World Bank Land Governance Study

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World Bank Land Governance Study

• Tony Burns
• Land Equity International
• 19 November 2007

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Topics

• Governance
• Governance Issues in Land Sector
• Study Objectives
• Study Participants
• Draft Conceptual Framework
• Approach

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Governance

• Governance is a topical issue
• Some well established indices
• Weberian Comparative Study (1970-1990)
• Global Competitive Index (1979-2005)
• Corruption Perception Index (1995-present)
• World Governance Assessment (1996-2000,
  2001-2006)
• Freedom House (1972-present)
• Afrobarometer (1999-2003)
• Global Integrity Index (2003-2004, 2006)
• Bertelsmann Transformation Index (2003, 2006)
• Useful, but limited in ability to track changes
  in time or identify specific policy interventions

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Governance in the Land Sector

• Governance is an issue in the land sector
• High profile corruption cases in the land sector
  (Kenya, Indonesia, China, Tanzania, Cambodia)
• TI survey in South Asia in 2002 land 2nd most
  prone to corruption in Pakistan, 3rd in India,
  Bangladesh and Sri Lanka
• Thailand university study in 1999 found land
  fourth most prone to corruption (after Customs,
  Police and Revenue Departments)
• FAO study on Governance in Land Sector (2007)
• Not just a developing country issue (e.g. van der
  Molen 2007)

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Study Objectives

• Undertake a study of governance in the land
  sector that comprehensively identifies the issues
  that need to be addressed and provide
  practitioners as well as policy-makers with
  information on how to tackle them in an
  integrated manner at the country level.

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Study Objectives

• The study will
• establish a conceptual framework for good
  governance in the land sector
• apply this framework to specific country cases
  (Kenya, Indonesia, Peru, Kyrgyz Republic)
• aim to translate case study results and the
  conceptual framework into a set of indicators
  that could be regularly monitored within country
  and at a more global level.

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Study Participants

• Study commissioned by World Bank LTG/ARD
• Steering group
• Scope for additional countries/collaboration
• Land Equity International contracted, with
  support from
• University of Melbourne, Centre for Spatial Data
  Infrastructure and Land Administration
• Washington University in St Louis, Center for New
  Institutional Social Sciences
• Range of international experts (private,
  academic)
• Four experienced Country Case Coordinators

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Draft Conceptual Framework

• Based on experience, key land principles
• A variety of land rights are legally recognized
  and protected
• Cost-effective service delivery by land
  institutions
• Broad access to land administration information
• Transparent public land management/expropriation
• Transparent systems for property valuation and
  taxation
• Accessible/responsive institutions for
  enforcement and appeal

