Land Administration and Management Policy
2.2.2 Land access and tenure
The land access and security of property rights systems are normally limited to the private sector. The view is
that while haven’t very secure and rights to land even after allocation they do not have permanent property
rights. This limitation may reduce investment incentives. To facilitate economic growth and prevent the static and
dynamic efficiency land losses, study and framework have to be carried to recognize the multiple land functions.
While systems prohibit land transactions, communities will permanently continue prating traditional land use, and
the investment opportunities in the communal areas will be low. Other way the system provides flexibility and
scope for efficiency-enhancing transfers.
It is now recognized that, universal provision of secure land rights promote investment. Instead, what is needed
is that rights are transparent and can, within the existing physic-geographic, institutional, and legal environment,
be enforced in a cost-effective manner.
In term of importance of land tenure security, the community has to be protected by the State, using correct
legislation, but is necessary to define practical mechanisms to look the performance of the economy and to
define, if we have so many land, how to use it to grown the economy, reducing the poverty, to promote
investment and employment and to increase he GDP.
2.2.3 Security of property rights and investment incentives
It is well accepted in the literature that more secure property rights could affect productivity by (i) improving
households’ security of tenure and thus their ability (and readiness) to make investments; (ii) providing better
access to credit; and (iii) reducing the transaction costs associated with land transfers.
Secure long-term individual property rights are directly linked to higher demand for investment, and will increase
individuals’ incentives, in output and productivity associated land use. The security of property can be analyzed
as:
- Rural land rights studies suggests that this can increase not only agricultural investment but also
households’ ability to engage in off-farm activities and thus contribute to broader rural diversification,
thus making a direct contribution to the reduction of poverty. This can provide lessons for other
countries.
- A second issue relates to credit access. In addition to augmenting demand for investment, secure formal
land ownership can increase the supply of credit to undertake investment from formal sources, thus
making an important contribution to the evolution of financial markets in more general terms.
- Regarding transferability of land, written records of land ownership allow to verify the ownership status
of land at low cost, thus reducing the scope for asymmetric information about land ownership and quality
and making land transactions cheaper to implement. The reduction of transaction costs would increase
“revenues” bringing the number of efficiency-enhancing transactions closer to the optimum and helping
to establish a more viable financial system.
- That the ability to transfer land between users may be of limited importance in early stages of
development when there is little heterogeneity of skills across the population, as long as non-agricultural
opportunities and inter-regional migration are limited, and in marginal environments where no land
market exists.
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