Rachana Panthi
On May 1st and 2nd, I had the opportunity to participate in a colloquium organized by the Hriti Foundation. The theme of the colloquium was the Eastern perspective of freedom. During these two days and seven sessions, we learned about the concept of freedom. Through articles written by great economists such as Lawrence W. Reed and Armen A. Alchian, we discussed many things that were new to us. In Nepal, with its mixed system and slightly unstable political dynamics, many ideologies get mixed during the formation and implementation of laws or policies, creating a very unclear dynamic of understanding.
One topic among all those we discussed that really stayed with me was that of property rights, their meaning, and their importance in building a stable democratic nation. I have always been a big admirer of democratic principles and countries governed by them, and learning about the relationship between property, ownership rights, and making citizens accountable had a strong impact on me.
According to Armen A. Alchian, a property right is the exclusive authority to determine how a resource is used, whether that resource is owned by the government or by individuals. Society approves the uses selected by the holder of the property right with government-administered force and with social ostracism. If the resource is owned by the government, the agent who determines its use has to operate under a set of rules determined, in the United States, by Congress or by executive agencies it has charged with that role.[i]
According to Lawrence W. Reed, in the second point of his article Seven Principles of Sound Public Policy, “What belongs to you, you tend to take care of; what belongs to no one or everyone tends to fall into disrepair.”[ii]
After reading Armen A. Alchian and Lawrence W. Reed, I found that both writers talk about the importance of property rights, even though they explain it in slightly different ways. They both agree that when someone has ownership or control over something—whether it’s land, money, or anything else—they take better care of it. They also believe that property rights help keep society fair and organized.
Armen A. Alchian says that property rights give someone the power to decide how a resource should be used. For example, if I own a house, I can decide who lives in it, whether to paint it, or to plant flowers outside. This right is protected by laws and supported by society. If someone tries to use my house without my permission, the law will stop them. Alchian also says that even when the government owns something, like a public park or building, someone (like an official or agency) must be clearly responsible for it. That way, it’s not left uncared for.
Lawrence W. Reed, in his article on the seven principles of good public policy, says something very similar. He explains that people take care of what they own, but they often don’t care much about things that don’t belong to them. He gives a simple example: if a bicycle belongs to you, you’ll clean it, fix it, and keep it safe. But if the bicycle belongs to everyone, no one may feel responsible for it. It might get rusty or broken because everyone expects someone else to take care of it. This happens a lot with public property when there’s no clear responsibility.
Reading both writers made me realize that property rights are not just about owning something—they are about caring for it. When a person or group knows that something is theirs, they feel responsible. They make better choices and put more effort into protecting or improving it. This is important in daily life, but also in how countries work.
In a democratic society like ours, property rights are very important. When people are allowed to own land, businesses, or homes, they feel more secure and free. They have something to work for and protect. This also makes them more active in the community and in politics. If the government takes away property or does not protect property rights, people lose trust and feel powerless.
So, the common point I found in both Alchian and Reed’s writings is that clear and protected property rights help people act more responsibly. They also help societies stay fair, peaceful, and strong. Whether it is personal property or public resources, someone should always be responsible. This simple idea supports freedom, care, and democracy.
[i]https://www.econlib.org/library/Enc1/PropertyRights.html#:~:text=A%20property%20right%20is%20the,force%20and%20with%20social%20ostracism.
[ii] https://www.mackinac.org/archives/2010/7Principles2009FINALweb.pdf