Property rights and private sector: for the poor, a global perspective. Property rights and private sector: for the poor, a global perspective. International

Property rights and private Property rights and private sector:sector:

for the poor, a global perspective.for the poor, a global perspective.

International Real Estate Federation www.fiabci.com

by Enrico Campagnoli,International Real Estate Federation representative at UNECE

The third UNECE/REAG Land for Development Programme (LFDP) ForumTempio di Adriano, Piazza di Pietra, Rome, Italy - 13-14 December 2004

The International Real Estate FederationThe International Real Estate Federation is a 52 years old NGO, UN accredited, is a 52 years old NGO, UN accredited,

present in 50 countries, really international present in 50 countries, really international e multidisciplinary, involving all the Real Estate actors e multidisciplinary, involving all the Real Estate actors

( brokers, appraisers, counselors, financiers, academic institutions, ( brokers, appraisers, counselors, financiers, academic institutions, lawyers, architects, developers, contractors, investors, etc).lawyers, architects, developers, contractors, investors, etc).

With its representatives accredited in all the five ECOSOC regions,With its representatives accredited in all the five ECOSOC regions,FIABCI acts in a global perspective.FIABCI acts in a global perspective.

FIABCI is traditionally FIABCI is traditionally representative of private sector. representative of private sector.

The International Real Estate Federation, The International Real Estate Federation, as representative of private sector,as representative of private sector,

strongly supported and supports strongly supported and supports

world wide property rights,world wide property rights,

in developed and undeveloped countries.in developed and undeveloped countries.

“ “ Blue Book on Property Rights”Blue Book on Property Rights”on the basis of decisions of FIABCI Houston World Congress, May 2004, on the basis of decisions of FIABCI Houston World Congress, May 2004,

will be published by FIABCI next year, will be published by FIABCI next year,

with a world wide analysis of the property rights restrictions with a world wide analysis of the property rights restrictions and their impact on: and their impact on:

• the R.E. national marketsthe R.E. national markets• the foreign investment indexthe foreign investment index• the percentage of participation of R.E. to GDP the percentage of participation of R.E. to GDP

To reach the Millennium Declaration Goal, To reach the Millennium Declaration Goal, this presentation this presentation

is focused is focused on property rights on property rights

for the poor in a global perspective,for the poor in a global perspective,on “basic” property rights, on “basic” property rights,

as starting point as starting point to create or to improve the efficiency to create or to improve the efficiency

of national real estate markets. of national real estate markets.

International Real Estate Federation

The existence of “basic” property rights The existence of “basic” property rights essentially depend on:essentially depend on:

• the existence of a property (title registration, cadastre, etc)the existence of a property (title registration, cadastre, etc)• the constitutional and legal right to own and to use (to buy, to sell, to the constitutional and legal right to own and to use (to buy, to sell, to

rent, to finance, etc ) a propertyrent, to finance, etc ) a property• a minimal political stabilitya minimal political stability• a reasonable safety a reasonable safety • a acceptable legal framework and court system that allows to exercise a acceptable legal framework and court system that allows to exercise

the constitutional and legal right to own and use the property.the constitutional and legal right to own and use the property.• a minimal national financial infrastructure a minimal national financial infrastructure • the existence of the professionals with the experience needed to own the existence of the professionals with the experience needed to own

and to use (to rent, to buy, to sell, to manage, to finance, etc) a and to use (to rent, to buy, to sell, to manage, to finance, etc) a propertyproperty

• a reasonable transparency a reasonable transparency


““Basic” property rights are the key point Basic” property rights are the key point to reach the Millennium Declaration Goal on poverty reduction, to reach the Millennium Declaration Goal on poverty reduction,

in many countries across the world, as they:in many countries across the world, as they:

• are a condition necessary, but not always sufficient, are a condition necessary, but not always sufficient, for the existence of a real estate market.for the existence of a real estate market.• are the key point for private and public partnership in cooperation are the key point for private and public partnership in cooperation

with UN agencies.with UN agencies.• are the key point generally for private sector’s investors and are the key point generally for private sector’s investors and

specially for private sector’s foreign investors. specially for private sector’s foreign investors.



Also if this presentation Also if this presentation is focused is focused

on “basic” property rights, on “basic” property rights, it is clear that generallyit is clear that generally

the private sector with Real Estate rating the private sector with Real Estate rating evaluates very carefully the level of the risk of an RE investment.evaluates very carefully the level of the risk of an RE investment.The level of severity of property rights restriction in a country The level of severity of property rights restriction in a country

influences deeply the rating.influences deeply the rating.The rating influences deeply the investments,The rating influences deeply the investments,

as, in the global fluidity of the capitals, the investors prefer to go as, in the global fluidity of the capitals, the investors prefer to go where the return is higher and the risk (the rating) is lower.where the return is higher and the risk (the rating) is lower.

The economical impact of property rights for a country The economical impact of property rights for a country is out of discussion now.is out of discussion now.

It will be with the implementation of Basle agreement more evident.It will be with the implementation of Basle agreement more evident.

