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is concentrated in the hands of the few, and/orland and income distribution is skewed resultingin extreme inequality, political authorities areunlikely to implement and enforce property rightsin an equitable manner. 67 This indicates that theevolution of property rights systems is to a largeextent determined by historical conditions, suchas the distribution of factors of production. 68Realising TurnaroundUnderstanding the likely impact of reforms onnon-poor groups with significant influenceis critical to assess potential support and oppositionfor reforms. 69 Besides promoting pro-poorproperty rights it is therefore important to establishproperty rights systems that are beneficialfor middle classes and groups with significantassets and political influence. The message to allis that in the absence of generalised and equitableproperty rights systems much of economicactivity does not develop its full potential evenfor powerful actors 70 ; there is a high likelihood ofsocial unrest 71 ; there may be under-accumulationof human capital resulting in a low quality labourforce, and little demand for credit resulting in underdevelopedfinancial institutions and ultimatelyhindered growth. There is also less foreign investmentor flight of capital when property rights arenot guaranteed.scenario. The emergence of property rights andthe distribution of resources may have mutualcausal effect. 73 Examples of countries like Chinaand Singapore teach us that an alternative routeof political authorities consenting to reforms isa possibility where inequalities are less extreme.The issue of better understanding how to devisemechanisms for convincing the political authoritiesor circumventing their influence in orderto induce the reform constitutes an importantchallenge. An important implication of this viewis that a drastic one-time reform may have longlasting consequences, setting the process of everimproving distribution along side with more equitableproperty rights systems.Provided that inequalities are not too extreme,equitable property rights may emerge preciselybecause of their beneficial consequences forgroups with significant assets and political influence.They may also emerge out of the desireof elites to avoid adverse consequences fromexceeding numbers of poor people not havingaccess to property rights. 72 Indeed, several recentexamples in Asia, where political leadersinduced progressive reforms, including equitableproperty rights, are illustrative of precisely this81