Thursday, September 22, 2005

Venezuelan land reform

Interesting article in Venezuelanalysis.com about the pros and cons of land reform. I won't try to summarize all the issues, except to highlight the last one:

Related to the goals of social justice and food sovereignty is the principle that land use takes priority over formal land ownership. ... Venezuela’s elite can still rely on the argument that a land use principle undermines private property rights, which are “sacred.” This sacred principle of private property is still an important element in Venezuelan culture.

In my opinion this is they key. Simply taking land from the rich will not work. Land rent has a solid basis in private property - society creates land values, and thus society owns that value. If the land owner also tries to own the extra value created by society, that is theft.

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