1. NATIONAL LAND GOVERNANCE MONITORING SYSTEM: UKRAINE Denys Nizalov, Kyiv Economics Institute/ Kyiv School of Economics Sergei Kubakh, Kyiv Economics Institute/ Kyiv School of Economics Land and Poverty Conference Washington, DC, March 26 2014 1

2. Overview 2  Monitoring System: general approach  Application: Case of Ukraine  Application: Case of Georgia (next presentation)

3. Background and Motivation 3  VG on the Responsible Governance of Tenure  Declaration of political goals of improving food security and poverty eradication by improving governance of tenure of land, fisheries and forests (1.1).  LGAF  “Diagnostic tool that is to be implemented at the local level in a collaborative fashion, that addresses the need for guidance to diagnose and benchmark land governance, and that can help countries prioritize reforms and monitor progress over time”. (LGAF 2011)  LG Monitoring System – a tool that  Keeps track of reforms implementation;  Provides information for policy design and evaluation, and private decision-making;  Adds to transparency and accountability of LG;  Contributes to GLII and SDG/2015.

4. Key Principals 4 System of indicators  Relevant to policy decision-making  Low Cost  Easy to implement and use  Flexible

5. Key Indicators 5  Base characteristics  Groups Indicators : 1.The number of registered transactions; 2.Share of agricultural/residential land registered and mapped in women’s name; 3.Receipts of land tax revenue; 4.The share of communal, private, and state land; 5.Cases of expropriation and privatization; 6.The number of land-related conflicts in the courts.

6. System Characteristics 6  Scope – specific indicators (by ownership type; land use)  Scale – spatial aggregation: national, regional, sub-regional (municipalities, districts, etc.)  Time frequency – annual, semi-annual, quarterly

7. Base characteristics 7 Characteristics:  Total area (by ownership type; land use)  Number of parcels  Number of real estate units (residential/ non-residential)  Number of owners Data requirements and potential sources:  Complete coverage  Census or census-like statistical reports  Land/real estate inventory  Remote sensing technologies

8. 1. Registered transactions 8  Number of land sales  Average price of land  Area of land sold  Number of first time land registrations  Total area of land registered for the first time  Number of registered land rental agreements  Average rental price  Area of rented in/out land  Number of first time real estate registration  Number of real estate sales (residential/non-residential)  Average price per sq. meter of real estate sales (residential/non-residential)  Number of mortgages

9. 2. Share of land registered and mapped in women’s name 9  Share of land registered in women’s name  Share of housing units registered in women’s name  Share of mortgages in women’s name  Share of land sales in women’s name  Share of housing sales in women’s name

10. 3. Receipts of land tax revenue 10  Number of land tax payers  Revenue from land tax  Number of real estate tax payers  Total revenue from real estate tax  Revenue from land sales tax/fee  Revenue from real estate sales tax/fee  Revenue from other land related tax/fee

11. 4. The share of communal, private, and state land 11  Share of agricultural/ pasture/ forestry/in-land water/ residential/ public/ other types of land  Share of agricultural/ pasture/ forestry/in-land water/ residential/ public/ other land formally registered

12. 5. Cases of expropriation and privatization 12  Number of land expropriation cases  Average compensation paid for expropriated land  Total area expropriated  Number of land privatization cases  Total area privatized  Average compensation per hectare received by state or local government for privatized land  Number of privatized real estate

13. 6. The number of land-related conflicts in courts 13  Number of Land related cases filed in a local court during last year (by type of conflict)  Number of Land related cases resolved in a local court during last year  Number of Land related cases pending in a local court by the end of the year  Number of Land related cases pending for more than 1 year in a local court by the end of the year

14. Data Source 14 Administrative data:  Land Cadaster  Land and Real estate Registry  Tax authority  Court  Other agencies Advantages:  Records exist  Relatively low cost once the routine is developed Limitations:  Difficult to access (legal restrictions, technical difficulty)  Incompleteness

15. Use of Monitoring System 15  Regular reviews (trend, level of indicators, cross group comparison, publication of indicators) – transparency of the system, supporting private investors’ decisions  Accountability of local governments (Competitive environment, investigation of outliers, targeting inspections and early problem identification)  Support evidence-based design of reforms and innovations (statistical analysis of responses and elastisities, establishing of relationships among various factors)  Reform monitoring (tracking the changes in the target/pilot areas), checking the benchmarks  Reform impact evaluation (assessment of reform’s impact on target indicators)  Contribution to LGII and MDG/2015

16. Case of Ukraine Application 16

17. Administrative-territorial System of Ukraine Ukraine: 25 regions (oblasts); 2 cities of special status – Kyiv and Sevastopol; 159 cities and Towns; 490 rural districts (raions), 885 townships, and 28,457 villages. 2 Occupied territories

18. Link with LGAF and WB Projects  LGAF 2013  Public provision of land information Support of public access to land/property registry information  Monitoring progress with other LGAF recommendations Legal and institutional framework Land use planning, management, and taxation Management of public land Dispute resolution and conflict management Large-scale land acquisitions Forestry  Better use of the World Bank investments into the Cadaster and State Statistics  IDF Ukraine: monitoring and capacity development for evidence-based policy-making 18

19. Background and Relevance to country- level policy processes  New Government - Reforms in Agriculture and Land Governance:  De-regulation (export, land rental, etc.)  Opening sales market for agricultural land  Strategy for Agricultural Development 2015-2020  Productive and sustainable use of land resources: agricultural, urban, forestry  Valuation and Taxation of land and real estate  Productivity growth  Good Governance Principals: transparency, accountability 19

20. Sources of data for land indicators IndicatorActual sources (where & what) Coverage; Quality issues Base CharacteristicsSALR stat. reports Private land: 31,425,568.0 (ha) Communal: 13,078.9 (ha) State: 28,778,090.8 (ha) Complete coverage Sub-regional level Annual Discrepancies w/Cadaster Not available at individual level 20

22. Sources of data for land indicators IndicatorActual sources (where & what)Coverage; Quality issues PrivatizationSALR Privatization (number of people): Total: 12,864,371 (86.7% of eligible) During 2013: 20,170 22

23. Early findings and Policy implications  Findings  The only category of land that is sufficiently well documented and registered is Private Agricultural Land  There is a need to show practical usefulness of the proposed indicators for Government decision making  Policy implications  Administrative reforms and approval of boundaries  Need for Cadaster of Forest and Water resources, Digitized Cadaster of Real Estate  There is a need for unification of the Cadaster and the Registry of property rights 23

24. Emerging policy issues and gaps  Opening sales market for agricultural land  Urban planning  State land management  Land and real estate tax Gap:  No data available to design new institutions and monitor their performance 24

25. Implementation Issues 25  Technical  Political

26. Next steps  IDF Project  High level Presentation of the Project and the Monitoring System  Updating Methodology  Establishing collaboration with the new Government  Adding the need for monitoring and transparency to the reform agenda  Producing examples of policy-making based on monitoring results  Institutionalizing the Monitoring System 26