The Building Process of Property Rights: The Case of Urban Squatters in Peru

Abstract

Property rights in urban squatters have a diversity of origins, evolve gradually, and are greater than what is thought. As a consequence, the benefits of these rights are also generated in a partial and gradual fashion, as the consolidation of these rights evolves. This vision is based on empirical evidence detailed in the document, as well as on a review of the norms that rule these rights. Based on this view, we assess the information disclosed by the Institute for Liberty and Democracy (ILD) on December 17, 2004. This information was referred to the economic effects of a massive land titling program carried out by the Peruvian Government during the 1990's. We show that the suggested economic benefits suffer from calculation and interpretation mistakes. In that way, it appears that there have been huge overestimations of the net benefits that could be attributable to this titling program. We hope that this interpretation would provide a more realistic guide for the formalization and implementation of policies oriented towards property rights strengthening and urban poverty reduction.