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Privatizing the Ejido System: The Tradeoff of Land Tenure, Governance and Transaction Costs

Motley, Brooke LU (2016) EKHK18 20161
Department of Economic History
Abstract
This thesis examines the ejido system in Mexico in order to understand the dynamics of land tenure, governance and transaction costs through the lens of Elinor Ostrom’s theory of good governance. This case of the ejido system was chosen as their constitution that enabled a communal access land tenure regime in the agricultural sector, was amended to allow for privatization. The ejido serves as a political and social institution that governs a given area with internal governance and voting members who create regulation based on community needs. To facilitate the transition of the ejidal land to private property, the government created the program PROCEDE in 1992 to provide formal titles and registered land delineation. Unanimous... (More)
This thesis examines the ejido system in Mexico in order to understand the dynamics of land tenure, governance and transaction costs through the lens of Elinor Ostrom’s theory of good governance. This case of the ejido system was chosen as their constitution that enabled a communal access land tenure regime in the agricultural sector, was amended to allow for privatization. The ejido serves as a political and social institution that governs a given area with internal governance and voting members who create regulation based on community needs. To facilitate the transition of the ejidal land to private property, the government created the program PROCEDE in 1992 to provide formal titles and registered land delineation. Unanimous participation in the program PROCEDE ensued; by 2005, 89 per cent of ejidatarios receiving formal titles of individual plots and delineation of communal access areas, however 5.3 per cent of the ejidos chose full privatization and disincorporation of their ejidos (Deininger and Bresciani 2001). This thesis examines why the majority of the ejidatarios chose formal titles and registered land delineation but the majority did not fully privatize and disincoporate the ejido system. The findings demonstrate that communal access property regimes have the ability to reduce ecological uncertainty and that the gains from the PROCEDE program reduced behavioral uncertainty in the case of the ejido system. Privatization of the ejido system would raise transaction costs for ejidatarios, increase ecological uncertainty and not provide a further reduction of behavioral uncertainty than already achieved by land delineation. (Less)
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author
Motley, Brooke LU
supervisor
organization
course
EKHK18 20161
year
type
M2 - Bachelor Degree
subject
language
English
id
8890433
date added to LUP
2016-09-19 13:44:30
date last changed
2016-09-19 13:44:30
@misc{8890433,
  abstract     = {This thesis examines the ejido system in Mexico in order to understand the dynamics of land tenure, governance and transaction costs through the lens of Elinor Ostrom’s theory of good governance. This case of the ejido system was chosen as their constitution that enabled a communal access land tenure regime in the agricultural sector, was amended to allow for privatization. The ejido serves as a political and social institution that governs a given area with internal governance and voting members who create regulation based on community needs. To facilitate the transition of the ejidal land to private property, the government created the program PROCEDE in 1992 to provide formal titles and registered land delineation. Unanimous participation in the program PROCEDE ensued; by 2005, 89 per cent of ejidatarios receiving formal titles of individual plots and delineation of communal access areas, however 5.3 per cent of the ejidos chose full privatization and disincorporation of their ejidos (Deininger and Bresciani 2001). This thesis examines why the majority of the ejidatarios chose formal titles and registered land delineation but the majority did not fully privatize and disincoporate the ejido system. The findings demonstrate that communal access property regimes have the ability to reduce ecological uncertainty and that the gains from the PROCEDE program reduced behavioral uncertainty in the case of the ejido system. Privatization of the ejido system would raise transaction costs for ejidatarios, increase ecological uncertainty and not provide a further reduction of behavioral uncertainty than already achieved by land delineation.},
  author       = {Motley, Brooke},
  language     = {eng},
  note         = {Student Paper},
  title        = {Privatizing the Ejido System: The Tradeoff of Land Tenure, Governance and Transaction Costs},
  year         = {2016},
}