Posted December 2000
Final report
As part of the Bertinoro Initiative, the Food and Agriculture Organization of the United Nations (FAO), in collaboration with the Italian Ministry of Foreign Affairs, organised the 1999 Cervia International Land Tenure School. Its focus was on Southeast European countries and was held as part of the 5th Summer School on "Post-Communist Transition and European Integration" organised by the University of Bologna and the International Network on Europe and the Balkans.
The International Land Tenure School took place in Cervia, Italy, from 3 to 15 September 1999 and brought together participants and lecturers from Albania, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Germany, Hungary, Italy, Moldova, Romania, the Russian Federation, Switzerland, Turkey, Ukraine and the USA.
The School received technical and organisational support from the following institutions:
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Italian Ministry of Finance Province of Bologna, Italy ITALECO S.p.A. (IRI Group), Italy EURIMAGE, Italy Associazione Bancaria Italiana, Italy University of Bologna, Italy University of New Brunswick, Canada University of Budapest, Hungary University of S. Petersburg, Russian Federation Katholieke Universiteit, Belgium |
Overseas Projects Corporation of Victoria, Australia John Fisher Assets Consulting, Australia Bundesanstalt für Agrarwirtschaft, Austria Gesellschaft für Technische Zusammenarbeit (GTZ), Germany Russian Federation State Land Committee Federal Directorate for Cadastral Surveying, Switzerland General Directorate of Rural Services, Turkey Embassy of Ukraine |
The School's objective was to identify the institutional innovations and developments needed to ensure the peaceful enjoyment of property in the countries of Southeast Europe and the roles that land tenure experts in the private and public sectors should play. Many countries in the region have undergone, or are currently engaged in, territorial disputes within their national boundaries. Thus, for these countries, it is vital to implement land tenure institutions that use modern land use and land administration practices in order to attract both national and international investment. The range of topics covered by the lecturers provided a stimulating view of how OECD countries were addressing related issues. There is clear consensus that there are no easy or simple answers but the students identified what they saw as promising directions to be pursued.
The 5th Summer School, opened by Prof. Bianchini, Central Co-ordinator of Europe and the Balkans International Network, brought together the participants of the "International Land Tenure School" and the students attending courses prepared by the University of Bologna on environmental and economic development in the Balkan countries. Mr. J. Riddell, Chief, Land Tenure Service, FAO, transmitted the compliments of Dr. Jacques Diouf, Director General of the Food and Agriculture Organization of the United Nations (FAO), for this important endeavour to promote the co-operation between FAO and Southeast European countries.
The Italian Minister of Foreign Trade, Piero Fassino, encouraged an open discussion on the development of the European Community and the integration of Southeast European countries. The importance of European and international co-operation in view of the enlargement of the European Community was emphasised by Mr. Gianfranco Cicognani, Italian Ministry of Foreign Affairs, Mr. Vittorio Prodi, Province of Bologna, Prof. Pier Ugo Calzolari, University of Bologna, and Prof. Martellini, Landau Network-Centro Volta.
The Ambassador of Ukraine, Mr. Volodymyr Yevtukh, participated in the final session, as did the representatives of ITALECO S.p.A. (IRI Group), Mr. Alfonso Silvestre and Mr. Domenico Torlucci.
FAO and the Italian Ministry of Foreign Affairs acknowledge the technical and scientific support given to the School by Professors Stefano Bianchini, Andrea Segrè and Luigi Bruzzi, University of Bologna, as well as by Dr. De Santis, Ministry of Finance.
The Cervia International Land Tenure School placed special emphasis on the improvement of legal and administrative issues in land tenure and land markets, the involvement of the private sector in land administration, and the appropriate use of recently developed data management technologies in Southeast European countries. The recommendations described below are proposals from the participants in the School on how land administration systems in these countries could be improved.
Efficient land administration systems are based on a clear legal framework. Since many Southeast European countries are experiencing uncertainties in defining and operationalising legal rights in land and other assets, the creation of a co-ordination body (CB) in each country would be helpful in establishing an efficient land administration system. This is particularly important in countries where several ministries are directly involved in these issues. Such a CB could bring together relevant ministries and national agencies and organisations to prepare a strategic plan for the development of an efficient land administration system. Several countries of the former Soviet Union have found an interagency conciliation procedure to be useful. Under this approach, a "round table" at the presidential level thoroughly reviews proposed programmes or legislation and concludes with an agreed upon plan of action to be signed as a Presidential Decree. The School participants emphasised that internal structures of a CB or presidential level round table should be supported by strategic and operational plans that are both transparent and goal oriented. The time limit on the mandate of a CB should be conditioned by the unique problems in a specific country and could be expected to last longer in large countries than in small ones. Furthermore, it was felt that a CB could only be effective if it is successful in delegating its competence in transferring property rights to a range of decentralised bodies (regional offices). It should avoid becoming another bureaucratic structure.
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Administrative issues:
1. Co-ordination Body (CB), limited time mandate
A short checklist should include
7. Cross-border investments |
In order to create a new and more efficient administrative structure, reliable data sources are essential for all levels (i.e., a CB as well as the other units). Property-related data that are to be collected for a particular country will be effective only if they address the concerns of the population. That is, in order for people to view modern land tenure and administration institutions as being valid, these institutions should reflect the society's cultural values concerning property. Thus, the participants emphasised repeatedly the importance of effective services received at the local administrative level and good management capacities of policy makers (CB, Ministries, agencies, etc).
