Private property is more productive than communal property and will foster more progress.

Introduction:
What is common to many is taken least care of, for all men have greater regard for what is their own than for what they possess in common with others. Aristotle The point made by Aristotle more than 2,000 years ago is as true now as it was then, and it is as important in primitive cultures as it is in developed ones. When the property fights to a resource are communally held, the resource is often abused. In contrast, when the rights to a resource are held by an individual or family, conservation and wise utilization generally result. The relative advantages of private property and communal property for the efficiency, equity, and sustainability of natural resource use patterns have been debated in legal and economic literatures for several centuries. Our topic of discussion is Private property is more productive than communal property and will foster more progress. We are supporting this topic and giving relevant argument to support our claim. The issue of the relationship between private property and communal property has engaged both legal and economic scholars in a long series of controversies over the meaning, the sequence of development, and the superiority of private vs. communal property. The issues debated relate to the efficiency, equity and sustainability of private property as contrasted to communal property. The scholarship in both professions has been characterized by formulations that are adopted by each generation of scholars without much effort to examine their foundations or to test them by empirical research. Both have their doctrinal aspects. And, the dominant view in both disciplines has been that private property is clearly superior to communal property. Many scholars think of contemporary examples of communal property as remnants of the past, likely to disappear during the twenty-first century.

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Private property is more productive than communal property and will foster more progress.

The advantages and disadvantage of private property vs. communal property:

Private property is the employment, control, ownership, ability to dispose of, and bequeath land, capital, and other forms of property by persons and privately owned firms. Communal property is property, which is dedicated to the use of the public. It is a subset of state property. The private property may be distinguished from public property in respect of the following points. (i) Private property is owned by a person, group of persons where as public property is owned by the community. (ii) Private property is usually used by its owner for his own good while public property is used for public good. (iii) Private property is subject to regulations by the state while public property belongs to the state itself and is not subject or regulation by any external group. In other words, private property rights are subject to supervision, regulation and control by the state. The advantages of private property are as follows. Advantages of private property: (i) Incentive to work: It is said that man in general needs an incentive to work. The rights to private property provide such an incentive. It makes people work and work hard; none would like to exert oneself if one has no incentive. Thus, the institution of private property induces a man to work hard which is ultimately beneficial to the community, (ii) Satisfaction of natural instinct: Man has an acquisitive instinct. He wants to acquire something, which he can call his own. He wants to have a house, an automobile and several other things of comfort and luxury. He works hard to get these things and when he gets them, he feels pleasure. (iii) Security against future:

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Poverty means a life of want and uncertainty. Property is a foreguard against the want of the

A man of property has security against starvation. He can afford to pursue intellectual tastes.

Private property is more productive than communal property and will foster more progress.

narrow and those who have no property are uncertain whether the narrow will give them the means of life. (iv)Ethically sound: Private property is justified on the ground that it is the reward to an individual for his labor. The builder of a railway, the inventor of a safety razor and the discoverer of a patent medicine all have put in hard labor. Therefore, whatever they gain on account of their hard labor rightfully belongs to them. (v) Nurse of virtues: It has also been argued by some thinkers that private property creates social virtues like love of one's family generosity, energy, philanthropy etc., the man who has private property has a great stake in the country lost his property may be looted by foreign invaders. It is on this account that some political thinkers have suggested that the right to vote should be given only to those who have some property. (vi)Economic progress: This incentive to private property leads peoples to exert themselves almost for earning money. This has lead to many inventions in the field of industry, agriculture and business, which have contributed to economic progress. (vii) Historical justification: The institution of private property is also justified on the basis of history, it is said that al! Progressive societies are those, which are built upon the system of private property. The United States is a progressive society as it is based on the institution of the private property and free enterprises. Disadvantages of private property: But, all the advantages of the private property are said to be fallacious. The power to acquire a property may defeat more incentives than it creates. In Soviet Russia, the right to property is severely limited yet the Russians are no less hard working than the Americans are. A person in order to acquire more property may indulge in unsocial or antisocial activities like adulteration, smuggling, hoarding etc. This profession may not necessarily be related to socially useful function. Production may be built more picture palace when more houses are needed because
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picture palaces bring more income.

Private property is more productive than communal property and will foster more progress.

