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Impacts of Rural Land Certification in Ethiopia: Empirical evidences from the Northern Highlands of Ethiopia
 

Impacts of Rural Land Certification in Ethiopia: Empirical evidences from the Northern Highlands of Ethiopia

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International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI). Conference on "Towards what works in Rural Development in Ethiopia: Evidence on the Impact of ...

International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI). Conference on "Towards what works in Rural Development in Ethiopia: Evidence on the Impact of Investments and Policies". December 13, 2013. Hilton Hotel, Addis Ababa.

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    Impacts of Rural Land Certification in Ethiopia: Empirical evidences from the Northern Highlands of Ethiopia Impacts of Rural Land Certification in Ethiopia: Empirical evidences from the Northern Highlands of Ethiopia Presentation Transcript

    • Impacts of Rural Land Certification in Ethiopia: Empirical evidences from the Northern Highlands of Ethiopia Hosaena Ghebru (Ph.D) Presented at a Seminar “Towards what works in rural development in Ethiopia: Evidence on the impact of investments and policies” December 13th, 2013 Hilton Hotel, Addis Ababa
    • Introduction • New land reforms high on the development agenda: • (High Level) Commission on Legal Empowerment of the Poor - LPI • USAID, The World Bank, DFID (scaled up financing of land reform projects) • Land governance – integral component of the G-8 alliance for food security • MDGs: Rights based approaches INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Land reform approaches: old and new • Classical land titling reform: Formalizing private property rights to land • Surveying and titling upon demand • High tech and high cost approach • Land redistribution policies and projects • Revolutionary reforms of the past (Eg. Ethiopia) • Regular redistributions to maintain an egalitarian land distribution (China, Ethiopia, Eritrea) • ”Market-assisted” redistributions in countries with inequitable land distributions (e.g. Brazil, Bolivia, South Africa, Zimbabwe, Malawi, The Philippines) • Formalization of customary land rights • Demarcation of village borders and village land use planning • Issuing of customary land certificates • Legal recognition of customary land rights • Low-cost land registration and certification • Broad-based, large-scale implementation with strong local participation • Low-cost technology approach INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Mixed stories: failed reforms • Land titling in Kenya and Madagascar • Have not enhanced tenure security, promoted investment, land and credit markets (e.g. Place and Migot-Adholla 1998, Jacoby and Minten 2006,2008) • Land distributions remain extremely skewed after many years with land redistribution reforms in LatinAmerican countries, South Africa, Zimbabwe, … • Sucessful reforms: • Ethiopia: Low-cost land registration and certification • China: Household responsibility system • India: Computerized registry system, tax-base INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • The three neoclassical focal points of land reform • Tenure security • Enhance investment • Transferability • Gains from trade • Reallocate land to more efficient users • Credit access • Land as collateral How important are each of these and are they always achievable? INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Conceptual model 1 Links between Tenure Security and Food Security: Evidence from Ethiopia Sources and effects of tenure insecurity Rights Unclear borders Encroachment Conflicts Expropriation Redistribution Sources of risk User rights - Limited investment Mortgaging rights Limited access to credit Private State Tenure insecurity of owners - - Transfer rights Production inefficiency Limited land transfers INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 6
    • Conceptual model 2 Unclear borders Encroachment Conflicts Rights Sources of risk Investment Mortgaging rights + User rights Access to credit + Private + Low-cost land registration and certification - Tenure security of owners + State Expropriation Redistribution Transfer rights Land transfers Production efficiency + + Food security INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 7
    • Land certification in Ethiopia • Certification: Individual households are given user rights • • • • • • Includes rights to use, bequeath, inherit, rent out, invest No right to sell or mortgage Responsibility for land conservation Restrictions on migration and on duration of rental contracts Restriction that maximum 50% of holding can be rented out Obligation to use the land • Land certification started first in Tigray Region in 1998 • Land certification started in 2003-2005 in three other regions (Amhara, Oromiya, and SNNP regions) of the country INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Background, continued • Land Registration and Certification 1998-99 Links between Tenure Security and Food Security: Evidence from Ethiopia • Highly participatory and low cost approach • Granted user rights to land into perpetuity • New Land Law Reforms in Tigray 2006-2010 • Established local Land Administration Committees and Land Courts • Restriction on land rental at 50% of farm size • Confiscation of land from households who have been away for more than two years with access to off-farm income sources INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 9
