The Emergence of
Real Property Rights in Denmark –
A case of path dependent institutional change
Erik Stubkjær, Prof. emer.
Department of Development and Planning, LMGI
Aalborg University, Denmark
Inaugural WINIR Conference,
11-14 September 2014
Old Royal Naval College, Greenwich, London, UK
Session P1.3 – The Meaning and Relevance of Property Rights
Overview
1. Main events establishing Danish Real Property Rights
2. Methodology, based on Mahoney, 2000: Path Dependence
in Historical Sociology
3. The Danish events and their aspiration
A. The liberation of serfs in late 18th century, in the terms
of the time, and iterated in Danish history
B. In the conceptualization of Mahoney
4. Self-reinforcing patterns at work, fostering ‘Denmark’
5. Reflections and Conclusion
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1. Real property rights in Denmark
... formalized in the 16th century
1085
Letter of donation by King Canute to Lund Cathedral
1283..1660 Coronation charters, restricting royal arbitrariness
1241, 1443 Provincial codes specify conveyance procedure
1479 ..
Uni of Copenhagen - legal affairs slowly professionalized
1547..1580 Public recording requested of e.g. conveyance deeds
1849
Constitution: Real property rights are ‘inviolable’.
Expropriation only according to law, and against full
compensation.
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.., but also infringed upon
~1536
Appropriation of church land (30% of country)
by crown (Protestant Reformation)
1769
..1899..
Regulation of farm holding size, keeping a
‘family unit’
1919-30
Conversion of fiefs (manors) into fee simple
(free land) requested in Constitution 1849 §98
+ Statutory act 1919 + Supreme court ruling
1937..
1970s..
Restrictions on land use, according to spatial
planning
Public access to forests, beaches, and heritage
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Expansion of individual property rights
Three phases:
• Land reform 1750s - 1810s: Serfs becoming freehold
farmers of about 60% of a total of 60.000 holdings
• Smallholder movement 1899-1950: Farm workers
becoming smallholders, partly established on former
manor farm land
• Construction boom 1960-1975: Blue-collar workers
and middle class settle in detached houses. In 2001,
1.1 mio homes individually owned; total population 5.3 mio
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2. Methodology
According to Mahoney, 2000, path dependence request the
specification of:
1. Initial conditions, with multiple options
2. A critical juncture, contingent on previous events, and
3. Self-reinforcement of the new arrangement
4. with explanation of institutional reproduction: Utilitarian,
functional, power, or legitimation explanation
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3. The new institutional arrangement
…stated in 1792-terms on the ‘Liberation Column’:
Celebrated 1938
For Christian the Seventh, the King of
Denmark and Norway, from united and
grateful citizens:
• The King ordered that adscription
should cease and land laws be given
order and strength, that the free
peasant may become spirited and
enlightened, diligent and good, honest
citizen, happy.
• The King recognised that the freedom
of the citizen, determined by just law,
gives love of the fatherland, courage
to defend it, a desire for knowledge,
an attraction to industry, the hope of
good fortune
• The foundation stone was laid by
Frederik, the King's son, the friend of
the people, MDCCXCII
The new institutional arrangement
... in Mahoney’s terms: 1. Initial conditions:
New farming technology and systems of crop rotation provided
options for new arrangements in North Europe.
Danish adoption from among two or more alternatives:
• England -> enclosure;
• Prussia -> no serf freedom, postponed to 19th century
• Denmark -> land reform with serf freedom late 18th century
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The new institutional arrangement
... in Mahoney’s terms: 2. contingent on previous events:
• Efficient management of crown land and, from 1536,
former church land. A chancellery largely committed to
impartial service.
• Taxation, based on rules and ledgers (‘Old’ cadastre, 1688).
• Codification of law into Danish Code 1683, among others
stating the legal capacity of the citizen (Notary not needed).
Priests proclaimed to villagers both spiritual and temporal
world order, e.g. statutory orders.
