Assessing the formal land market and deformalization of property in St. Lucia

In Latin America and the Caribbean vast sums of money have been directed at land formalization programs in an effort to make the benefits of private property available to small farmers in developing countries. These programs are motivated by the evolutionary theory of land rights (ETLR) which posits that property formalization, and its corresponding benefits, is key to development. To test certain key assumptions in this theory, we analyzed the impact of a land titling project in St. Lucia 18 years after it was completed. We find that land titling and registration were not sufficient to create and maintain a vibrant formal land market. We also find that titled property is reverting back to the informal system primarily through unregistered inheritances. The results challenge current assumptions, based on the ETLR, that property formalization will promote a formal land market. More importantly, we find that the formal property system is not being sustained. The study is significant given the comprehensive coverage and success of the land titling project in St. Lucia and the fact that sufficient time has passed since its completion to observe longer term effects on property and land tenure. (c) 2006 Elsevier Ltd. All rights reserved.