    • Empirical evidence: Land certification in Ethiopia Links between Tenure Security and Food Security: Evidence from Ethiopia 1. Land investments and productivity i. Holden, Deininger and Ghebru (AJAE, 2009) ii. Deininger, Ali, Holden and Zevenbergen (WD, 2008) iii. Alemu, Holden, Ghebru and Kassie (book chapter, 2013) iv. Deininger, Ali and Alemu (LE, 2011) 2. Impacts on land conflicts i. Holden, Deininger and Ghebru (2010) 3. Impacts on land rental market participation i. Holden, Deininger and Ghebru (JDS, 2011) ii. Deininger, Ali and Alemu (LE, 2011) 4. Welfare impacts i. Holden and Ghebru (2011) ... (book chapter, 2013) ii. Food security: IFPRI working paper (2013) INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 10
    • Data in Tigray Region • Household panel data survey • Stratified random sample of 400 households in 16 communities • Stratification based on population density, market access and agroclimatic variation (subsample of an IFPRI community level survey) • Surveyed in 1998, 2001, 2003 and 2006 • Household and farm plot level data • Use households for which we have complete data (balanced panel) • Survey of 400 local conflict mediators in 27 communities (85 villages) INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Tenure Insecurity, Gender, Low-cost Land Certification, and Land Rental Market Participation By Stein Holden, Klaus Deininger and Hosaena Ghebru
    • Gender and Market Participation: Key Hypotheses • H1. Female-headed households are more likely to rent out land and rent out more land than male-headed households (due to their poverty in non-tradable non-land resources) vs. • H2. Female-headed households rent out less land than male-headed households because they are more tenure insecure. • H3. Landlords that received certificates rent out more land after the reform (due to increased tenure security). • H4. Female landlords that received land certificates rent out more land as a response to getting land certificates compared to male landlords that received land certificates (because they initially were more tenure insecure and land certificates increased their tenure security relatively more). INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Findings • Significant and positive effect of land certification on the amount of activity in the land rental market • Potential landlords have become more willing to rent out their land, especially female-headed households • Female-headed households with land certificates rented out significantly more land • Easier for (potential) tenants to access land to rent in • Significant transaction costs in the land rental market also after the certification INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Impacts of Low-cost Land Certification on Investment and Productivity By Stein Holden, Klaus Deininger and Hosaena Ghebru
    • Investments, Management and Productivity of Land: Hypotheses • H1: Having a certificate for a farm plot enhances investments on the plot in form of building of new structures, improvement/ maintenance of existing conservation structures and planting of trees • H2: Restrictions on tree planting in the land proclamations (especially on eucalyptus) have prevented investment in trees. Therefore, land certification has not stimulated this type of investment and there will be no difference between plots with and without certificates • H3:Land certification has enhanced land productivity INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Findings • Land certification has contributed to • Increased investment in trees • Better management of soil conservation structures • Higher land productivity INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • .3 .2 0 .1 Density .4 .5 Yield distribution, plots with and without land certificate 0 2 4 6 8 logtotvalha Certificate INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE No certificate 10
    • Links between Tenure Security and Food Security: Can land registration and certification enhance food security Hosaena Ghebru and Stein Holden
    • Objectives • To analyze the link between tenure security enhanced by land registration and certification and household food security • Hypotheses: • H-a: Land certification has enhanced food security in form of calorie availability for households. • H-b: Land certification has in particular enhanced the calorie availability through strengthened use rights and investments • H-c: Land certification has enhanced calorie availability through enhanced participation in land rental markets • H-d: Land certification has in particular enhanced the calorie availability of female-headed households INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 20
