1. Introduction Part 1: “What Is Poverty and Who Are the Poor? ”

2. Introduction: “What Is Poverty and Who Are the Poor? ”

3. 1,300,000,000 $1.25/day People Living in “Extreme Poverty” World Bank World Bank 2010

4. Economic Terminology Income Wealth GDP (Gross Domestic Product) Per capita GDP Why do we use GDP to measure poverty?

5. Economic Terminology Absolute Poverty – measured against a designated minimum threshold of material well-being. The incomes of the poor fall below the minimum threshold. –Current standard = $1/day PPP Relative Poverty - identified by comparing levels of material well-being experienced by different individuals or groups, rather than by comparing the level of well-being to a standard.

6. Consumption Measure of Number of Poor by World Region Poverty Can Be Measured by Either Output (GDP) or Consumption Regions200052008 East Asia and the Pacific 332 million284 million Eastern Europe and Central Asia 6 million 2 million Latin America and the Caribbean 48 million 37 million Middle East and North Africa 11 million 9 million South Asia 598 million571 million Sub-Saharan Africa 395 million386 million Total 1.39 billion1.289 billion Reduction in number of poor, 2005-2008: 101 million Sources: World Bank Poverty and Inequality http://www.worldbank.org/Data/Views/Reports/TableView.aspx (May 1,2012 http://www.worldbank.org/Data/Views/Reports/TableView.aspx

7. Countries of the World; Low, Middle and High Income

8. The number of extreme poor has declined by 500 million since 1981

9. Share of World Population in Poverty, 1820 – 1998 ($1/day) World BankDavid Dollar, Development Research Group, World Bank. “Capitalism, Globalization and Poverty.” unpublished paper, written for The Foundation for Teaching Economics, March, 2003, p. 27

10. Number of People Living on Less Than $1 Per Day, 1820 - 1998 1980 World BankDavid Dollar, Development Research Group, World Bank. “Capitalism, Globalization and Poverty.” unpublished paper, written for The Foundation for Teaching Economics, March, 2003, p. 27

12. World Bank 2009

13. ..\..\..\Videos\RealPlayer Downloads\Hans Rosling's 200 Countries, 200 Years, 4 Minutes - The Joy of Stats - BBC Four.flv..\..\..\Videos\RealPlayer Downloads\Hans Rosling's 200 Countries, 200 Years, 4 Minutes - The Joy of Stats - BBC Four.flv

14. Introduction Part 2: “What Is Poverty and Who Are the Poor? ”

15. ~1750

16. Years of Life Expectancy at Birth Place Middle Ages Select Years1950-55 1975-80 2005-10 France~30 (1800)6674 81 UK20-30~36 (1799-1803) 6973 79 India25 (1901-11) 39 53 64 China25-35 (1929-31) 41 65 73 Africa38 48 51 World20-3046 60 67 Sources: Lee and Feng (1999); Peterson (1995); Wrigley and Schofield (1981, 529); World Resources Institute (2011); UNDP (2002) http://hdr.undp.org/statistics/data/indic/indic_1_1_1.htmlhttp://hdr.undp.org/statistics/data/indic/indic_1_1_1.html

17. Real Gross Domestic Product Per Capita (1990$ International PPP) Area1000150017001820195219952001 Europe$400~$6408701,1304,37013,95019,256 USA6001,26010,65023,38027,948 India530 6101,5701,957 China450600 5403,2003,583 Africa400 1,2201,489 World4205506006702,2705,1906,049 Sources: Maddison (1998, 1999) Development Centre Studies The World Economy: Historical Statistics, Maddison, 2003.