The owner of private property gets control over the lives of those who have no property. Private property may create the vices of prostitution, gambling and drinking in the man who has a large amount of it. The cultivation of civic virtues does not necessarily depend on private property. A property less person may be more virtuous than a propertied one. Usually private property is associated with ill-gotten gains. Soviet Russia is no less economically advanced than the United States. Therefore, it is not true to say that, only those societies are civilized which are built on the institution of private property. Thus, the various arguments advanced in favor of private properly do not hold any validity upon deeper examination. Besides, private property gives birth to the following consequences, (i) Greed for property: Private, property makes man greedy. He wants to earn more and more money by any means. He does not care even for morality. Private property thus leads to moral degeneration also. (ii) Destruction of human values: In a private property system, everything is measured in terms of money. All values of human .life such as love, sympathy, benevolence and affections are evaluated in terms of silver coins. Every person wants to get the maximum. The sole criterion is property not value. (iii) Basis of capitalism: The institution of private property is the basis of capitalism. In capitalism, every person has the right to earn and maintain property. The right to property is considered sacred capitalism is injurious to both the individual and society. (iv) Inequality: Private property is a source of inequality, it creates wide gap between the haves and the have nots. The ownership of private property gives power to direct the lives of those who have no property. The propertied class gets control of the political machinery and uses it for its personal advantage. Their interests clash with the best interests of the community. In a social system based on private property the property less man has no social value of rights. (v) Economically inadequate: The system of private property is economically inadequate because, it fails to distribute the wealth. It creates as to offer necessary condition of health and security to those who live by its
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processes. It has lost the allegiance of the vast majority of the people. It is regarded with hate and indifference by them. Much of private property is earned by a person without being paid for

Private property is more productive than communal property and will foster more progress.

simply owning the owners and absentee owners. They get productive instruments rather than for doing any kind of work. In view of its evils, the institution of private property has been challenged by ideologies of the life. Syndicalism, Socialism, Communism bitterly criticizes the property system. Each of them sees the members of the working class pitted against the propertied class. They want to establish collective ownership of property. The challenge to these ideologies has necessitated a restricting of the institution of private property and its adjustment to the changing social system
Advantages of Communal Property: i. Indivisibility:

The resource may have physical traits that literally forbid parceling; the production system may simply not be amenable to physical division or demarcation. Either the resource system cannot be bounded (the high seas, the stratosphere) or the resources we care about are mobile over a large territory (air, water, fish, wildlife).
ii. Uncertainty in location of productive zones:

In fragile environments, nature may impose great uncertainty on the productivity of any particular section of a resource system, and the location of the unproductive sections cannot easily be predicted from year to year, but the "average" or "total" productivity of the entire area may be fairly steady over the years. Management efforts focused on the entire system are not plagued with uncertainties and may therefore be quite successful. In this situation, the resource system holds still and may even have fairly obvious boundaries, but the productive portions of it do not hold still..
iii. Productive efficiency via internalizing externalities:

In many resource systems, hilly ones for instance, uses in one zone immediately affect uses and productivity in another: deforesting the hillside ruins the water supply and downhill soil quality. If different person owns the uphill forests and the downhill fields-or, for that matter, small adjacent patches of forest, pasture and make their decisions about resource use independently and separately, they may well cause harm to each other.
iv. Administrative efficiency:

Even if resources are readily divisible into parcels, where nature is uniform in its treatment of different parcels so that risk and uncertainty are low, and where intensive independent use of adjacent parcels does not produce problematic externalities, the administrative support to enforce property rights to individual parcels may not be available. The society
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Private property is more productive than communal property and will foster more progress.

may be too poor to support a large court system to enforce individual land titles, and even cheap fencing would be expensive by this society's standards. Creating a common-property regime here is a way of substituting collective management rules-which function as imaginary fences and informal courts internal to the user group-for what is missing. It is cheaper in these circumstances, and it is within the power of a group of resource users to create (even if they cannot create a nationwide system of courts and cannot afford barbed wire). Common-property regimes can be particularly attractive in providing administrative efficiency when resource management rules can simply be grafted onto the functions of a pre-existing community organization.

