Tuesday, November 19, 2013

Property rights violation in a populist democracy



One of the fundamental roles of the state is to ensure the security of property rights of its citizenry. But we have often seen government sponsored acts of property rights violation. The case of abolishing Privy Purse in India is a classical case, so is the nationalization of commercial banks and acts like land for the tiller, which grabbed land from erstwhile landlords and redistributed them to the actual farmers... In some cases the so called "land lords" were government retirees who invested their whole pension savings on agricultural land... In all these cases the government grabs private property to supposedly serve the public at large. Interestingly, we have only celebrated, and in some cases demanded, such acts… we see them as symbols of egalitarian governance. But more recently, when the ex-CM of West Bengal proposed to use eminent domain act to acquire land from farmers and redistribute it to corporate India (i.e., TATA, whose airline, Air India, was nationalized in 1953 to benefit the Indian populace), there was a furor that resulted in the down fall of the communists’ empire, if you will, in West Bengal. Security of property rights has always been weak in India but as we live in a populist democracy, whenever there is a state-sponsored violation of property rights of the poor there is a lot of noise, whereas any such violation of property rights of the rich (at least seemingly so) is portrayed as a just act, winning votes for the incumbents.

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