ABSTRACT
It has been stated that the solution lies in security of RE rights (de Soto, 2001; Fukuyama, 2008). De Soto (2001) argues that Latin America’s poor sit on dead capital (their homes) due to insecure RE titles, which hinders collateralization of RE to acquire entrepreneurial capital. His views have been challenged (Varley, 1987; Samuelson, 2001; Gilbert, 2002; Frankema, 2006; Van Gelder, 2009) but followed and praised by regional governments (Fernandes, 2002; Clift, 2003). However, the title’s legalization theory is based on simplistic assumptions that miss the nuances existing in Latin America’s land markets; see, for example, Van Gelder (2009) for an in depth discussion. In addition, it assumes that the underlying planning system in most of these countries is sophisticated enough to secure urban land equity (using here the term in its dual connotation).