    • Key Conclusions • Land registration and certification has enhanced tenure security in our study area (northern Ethiopia) • Food availability has been enhanced via increased investment and land productivity on owner-operated land • Food availability has been enhanced through increased access to land through the land rental market for tenant households • Implications: • Recent restrictive land law reforms may reduce the tenure security and land rental market effects of land certification INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 21
    • 0 .0002 .0004 .0006 .0008 (A) Calorie supply comparison - 1997/98 1800 Kcal daily_calorie_intake2 female headed HHs 1998 (C) Calorie supply comparison - 2009/10 .0004 0 .0002 Density male headed HHs 1998 kernel = epanechnikov, bandwidth = 172.0371 .0006 Links between Tenure Security and Food Security: Evidence from Ethiopia Density Calorie availability of male- and femaleheaded households in 1997-98 and 2009-10 1800 Kcal daily_calorie_intake2 female headed HHs 2010 INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE kernel = epanechnikov, bandwidth = 273.3059 male headed HHs 2010 22
    • Can land registration and certification reduce land border conflicts? By Stein Holden, Klaus Deininger and Hosaena Ghebru
    • Main findings • The land reform in Tigray has contributed to a reduction in land border disputes • Better market access is associated with less conflicts • Variation in quality of the reform was reflected in the frequency of conflicts: Better quality -> Less conflicts – Quality of land demarcation and measurement – Involvement of local elders enhanced timely conflict resolution • Many land border conflicts near district centers remain unresolved – Expansion of urban centers into rural areas has not been addressed well by the reform INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Successful land reform in Ethiopia • Land certificates have been provided to more than 6 million households and for more than 20 million plots of land within a period of 8 years • Land certification has in Tigray enhanced • Tenure security, especially of women • Land rental market participation • Land investments • Land productivity • Reduced land conflicts • Reduced poverty, especially of female headed households (Ghebru and Holden 2008, 2013; Holden et al. 2008a, 2008b, 2011, Deininger et al. 2008, Holden and Tefera 2008,). The studies can be obtained from author upon request. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Why has the Ethiopian land reform been so successful, despite ...? • • • • It has not provided full private property rights to land It has not opened for sales markets for land It has not opened for mortgaging of land It has not used advanced technology or highly skilled technical staff during implementation (except in pilot areas) INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Conclusion: Wider perspective Why the Ethiopian reform with more restricted rights has been successful while land titling programs in Kenya and Madagascar did not have similar effects: • Collateral effect unimportant in all cases • Initial tenure insecurity higher in Ethiopia – created a demand for certificates • Low cost and rapid implementation through a participatory and transparent process • Local administrative capacity and motivation • No local elite was threatened by the reform INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • What next for the land governance sector in Ethiopia? • Institutional/administrative issues • Incidences of 2nd generation land ownership together with lack of updates in the land registery system  potential ownership (inheritance-related disputes) • Policy/regulatory issues • More restrictive land use policies  concealed land contracts  inefficiency in the land rental market  incidences of contractual-related disputes • 1st stage land certification  2nd stage land certification (?)  more depth of rights • Rural population pressure and increasing landlessness  incidences of parcel border disputes  demand for 2nd stage certification INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • What next for the land governance sector in Ethiopia: on-going studies by ESSP • Administrative reforms • How does the local adminstrative capacity coping with the increasing pressure on land? Land registery books or computers or both? • Policy/regulatory reforms • How do the recent restrictive land policies and regulations affect spatial and economic mobility of farm households and its implications on the boader agenda of agricultural transformation in the country • 1st stage land certification  2nd stage land certification (?)  more depth of rights • What is the demand for a more formalized land rights and the 2nd stage land certification in Ethiopia INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
    • Thank you! Links between Tenure Security and Food Security: Evidence from Ethiopia a INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 30