This document discusses property rights and different property regimes for managing natural resources. It defines four types of property: private, state, common, and open access. Private property relies on voluntary exchange and defined individual ownership rights. State property is managed by the government for public use. Common property is owned collectively by a group with shared norms and rules for sustainable use. Open access resources have no defined ownership rights, leading to overexploitation without management systems. The document also examines alternative resource management approaches like privatization, public management, and collective action, outlining conditions where each may be suitable.

1. Property Rights
We have defined property as an
income stream and property right as a claim
to a benefit stream that is legally of
conventionally enforceable and is socially
recognized by other who may covet the
benefit stream

2. Assumption of micro economics about
property rights
• Private property can easily be establish and enforced
• Transaction cost is zero
• Distribution of income under PPP is socially preferred
complete property rights constitutes the foundation of
micro economic theory like production consumption
exchange.
PR are essential for voluntary exchange of goods and
services
In case of scarcity of goods and services-weak PR conflicts

3. • Depending upon the nature of right,
property is classified into four
categories: Private, State, common
and open access (No body’s)
property.

4. • (a) Economic development -
Resources are more valuable
scarce.[ Environmental, equity
and distributive effect of
privatization.]

5. Alternative Resource Management
Systems
1. Privatization:
• - Privatization means creating private
property rights in open access or common
property and enforcing them.
• - Privatization may be an appropriate
management system when the following
condition are met.

6. • (b) Poor people – Credit, new
technology and damaging power.
• ( c) Open for all and equity basis
(benefit and cost).
• (d) Govt. support- Training, guidance
etc.
• (e) Resources are easily divisible.

7. • 2. Public Management or Nationalization:
• Experience are mix in term of success and
failure.
• CPR management under the following
conditions:
• (a) Over exploitation and degradation
should be avoided.

8. • (b) Resources National property – not
depleted.
• ( c) Investment and technology required
for conservation.
• ( d) Significant economics of scale.
• ( e ) Govt. Organization manage them –
sensitive to local needs.

9. • 3. Collective Management – Management
by local people:-
• Conditions:
• (a) Community users – CPR should be
small, well defined, homogenous, self
governing.
• (b) Set of rules – mutually accepted,
enforced.

10. • (c) Rules for equitable sharing of benefits
and costs.
• (d) A system of sanctions against
violation of rules.
• (e) Resources are not degraded.
• (f) Govt. helps- funds, technical
information, training etc..
• (g) Supportive legal and political
environment.
• (h) Equity.

11. 1. Private Property Regimes
Ownership- Individual companies, corporation,
cooperative societies.
Ex. Privately own cultivated land (Products –
crops, trees, grass, fish ponds, tank, irrigation
wells etc.)
Rights to consume or use, exchange, transfer by
sale or lease
Property rights – voluntary exchange - efficiency

12. Factors:
Policies, laws, law enforcement
mechanisms, conventions and contracts for
transactions
In the context of Agricultural Land –
• Loans from financial institution
• long term investment
• Increased use of purchased new form
inputs

13. 2. State Property Regimes
If the rights in a property are vests in the
state, it is known as state property
Ex. Resource forest, protected forest,
national parks, wildlife sanctuaries, national
and state highway and railways, minerals,
oils, natural gas, rivers, lakes etc.

14. • Manage by State Government
• Rules and regulation
• Nationalization
• Administrative Structure to manage resources
Factors:
• Interest of all the people
• Ensure equity
• Sustainability in managing NR
• Investment funds
• Internalize the externalities

15. 3. Common Property Regimes
Common property means a property owned
in common by a identifiable group of
people.
• Benefits commonly shared
• Social conventions, norms, legally
enforceable rules and procedures for
regulating its use.
• Ecologically and socially sustainable
resource

16. CPRs in India
• Common grazing land, revenue waste land,
village ponds and tanks, non- timber forest
products etc.
Classification of CPRS
• Semi arid and Zones
• Hills
• Forested tribal area

17. CPRs are income producing activities
Managing a watershed as a common
property
• Canal distribution of resource benefits
Factors of over exploitation of CPRs
• Loss of community control over the
resource
• Commercialization
• Rapid population growth
• Rapid technological change

18. 4. Open access regimes
Open access property is defined as
nobody’s property or property for which
property rights are not defined
• Free, unrestricted, no rules and
regulation governing its use
• Non exclusive property
• Every one’s property

19. Alternative Resource Management systems
• Privatization
• Public Management
• Collective Management
Tenures in Natural Resources
Effects of Tenancy

20. End