[Index]
Huge Resource Base Waiting to be Tapped in
the Countries of Central and Eastern Europe and the CIS
Geneva, 3 October 2001
Around USD 3 trillion is waiting to be exploited for the
economic development of the transition countries. The keys to unlock this
wealth lie in the dormant real estate markets. This thesis was expounded by
Mr. Hernando de Soto, author of the book Mystery of Capital and keynote
speaker at the UNECE Real Estate Advisory Group Conference recently
held in Geneva.
In the meeting over 45 experts, representing 32 different
organizations (including World Bank, PriceWaterhouseCoopers, the Urban
Institute and the Royal Institute of Chartered Surveyors) prepared the launch
of the Land for Development Program. The principal objective of the programme
is to establish key institutions that permit interests in land to be protected
and traded.
With the right approach these institutions can help large
segments of the population, particularly the poor, to acquire rights to
property and thus become owners of capital and better integrated into the
formal economy. A functional real estate markets would provide domestic
capital for local enterprises which would in turn accelerate the development
of those countries.
Speaking on behalf of the need for this programme Mr.
Robert Hall, Chairman of the REAG Group said: "…Mr. de Soto’s ideas
have changed the whole debate about the role of land in development. His
thinking has created an attractive vision which must be seized for the benefit
of the population as a whole."
The same view was shared by Ms. Larissa Kapitsa, Director
of the Coordinating Unit for Operational Activities of the UNECE,"…moving
from an informal to a formal market has been often too costly and
unpredictable for many people."… Clear, enforceable and transparent
real estate institutions will give the necessary incentive to many
entrepreneurs to move them into a more rule-based environment which can
generate capital over the long term.
However, even with the development of these institutions
the question will remain of how to evaluate the property in these countries.
The issue was addressed by Mr. Barry Gilbertson, PriceWaterhouseCoopers, he
argued that the value of the property may be lower than some estimates since
it must be seen as an investment which has to generate cash flows over a
certain period of time in order to be tradable in the real estate markets.
Real Estate Advisory Group is a new form of partnership
under UNECE bringing public and private sector together to implement UN
objective of poverty alleviation and sustainable development in a
"win-win" situation for all the parties.
For more information please visit the conference homepage
at:
http://www.unece.org/operact/
Contact information:
Chairman of the Real Estate Advisory Group:
Mr. Robert Hall
57 N. Hill
London N64BS, United Kingdom
Phone: (+44) (0)20 8340 4566
E-mail: [email protected]
UNECE secretariat:
Mr. Geoffrey Hamilton
Regional Adviser
Coordinating Unit for Operational Activities
United Nations Economic Commission for Europe
Palais des Nations, Office 433
CH - 1211 Geneva 10, Switzerland
Phone: (+41 22) 917 2838
Fax: (+41 22) 917 0178
E-mail: [email protected]
Project Manager of the Real Estate Advisory Group:
Mr. Ryan Engen
40, avenue de Vessy, #D2-22
F - 01210 Ferney-Voltaire, France
Phone: (+33) 4 50 40 56 89
E-mail: [email protected]
Ref: ECE/OPA/01/05