Home
/
RELIGION & LIBERTY ONLINE
/
Property Rights, Rule of Law, and the Spark of the ‘Arab Spring’
Property Rights, Rule of Law, and the Spark of the ‘Arab Spring’
Jun 30, 2025 7:11 PM

Conversations about economic development often gravitate toward such topics as monetary policy, trade regulation, tax structures, infrastructure, etc. These are critical pieces of the puzzle indeed, but there exist even more ponents of prosperity that are often skipped over.

In our interview with Samuel Gregg, director of research at the Acton Institute, he lists a few of the foundational elements of growth:

Rule of law is essential if you want to have a functioning economy. You cannot have a functioning economy without secure property rights. You cannot have a functioning economy unless contracts are enforced. You cannot have a functioning economy if government officials can act in an arbitrary fashion.

The Property Rights Alliance, a Washington D.C.-based think tank, publishes research concerning private property and rule of law. Earlier this month, the organization released its annual 2013 International Property Rights Index (IPRI), which measures the intellectual and physical property rights of 131 nations from around the world, representing 98% of world GDP.

The 2013 IPRI represents the seventh edition of the index and focuses on three ponents:

Legal and Political EnvironmentPhysical Property RightsIntellectual Property Rights

Countries received a score (on a scale of 0 – 10, where 10 is the highest value for a property rights system and 0 is the lowest value) in each of these areas; those scores were then averaged to calculate the “IPRI score.” The countries receiving the top five IPRI scores were Finland, New Zealand, Sweden, Norway, and the Netherlands. The United States claimed the 17th spot.

Francesco Di Lorenzo, the study’s author, believes the IPRI analysis suggests that “the most developed countries are characterized by high levels of IPRI” and that “there is a positive correlation between economic development and strength of property rights regimes.”

But even when a legal framework is present, accessibility can be in question. In some cases, elite levels of society may benefit from the law, but the poor and middle class, who lack political and economic connections, are excluded from its protection. Under such conditions, the poor need more than personal ambition to flourish and maintain stability; they require equal access to secure property rights and land title.

This yearning for equal treatment under the law was, in fact, the very spark that ignited the “Arab Spring” revolutions that began in 2011.

What happened in Tunisia? A closer look at the origins of the “Arab Spring”

Development economist Hernando de Soto and his team at the Institute for Liberty and Democracy (ILD) conducted research on the economic, legal, and political environments in the Middle East and North Africa (MENA), and found the lack of sound legal protection and property rights to be among the main causes of the 2011 uprising. A portion of their research points to Tunisia specifically and is documented in the 2013 IPRI by Ana Lucía Camaiora.

The country witnessed firsthand the beginning of the Arab Spring, when on December 17, 2010, fruit vendor Mohamed Bouazizi lit himself on fire in the Tunisian city of Sidi Bouzid. Earlier in the day, town inspectors had accused him of failing to pay a fine for an arbitrary infraction. They proceeded to seize his produce and electronic scale, the entire capital of his business. A municipal police officer slapped him across the face in front of the crowd that had gathered, and when Bouazizi appealed to authorities that his property be returned he got nowhere.

Bouazizi’s tragic act was precipitated by deep-seated corruption and a prevailing legal vacuum. Entrepreneurs like Bouazizi can work day and night, but get nowhere because they continually face property rights infringements and harassment by local officials. Unable to establish collateral, they are often denied access to credit and loans, and remain blocked off from the basic legal frameworks which enable development. They are left in a vulnerable position, unable to access the market and at the mercy of local officials’ often unconscionable subversion of Tunisian law.

In effect, Bouazizi began a revolution against institutional barriers to business operation and property rights access. Within two months of his self-immolation, “63 others across the MENA region also set themselves afire, every one of them a small business entrepreneur, like Bouazizi,” reports Camaiora.

