Private property rights in Africa


As long as it is temporary, this is one foreign aid program I can agree with
Sometimes politicos actually do the right thing. Amazing.

In July 2003, President Bush followed up on this positive development by announcing his Africa Mortgage Market Initiative in a speech at the Leon Sullivan Summit in Abuja, Nigeria. Taking a cue from Peruvian economist Hernando de Soto, whose research had shown there is at least nine trillion dollars’ worth of trapped capital in unregistered land in the developing world, he explained:

“One specific obstacle to development in many countries is the lack of access to capital. Many Africans find it impossible to get a loan for a business or a home. And this makes it far difficult for people to build equity or to borrow money to start a business. The United States has some of the most effective mortgage markets in the world. We understand the flow of capital, and we want to share this knowledge with the nations of Africa.... With the ability to borrow money to buy homes and start businesses, more Africans will have the tools to achieve their dreams.”

I am not thrilled with the idea of using politically controlled public funds for the loan guarantees, but this could be a great first step to get a property rights revolution started. I'll be watching cautiously.

The rest of the article talks about how the programs are beginning to bear fruit.

— NeoWayland

Posted: Thu - January 4, 2007 at 04:40 AM  Tag


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