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Oftentimes land speculators and land grabbers hold the state hostage, or succeed in planting its representatives within government agencies.The result: needy people are deprived of their livelihoods, common resources get enclosed and the land concentration process continues.
A high share of these costs is borne by the community.
These costs comprise the costs of planning, the costs of infrastructure construction and the opportunity costs of forgoing alternative public or private land use.
In addition, there are extensive concessions regarding forestry, mining and other commercial activity.
Although lands used under concessions are regarded as state property, from an economic point of view they have all the characteristics of private property.
They believe that this is the only way to ensure that the persons who bear the investment costs will reap the yields (Feder and Feeny 1991).
Investments in improvements (plantings, renovations, houses, etc.) would be stimulated by individual ownership, and an overuse of resources (as described by Garrett Hardin in his “tragedy of the commons” essay) could be avoided.
It is assumed that informal, collective forms of property rights should be converted into private property (Platteau 1996) because such policies will help ease land conflicts, enhance the efficiency of the land markets, guarantee tenure security and assure access to loans.
Anything other than private property is seen as an inferior, immature type of property right.
Apart from bribes that are often paid, concessionaires pay no acquisition costs, and the formal fees are often ridiculously low; the concessions are obviously privileges.
Rent-seeking occurs when institutions allow the privatization of land rents and incremental value at the expense of the community.