“If you really want to help the rest of the world, what you’ve got to do is encourage free markets, private property rights and the strong rule of law and get rid of the dictators in a lot of these countries.”

–Dave Brat, 2014

The importance of property rights has always been given less attention, even by the staunch market supporters, when it came down to its wider implications for an economy. Not surprisingly, poor development policy stemmed from that neglect. Economists and policy makers have recently begun to show a keen interest in the link between the prosperity of a nation and its system of property rights. The significance of having distinct and toughly protected property rights is now being widely debated across countries with the core emphasis on its repercussions for the developing countries. Even if policymakers in developed countries and international institutions now recognise the critical role played by a system of private property in economic development, they are limited in what they can do to help developing countries evolve such a system. Policymakers can, however, avoid recommending policies that undermine private property. A private property system gives individuals the exclusive right to use their resources as they want. Since they have the dominion over whatever they deem as their property, the owners are responsible for all the costs and benefits associated with it. This process of weighing the costs as well as benefits produces efficient outcomes and translates into higher standards of living for all.