Another issue not considered here is the possibility
that the tenure regime itself is the cause of market
imperfections (Platteau, 1992,1996). In general, however,
we believe causality runs the other way; tenures
arise to cope with the prevailing economic conditions,
and will not profoundly influence markets. An important
reservation in this regard is, perhaps, the credit
market. It could be - indeed it has been - hypothesized
that the issuing of land titles will generate the
emergence of a financial market and thus more capital-
intensive investment. The argument is that a title
deed will provide the necessary security that lending
institutions require. Norms dictating that land is
essentially a common heritage may resist such moves.
That is, codes preventing farmers from seeking permanent
claims to land also prevent them from present