18. Real Gross Domestic Product Per Capita (2005$ International PPP) 19952001200720102012* Europe$24,67428,36430,78929,76530, 455 USA 33,90339,60241,26040,65049,965 India 1,452 1,832 2,685 3,2403,876 China 1,849 2,868 5,239 6,8109,233 Africa 1,498 1,589 1,914 2,022 World 7,037 7,955 9,535 9,86910,922 Sources: Maddison (1998, 1999) Development Centre Studies The World Economy: Historical Statistics, Maddison, 2003. *University of Pennsylvania

19. Africa Continues to Lag Behind: 1/3 of the world’s “extremely poor” What does recent research tell us about why Africa continues to lag behind – and what we can do about it?

21. What does Capitalism have to do with Poverty?

23. Overall Economic Freedom Index and the Top 10 Source: The Fraser Institute.

24. Overall Economic Freedom Index and the Bottom Ten Source: The Fraser Institute.

25. Per Capita Income and Economic Freedom Quartile Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013 Most Free ……………. Least Free

26. Growth in Developing Nations Per Capita and Economic Freedom Quartile Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013. Most Free ……………. Least Free %

27. Income Share of the Poorest 10% and Economic Freedom Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013. Most Free ……………. Least Free

28. Income of the Poorest 10% and Economic Freedom Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013. Most Free ……………. Least Free

29. Economic Freedom and Political Rights (low scores indicate high level of rights) Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 2011, available at http://www.freedomhouse.org/. Most Free ……………. Least Free

30. Economic Freedom and Civil Rights Low scores indicate high level of rights Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 2011, available at http://www.freedomhouse.org/. Most Free ……………. Least Free

31. Economic Freedom and Corruption High scores indicate low corruption Sources: The Fraser Institute; Transparency International, Corruption Perceptions Index, 2012 available at http://www.transparency.org. Most Free ……………. Least Free

32. Economic Freedom and Life Satisfaction Sources: The Fraser Institute; Happy Planet Index 2012 Most Free ……………. Least Free

33. Economic Growth improves the lives of the poor by making the pie bigger Bigger “slices” mean higher standards of living

34. Reduced Poverty Since 2000: Research on Growth vs. Safety Net ? 1. 4/5 growth / 1/5 redistribution (Dollar, Kraay, Kleineberg study) context matters: averages hide wide range of variation 2.economic growth is not generally associated with increased income inequality: the (overall) share of income going to the poorest 2 quintiles (40%) does not change significantly with growth poor governance often increases income inequality for specific populations in specific locations 3.4/5 of the improvements in the lives of the poorest 40% of the population over the past decade are attributable to economic growth; 1/5 is attributable to redistribution Talking about “Is Capitalism Good for the Poor?” distinguish between “poverty” v. “poor people” distinguish between treating symptoms v. underlying causes

35. Reduced Poverty Since 2000: Research on Growth vs. Safety Net ? 1.75% growth / 25% redistribution (Dollar, Kraay, Kleineberg study) context matters: averages hide wide range of variation safety net (redistribution) econ growth demographic comp.

36. Africa Continues to Lag Behind: 1/3 of the world’s “extremely poor” What does recent research tell us about why Africa continues to lag behind – and what we can do about it?

37. Classroom Activity – Lesson 1: “Defining Terms”

38. “Capitalism” is identified by its characteristic institutions Institutions: the formal and informal “rules of the game” that shape incentives and outline expected and acceptable forms of behavior in social interaction. Private Property Rights Rule of law Open, competitive markets Entrepreneurship and innovation

39. Present ?Evidence? markets private property rule of law entrepreneurship ECONOMIC ANALYSIS clearly present – the component is present in the economy with few exceptions generally present – the component is present in the economy, but with many or significant exceptions generally absent – the component is only present in the economy in some limited forms clearly absent – the component is almost entirely excluded from the economy not enough information

40. United States The judiciary functions independently and predictably although serious constitutional questions have arisen regarding the government mandated health insurance decision. Corruption and cronyism is on the increase and is undermining the institutional integrity of the rule of law, resulting in an 86 th percentile ranking in control of corruption and a corruption perception index of 7.1 (out of 10) by Transparency International and a decrease of 4 points in the heritage Foundation score to 71 from a previous 75 in 2010. Property rights are guaranteed, although affected by increasing regulations, ranking the US 19 th in the world, with a score of 85 out of 100 by the Heritage Fndn.

