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| The
Challenge of World Problems |
| [Reprinted from the
Henry George News, September 1959] |
President (1955-59) of International Union for Land Value
Taxation and Free Trade, and former Judge of the Supreme Court
Of South Africa
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That people are living in fear of a new world war is clear to
everyone. It should be equally clear that it is the duty of each one
of us to say and do whatever lies in our power to lead the world into
a state of real peace.
The world's problems can all be reduced to difficulties arising from
injustice, from disregard of the dignity and of the inherent natural
rights of the individual. The law of human progress is the moral law.
In no country do we find real freedom for the individual. The greatest
inroad on that freedom is made by our present land system. It places
the landless at the mercy of the landlords who, because of that
system, have the power to determine the conditions on which the former
may obtain permission to live and work. I believe Henry George was
right when he wrote: "What has destroyed every previous
civilization has been the tendency to the unequal distribution of
wealth and power.
The United States has been very generous in giving material aid to
poor and backward countries. Unfortunately many of these gifts have
merely enriched the landlords.
The rise of nationalism with the demand for self-government in Asia
and Africa has been rapid and is now irresistible. Already several
countries in those continents have gained their independence. Riots,
unrest, or rebellion in the Belgian Congo, Nyasaland, Cyprus, and
Algeria, are proof of the struggle. In those which have succeeded and
those which are still struggling, there is intense poverty.
Justice and liberty, then, are the essential elements for world
peace. Can we have them? Our answer is a decided "Yes."
The great injustice through long ages among so-called civilized
peoples has been the system which treats land as a chattel, to be
bought and sold, as if both were made by human labor. Land, excluding
improvements made on it, has been provided by the Creator and cannot
be made or increased by man. All life depends upon access to it or to
the water on it. Chattels or goods, the subjects of commerce, are made
from materials obtained from it. Ownership of land thus confers a
monopoly power; ownership of chattels does not.
OUR PROPOSAL
The remedy we propose is that the community take for itself for
public purposes the rent of land, the ground rent, as distinct from
the improvements on it. The equivalent term in use in Denmark is "ground
duty." That rent represents the desirability attaching to the
land as a result of the presence and activities of the population
living on it. In equity, therefore, it should belong to the community
producing it. There can be no valid denial of that proposition. If
everyone had to pay that rent to the community he could not afford
long to hold his land out of use nor would he be able /0 find anyone
to pay him more than that rent for the use of the land. All land that
was not actually being used would then become available for occupation
by those who now find difficulty in getting land except at an
exorbitant price or rent. Industry and agriculture would be set free
and poverty and frustration ended.
This could be done with a title as secure as freehold. In countries
where municipal revenue is raised from a rate or tax on the site value
of land there is clearly no interference with the security of the
freehold title although such tax takes for the local authority a
fraction, sometimes a fourth or more, of the full ground rent of the
land. Nor would there be any more interference with the security of
tenure if the community were to take the whole of that rent.
It must be emphasized that what we aim at is not merely an improved
system of taxation but the means of bringing about a just land system
under which all will share in a joint heritage. It remains then to
consider how our policy would solve the world's problems or at any
rate make a solution possible.
We cannot, of course, prevent madmen from plunging the world into war
as long as there are dictators controlling powerful countries. But the
example of countries where prosperity was universal and shared by all,
would inevitably begin to arouse demands for similar freedom for
people in totalitarian countries. The cause of freedom there would he
furthered and the danger of war lessened until it disappeared
altogether.
The best way to induce friendship between nations is to let them
trade freely and the surest way to cause friction between them is to
place obstacles in the way of their doing so. The removal of customs
tariffs would represent a weighty contribution to the cause of world
peace.
The prosperity which the suggested change would bring about would
soon stimulate others to take the same course. The country which did
away with such restrictions would be able to produce much more cheaply
and so would enjoy a great advantage in the export market.
Our proposed land value policy would enable less developed countries
to help themselves and, over a not very long period, to embark on the
works they need. Possession of the freehold is not essential to
improvement of land. The long leases which have been the vogue in many
prosperous countries are convincing proof of that. Actually, however,
it is easily possible to provide a title with all the security of
freehold under our policy, while retaining for the community all the
value conferred on the land by the presence of the community. The
application might have to vary accord -mg to whether the country is
highly industrialized or is still in the tribal state, but in
essentials it will be the same.
The Theory in Practice
A method described in Native Races and Their Rulers, a book
explaining the scheme of land tenure introduced by the "Land
and Native Rights Proclamation" of Northern Nigeria, 1910,
shows how this can be grafted on to tribal custom to confer complete
security of tenure and avoid exploitation of workers and land
speculation.
The large tin deposits of Northern Nigeria "needed European
brains and capital to make full use of them in the interest of
natives and Europeans alike. Leases were granted enabling holders to
develop the deposits, but limiting their use of the surface strictly
to that purpose.
No difficulties were put in their way in
their efforts to recruit or attract labor.
The capital
expenditure in the country and the paying out of large sums to the
natives in the form of wages greatly assisted the native community
generally. In short the development of the tin industry has been of
great advantage to Northern Nigeria and has not damaged the
interests of a single native alive today or of a future generation.
This excellent result may be traced to the absence of 'the
institution of freehold in land' and the fact that the government
would have nothing to do with supplying labor."
Among primitive peoples the true nature of land as the heritage of
the whole community from generation to generation was clearly
recognized. It was to secure the continuance of that principle but
with protected individual tenure, that the Government of Northern
Nigeria introduced the "Land and Native Rights Proclamation"
as being in line with native law and custom. Modifications were made
only to permit development on modern lines.
The land was to be leased at "the full economic rent
obtainable, that is to say, the ground rent charged must be the
greatest possible obtainable in the market." Rents had to be
revised at intervals of not more than seven years. In this way the
interests of the community were "safeguarded against predatory
action on the part of the individual." Provisions were also
inserted in the law to protect the individual against arbitrary
action by the authorities and to prevent his being penalized for
improving his land as so many of our taxing laws do. If at any time
the rent were raised on revision beyond what the occupier was
prepared to pay he could claim to be compensated for the value of
any unexhausted improvements on the land.
The newly independent countries of Asia and Africa would have open
to them a means of attaining the capital works they need if they
would take for their communities the ground rent of their land. They
would soon get a fund with which they could begin to build dams,
power plants and irrigation schemes, and they would be under no
feeling of obligation to foreigners. Thus not only would the
prosperous nations of the world free themselves from the present
tension and fear of war, but they would cease to appear to the
non-white races as oppressors and enemies.
To go forward with courage an4 confidence to positive world peace,
we should say, not, what can one man do, but, no good work any of us
may do can be lost or wasted. And the need for our work is urgent.
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