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Rights Recognized and Protected
Key Principles in LA System Implications of Poor Governance Examples of Possible Improvements
1. A variety of land rights are legally recognized and protected 1. A variety of land rights are legally recognized and protected 1. A variety of land rights are legally recognized and protected
Variety of rights recognized (sufficient duration/security) Private rights Commons Customary rights Public land (public use, protection, future use/land bank) Encroachment, exclusion, informality, illiquidity of assets, limited land markets Policy formulation, legislation examples, Tanzania, Uganda Systematic registration examples, Thailand, Peru
Condominium law Informality, illiquidity of assets, limited land market Legislation and systematic registration examples Macedonia, Slovenia
Linkage between rights and use (exercise of rights) Speculation, idle land, informal settlement, social unrest Policy formulation, legislation Philippines (idle lands tax) Systematic registration - examples Bolivia
Externalities impacting on rights (particularly for peri-urban areas) Administrative boundaries Land classification Land use planning/zoning Construction codes Informality, rent seeking by officials Policy formulation, legislation examples Peru Formalization of unplanned settlements examples Tanzania (land use planning), Peru (construction) Forest boundary definition examples Thailand, Philippines
Spatial extent of rights clear Lack of clarity of rights, overlaps/gaps in rights, increased disputes Creation of spatial framework/linking textual records examples Andhra Pradesh (India)
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Cost-Effective Service Delivery
Key Principles in LA System Implications of Poor Governance Examples of Possible Improvements
2. Cost-effective service delivery by land institutions 2. Cost-effective service delivery by land institutions 2. Cost-effective service delivery by land institutions
Land administration mechanisms transparent and predictable User uncertainty, difficulty in preparing operational procedures/manuals Business Process Re-Engineering examples Tanzania, Macedonia, Punjab (Pakistan) Oversight boards with stakeholder participation example Gaza/West Bank
Clear service standards promise on time, cost, quality Brokers/fixers, lack of public trust/participation, limited land market Publishing standards for service delivery examples Thailand (same day registration)
System is accessible and affordable Difficulty in funding system/customers unwillingness to pay, difficulty in access Decisions on level of service examples India (several states at Tehsil level), Punjab (at Kanungoi level), Peru (proposal for mobile offices)
System is sustainable Financial Technical Capacity/HR Participation System not sustainable Land Tax/Fees Policy studies example Philippines, Tanzania Capacity Building Thailand (education), Russia (overseas study tours) Public awareness campaigns examples Armenia, Macedonia, Romania, Cambodia, Tanzania, Ukraine, Uganda, Philippines, Peru
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Access to Land Information
Key Principles in LA System Implications of Poor Governance Examples of Possible Improvements
3. Broad access to land administration information 3. Broad access to land administration information 3. Broad access to land administration information
Land information readily accessible (public and private rights) Lack of public trust, lack of oversight/illegal alteration of records Formalizing community oversight examples Indonesia Policy to make records publicly available examples several states in India (including MA, KA, AP)
Web access to records Lack of public trust, lack of oversight/illegal alteration of records Computerization of records ands putting on the internet examples Maharashtra (India), Punjab (Pakistan)
Cost of access to information/certified extracts High cost used to limit public access Policy to provide records at cost of reproduction examples most states in Australia
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Public land mgmt./Eminent Domain
Key Principles in LA System Implications of Poor Governance Examples of Possible Improvements
4. Transparent public land management 4. Transparent public land management 4. Transparent public land management
Inventory of public land assets Illegal allocation/disposal or use Policy and creation of inventory examples Gaza/West Bank
Public land used for public purposes (public use, protection/reserve, future use/land bank) Inappropriate use, loss of public assets, encroachment of public land Policy development examples Gaza/West Bank
Transparent processes to allocate (dispose of) public land Illegal allocation/disposal or use Policy development examples Gaza/West Bank
Clear process for compulsory acquisition and fair compensation Social unrest, court disputes, constraints on investment in infrastructure Policy development, legislation examples Tanzania
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Transparent valuation and taxation
Key Principles in LA System Implications of Poor Governance Examples of Possible Improvements
5. Transparent systems for property valuation and taxation 5. Transparent systems for property valuation and taxation 5. Transparent systems for property valuation and taxation
Link between tax rates/access to sales information/participation Under-declaration of values, market values uncertain, lack of participation Policy to reduce tax rates examples Maharashtra, Karnataka (India) Change from ad valorem to fixed scale of tax example Gaza/West Bank
Clear tax policy Emphasis on transaction/annual taxes specified Property taxes national or local tax Informality, loss of revenue Informality, loss of revenue, user confusion Land Tax/Fees Policy studies example Philippines, Tanzania
Link between rights and payment of taxes Increased process time, transfer of tax obligations without consent Policy to collect taxes at time of registration example Thailand Policy not to require tax clearance at time of registration example Gaza/West Bank
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Accessible/responsive institutions
Key Principles in LA System Implications of Poor Governance Examples of Possible Improvements
6. Accessible/responsive institutions for enforcement and appeal 6. Accessible/responsive institutions for enforcement and appeal 6. Accessible/responsive institutions for enforcement and appeal
Unambiguous assignment of institutional roles and responsibilities Tenure insecurity, increased disputes Institutional Reform examples Peru, Laos, Macedonia Increased role for the private sector examples Andhra Pradesh (India)
Standards for professional and personal integrity Corruption, uncertainty by users, limited ability to appeal Citizen Charters examples several states in India Participatory ME examples Philippines
Efficient and impartial local, administrative and judicial mechanisms to resolve disputes Overloaded courts, dispute resolution indeterminate, social unrest, limited protection for the vulnerable Alternative dispute resolution mechanisms examples Cambodia
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Approach and Methodology

• Complete draft conceptual framework Dec. 2007
• Documented framework early 2008
• eConference 14-25 Jan. 2008
• Expert Group review 15 Feb. 2008
• Regional Workshop in St Louis 16-18 Feb. 2008
• Field test questionnaire March 2008
• Undertake Case Studies June July 2008
• Final synthesis report October 2008