Is it really necessary to create land utilization laws? Or is it better to leave it upon individuals to do whatever they want to do with their land? These are questions that policymakers in years gone by had to tackle. And still, there are many parts of the world where policymakers are grappling with these questions, especially in third world nations. But in the developed nations, these matters seem to have been settled long ago – hence the situation where we tend to find stringent land utilization laws in such nations.
In the absence of land utilization laws, it can be very hard to get the land to be as productive as it ought to be. To see the truthfulness of this statement, you just have to visit the less developed nations. These are typically nations that lack land utilization laws. And where the laws are in place, their enforcement tends to be lackluster. In such places, you can’t help getting the feeling that the land is not being put to its best possible use (now that everyone is at liberty to do whatever they want to do with their land).
It is important to appreciate that land is a factor of production. It is a factor of production just like capital that is accessed through banks and stock markets. It is a factor of production just like labor, that is paid for through HR portals such as macys insite. Therefore just as there are stringent laws controlling the utilization of labor and capital, it surely makes sense for there to be similar laws controlling the utilization of land.
It is land utilization laws that lead to establishment of special zones for certain types of economic activities. It is land utilization laws that also lead to consolidation of land, so that it can be put into proper economic use, and so that the people using the consolidated land can tap into economies of scale. Nations with proper land utilization laws tend to be more attractive to investors. All said and done, there are so many reasons as to why it makes sense to have proper land utilization laws in place.