Private sector, property rights, risk and R.E. rating


To increment property rightsTo increment property rights

what we did and we are doing?what we did and we are doing?

• GHFGHF - - We promoteWe promote property rights for the poor with Global Housing property rights for the poor with Global Housing FoundationFoundation

• AwardAward - -We stimulate the competitionWe stimulate the competition among private sector actors among private sector actors in slums improvement and urban renewal with a Wall Street Journal in slums improvement and urban renewal with a Wall Street Journal sponsored award sponsored award

• Ideas- We support ideas. Ideas- We support ideas. For exemplum,For exemplum, we participated to open a we participated to open a debate on Hernando de Sotho ideas inside UN, organizing in UN in NY debate on Hernando de Sotho ideas inside UN, organizing in UN in NY inside Istambul+5 on April 2001 an event with his participation inside Istambul+5 on April 2001 an event with his participation


GLOBAL HOUSING FOUNDATION GLOBAL HOUSING FOUNDATION acts in slums improvement and urban renewal acts in slums improvement and urban renewal

and promotes property rights for the poor:and promotes property rights for the poor:

• builds affordable houses for the poor with private builds affordable houses for the poor with private donationsdonations

• gives houses in ownership, with property title and gives houses in ownership, with property title and

sustainable mortgage, mostly to womensustainable mortgage, mostly to women

• incoming money from mortgages finances new houses incoming money from mortgages finances new houses



We stimulate the competitionWe stimulate the competition among private sector actors among private sector actors

in slums improvement and urban renewal in slums improvement and urban renewal with a Wall Street Journal sponsored award.with a Wall Street Journal sponsored award.

In 2004 a new award,In 2004 a new award,a new category of “Prix d’Exellence” ,a new category of “Prix d’Exellence” ,

entitled entitled

“ “René Frank award René Frank award for slums improvement and urban renewal”,for slums improvement and urban renewal”,

has been instituted by FIABCI.has been instituted by FIABCI.

The competition is sponsored The competition is sponsored

by Wall Street Journal.by Wall Street Journal.


We proposed to debate and supported We proposed to debate and supported ideas ideas

Hernando de Sotho idea, during September 2001,

few months after the debate opened in April 2001 in NY during Istambul+5,

became the leading idea in Europe of UNECE/REAG

to help and improve the economies of countries in transition.


What we can propose now to try What we can propose now to try to achieve to achieve

the Millennium Declaration Goal?the Millennium Declaration Goal?

The target : try to increase world The target : try to increase world wide the GDP of poor nations wide the GDP of poor nations

helping them to create an efficient helping them to create an efficient RE market.RE market.


How to achieve the target?How to achieve the target?

Proposing to next ECOSOC CouncilProposing to next ECOSOC Council in Geneva on July 2005, in Geneva on July 2005,

- to promote the organization of bodies and - to promote the organization of bodies and working groups similar to those existing in working groups similar to those existing in UNECE , with the support of NGOs and all UNECE , with the support of NGOs and all the RE actors, in the other four ECOSOC the RE actors, in the other four ECOSOC regional Commissions.regional Commissions.

- to share with them the experience and - to share with them the experience and the knowledge existing in UNECE and in the knowledge existing in UNECE and in NGOs and all RE actors.NGOs and all RE actors.


..

For exemplum, it will be helpful if For exemplum, it will be helpful if these activities will be extended these activities will be extended

world wide, also with all the world wide, also with all the modifications that regional modifications that regional

Commissions would like to do:Commissions would like to do:

• property rights restrictions analysis, on the basis of what property rights restrictions analysis, on the basis of what has been done by UN-ECE WPLAhas been done by UN-ECE WPLA

• country profile with the methodology similar to what used country profile with the methodology similar to what used by UN-ECE Committee on Human Settlement. by UN-ECE Committee on Human Settlement.

• Guidelines similar to those are existing or in preparation in Guidelines similar to those are existing or in preparation in UN-ECE, on social housing, on financial, on condominium, UN-ECE, on social housing, on financial, on condominium, etc.etc.

• Cadastre methodologies, RE professions rules and laws, etc, Cadastre methodologies, RE professions rules and laws, etc, as they have been developed in UN-ECEas they have been developed in UN-ECE


Private Sector could assumes its own responsibility Private Sector could assumes its own responsibility

to propose trough the ECOSOC Regional to propose trough the ECOSOC Regional representatives the organization of Regional UN-representatives the organization of Regional UN-

REAG and others regional bodies and working REAG and others regional bodies and working groups, groups,

but it will be the cooperation among all the actors in but it will be the cooperation among all the actors in UN, the UN agencies, the national governments UN, the UN agencies, the national governments

and the NGOs the key of the success ,and the NGOs the key of the success ,

a powerful tool-kita powerful tool-kit

to achieve the Millennium Declaration Goalto achieve the Millennium Declaration Goal

If there are property rights, If there are property rights,

there are also property responsibilities, there are also property responsibilities,

specially for private sector.specially for private sector.

Documents

Property rights and private sector: for the poor, a global perspective. Property rights and private sector: for the poor, a global perspective. International