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’
Jan 26, 2026 10:02 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
PowerBlog Cracks EO’s Top 10
A big tip o’ the hat to Joe Carter over at evangelical outpost for including the Acton PowerBlog in The EO 100, which he describes as “the top 100 blogs that I have found to be the most convicting, enlightening, frustrating, illuminating, maddening, stimulating, right-on and/or wrongheaded by Christians expressing a Christian worldview.” Also check out the 30 Most Influential Religion Blogs at Faith Central by Times (UK) reporter Joanna Sugden. Alas, the PowerBlog did not make the cut for...
Everything Old is New Again
Here’s an interesting report from the Media Research Center’s Business & Media Institute on the cyclical nature of media coverage on the issue of climate change. We all know about the global cooling craze of the 1970’s, but who knew that the issue goes back more than a century? It was five years before the turn of the century and major media were warning of disastrous climate change. Page six of The New York Times was headlined with the serious...
‘A Threat to Tyranny Everywhere’
Arnold Kling had the opportunity to screen The Call of the Entrepreneur and published his reactions to it on Tech Central Station. In this rave review Mr. Kling, in the first paragraph, calls The Call both the “most subversive film” he has ever seen, and “a threat to tyranny everywhere.” He points out that while the film uses the so-called “G-word,” it avoids the scare-tactics that “An Inconvenient Truth,” also a religious film in his view, makes use of and...
A Weekend Emergent Village Experience
This weekend’s Midwest Emergent Gathering, held July 20-21 in Rolling Meadows, Illinois, was an event that I enjoyed participating in immensely. I was invited, by my friend Mike Clawson of up/rooted (Chicago), to answer several questions in a plenary session. I was billed as a friendly “outsider.” We laughed about this designation since many of my critics now assume that I am a “heretical insider” to Emergent. The truth is that neither is totally true. I am not so much...
Starting Young
Acton continues its award winning ad campaign by looking at how the entrepreneurial calling begins at an early age. A child who sets up a lemonade stand outside of his house is an entrepreneur, assuming a certain amount of risk and responsibility and providing a product that will increase the happiness of passers by. Adults often praise the hard work of children, especially children who find ways to earn something through their hard work, but often this attitude changes as...
National Security and Energy Policy
Over at the Becker-Posner blog, the gentlemen consider the question, “Do National Security and Environmental Energy Policies Conflict?” (a topic also discussed here.) Becker predicts, “Driven by environmental and security concerns, more extensive government intervention in the supply and demand for energy are to be expected during the next few years in all economically important countries. Policies that meet both these concerns are feasible, and clearly would have greater political support than the many approaches that advance one of these...
New books update
Bringing to your attention two recent publications by Journal of Markets & Morality contributors: The first is Less Than Two Dollars a Day: A Christian View of World Poverty aand the Free Market, by Kent Van Til, published by Eerdmans. The second is Economics in Christian Perspective: Theory, Policy, and Life Choices, by Victor Claar and Robin Klay, published by InterVarsity. Based on a quick perusal, I guess that the latter entry is a little more sanguine about the achievements...
Display the “Hot Ghetto Mess” For The World To See
I will make no friends with this post but some parts of black America are trapped in a moral crisis. The crisis will be on display this Wednesday when B.E.T. (Black Entertainment Television) debuts a new show called “We Got To Do Better” which is based off of a website called “Hot Ghetto Mess.” It’s time to stop playing words games and be honest: blacks (and others) who embrace a “ghetto” mentality are in deep trouble and, by extension, so...
John Chrysostom, On Wealth and Poverty, Part 3
Readings in Social Ethics: John Chrysostom, On Wealth and Poverty, part 3 of 3. There are six sermons in this text, based on the parable of the Rich Man and Lazarus. This post deals with the third and final pair. The first four sermons dealt directly with Chrysostom’s exegesis of the parable of Lazarus and the rich man. These latter two sermons were given on different occasions. References are to page numbers. Sermon 6: The es after an earthquake has...
‘Age Appropriate’ Sex Education
Senator and Presidential candidate Barack Obama has gained support from some Evangelical Christians. I recall some students and faculty at the Wesleyan Evangelical seminary that I attended supported Obama. Jim Wallis of Sojourners, when on the lecture circuit, pares Obama with famed British Parliamentarian William Wilberforce. This week, Obama spoke to a Planned Parenthood gathering where he reinforced his support for sexual education for kindergarteners. To be fair, Obama said the education should be age appropriate and that he “does...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved