A couple of interesting stories have come our way today, offering a contrast and a case study in how property rights are, as Professor James Ely notes, “the guardian of every other right.”
First, Generations Of Housing Red Tape, a report about the difficulties in purchasing property on the Pine Ridge reservation in South Dakota. As takings lawyers are aware, land ownership on indian reservation are often “fractionalized” — owned by dozens, or more. This situation resulted in two well-known takings cases, Hodel v. Irving, 481 U.S. 704 (1987) and Babbitt v. Youpee, 519 U.S. 234 (1997). In Hodel, the Court struck down the federal law that escheated small interests to the tribe, and in Youpee, the Court invalidated the amended law, holding that Congress’ post-Hodel amendment did not cure the takings problem.
One couple moved back to the reservation from California, with money enough to purchase a home. They purchased a house, but were unable to buy the land because it is owned , so are leasing it.
So the house is now theirs, but not the land underneath, because of the reservation’s complex rules. This means the property is not that useful as a financial asset if they would ever want to borrow against the house or use it to trade up to something with more space. They joke about maybe separating the house they now own from the land they don’t.
This sounds a lot like the heirs’ property issue, although it’s the flip side of the problem. Still, it points to the
Second, check out Poor Get A Stake In India’s Booming Economy from NPR. It recounts how “a tiny plot in India can be a ticket out of poverty.”
The plot of land is tiny, barely large enough for a small house and a backyard garden for fruits and vegetables. But it’s an address, and if you have an address that belongs to you, you can get political identity papers, access to credit, and eligibility for government help programs. Without an address, you literally don’t count.
. . .
FLINTOFF: They each chipped in 10 rupees a month – about 20 cents – and got a loan to lease a cashew nut orchard.
(SOUNDBITE OF SPLASHING WATER)
PRADHAN: (Foreign language spoken)
FLINTOFF: Pradhan says they made money on that deal, and went on to dig a big fish pond and build an earthen dam. She’s 56, with long gray hair and sinewy arms. She smiles as the younger women splash about in the pond, where they expect to start harvesting the first fish in the spring.
PRADHAN: (Foreign language spoken)
FLINTOFF: She says the women never would have started these projects unless they believed that the land is theirs and can’t be taken from them.
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