THE ROLE OF PROPERTY RIGHTS IN NATURAL RESOURCE …

THE ROLE OF PROPERTY RIGHTS IN NATURAL RESOURCE MANAGEMENT, GOOD GOVERNANCE AND EMPOWERMENT OF THE RURAL POOR

OCTOBER 2006 This publication was produced for review by the United States Agency for International Development. It was prepared by ARD, Inc.

Lessons Learned: Property Rights and Natural Resource Management (GLT 2) USAID Contract No. PCE-I-00-99-00001-00, Task No. 13

ARD Principal Authors: Safia Aggarwal and Kent Elbow

ARD Principal Contact: ARD Home Office Address:

Roxana Blanco ARD, Inc. 159 Bank Street, Suite 300, Burlington, VT 05401 Tel: 802 658-3890, Fax 802 658-4247

THE ROLE OF PROPERTY RIGHTS IN NATURAL RESOURCE MANAGEMENT, GOOD GOVERNANCE AND EMPOWERMENT OF THE RURAL POOR

OCTOBER 2006

DISCLAIMER The author's views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

CONTENTS

ACRONYMS AND ABBREVIATIONS .................................................. ii SUMMARY................................................................................................ iii 1.0 INTRODUCTION .............................................................................. 1 2.0 THE MANY TYPES OF PROPERTY RIGHTS TO NATURAL

RESOURCES....................................................................................... 3 2.1 BASIC PROPERTY RIGHTS CONCEPTS ............................................................ 3

2.1.1 The Rights Bundle............................................................................. 3 2.1.2 Property Rights Regimes................................................................. 5 2.2 TENURE SECURITY AND ENFORCEMENT OF PROPERTY RIGHTS.................. 8 2.3 OTHER IMPORTANT ASPECTS OF PROPERTY RIGHTS REGIMES AND NATURAL RESOURCES................................................................................... 10 2.3.1 Property Rights Systems Are Dynamic...................................... 10 2.3.2 Property Rights to Land Versus Natural Resources ............... 12 2.4 DISCUSSIONS AND TRENDS FROM THE LITERATURE ................ 13 3.0 PROPERTY RIGHTS IN ACTION................................................. 16 3.1 PROPERTY RIGHTS TO LAND AND NATURAL RESOURCES: KEY OBSERVATIONS .............................................................................................. 16 3.2 FIVE KEY CHALLENGES TO A RIGHTS-BASED APPROACH FOR BETTER NATURAL RESOURCE MANAGEMENT .......................................................... 18 3.2.1 Managing and Channeling Changing Market Incentives .......... 18 3.2.2 Harmonizing with Government Policies--Focus on

Devolution/Decentralization........................................................ 21 3.2.3 Building on Customary Property Rights Regimes.................... 22 3.2.4 Balancing Equity and Efficiency..................................................... 25 3.2.5 Enforcement of Property Rights in a Changing World........... 27 4.0 GENERAL PRINCIPLES.................................................................. 31 REFERENCES.......................................................................................... 35

ROLE OF PROPERTY RIGHTS IN NRM: GOOD GOVERNANCE AND EMPOWERMENT OF THE RURAL POOR i

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