• Emerging general education, focusing on catechism (child
of God, subject of monarch, moral self), reading and writing.
Princess-schools 1719. First schoolbook: ABC, 1731.
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The new institutional arrangement
.. in Mahoney’s terms: 3. Self-reinforcement:
The Danish arrangement was installed by the Crown (and
leading nobles), but self-reinforcement was eventually
maintained by the ‘free peasants’ and ‘honest citizens’,
I claim these rules account for institutional reproduction:
a. The elite invites its able dependents to participation
b. The invited/ empowered engage with ‘neighbours’ to
solve local problems through incorporated (not-forprofit) associations and/or by minor institutional
betterment
c. State engages in problem analysis, yet facilitates local
problem solving: ‘Principle of subsidiarity’, or ‘Leave it
to the locals’
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The new institutional arrangement
•
•
•
•
... 4. Explanations of institutional reproduction
Utilitarian? Condition, rather than driver
Functional? Yes, each body part engages
towards a flourishing Denmark
Power? Yes, but not a stable, primary cause
Legitimation? Yes. Each is called upon by the
highest authority to ‘find in their self a desire
and incentive to apply their time and effort to
respond to the mentioned issues’ 1768
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4. Self-reinforcing patterns at work
4.a The elite invites its dependents:
• Lord Steward Adam Gottlob Moltke 1755: Write me,
and I will publish ideas which may contribute to the
flourishing of our kingdom
• Liberating land reform projects initiated 1750s..
• Agricultural College/Department 1768: Iterates in
the name of the king the invitation to the public,
prize for best and publishing offered
• Establishment of Provisory Assemblies of the
Estates of the Realm, from 1834; replaced by
Parliament from 1849
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Invitation .. ‘to anyone who loves and is
concerned of the advancement of the
fatherland’
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4.b The invited create new associations
• Savings banks and mortgage credit (borrowers’)
associations developed from 1850s. The latter
specialized in terms of region and type of real property
• When railways and steam ships changed the market in
agricultural products, local associations established
dairies and slaughterhouses, substantially from 1880s
• General consequences of being invited/ empowered:
▪ Brings a sense of community, of mutual trust: Engaged
in the shared project of improving (an aspect of) the
kingdom
▪ Familiarity with the handling of rules (articles, division of
tasks, ..): Draft them, obey them, or change them
orderly, e.g. to streamline processes
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.c State applies ‘Principle of Subsidiarity’
• The land reform was implemented through procedure rules
(1783), which were locally applied at the discretion of the
village community, who paid the surveying and land
assessment costs.
• The creation of mortgage credit associations was facilitated
by a statutory act of 1850. Mortgage Institutions were
locally organized as not-for-profit borrower associations
(1850-2003), implying that loans for ordinary owners were available at the
conditions of the capital market (bypassing bank surcharges)
• State agency tasks were transferred to municipalities during
20th century, incl. spatial planning. Municipalities
developed land for housing. This was unconstitutional, as
not being requested by law. Legal scholarship invented the
notion of ‘municipal power’ (Da: Kommunalfuldmagten)
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5.1 Reflections
• Role of market? Of cause, but changes were
cast in existential, not in economic/ utilitarian
terms, e.g. ‘free peasant .. diligent and good,
honest citizen, happy’.
• Role of property rights, title and mortgage?
Indeed, but ‘integration of the poor’ (de Soto,
2000), including access to real property, was
primarily obtained through empowerment,
association building, and general education.
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5.2 Conclusion
About year 2000
• A new institutional arrangement and its path of
dependency was outlined. Traditional narrative,
but new conceptualization of change:
• Previous events, critical juncture, and
reinforcement patterns were identified
• Institutional reproduction is claimed to be
largely due to a normative explanation:
▪ Those in power invite their dependents to
discuss next steps
▪ Being entitled, let’s address our problem and
share the burden by inviting ‘neighbours’ to
create an association / streamline17processes
▪ The state is concerned and applies the
Principle of Subsidiarity
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