What is the difference between a rich startup and a poor vendor?
Right to property is the only difference.
Right to property is the only difference.
Brief:
The difference is the property right. Both are entrepreneurs and risk takers. While one enjoys the ownership of the business, the other doesn’t. It’s a common sight to see vendors struggling, while startups flourishing. Some examples are Chayoos vs road side the seller, Big Basket vs neighbourhood vegetable vendor and Gupta burger vs Sher Singh.
Right to property as a fundamental right was scrapped in 1978.
Niranjan Rajadhyaksha writes, “ The security of property provides incentives for …a slum dweller to spend on basic infrastructure. The Peruvian economist Hernando De Soto has also shown how secure property rights allow the poor to raise capital by offering the property as collateral to formal lenders.”
A good beginning:
- Meanwhile, the Odisha state government has recently begun offering formal property rights to slum dwellers.
Why it matters for Delhi-NCR?
80% of Delhi-NCR’s economy is informal. With property rights the formal economy will increase, producing more jobs and income.
Listen to the Podcast, where Shruti Rajagopalan joins Amit Varma to discuss why this right is important, and the consequences of its being weakened in India.
Read The Mystery of Capital, where the author describes how property rights will help expand economies.