41. Specific Situation: Apple Patent Victory Aug. 25, 2012 SAN JOSE, Calif.—Nine jurors delivered a sweeping victory to Apple Inc. in a high-stakes court battle against Samsung Electronics Co., awarding the Silicon Valley company $1.05 billion in damages and providing ammunition for more legal attacks on its mobile-device rivals. Jurors Friday found that Samsung infringed all but one of the seven patents at issue in the case—a patent covering the physical design of the iPad. They found all seven of Apple's patents valid—despite Samsung's attempts to have them thrown out. They also decided Apple didn't violate any of the five patents Samsung asserted in the case.

42. Present ?Evidence? markets private property rule of law entrepreneurship clearly present Prices and products determined in markets Patents upheld Courts act and decisions are enforced Millions of companies operate in every sector ECONOMIC ANALYSIS clearly present – the component is present in the economy with few exceptions generally present – the component is present in the economy, but with many or significant exceptions generally absent – the component is only present in the economy in some limited forms clearly absent – the component is almost entirely excluded from the economy not enough information

43. 2012 Country Scenario Updates

44. Capitalism is best thought of not as “a system,” but as a continuum of institutional combinations.... Less capitalist More capitalist

45. Capitalism is best thought of not as “a system,” but as a continuum of institutional combinations.... Less capitalist More capitalist

46. Capitalism is best thought of not as “a system,” but as a continuum of institutional combinations.... Some institutional forms confer benefits on the poor... and others do NOT. Less capitalist More capitalist

47. Heritage: www.heritage.org/index/

48. freetheworld.com – Index of Economic Freedom

49. Ranking Criteria: Size of government Legal system & Property rts Sound money Freedom to trade internationally Regulation

50. 1. Size of Government A. Government consumption B. Transfers and subsidies C. Government enterprises and investment D. Top marginal tax rate (i) Top marginal income tax rate (ii) Top marginal income and payroll tax rate Process: Identify quantifiable data that can be used to rank countries. Consider how these measures connect to the institutions we ranked in the “Will the Real Capitalism?” activity: markets, entrepreneurship

51. 2. Legal System and Property Rights A. Judicial independence B. Impartial courts C. Protection of property rights D. Military interference in rule of law and politics E. Integrity of the legal system F. Legal enforcement of contracts G. Regulatory restrictions on the sale of real property H. Reliability of police I. Business costs of crime rule of law, entrepreneurship, property rights

52. 3. Sound Money A. Money growth B. Standard deviation of inflation C. Inflation: most recent year D. Freedom to own foreign currency bank accounts entrepreneurship

53. 4. Freedom to Trade Internationally A. Tariffs (i) Revenue from trade taxes (% of trade sector) (ii) Mean tariff rate (iii) Standard deviation of tariff rates B. Regulatory trade barriers (i) Non-tariff trade barriers (ii) Compliance costs of importing and exporting C. Black-market exchange rates D. Controls of the movement of capital and people (i) Foreign ownership/investment restrictions (ii) Capital controls (iii) Freedom of foreigners to visit markets

54. 5.Regulation A. Credit market regulations (i) Ownership of banks (ii) Private sector credit (iii) Interest rate controls/ negative real interest rates B. Labor market regulations (i) Hiring regulations and minimum wage (ii) Hiring and firing regulations (iii) Centralized collective bargaining (iv) Hours regulations (v) Mandated cost of worker dismissal (vi) Conscription C. Business regulations (i) Administrative requirements (ii) Bureaucracy costs (iii) Starting a business (iv) Extra payments/ bribes/favoritism (v) Licensing restrictions (vi) Cost of tax compliance Markets, entrepreneurship

