Property-right formalization can yield significant benefits to the economic prosperity and growth of emerging markets. The land-registry system in Peru provides an effective illustration of how properly designed and implemented property right formalization schemes can improve individual and social welfare in emerging markets. This paper includes a substantial economic discussion on this topic, offering a model which builds upon that set forth by Elena Panaritis, architect of the Peruvian registry for measuring changes in individual and social welfare that arise as a result of property-right formalization. Land-registry and information systems are crucial for the development of mortgage-backed securities markets, which in turn foster economic growth and development. The development of these markets can be best brought about through a concerted joint effort by the public and private sectors.
November 07, 2002
At the End of the Beginning: The Formalization of Property Rights in Emerging Markets
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