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The Private Sector in Development
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Land is a key component of the wealth of any nation. Throughout history, virtually all civilizations have spent considerable time defining land rights and establishing institutions to administer them. Well-defined, secure, and transferable rights to land are crucial to development efforts. In developing countries, most land is used for agricultural production, a mainstay of economic sustenance. The possession of land rights also typically ensures a baseline of shelter and food supply and allows people to turn latent assets into live capital through entrepreneurial activity. Once secure in their land rights, rural households invest to increase productivity. Moreover, the use of land as a primary investment vehicle allows households to accumulate and transfer wealth between generations. The ability to use land rights as collateral for credit helps create a stronger investment climate and land rights are thus, at the level of the economy, a pre-condition for the emergence and operation of financial markets. Property rights to land are one of the cornerstones for the functioning of modern economies. This book looks first at the historical, conceptual, and legal contexts of property rights to land. It then considers aspects of land transactions, including the key factors affecting the functioning of rural land markets. Finally, it explores the scope and role of governments and land policy formation and discusses ways in which developing countries can establish land policy frameworks that maximize social benefit.
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