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The options available to states to respond to squatting, including through law, are wide-ranging, sometimes dynamic and always revealing of the complex relationships between land, housing and shelter, poverty and ownership, citizenship and exclusion in each jurisdiction, in particular moments. The legal tools adopted and applied in response to squatting vary by jurisdiction (and within jurisdictions, by level of state action, for example, local vs national), and over time. In this chapter we introduce key elements within legal responses to homeless squatting in each of five jurisdictions that we draw on to inform our analysis throughout the book: Ireland, England and Wales, South Africa, Spain and the United States of America. In drawing examples and illustrations from a range of diverse jurisdictions, we aim to follow the advice of Van der Walt and Walsh, to pay: “…close attention to jurisdictional differences, and to broader social, economic and cultural considerations not always apparent from the face of constitutional texts, legislative provisions or even judicial decisions.” Our aim in this chapter is to set out the “legal base-line” for the book, locating these laws in their historical, geographical and social context. In doing so, we introduce an array of potential legal responses to squatting: including regularization of unlawful occupation (enabling the squatter to acquire rights in land), and a range of civil actions and criminal sanctions targeted at unlawful occupiers or absent owners.
Our theory can explain why governments do not define and enforce property rights. The political history of Afghanistan illustrates the persistence of non-emergence of legal property rights. We also seek to explain why the Hobbesian account of the world in which there can be no sense of justice and no concept of property without a state is mistaken. According to our theory, self-governance would substitute for the state as a source of property rights when organizations have local monopolies, when they possess the capacity to resolve conflicts over land disputes, when their key decision makers face constraints, and when the institutions for local collective action are inclusive. Chapter 5 investigates this claim. Using original evidence from fieldwork, we show that self-governance of property works well in rural Afghanistan because customary governance satisfies the above criteria. Our theory can also explain why the formal property regime remains ineffective nearly two decades after state building commenced in 2001. Importantly, the property institutions in rural Afghanistan are typically private property rights, not unlike property rights in Western contexts. The difference is that customary private property rights in Afghanistan are effective despite not having any legal recognition.
Legal reforms that improve the security of private property rights to land have characteristics of a public good with dispersed benefits. However, nothing ensures that the state will provide property protection as a public good. Some states provide property protection selectively to powerful groups. Others are unable to provide property protection. In this paper, we argue that whether the state provides property protection as a public good, selectively, or cannot establish private property rights depends on the following features of politics: political stability, government capacity to administer and enforce private property rights, constraints on political decision-makers, and the inclusivity of political and legal institutions. We illustrate the theory using evidence from reforms that increased opportunities to privately own land in the US from the late eighteenth through nineteenth centuries, selective enforcement of land property rights in China, and the absence of credible legal rights to land in Afghanistan.
This is the introductory chapter of the book which determines what features of modern capitalism were present at each time and place, and why the various precursors of capitalism did not survive setbacks and then subsequently continue the growth of both population and per capita incomes from their earlier levels. The scholarly literature refers variously to agrarian capitalism, industrial capitalism, financial capitalism, monopoly capitalism, state capitalism, crony capitalism, and even creative capitalism. Each variant of capitalism has specific emphasis on private property rights; contracts enforceable by third parties; markets with responsive prices; and supportive governments. Beyond the basic elements of economic activity that are physically observable, the history of capitalism must also pay attention to the organizations such as guilds, corporations, governments, and legal systems that operate within and enforce the "rules of the game". A thoroughgoing market system is also necessarily embedded within broader political, cultural, and social systems.
This paper employs the rolling bicorrelation test to measure the degree of nonlinear departures from a random walk for aggregate stock price indices of fifty countries over the sample period 1995–2005. We find that stock markets in economies with low per capita GDP in general experience more frequent price deviations than those in the high-income group. This clustering effect is not due to market liquidity or other structural characteristics, but instead can be explained by cross-country variation in the degree of private property rights protection. Our conjecture is that weak protection deters the participation of informed arbitrageurs, leaving those markets dominated by sentiment-prone noise traders whose correlated trading causes stock prices in emerging markets to deviate from the random walk benchmarks for persistent periods of time.
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