55. Hong Kong Finland Canada Chile Jordan U.S. Ireland Peru Israel Czech Republic Poland Uganda Malaysia Indonesia Belize Russia Egypt India Venezuela 10 9 8 7 6 5 Fraser Institute Index of Economic Freedom 2013 (Released Sept. 2013) Most Free: Hong Kong 8.97 Least Free: Venezuela 3.93 2011 data

56. Hong Kong Canada Finland Chile Ireland U.S. Jordan Peru Poland Uganda Israel Czech Republic Malaysia Indonesia Belize Russia Egypt India Venezuela 10 9 8 7 6 5 Fraser Institute Index of Economic Freedom 2012 (Released Sept. 2012) Most Free: Hong Kong 8.9 Least Free: Venezuela 4.07 2010 data

57. 2013 Rankings* (Out of 151) Hong Kong 1 Singapore 2 NZ 3 Switzerland 4 UAE 5 Mauritius 6 Finland 7 Bahrain 8 Canada 8 Australia 10 Chile 11 United Kingdom 12 Jordan 13 (42 in 2010, 62 2012) U.S. 17 (3 in 2006) Israel 49 (44 in 2007, 83 in 2011) Poland 59 (88 in 1990, 44 in 2012) Uganda 64 (67 in 2010, 51 in 2001, 113/113 in 1990) Greece 85 Kenya 87 Mexico 94 (69 in 2010) Russia 101 Egypt 108 (from high of 46, 80 in 2010) India 111 China 123 (82 in 2010) Iran 127 Ethiopia 142 Zimbabwe 149 Myanmar 151 Venezuela 152 *2010 Data * 2011 data

58. 2012 Rankings* (Out of 144) Hong Kong 1 Singapore 2 NZ 3 Switzerland 4 Australia 5 Canada 6 Bahrain 7 Mauritius 8 Finland 9 Chile 10 United Kingdom 12 Ireland 12 U.S. 18 (down from 3 in 2006) Japan 20 Poland 48 (88 in 1990) Uganda 50 (67 in 2010, 51 in 2001, 113/113 in 1990) Jordan 62 (42 in 2010) Greece 81 Mexico 91 (69 in 2010) Egypt 99 (from high of 46, 80 in 2010) Israel 52 (44 in 2007, 83 in 2011) Russia 95 China 107 (82 in 2010) India 111 Iran 111 Zimbabwe 142 Myanmar 143 Venezuela 144 *2010 Data * 2010 data

59. Africa Continues to Lag Behind: 1/3 of the world’s “extremely poor” What does recent research tell us about why Africa continues to lag behind – and what we can do about it?

60. Reduced Poverty Since 2000: Research on Growth vs. Safety Net ? 1.75% growth / 25% redistribution (Dollar, Kraay, Kleineberg study) context matters: averages hide wide range of variation safety net (redistribution) econ growth demographic comp.

61. Reduced Poverty Since 2000: Research on Growth vs. Safety Net ? 1. 75% growth / 25% redistribution (Dollar, Kraay, Kleineberg study) context matters: averages hide wide range of variation 2.economic growth is not generally associated with increased income inequality: the (overall) share of income going to the poorest 2 quintiles (40%) does not change significantly with growth poor governance often increases income inequality for specific populations in specific locations 3.4/5 of the improvements in the lives of the poorest 40% of the population over the past decade are attributable to economic growth; 1/5 is attributable to redistribution Talking about “Is Capitalism Good for the Poor?” distinguish between “poverty” v. “poor people” distinguish between treating symptoms v. underlying causes

62. Income Share of the Poorest 10% and Economic Freedom Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013. Most Free ……………. Least Free

63. Income of the Poorest 10% and Economic Freedom Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013. Most Free ……………. Least Free

64. Growth in Developing Nations Per Capita and Economic Freedom Quartile Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013. Most Free ……………. Least Free %

65. Focus of lessons 2-5 in “Is Capitalism Good for the Poor?” Private Property Rights Rule of law Open, competitive markets Entrepreneurship and innovation Institutions Associated with Economic Growth

