Land titling
Encyclopedia
Land titling is a form of land reform
in which private individuals and families are given formal property rights for land which they have previously occupied informally or used on the basis of customary land tenure. Proponents argue that providing formal titles increases security of land tenure
, supports development of markets in land, and allows better access to credit (using land titles as collateral
). Peruvian economist Hernando de Soto Polar is the most well-known advocate of the approach, but it has a long history. Recently, "inspired by these ideas, and fostered by international development agencies, land titling programs have been launched throughout developing and transition economies as part of poverty alleviation efforts." Research in China by Landesa
and others has found that more than 40% of farmers lack written documentation to confirm their land rights, and that local governments can frequently take away or sell off their land rights. Where policy reforms have been implemented, the organizations report, farmers invest in and benefit from their land, and they estimate that secure land rights represent the equivalent of $1.2 trillion in farmers' hands. UN Habitat launched a "Global Campaign for Secure Tenure".
Evidence on the effectiveness of land titling for poverty reduction
and economic development
is mixed, with the key issue being the impact of titling on the security of land tenure
, which varies. Particularly where customary land
is involved, the introduction of formal land registration
may have unpredictable effects, with the efficiency and marketisation of existing forms of land tenure underestimated, and the costs of formal registration underestimated and the security of formal land title overestimated. In many countries, recipients of formal title have later found that their titles did not give them the expected security in the face of market or state requirements to obtain their land. Some studies have found positive outcomes, albeit less strong than expected; one recent study on land titling in Argentina
found that "entitling the poor increases their investment both in the houses and in the human capital
of their children."
The way in which land titling is carried out may raise gender issues.
Land reform
[Image:Jakarta farmers protest23.jpg|300px|thumb|right|Farmers protesting for Land Reform in Indonesia]Land reform involves the changing of laws, regulations or customs regarding land ownership. Land reform may consist of a government-initiated or government-backed property redistribution,...
in which private individuals and families are given formal property rights for land which they have previously occupied informally or used on the basis of customary land tenure. Proponents argue that providing formal titles increases security of land tenure
Land tenure
Land tenure is the name given, particularly in common law systems, to the legal regime in which land is owned by an individual, who is said to "hold" the land . The sovereign monarch, known as The Crown, held land in its own right. All private owners are either its tenants or sub-tenants...
, supports development of markets in land, and allows better access to credit (using land titles as collateral
Collateral (finance)
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation...
). Peruvian economist Hernando de Soto Polar is the most well-known advocate of the approach, but it has a long history. Recently, "inspired by these ideas, and fostered by international development agencies, land titling programs have been launched throughout developing and transition economies as part of poverty alleviation efforts." Research in China by Landesa
Landesa
Landesa is a non-profit organization working to improve land rights for impoverished farming families in developing countries. Landesa partners with governments and non-governmental organizations to ensure that the world’s poorest families have secure rights over the land they till...
and others has found that more than 40% of farmers lack written documentation to confirm their land rights, and that local governments can frequently take away or sell off their land rights. Where policy reforms have been implemented, the organizations report, farmers invest in and benefit from their land, and they estimate that secure land rights represent the equivalent of $1.2 trillion in farmers' hands. UN Habitat launched a "Global Campaign for Secure Tenure".
Evidence on the effectiveness of land titling for poverty reduction
Poverty reduction
Poverty is the state of human beings who are poor. That is, they have little or no material means of surviving—little or no food, shelter, clothes, healthcare, education, and other physical means of living and improving one's life....
and economic development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
is mixed, with the key issue being the impact of titling on the security of land tenure
Land tenure
Land tenure is the name given, particularly in common law systems, to the legal regime in which land is owned by an individual, who is said to "hold" the land . The sovereign monarch, known as The Crown, held land in its own right. All private owners are either its tenants or sub-tenants...
, which varies. Particularly where customary land
Customary land
Customary land is land which is owned by Indigenous communities and administered in accordance with their customs, as opposed to statutory tenure usually introduced during the colonial periods. Common ownership is one form of customary land ownership....
is involved, the introduction of formal land registration
Land registration
Land registration generally describes systems by which matters concerning ownership, possession or other rights in land can be recorded to provide evidence of title, facilitate transactions and to prevent unlawful disposal...
may have unpredictable effects, with the efficiency and marketisation of existing forms of land tenure underestimated, and the costs of formal registration underestimated and the security of formal land title overestimated. In many countries, recipients of formal title have later found that their titles did not give them the expected security in the face of market or state requirements to obtain their land. Some studies have found positive outcomes, albeit less strong than expected; one recent study on land titling in Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
found that "entitling the poor increases their investment both in the houses and in the human capital
Human capital
Human capitalis the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience...
of their children."
The way in which land titling is carried out may raise gender issues.
External links
- "Global Campaign for Secure Tenure", UN Habitat