. 115 i COMMENTARY Lee Hoskins and Gerald P. O’Driscoll, Jr. ............................ 119 LESSONS OF PRIVATIZATION: PROPERTY RIGHTS IN AGRICULTURAL LAND IN UKRAINE Leonid Krasnozhon .............................................................. 123 PROPERTY RIGHTS AND PUBLIC LAND MANAGEMENT: WHAT HAVE WE LEARNED IN THE 200 YEARS SINCE LEWIS AND CLARK? E. Bruce Godfrey .............................................................. 137 WAR AND EMERGENCY POWERS: THE EXTRA- CONSTITUTIONAL AUTHORITY USED BY THE FEDERAL GOVERNMENT TO CONTROL NATURAL RESOURCES, INCLUDING FEDERALLY HELD PUBLIC LANDS WITHIN STATES Eugene Schroder......................................................... 167 COMMENTARY Howard Hutchinson ................................................................ 177 COMMENTARY Michael Nivison ...................................................................... 183 COMMENTARY R. Russell Grider .................................................................... 189 SPECIAL COMMENT: SHOULD FEDERAL LANDS BE SOLD? ............................................................................. 195 EMINENT DOMAIN FOR ECONOMISTS AND THE GENERAL PUBLIC: MAY THE STATE TAKE PRIVATE PROPERTY FOR PUBLIC USE? FOR PRIVATE USE? Joyce Anagnos, Esq. ...................................................... 197 COMMUNITY REDEVELOPMENT, PUBLIC USE, AND EMINENT DOMAIN Patricia E. Salkin ................................................................. 221 COMMENTARY Bert Gall ................................................................................. 247 ii FOREWORD T was a pleasure to welcome our invited participants and guests for this conference to AIER’s beautiful campus in Great Barrington to I discuss something simple, yet often overlooked or taken for granted— that is, the right of individuals to be secure in their possessions. Since its founding 72 years ago by Col. E.C. Harwood, AIER always has argued that the acquisition, enjoyment, and defense of private property is a fundamental right of man. We also have long embraced the fundamen- tal dictum of equity justice, that no one has a right to take without compen- sation the fruits of another’s efforts. This conference was dedicated to a major pillar of AIER’s educational mission: The study and promotion of property rights as a crucial ingredient for human progress. Our findings suggest that nations, regions, and locali- ties that promote and preserve property rights tend to prosper over time, while those that give short shrift to the allocation and enforcement of property rights tend to lag behind. The invited participants represented different backgrounds and view- points; their participation did not necessarily imply that they endorsed AIER’s views. Rather, they kindly accepted our invitation to participate in this conference in a spirit of free inquiry aimed at expanding the supply of practical and applicable human knowledge, which was Col. Harwood’s foremost goal. Charles Murray President iii iv PROPERTY RIGHTS: THE ESSENTIAL INGREDIENT FOR PERSONAL LIBERTY AND DEVELOPMENT Conference schedule Thursday, November 4, 2004 Panel I: 9:00 a.m. to 12:00 noon E.C. Harwood Library Chair: Walker F. Todd, Conference Organizer, AIER Tom Bethell, American Spectator and Hoover Institution, Stanford, CA Private Property and Human Nature Richard L. Stroup, Montana State University and Property and Environment Research Center, Bozeman, MT Property Rights, Natural Resources, and the Environment Hon. Richard A. Posner, Judge, U.S. Court of Appeals for the Seventh Circuit and University of Chicago Law School, Chicago, IL The Importance of Property Rights in the Common Law Tradition [by telephone] Walker F. Todd, AIER, Discussant W. Lee Hoskins, Pacific Research Institute, Reno, NV, Discussant Howard Segermark, Segermark Associates, Washington, DC, Discussant Lunch: 12:00 noon to 2:00 p.m. Helen F. Harwood Ballroom, Main Stone House Panel II: 2:00 to 5:00 p.m. E.C. Harwood Library Chair: W. Lee Hoskins, Pacific Research Institute, Reno, NV Panel on Development Finance: Gerald P. O’Driscoll, Jr., Cato Institute, Reno, NV Property Rights in Development Finance Mary Anastasia O’Grady, Wall Street Journal, New York, NY Property Rights in Latin America Lord Robert Skidelsky, University of Warwick, UK, and House of Lords, London, Discussant Ian Vasquez, Cato Institute, Washington, DC, Discussant W. Lee Hoskins, Pacific Research Institute, Discussant Presentation on Western Land Use: E. Bruce Godfrey, Utah State University, Logan, UT v Property Rights and Public Land Management: What Have We Learned in the 200 Years Since Lewis and Clark? Reception for all attending the conference: 5:00 to 6:00 p.m. Living Room, Main Stone House Dinner for all attending the conference who registered in advance: 6:00 to 8:00 p.m. Helen F. Harwood Ballroom, Main Stone House Friday, November 5, 2004 Panel III: 9:00 a.m. to 12:00 noon E.C. Harwood Library Chair: Gerald P. O’Driscoll,
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