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Institutional Change & Organizational Development
Probably the most challenging aspect of land reform or regularization is the necessary institutional environment. Property is both a right and an institution, and North (1990) has defined institutions as “the humanly devised constraints that shape human interaction” and stated that “efficient institutions [require] a polity that has built-in incentives to create and enforce efficient real property rights”. The three primary roles of institutions as defined by the World Bank (2002) are: 1) to provide information on markets, goods, and participants; 2) to define and enforce real property rights and contracts; and 3) increase, or decrease, competition in markets. Given this intimate relationship between property and institutions, it is apparent that the success of any land reform or regularization initiatives will be highly dependent on creating the relevant supporting institutions. This starts with the policy and land laws that provide the institutional foundation, and that guide social and political behaviour. Terradigm has developed considerable experience in institutional change, and understands the sensitivity of this process to the historical, cultural and political context.
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