67. Proposal Selection Form Proposer Identification Code __________________ Circle a proposal: 19/1 18/2 17/3 16/4 15/5 14/6 13/7 12/8 11/9 10/10 9/11 8/12 7/13 6/14 5/15 4/16 3/17 2/18 1/19 If the responder accepts this proposal, I will receive ________ and the responder will receive ________. If the responder does not accept this proposal, both the responder and I will receive $0. XyZpDQ $$$$$

68. Responder Identification Code _________________ If I accept the proposal circled above, I will receive ________ and the proposer will receive ________ If I reject this proposal, I will receive $0 and the proposer will receive $0. Circle either accept or reject below. ACCEPTREJECT 123LMNO Proposer Identification Code __________________ Circle a proposal: 19/1 18/2 17/3 16/4 15/5 14/6 13/7 12/8 11/9 10/10 9/11 8/12 7/13 6/14 5/15 4/16 3/17 2/18 1/19 If the responder accepts this proposal, I will receive ________ and the responder will receive ________. If the responder does not accept this proposal, both the responder and I will receive $0. ******************** XyZpDQ $$$$$

69. What did the proposers offer? Why? How did they decide how much to offer?

70. Which offers did responders accept? / reject? Why? How did responders decide whether to accept or reject an offer?

71. A fundamental assumption of economics is that economic man is a rational decision- maker who acts in his self-interest. Are the results of this activity consistent with this theory of homo economicus (economic man)? Why or Why not?

72. Classroom Activity – Lesson 5: “Institutions That Promote Social Cooperation”

73. Classroom Activity – Lesson 5: “Character Values and Capitalism”

74. John Nash – 1994 Nobel Prize in Economics for his work in game theory Game Theory – the study of interactions in which the results of one person’s choices depend not only on his own behavior, but also on the choices made by another person. Vernon Smith – 2002 Nobel Prize in Economics for experimental economics, which builds on game theory. Experimental Economics - History

75. “These experiments create an empirical challenge to what we call the selfishness axiom— the assumption that individuals seek to maximize their own material gains in these interactions and expect others to do the same.” (Joseph Henrich, Emory University – recently completed a 4-continent research project in which the Ultimatum Game was played in 15 indigenous societies) Purpose of Ultimatum Game Experiments

76. If individuals “seek to maximize their own material gains,” and assume that other people do, too, what will proposers do? Why? (explain their thinking)

77. If individuals “seek to maximize their own material gains,” and assume that other people do, too, how will responders react to proposals? Why?

78. Results of Large Numbers of Ultimatum Game Experiments*: the modal (most common) split is 50% - 50% the mean (average) split is about 60% - 40% about 20% of low offers are rejected * Games conducted with college students in the U.S. and other developed countries. Students were paid to participate. Stake was the equivalent of $10 U.S. Results are considered to be “robust.”

79. Conclusions: The results of ultimatum games are inconsistent with the model of economic man that predicts material self-interest (selfishness). Note, especially, the rejection rate.

80. Proposed Explanations “Other-regarding” behavior is one of our preferences – we gain satisfaction not only from our lives (as the homo economicus model predicts), but also from the lives of others. Players demand fairness, and punish unfair behavior on the part of proposers. –Responders take into account not just the amount of money offered but also the percent of the total.

81. Proposed Explanations (cont.) More equal splits may be less the result of fearing punishment for being unfair than they are the result of individuals’ concern for their reputations –This is consistent with the results of experiments comparing the behavior of people in market and non-market economies. –(also consistent with Adam Smith’s observations)

82. Behavior in none of the 15 less-developed societies was consistent with the selfishness axiom. Individual differences do not explain ultimatum game outcomes –age, –gender, –socio-economic status, –risk-aversiveness, –size of the stake (up to 3 months income) Conclusions based on continued research: However...

