The importance of property rights in economic development

Abstract

The purpose of this study was to discover a more effective method of administering and securing property rights for land that is currently under the customary land system, in order to encourage investment and improve the livelihood of the rural communities. This study was restricted to rural land property rights through an exploratory analysis based on nine interviews with experts who have an in-depth understanding of the relationship between secure property rights and the distribution and use of resources in rural communities. The results confirmed the need for formal property rights to be instituted in rural communities. The findings showed that a hybrid method that is not only designed to try and identify a single process for all areas but also recognise the diversity in suitability and competencies of different areas would be suitable for administering and securing property rights. The method should yield stronger potential for success in nurturing communal lands towards more productive economic endeavour. The findings suggest that there are layers of overlapping concerns that need to be specifically addressed in order to attain a comprehensive solution to communal land ownership and economic development. However, to implement procedures for allocation of land, government will need to play an instrumental role in not only shaping investment attracting policy structures but also directly injecting capital towards programs that private capital tends to avoid.