The ILD interviewed 20% of the protestors that survived their self-immolations and their families and learned that “the primary reason these protestors gave for this drastic action was ‘expropriation.’” According to Camaiora, “Bouazizi might be representative of an emerging Arab underclass that runs businesses and occupies property but without having the legal tools to generate capital, guarantee credit, and create additional value.”

Business development and the extralegal sector

In the West, private property is often taken for granted. The right to own and use property is protected by law. In MENA, entrepreneurs’ ability to operate business relies on modating relations with local authorities, many of whom are corrupt, not a broad legal standard.

The ILD research team believes there are three legal principles essential for everyone, particularly the poor:

formal and fungible property rightslegal mechanisms that increase productivity through the creation of business organizational formslegal mechanisms for enterprises to operate in expanded markets, i.e. circles of exchange beyond family members and munity

Though many of these legal mechanisms exist within Tunisia, they are not accessible to all Tunisians, forcing most people to step outside the legal sphere in order to make a living. Businesses and property within this category are referred to as “extralegal assets,” which cannot be used optimally (for example to buy, sell, lease, or transfer title), because their holders ply with the legal provisions governing their use. The ILD team estimates that 85% of all enterprises in the country are extralegal, and 83% of the total population resides in extralegal dwellings.

A main reason why the vast majority of Tunisian entrepreneurs remain extralegal: they simply “cannot deal with plexities and high costs of the legal system,” states Camaiora. Even entrepreneurs capable of traversing the bureaucratic maze are often stifled by the arbitrary power of corrupt officials, who subvert the legal process with special privileges and unauthorized action.

Those who attempt to adhere to legal standards face a long, drawn-out business start-up process. To establish a small sole proprietorship in Tunisia takes “55 administrative steps during 142 days and requires spending some US $3,233 (not including maintenance and exit costs),” reports Camaiora. Similar obstacles exist in other parts of MENA. In Algeria for example, the team found that “to establish and operate a fast food restaurant in the Rouiba, an entrepreneur has to go through a procedure that involves 86 administrative steps that take 222 days plete and costs US $11,592.” Even once the business is established, there is often no clear land title. It is not mon that the parcel on which the business stands is registered in the name of several owners.

De Soto maintains that in many cases, legal systems are “simply unfriendly to poor people,” especially in the developing world. Private property and rule of law, which many Tunisians have fought for and made sacrifices for, are essential aspects of development, and some would argue, fundamental rights.

Unfortunately, the humble origins of the Arab Spring revolutions sparked by small businessmen and women have largely been lost amidst the chaotic geopolitical wrestling matches that followed. Property rights, rule of law, and the success of small fruit stands don’t make for flashy headlines.

A frequent assertion is that e inequality” or “an unfair distribution of wealth” was the motive for the uprising. But the personal stories of the entrepreneurs who self-immolated in MENA present a very different narrative. They were not demanding financial assistance or lamenting the fact that some people pensated more handsomely than others. Rather, they were crying out for access to the basic foundations which enable them to create wealth for themselves and munities.

In a Foreign Policy article, de Soto shares the powerful message he and the ILD team received from Bouazizi’s family after his death:

We asked Salem, one of Bouazizi’s brothers, what his brother in heaven might have hoped his sacrifice would bring to the Arab world. Salem did not hesitate: ‘That the poor also have the right to buy and sell.’

For more from Hernando de Soto, visit his PovertyCure Voice page: Hernando de Soto — Property Rights & Rule of Law.