83. in the routine degree of economic cooperation in everyday life and in the degree to which markets are an integral part of society Group Differences are significant in explaining experimental outcomes

84. Thus, we return to institutions: 1.The way people play the ultimatum game reflects the way they interact in everyday life. 2.Splits are more equal in cultures where people commonly exchange products and labor in markets. 3.Markets are institutions through which societies develop distinctive patterns of interaction, which may be internalized and reflected in ultimatum game behavior.

85. Suppose that someone argued that capitalism is not good for the poor because it makes people greedy and selfish and encourages them to ignore others and think only of themselves. How could you use the results of ultimatum game experiments to counter that argument? Food for Thought (or assessment)

86. Classroom Activity – Lesson 2: “Property Rights and the Rule of Law”

87. Property Rights ARE Human Rights Property rights are the rights of human beings to freely use and transfer their possessions, including themselves. PeopleNotProperty

88. Property Rights: New in Human History

89. Benefits to the Poor Under the rule of law, the poor can be secure in their property rights, which gives them the opportunity to use property to improve their well-being. part 2: How property rights encourage growth by providing incentives for the creation of capital.

90. Lesson 2: “Property Rights and the Rule of Law” Capital – dead or alive ? Property Rights benefit the poor by making owned capital secure and productive.

91. Property Rights and Growth Property Right holders have an incentive to preserve their property. Owners consider the future. Owners more likely to improve property –because they retain the value of the improvements

92. Investment Secure property rights make investment more likely. Property Rights allow people to obtain debt. –Use of past and future incomes. –Collateralization is of greatest benefit to the poor.

93. Greater Security = Greater Productivity Property rights benefit the poor more than the rich (who can defend their own property rights) –definition and enforcement of Property Rights gives the poor the same rights enjoyed by the rich. Secure property rights contribute to economic growth by enabling the poor to shift effort from protective to productive activities.

94. Secure Property Rights Defined Defensible Divestible

95. India’s Dalits: “Untouchable” Informal restrictions on property rights

96. Defined but not Enforced A right that is defined but not enforced is useless. Property Rights... AND the Rule of Law AND the Rule of Law

97. Rule of physical force (anarchy) Rule of men Rule of law Securing Property Rights

98. Rule of Physical Force DefinedSeldom and then not clearly DefendedOnly for those with the physical force to do so or the money to pay someone else Peaceful divestiturePeaceful transfer uncommon – even through inheritance Characteristics of Property Rights Under Anarchy

99. Rule of Man DefinedSometimes – but often irrelevant or ignored DefendedOnly for those who have the favor of those in charge Peaceful divestitureSubject to the wishes of those in power Characteristics of Property Rights Under Rule of Man Formal laws may exist, but enforcement is subject to the whim of those in power

100. Rule of Law Definitionclear DefendableYes – both publicly and privately DivestiblePeaceful transfer routine Characteristics of Property Rights Under Rule of Law: Both the governed and the governors are subject to the law.

101. Big Picture Rights to property promote economic growth by encouraging preservation, improvement and investment in owned resources. In societies without clearly defined property rights the poor are disadvantaged because they lack the resources to enforce their rights. To effectively stimulate economic growth property rights must exist within a society characterized by stable and predictable rules of law.

102. Classroom Activity – Lesson 2: “Property Rights and the Rule of Law”

103. Importance of Property Rights to Economic Growth and to the Well-being of the Poor Para, Brazil Amazon Basin

104. Focusing the Research: The Role of Property Rights in Reducing Poverty We KNOW: Economic growth is the key to reducing absolute poverty and raising standards of living. One source of economic growth is increased productivity, the ability to increase output per unit of resource input. Productivity is increased through investment in human and physical capital People invest in their human capital by getting education, training, or experience. Investment in physical capital includes developing and/or purchasing the buildings, machines, and equipment that make human labor more productive. People take better care of things they own. Property rights act as an incentive for people to protect the value of their possessions.