Property as bundles of rights:

A property right is an enforceable authority to undertake particular actions in a specific domain. Property rights define actions that individuals can take in relation to other individuals regarding some thing. If one individual has a right, someone else has a commensurate duty to observe that right. According to Schlager and Ostrom (1992) identify seven property rights that are most relevant for the use of common-pool resources, including access, Contribution, Extraction, Removal, Management/Participation, Exclusion, and Alienation. These are defined as; Access: The right to enter a defined physical area and enjoy no subtractive benefits. Contribution: The right to contribute to the content. Extraction: The right to obtain resource units or products of a resource system. Removal: The right to remove ones artifacts from the resource. Management/Participation: The right to regulate internal use patterns and transform the resource by making improvements. Exclusion: The right to determine who will have access, contribution, extraction, and removal rights and how those rights may be transferred. Alienation: The right to sell or lease management and exclusion rights.

In much of the economics literature, private property is defined as equivalent to alienation. Property-rights systems that do not contain the right of alienation are considered to be illPage

defined. Further, they are presumed to lead to inefficiency since property-rights holders cannot

Private property is more productive than communal property and will foster more progress.

trade their interest in an improved resource system for other resources, nor can someone who has a more efficient use of a resource system purchase that system in whole or in part.

Attributes of common-pool resources conducive to the use of communal proprietorship or ownership:

Even though all common-pool resources share the difficulty of devising methods to achieve exclusion and a sustainable level of harvesting of resource units, the variability of common-pool resources is immense in regard to other attributes that affect the incentives of resource users and the likelihood of achieving outcomes that approach optimality. Further, whether it is difficult or costly to develop physical or institutional means to exclude non beneficiaries depends on the availability and cost of technical and institutional solutions to the problem of exclusion and the relationship of the cost of these solutions to the expected benefits of achieving exclusion from a particular resource five attributes that considered to be most conducive to the development of communal property rights: Low value of production per unit of area; High variance in the availability of resource units on any one parcel; Low returns from intensification of investment; Substantial economies of scale by utilizing a large area; and Substantial economies of scale in building infrastructures.

Role of Public and Private Sector in Generating Growth in the context of Bangladesh:
Taking a simple view of growth caused by enhanced capital accumulation through increased investment, the role of the public and private sectors in generating growth can be assessed. Public investment as a proportion of total investment has declined from 32 percent in 1995-96 to less than a quarter in recent years, implying the increasingly dominant role of the private sector
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in generating growth. This is an outcome of the Government policy to pursue private sector-led

Private property is more productive than communal property and will foster more progress.

development in the economy. Nevertheless, the role of the Government in generating growth has remained important for several reasons. First, public investment in critical sectors of the infrastructure like transport and communication, power and energy, ports and human capital enhances the efficiency of private investment. Secondly, the Government supports the private sector through facilitating development-friendly institutions property rights, rule of law, market-oriented incentives, sound monetary policy, sustainable public finances and governance. Finally, public investment can determine the structure of growth by allocating resources to the social sectors like education, health, and rural infrastructure. The future growth of the economy will be primarily dependent on the private sector complemented and supported by an effective government. The government set an export target of US$ 26.37 billion for the current fiscal (2011-2012), a 15 per cent rise compared to that of a year ago. Bangladesh exported goods worth US$ 22.93 billion in fiscal 2010-11, registering a 41.47 per cent growth, according to the Export Promotion Bureau (EPB).

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Private property is more productive than communal property and will foster more progress.

Conclusion:
In developing countries like Bangladesh there is no alternative of growth of private sectors. In public sector only cannot foster progress alone. For example, our largest foreign currency earning is from RMG sector which is completely dominated by private sector. So our RMG sector is growing very fast. Also in Electricity sector private owned electricity plant is increasing , moreover my infrastructure like bridge, culvert, flyover are being built on private sector so we cannot deny that private sector is driving growth also the main reason that our country is performing so brilliantly in the time of global recession and credit crunch.

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Private property is more productive than communal property and will foster more progress.

References:
1) http://www.mayanastro.freeservers.com/more2.html 2) http://www.umich.edu/~ifri/Publications/R991_25.pdf 3) http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1304699 4) http://www.marxists.org/archive/marx/works/1844/manuscripts/comm.htm 5) http://www.hoover.org/publications/hoover-digest/article/6580 6) http://legal-dictionary.thefreedictionary.com/Community+Property 7) http://c4ss.org/content/9805 8) http://www.thefreemanonline.org/columns/communal-vs-private-property-rights/ 9) http://en.wikipedia.org/wiki/Community_property

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