Abstract

Granting of property rights involve socio-institutional issues which have an impact on the proper management of exhaustible/renewable type resources. The attribute of property in an object involves right to use by somebody and duties of others not to contravene that right. Market failure is considered as a sequel to absence of property right and this often leads to the emergence of open access condition. Weak property right, ill managed property right or non-operational property right have in many cases been functionally equivalent to open access regime. Weakly institutionalised economies with abundant natural resources are often observed susceptible to plundering of underground resource and channelizing the rent for unlawful purposes. This is evidenced by improper regulation on gold mine resources in several parts in Latin America. Again, in many African/Latin American economies, despite the traditional knowledge base of forested people, the state authorities have consistently turned down acknowledgement of the traditional right of forest dwellers. This uncertainty has resulted in ill preservation of the forested region by local people. Further, because of the fluid feature of irrigation water, fishery resources etc, it is very difficult to impose property right on such resources which are associated with externality issues. In the absence of strong institutional mechanism to defend usufructuary rights to use the irrigation/fishery resources, there may arise opportunism and temptations in the form of free riding. Hence comprehensive assignment of property right and market efficiency are considered important for ascertaining optimal use of natural resources.

Keywords:Institution; Entitlement; Management; Sustainable; Local