Property Rights: Twin Promises for Post-War Iraq Andrew M. Langer, President The Institute for Liberty Seton Hall University February 11, 2008
Introduction Who I am… What Is The Institute for Liberty? Background on Property Rights
and International Issues
About Andrew Langer and IFL… Started In Public Policy After College… Committed to Individual Rights and Free Markets
Small Business Advocate IFL founded in 2005, focused on Tech Issues
Now Focused on Small Business and the “petty
tyrannies” of government
The Property Rights Issue Worked on Property Rights Early In Career Property Rights underpin all other rights… Currently under siege in the United States
Property Rights: the rights to hold, enjoy, and use private property free from unreasonable regulation, uncompensated confiscation, and unwarranted interference.
The Development Context Left out of the international affairs/international
development arena American foreign policy focused on “building
democracy” abroad Aid tends to go willy-nilly to economic development projects Neither have succeeded. Property Rights are the missing planks.
The International Property Rights Working Group
Building on the Work of 2 Scholars
Hernando De Soto
Dr. Richard Pipes
DeSoto: 2 Seminal Works (1) The Other Path Focused on Peruvian
problem with Marxist Terrorism! Discovered problem founded in land and title issues for campesinos. Solutions broke Sendero Luminoso’s back!
DeSoto: 2 Seminal Works (2) The Mystery of Capital Comprehensive look at
property systems worldwide. Looks at the relationship between protection of private property, and the ease of getting title to property. Forms the basis of the work worldwide of The Institute for Liberty and Democracy
Pipes: Foreign Policy Architect Historical tracing of
property rights protection. Charts boom and bust cycles of societies given their protection of property rights. Demonstrates clear interplay between the two.
Preliminary Conclusion Property Rights are an essential element in building civil societies. They create twin promises: Economic Prosperity
Political Stability
Economic Prosperity One is able to make investments in one’s property,
with a reasonable certainty that one can reap the benefit of that investment. One can use that property as leverage (ie, capital) in
making investments in one’s future.
Political Stability By having some certainty that one’s personal economy
is protected, one then has a stake in the society. By having some glimpse that opportunity is both available and possible, one has hope in that society’s future. Without hope and a vested interest, One has no incentive to support a nation’s direction. Chaos Ensues, along with economic ruin.
The Issue As Applied: Iraq Background: The International Property Rights
Working Group The Run-up to the Iraq War The Specific Underlying Issues in Iraq What Happened with the Recommendations
The IPRWG Formed in the Summer of 2002 Comprised of property rights activists, academics,
former Development and Diplomatic professionals Included DeSoto’s representative in DC Consulted additional experts in order to create background. Originally conceived to make recommendations generally to State, Defense, USAID
The Run-Up To War As War become clear, focus changed Focus now on Middle East and Post War Iraq
Necessary to understand unique attributes to Islamic
societies Necessary to make recommendations of post-war reconstruction. A more focused goal was actually more helpful.
Unique Attributes of Islamic Societies Long-standing tradition of private property rights
protection (cf, Pipes) Capital investment different because of usury rules Complicated land-ownership traditions (eg Morocco) Nevertheless, real potential exists Because none were experts in Islamic market background, the IPRWG consulted with the Minaret of Freedom Institute, an Islamic think tank.
Initial Recommendations Looking at Post-war Japan, A MacArthur-style post-war reconstruction would be recommended: Inculcate local traditions/institutions into the
property rights process. Have provisional government lay framework for governance, let citizens fill in the blanks Invest local religious and civic leaders in the process
Laying the Case: As Applied (1) The case for investment: without titled property rights,
foreign investment for reconstruction would be limited (the power company example) Why build if there was fear that the government might
nationalize within 3-5 years? Why invest if you don’t know who owns the house that
you’d want to stick a meter to… who are you going to bill?
Laying the Case: As Applied (2) The case for national security: without titled property
rights, Iraq would continue to be a chaotic system. The Twin Promises wouldn’t be realized. More practically, there is a relationship between
knowing who owns property and keeping the peace. (cf. Gen. Petraeus’ post-surge deployment strategy)
Selling the Recommendations
IPRWG spent the Summer of 2003 making recommendations to the following agencies: Department of Defense Department of Commerce Department of the Treasury The White House The State Department was Uninterested. (But then again, the recommendations were ignored)
IGNORED??!!! Yes. Like a lot of recommendations that were made,
these, too were ignored. Not Surprising, and Not entirely hubris. Property rights not in the mainstream of ideas in the
international development/diplomacy community.
Conclusions and the Future Stability, prosperity and investment continue to be a
problem in Iraq Not saying property rights are a panacea They are a part of a series of things, perhaps one of the most important aspects of nation building Valuable lessons in terms of future events We are seeing, and will continue to see, property rights as an issue both here and aborad.
THANK YOU!
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