1. Land Administration in Africa Searching for Alternative Approaches May 12 - 15, 2008 What do we Know about Land Rights Formalization in Rural Africa? Frank Byamugisha Operations Adviser & Land Coordinator The Africa Region The World Bank

2.  What are we talking about - Definitions?  Evolution of Property Rights  Formalizing Rural Property Rights  Titling is Not Always Necessary  Alternatives to Titling  Areas of Consensus Outline

3. What are we talking about ? Definition of Property Rights Bundle of rights Many definitions (& none is optimal) shaped by: political process Wide range of economic & enviromental factors In 1970s & 1980s, optimal features of property rights were regarded as: formalized, individualised, exclusive, infinite duration & fully tradable. More recently, the view has changed especially regarding: Security What is private property, common property & no property? Tradability

4. Changing View on Security The holding of property rights (tenure) is secure when the rights, defined by community or state, are accepted by all and enforced Security is assurance, and not dimensions of a property right – duration; marketability; or size of a bundle Security, key to investment, can be provided by a variety of policies: No change to customary tenure – many systems still adequate Legal recognition of customary tenure Strengthening customary land administration Documentation of bundle of rights: Individual or group titles Individual or group certificates confering varying degrees of protection/certainty

5. Confusing Private, Common Property & No Property Common property represents private property for the group, not open access for all unless the group cannot enforce property rules; Can have individual & group rights within Common property regime; Private property does not mean fully exclusive or unrestricted: Always regulated: zoning, building regulations, regulations on sale to foreigners etc.

6. Tradeoffs to Full Tradability Old Consensus - Full tradability maximizes efficient use of resource as it moves from less efficient to more efficient users Only holds with perfect markets – breaks down with imperfect information and credit markets With market imperfections, common property and rental markets provide risk insurance and social safety nets – assured access to land for farming to all community members

7. Evolution of Property Rights Evolution is from customary to statutory tenure Scarcity – property rights evolve with scarcity & value of land-based resources Scarcity is driven by: Population growth Agric. intensification such as irrigation & technology Market infrastructure & access Global developments in markets, technology etc. Multiple evolution paths for resource rights – pastoral, forestry, fisheries, water Property rights for pastoralists evolve away from fencing toward regulation of access to grazing & water points, with rules to avoid over-use and conflict with sedentary agriculture Property rights for water evolve toward regulation of water access and control, with calibration for allocation and pricing Property rights for forestry & fisheries evolve toward regulation of access with community participation in management, with rules to avoid over-use, and negotiation of concessions

8. Formalizing Property Rights Regimes Customary/informal tenure covers about 90% of rural Africa & 51% of urban Africa Unlike previous thinking, many communities in customary tenure can manage competition and conflicts well enough to assure adequate security However, there are systems where traditional institutions can no longer cope, and the community or state decides to formalize, document and enforce the rules in courts of law Formalization is conventionally through a title deed to individual, group/corporate body, or public/state

9. Titling is not Always Necessary In the 1970s & 1980s, consensus was to formalize rights through creation of documentary evidence – title deeds underpinned by cadastral surveys & maps – for security & collaterallised credit There is enough evidence to question this: Title/lease does not necessarily provide security Some traditional institutions offer enough security Titles not enough for credit – need mature financial institutions which are missing in much of Africa Financial institutions can operate without collateral – group lending, microfinance, knowledge of borrower In urban areas, areas covered by banks and commercial agriculture, formalization of property rights can increase access to credit

10. Alternatives to Titling Legal recognition of customary tenure – recent land laws in Africa Legal recognition Plus strengthening customary land administration (eg. Ghana Customary Land Secretariats) Certificates confering varying degrees of protection (bundles of rights) – see next slide and example of Thailand

11. Certificates Confering Varying Degrees of Protection Title Deeds (Conventional) – full primary rights Certificates offering rights of inheritance and transfer (No detailed cadastral survey): Certificates of customary rights of occupancy - Tanzania Certificates of customary ownership - Uganda Certificat foncier - Madagascar Certificates offering rights of inheritance and limited rental (no detailed cadastral survey) – eg. Ethiopia

12. Alternatives to Titles in Thailand - 1984 NS4 – full title based on full survey (15% of total) NS3K – based on unrectified map - upgradable NS3 – based on rough survey - upgradable NS2 – land description - upgradable SK1 – land description - upgradable STK1 & STK2 – temporary rights in forests Sor Por Kor 4-01 – temporary rights in forests SLK – Certificates for Gov’nt land Undocumented – less than 33%

13. Areas of Consensus Property rights are rules which govern relations between individuals and are defined by a community or a state Property rights need to be clearly defined, well understood and accepted, and strictly enforced Property rights need not always confer full “ownership” and be individual – they can be individual, group (community or corporate), or public/state Property rights need to be secure to support sustainable development