elana panaritis
TRANSCRIPT
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
The Role of Property Rights in Green Investments on Real Property and Land
Elena PanaritisTBLI CONFERENCE EUROPE 2011
10-11 November 2011 – Grange St. Paul’s Hotel London, United Kingdom
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Who and What
The job of a SE is to recognize when a part of society isstuck and provide new ways to get it unstuck
Invents new sustainable solutions to change the system Spreads the solution Persuades entire societies to take new leaps!!!
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Who and What
Institutional economist and social entrepreneur
Transforming illiquid / informal / unreal to liquid property
Pioneered it in Peru
Applied methodology with
Panel Group LLC PG Thought for Action Authored Prosperity Unbound: Building Property
Markets with Trust
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
The World in Perspective
The world in illiquid / informal property
US $9 trillion of US $9 trillion of
informal /illiquid property informal /illiquid property
Over 4 billion people Over 4 billion people affectedaffected
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
No Boundaries…
The phenomenon does not recognize geographical boundaries …
Traditional Economists take property rights for granted Frictionless market with minimal transactions costs Downplay institutions and property rights Markets function with reliable and enforceable RIGHTS
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Distressed Markets & Property Rights
Illiquid Real Estate is an outcome of a
Broken Property Rights System
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Illiquid property varies Illiquid property varies
from from fully fully informal to informal to semi-informalsemi-informal
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
© Elena Panaritis 1615 L Street NW #`1200, Washington DC, 20036
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
© Elena Panaritis 1615 L Street NW #`1200, Washington DC, 20036
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
© Elena Panaritis 1615 L Street NW #`1200, Washington DC, 20036
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
© Elena Panaritis 1615 L Street NW #`1200, Washington DC, 20036
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
© Elena Panaritis 1615 L Street NW #`1200, Washington DC, 20036
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Broken property rights system
The extremes
Fully Informal:
Inaccessible
Formal:
No RiskSemi Informal:
High risk
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Environmental Impacts
…because of a broken property rights system
Environmental distortions
SYSTEMATIC EROSION OF CITIES AND RURAL AREAS
▪ Urban sprawl ▪ Land quality degradation ▪ Ineffective waste management▪ Increased carbon footprint
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Economic Impacts …because of a broken property rights
system
Economic distortions
FRAGILE UNDERLYING ASSET
▪ distorted valuations UP and DOWN ▪ distressed property markets▪ illiquidity of savings▪ limited labor mobility▪ weak capital markets▪ limited/ investment in infrastructure;
▪ e.g. telecom / utilities / energy / building improvement ...
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Impacts of a broken property rights system
Social distortions
ENDURING INEQUALITY – POVERTY – SOCIAL DISORDER
▪ growing violence – corruption – criminality▪ child labor increase▪ weak middle class▪ reduction of women’s (minority’s) participation in the wealth
pool and political voice▪ serious social discontent – weak political participation
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Solution: Transformationto tap on the socio-economic aspects
Successful Transformation requires Vision, Rigor, Trust
Understand the asset
Diagnose with Reality Check Analysis - Untangle
Align the interests of all key policy and market players – build partnerships
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
A Patchwork
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Reality Check Analysis
Identify & Isolate the problem
Check institutions’ evolution throughout time
Diagnose / Design Solutions
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Align InterestsKEY: TRUST
Establish Trust through partnerships Align the interests of key policy and market players:
Private Capital
Government Citizens
Trust
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Success Stories: Margarita in Peru
Margarita: seamstress worth ~ $80/month in 1990today she is worth ~Thousands
Peru 1990: Hyperinflation, lawlessness, joblessness … and over 70% unreal estate
Staggering break-through results … $60M investment gave a 200-multiple return 12 agencies turned into 2 $7,000 to $14 7 years to 2 days No more intermediaries
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Success Stories: Peru Continued
Rapid increase in secure liquid property ownership ▪ With over 6 million beneficiaries
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
1992 1995 2001 2002
Years
Peo
ple
New formal owners
“the big jump”
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Peru: Positive socio-economic impacts of secure property rights issued by the
program
Reduced
levels of..
Increased
levels of..
Security
Property value
Investment
Probability of child labor
Women’s involvement
Labor mobility
Cottage industry-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Percent Change
Factors affected by securing property rights
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Success Stories: Deborah in the US
Deborah in Washington DC:
was worth a welfare check….
mobilized the transformation of unreal to real estate in her neighborhood
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
© Elena Panaritis 1615 L Street NW #`1200, Washington DC, 20036
[email protected]; [email protected]
14
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
Less Successful Stories
Ismini: Fights in the Greek courts to prove ownership of family property owner since 1880s….
Albania / Bulgaria / Romania: costs to clean up possible claims can reach 50% of the transaction itself. Uncontrollable urban sprawl and environmental degradation
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
How can we keep on having success stories
Build Triple Bottom Line businesses
Partner with players that are willing / share the vision
Use Reality Check Analysis
Get involved…!!!!
© Elena Panaritis 2330 Massachusetts Avenue, NW, Washington DC, 20008
[email protected]; [email protected]
www.prosperityunbound.com/blogFacebook: ProsperityUnbound group
Twitter: Elena_Panaritis
Elena PanaritisFounder and Director Panel Group LLL
[email protected]@prosperityunbound.com