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Stagnation Nation:

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by

Megan Hansen

on 10 March 2015

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Transcript of Stagnation Nation:

Stagnation Nation:
What's stifling development for Utah Navajos?

Aneth Chapter

Where is the Aneth Chapter?
"It is clear from the lack of investment that America’s top companies do not feel confident doing business on the Navajo Nation," Kenneth Maryboy, a resident of Bluff, Utah who is running for Navajo President

*Property Rights are Limited
Bureaucracy
Utah
Colorado
New Mexico
Arizona
Aneth Chapter
Aneth Chapter
Tribal Courts
12 Executive Branch Divisions
Why?
“[C]rime acts like a tax on the entire
economy: it discourages domestic and foreign direct investments" (Detotto and Otranto (2010).

Crime
Population Detroit: 713,000
Population Navajo Nation: 180,000
Crime is getting worse ...
How is Crime related to Development?
Why so much Crime?
Mild enforcement and sentencing

One-year maximum sentence for violent crimes including murder
Overcrowding of jails
Under-reporting of crimes


Bureaucracy
Crime
Property Rights

Navajo have strong ties to the land, but individuals cannot own land.
Per capita income: $9,595
Median Household income: $26,167
U.S. Avg. per capita income: $28,051
U.S. Avg. Median Household income: $53,046
Barriers to Development:
Business
Few paved roads
Inadequate water and sewer
No waste pickup
Unreliable electricity
Infrastructure
3 Reasons:

1. Bureaucracy
2. High Crime Rates
3. Lack of Property Rights
How is Bureaucracy related to Development?
How are property rights related to development?
“People here have no interest in taking care of things that do not belong
to them.”


This disincentivizes
investment.
Data show that residents will voluntarily act to reduce
crime when it reduces their property value. But what if residents own no land and have no property value?
Poverty is common in Aneth
Within the chapter there are only six registered businesses.

31% of Navajo Nation members must travel over 100 miles to purchase goods.
Ken Sim
Megan E. Hansen
Full transcript