Property arises naturally, through labour (transformation of matter) and through the peaceful exchange of individuals. It is a foundational concept that enables human action by allowing individuals to satisfy needs and navigate uncertainty. This results in resources being used most efficiently as individuals who own them have a strong interest in doing so. In contrast, the need for a legal definition of property by a central authority such as the state may result in resources being controlled by individuals who do not have a strong interest in using them effectively. This can lead to inefficiencies and abuse, as we can observe worldwide.