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I don't think mortgaging was a relevant consideration at the time.



The key is titling. Without titling, squatters in the west could not access legal protections normally associated with a title such as defending against other claims. I mentioned mortgages in the context of the authors book who asserts that titles also serve another vital function in today’s world in which access to the capital in ones Home is unlocked by a title. Without that one cannot get a mortgage. The homestead act is held up as an example where a government chose to recognize behaviors already existent as a means for mass titling - something that if many third world countries could do then they also could enable their citizens to unlock the capital in their homes. Instead, many of these countries lock this capital through Byzantine rules and regulations. It’s been twenty years since I read the book but he cites Egypt and the Philippines as two countries where the process to title land takes numerous years and costs many times the normal salary of an individual. But if property could be titled, it’s capital would in the aggregate would be worth something 100x all the foreign aid in the world going back to the time of Napoleon. Give it a read... it’s really fascinating how Hernando has structured his analysis and he really calls out how many nations have harmed their citizens by not making it easy to gain title to their property.


Hypothesis: they don't do that mass titling because of costs

Suggestion: use blockchain solutions to let settlers make claims publically without possible government meddling (like bribes), then work out the "claims conflict" the old, expansive way or through some international arbitraging.

Bonus: this could externalize the costs to NGO and charities, unlock large amounts of capital, while getting a new and better land registry started. Existing titles could later be converted to the new system. After that, people could trade their property with fewer paperwork - improving the capital markets.


You may be interested to know the author of that book is also a huge advocate for blockchain. I hate to keep pumping the book/author but it’s really good. Google “commanding heights and Hernando de Soto” that was a pbs series produced many years ago but his segment is still really good. In fact if you look for his talks on YouTube they are all fascinating - could listen to them for hours.


I didn't know about that. Thanks a lot!




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