Real Estate Rights In Developing Nations

There are a lot of developing countries where poverty is rampant and there is little if any significant economic growth

. There are a lot of reasons why these countries may or may not be advancing and joining the modern world but one of the key issues is property ownership and how it relates to real estate. To discuss the impact of property rights in developing countries first you will need to understand those rights in the context of the western culture.

In western culture anyone is entitled to own property. The government typically cannot seize property simply because it wants to and therefore people are reasonably assured that what they own will stay theirs as long as they want it to be. In the case of real estate this is particularly important because equity in real estate is one of the driving investment vehicles behind small businesses. Starting a business can take an enormous amount of capital and the average person is not likely to have access to the amount of money it would take to start a significant business.

By owning real estate however, the entrepreneur is able to borrow against the value of the equity in his or her home and therefore has enough capital to start a meaningful business. Small businesses are a key facet to a well functioning economy and are the main drivers of economic innovation.

In a small developing country, property and ownership rights may be drastically different. In many cases, such as many nations in Africa, there is no guarantee that your ownership interest in a particular piece of land may exist when a new government order takes hold. In many cases property must be delivered up to the government upon request and therefore there are not a lot of lending institutions in these countries who would risk enormous amounts of money on these assets. In other countries there are social distinctions as to who is allowed to own property and who is not.

In this case there is a small percent of the total population which is in control of virtually every aspect of the nation's economy and since allowing personal ownership of land is not in that percentages best interest, they will not allow others to own or control significant assets, thus repressing the economic capabilities of the masses as they will not have access to significant capital and therefore can make no significant economic impact.

by: Art Gib

POST COMMENT

The Perfect Countertops Will Complete The Perfect Kitchen Home studio-Building a Home Studio Tough Home Selling Made Easy How To Play Paintball The Right Way Create The Best Home With Great Interior Detailing Introduction To Plumbing Simple Home Renovation: Repainting Your Home Inflation May Not Be Kind To The Stock Market How To Buy High Quality Furniture At Estate Sales How To Earn A Living By Blogging From Home How Can I Really Make Money at Home? How To Improve Your Home Security With Motion Activated Spotlights Pet Parrots Are Reliant On Owners For Good Parrot Care