This article is cross-posted from the PovertyCure Blog.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The labeling conspiracy is expanding
It looks like Julianne Malveaux is going to have to expand plaint against the labeling of milk to a whole new spate of products, including yogurt. It may be that the whole scope of ing from the dairy industry is going to be affected. Here’s the label off a yogurt container that I ate out of last week: Malveaux is concerned that this kind of labeling, which she argues deceives the consumer into thinking that the product approximates “organic” certification,...
T-U-R-T-L-E power
This might just be the best argument for increasing the minimum wage that I’ve heard yet: It’s just not fair that Michelle needs to go deep in hock to “feed her Ninja Turtle obsession,” is it? Well, maybe such an “obsession” leads to making poor economic decisions, but to each her own I guess. How sad. In related news, the newest TNMT movie is set for release on March 23, 2007. ...
The right to a religious education
Sen. Dave Schultheis of Colorado has “proposed a ‘Public Schools Religious Bill of Rights’ bat what he calls mounting, nationwide violations of students’ and school staffs’ constitutionally protected religious freedom.” Without endorsing any particular elements of Schultheis’ bill, I have to admit that I have actually considered writing a piece on an idea like this before, a students’ bill of rights which includes the right to learn about God. It strikes me that for people who are religious, the current...
Bainbridge on the Boston Scare: ‘Triumph of capitalism’
Prof. Bainbridge on the hijinks of the Boston duo responsible for the now infamous ad campaign for Adult Swim: “These guys validate my life’s work: They confirm that corporations rule the world and are therefore a worthy subject of study.” Here’s the rather incredible press conference, where almost every question is answered with, “Sorry, that’s not a hair question.” The best part is when a reporter actually gets them to address the situation, if even in a somewhat round about...
The Super Bowl and Christian freedom
This is, as millions already know, Super Bowl week. Nothing is hyped all across America quite like the Super Bowl. This game has reached amazing proportions when es to the viewing audience and mercialization. It is a stunning piece of popular culture and one doesn’t know whether to weep about it or celebrate. Some pietistic folk see this as clear evidence that there is little real difference between us and the ancient Romans in the Coliseum. Others think this is...
European Union releases comic book; EU unintentional comedy production skyrockets
“We noticed that they took the umbrellas and the pens, but threw away the policy leaflets before they walked out of the door.” You don’t say? It’s the weekend; I can get away with a post like this on the weekend. Update: “If all the legislation the EU has passed were laid out lengthways it would be over 120 miles long, whilst legislation currently in force would be 31.7 miles long.” ...
Environmental indulgences
Among the immediate causes of the sixteenth-century split in Western Christianity was the sale of indulgences. The theological crudity of this abuse was encapsulated in the venality of Dominican friar Johannes Tetzel, whose activities in Wittenberg riled Martin Luther. Tetzel allegedly preached “Sobald das Geld in Kasten klingt, die Seele aus dem Fegefeuer springt.” (“As soon as the coin in the box clinks, the soul out of purgatory springs.”) That slogan came to mind as I was reading Jay Nordlinger’s...
re: Environmental indulgences
Follow up thought, Kevin: Church indulgences had their roots in cheerful giving. Lots of cheerful “carbon giving” going on right now too; in fact, I’d call it downright prideful (which is why giving to God always had this condition on it). That cheerful giving morphed into aguilt-giving, and was ultimately mangled by the Guardians of Truth intoਊ pulsory tax on the faithful. Will we see a similar pattern emerge here? Would not be surprised. Nor would I expect such a...
Material goods and “The Pursuit of Happyness”
In this week’s Acton Commentary, I review Will Smith’s latest movie, The Pursuit of Happyness, which stands as an extended argument underscoring the truth of conservative values. This may sound like an improbable anomaly given the traditional political, ethical, and social allegiances of Hollywood, but the power of the story lies in its basis in fact, the real-life story of Christopher Gardner. This in turn prevents it from being appropriated as a tool for liberal political ideology. The movie’s depicts...
Faith and international development at Calvin College
Received an announcement today about this event to be held later this week, “Faith and International Development Conference,” at Calvin College in Grand Rapids, Mich., from February 1-3. Check out the list of sponsors at the bottom of the page, including: Bread for the WorldMicah ChallengeOffice of Social Justice and Hunger Action Just a hunch, but I wouldn’t expect a lot of market-friendly perspectives to be included. ...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved