Land reforms alone were responsible for an estimated 12,5% average annual decline in GDP growth. Rainfall played a minimal role in the GDP contraction. |
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The definitions related to open space are weak in that they do not distinguish between lands set aside for resource-conservation purposes versus lands set aside for recreational purposes; nor do the definitions recognize necessary distinctions between urban, suburban and rural lands. |
There are three effects of attenuating private property rights that ultimately change individuals' perceptions in a drastic way. First, there is the loss of trust in the government to enforce the law, which dramatically affects foreign investors' views of the country. Second, the loss of property titles dramatically limits the amount of borrowing and entrepreneurial activity by disrupting the banking sector. Individuals no longer can offer banks their property as collateral for a loan. Third, there is the loss in the incentive to pass along entrepreneurial knowledge, and work initiatives are sharply stymied as well, since one's investment is not retained. |