How does private ownership of
land influence the wealth of a country? By Bert Sonnenschein, 4/10/18.
I’'ll answer you by giving
you the opposite example. I live in Mozambique. In large parts of Africa
traditionally people do not own land. The cattle graze on communal lands, they
cut reeds for their houses at the nearby lake where they also fish.
You own your house, your
trees, your crop. And as long as you use it it’s yours. Your children will
inherit it. But if the family stops using it, for some years, at a certain
moment it returns to the community. Now Mozambique has a colonial past.
Portugal claimed ownership over the land and sold it of to private people. When
FRELIMO inherited the colony in
1975, it installed a communist
regime and claimed ownership over the land. Even after several revisions, it is
is still the constitution today. In 1997 it approved the present land law.
Before 1997, 99% of the people did not have any formal land or even land use
rights.
The 1997 Land Law in
principle solved that problem by giving every Mozambican the Land Use title
over the land that s/he was effectively having in use (the plot of their house,
the land they till as well.) Communities were also was given the Land Use title
over their communal lands. Note that these Land Use titles were given by law.
There was no need to register and upon applying, the Government was legally
bound to issue the title. The titles are tradable and inheritable, and the
government will have to extend the Land Use title upon expiry. The Government
cannot claim the title back and hand it out to another person. For the
Government not to extend the title, or to withdraw the title, there should be a
public cause and compensation should be paid. So far all very nice and clear.
And not so much different from real ownership.
So how does this work in
practice. In practice the communities and small land owners are not issued the
land titles and without the paper work done, they cannot trade their title for
a good price. Big investors negotiate with the communities and "buy’' the
land for a small fee. Sometimes for 10, 100, 1000, or 10,000 hectares. They
then do the paperwork with the Government agencies. The state doesn't sell the
land, so the investor gets it for free. Once s/he’s got the title, s/he has an
enormous wealth at almost no costs. Now they can split the title and sell of
Land Use titles, which have a high value.
So in 1975 the State
claims the enormous capital by constitution, taking it away from the people
traditionally own it. in 1997 it grants the Land Use to its original owners,
but never issues the corresponding titles, depriving the people they represent
from their legal rights to trade their land. And now issues Land Use titles,
which is the real capital, for free to individuals, depriving the state from
the capital it claimed by constitution. No need to say that only a happy few do
have access to the Land Use titles.
So I would say, maybe not
on paper, but in practice, private ownership of land influences the wealth of a
country and its people. In Mozambique, the ownership by State has proven to
deprive the state as well as its people from an enormous asset. Between law and
practice, it is practice that counts.
Norb
Leahy, Dunwoody GA Tea Party Leader
No comments:
Post a Comment