105. We WANT to know: Are property rights a tool in fighting poverty? Does the existence of strong property rights promote economic growth? Does clear title to land encourage (act as an incentive for) capital investment? Research Question: On the Amazonian frontier of Brazil, are landholders with title more or less likely than landholders without clear title to invest in capital improvements to their land?

106. Ricardo’s Journal June 01, 1993 11:49 a.m. Fax to Dr. Lee Alston and Dr. Gary Libecap The travel to São Felix was not too bad as I expected. We went on the back of a pick-up truck, and although crowded (13 people, 2 kids and two chickens on the truck and 4 people on the cabin) it was better than a bus....

107. Ricardo’s Journal To get a better sample, I choose to survey the colony in the two opposite extremes. One 4 minutes down river from town (Santa Rosa) and other 5 hours upriver (Chadazinho). About half people I surveyd had definitive land tittle, but only a few are registered... and only few are in the name of landholder. Usually, the tittle is on name of the previous holder (i.e. when the previous owner sold the land, he gave as well the tittle). Sometimes the farmers got also a power of attorney paper, sometimes not. Registering the tittle and transferring is very expensive and this is the reason people usually do not do it.

108. Current Land- holder’s Name Has Clear Title to Land ? Hect cleared Hect perman- ent crops added Chick- ens CattlePigsHorsesHect pasture added Meters fenced Almezino Yes12.527.54050100301600 Fco. No2022200243202600 Raimundo Yes172580111314240 Raul Yes226301201201000 Marcelo (1) Yes001002000 Julia Yes012.52530041500 Ant. Evang Yes212.5100204043300 Anor. Yes01570012012000 Geraldo Yes835701003510208,000 Survey Data

109. Current Land- holder’s Name Has Clear Title to Land ? Hect cleared Hect Perman- ent crops added ChickensCattlePigsHorsesHect pasture added Meters fenced Jose Cirilio Yes20430505320800 VicenteNo12.514100273312.51000 NO - The settler has no claim to the land other than occupancy (squatter), or his claim is uncertain. For example, the settler holds a signed receipt from a previous owner, or the settler has a provisional title which hasn’t been registered. Yes – The settler has a clear and legally recognized title to the land and the title would be upheld in a court of law. The number of hectares the farmer cleared since he became the landholder. (Land cleared by a previous owner is not included.) 1 hectare = ~2.5 acres, or 2.5 football fields. Permanent crops are usually tree crops such as bananas, coffee, and cocoa. Several years’ growth is required before they bear a significant crop. However, in the long run, they tend to be more valuable than annual crops (which are planted each year). Converting land to pasture required logging out the trees, and/or removing stumps and rocks, and/or seeding to create suitable grazing for cattle. Landholders could maintain livestock for their own use without much fencing. Raising cattle for market required fencing.

110. ActivityInvestment in Land? Yes / No Explanation Clearing land Planting permanent crops Buying chickens Buying cattle Buying pigs Buying horses Adding pasture. Fencing Identifying Investment

111. Average investment in meters fenced Average investment in hect pasture added Average investment in hect perm crops added Average investment in hect land cleared TitleNo title TitleNo title TitleNo title TitleNo title Calculating the Impact of Title

112. Average investment in meters fenced Average investment in hect pasture added Average investment in hect perm crops added Average investment in hect land cleared TitleNo title TitleNo title TitleNo title TitleNo title 1551.5 788.89 17.88 5.5 20.31 16.56 15.31 10.5 Calculating the Impact of Title

113. Predict – Who Has Title ? NameTitle to Land Hect cleared Hect Permanent crops added Hect Pasture added Meters fenced Osdete0?? Joao Golano 3585305500 Jose Carlos 251 0 Germano18.54400

114. Conclusions of the Pará Study Farmers were aware that having title increased the value of their property Farmers assessed the costs and benefits of obtaining title (distance, etc.) Farmers with title made significantly greater levels of investment in the productivity of their land Securing and enforcing the property rights of the poor is an important step in improving their well- being