Property rights as policy tools for sustainable development

The emergence of land markets in developing countries sometimes concentrates property rights in individual ‘owners,’ restricting the rights held by other claimants under customary tenure systems. By neglecting livelihood and environmental externalities, this may undermine the objectives of sustainable development. This paper draws lessons from the United Statesʹ experience using property rights as policy tools to accommodate multiple interests in resource use and conservation without incurring the political costs of regulation or the full financial costs of land acquisition. The benefits of such tools must be weighed against potentially significant costs, including those of monitoring and enforcing complex property arrangements over time.