The participants further felt that it was necessary to involve private contractors who could assume tasks such as data collection and updating. To ensure high quality standards, professional organisations should be encouraged (or established) to control the methods and establish quality standards of private contractors.
The main long-term objective is to transform decentralised units into service providers so that work can be carried out quickly and efficiently. A clear legal framework for property transactions therefore attracts cross border investments which, in turn, are the basis for new employment opportunities and economic development in the target countries.
The professional experience of the School participants supported the conclusion that the construction of a clear and transparent market in land is a basic condition for general economic development in a country. Land markets are also essential for needed infrastructure (communication, transportation and services) to emerge. Such infrastructure is required to encourage and support investments that in turn create much needed employment opportunities.
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Land markets:
1. Necessity for economic development
A short checklist should include
Important: Development of professional standards 5. Characteristics of rural land market
Important: Leasing market and mortgage lending institutes 7. Land assessment approach
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An open market in land promotes the development of different kinds of settlements. Urban areas are mainly the place of food consumption whereas peri-rural areas are considered to be the location of food production. Peri-urban areas respond to different demands such as agricultural production and recreational activities. In Southeast European countries the development of markets in general, and housing markets in particular, often do not proceed in concert with the development of institutions.
As a result, the development of land registration and cadastral institutions is of particular importance in order to resolve uncertainties and questions regarding restitution and the subsequent development of land. This underscores the inadequacy of relying solely on legislative changes to provide the institutional basis for effective transactions. Land transactions and the supporting institutions also require a professional culture (pattern of expected behaviour) so that land users can learn to depend on fair and accurate service.
A market in land stimulates the growth of conveyancing industries. Professional businesses such as real estate agencies, land agents, notaries, and private survey companies are some examples of the diversity of new employment opportunities in urban and rural areas that can be created by good land tenure and administration institutions. The important role of professional standards was again emphasised.
At present, the mortgage market in Southeast European countries still lags behind demands and should be improved. The same applies to credit and related financial institutions. The participants felt that it is unrealistic to expect the private sector to develop needed financial services by itself.
In analysing the role of institutional development for administration and the provision of financial services, the School participants noted that rural land markets differ from urban markets in many ways. The participants noted that current urban markets are characterised by full transfers (purchase and sale) whereas rural markets are dominated by partial transfers (leasing arrangements for agricultural purposes). Values attached to rural land are diffuse and owners are often not willing to sell their property. In part, this may be due to them waiting to see the "real value" emerge from competing economic agriculture and rural enterprise developments. There is a need for the rapid development of capacity to define clear, transparent local principles (rules) for land valuation and market-oriented evaluation. The creation of maps showing indicative prices for land would be useful for assisting people identify new possibilities for putting their land (often newly restituted) into more effective use. They would also be important for tax purposes since modern property taxes are increasingly being used to support local initiatives.
Restitution of property rights is a special technical, political and legal problem characteristic of these countries in their transition from social property to liberal governance principles. Because restitution must be handled on a case by case basis, it is strongly influenced by family and emotional attachment to property. Additionally, historic inheritance practices result in many claimants when land is being resituated. Even where land was never socialised, land holdings are usually fragmented and small. This explains the small size of parcels being entered into land administration systems in Southeast European Countries.
Farmland rationalisation and consolidation is of great importance. An improved leasing market should lead to consolidation in order to revitalise agricultural land values. The meaning of land consolidation should not be restricted to land distribution but should also embrace the many aspects that lead to land development in the broadest sense (development of other economic activities such as commerce, services for the rural population, etc.) It was concluded that the private sector survey companies should play a major role, as well.
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Public and Private Sector:
Important: Business plan (Co-ordinating Body) 2. Legal framework 3. Quality control
Important: Co-operation of professions with the state and international professional bodies 4. Sale, transfer, conveyancing
Important: Publicity, civil society 5. Finance, credit, investment capital
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The state in Southeast Europe has historically played the dominant role in land tenure administration. It is not surprising that, with the changes taking place in the sub-Region, it was normally assumed that government agencies would be responsible for all the work involved in the transition from social property to liberal property systems. The sheer quantity of work to be done in transforming these property systems more or less "at once" far exceeded the capacity of any of the governments.
The participants noted that it is becoming increasingly realised that if land tenure services are to be delivered to citizens, the private sector would have to play a bigger role. The first three places where this is occurring are surveying, data collection and conveyancing. In general, in Southeast European countries surveying and data collection are in public hands. To create a clear, accessible land market situation high quality-control surveying and data collection should be increasingly executed by the private sector. A basic condition for this is free market competition. This should be co-ordinated and supervised in the initial stages by a co-ordination body (discussed above) within the framework of a business plan. This approach should ensure a balance between public and private sector involvement. A clear legal framework and free access to information are necessary to achieve this.
Quality control is another important issue. "First registration" can be delegated to private contractors who should have to adhere to professional standards. Professional associations should play a key role in ensuring constant and efficient quality control of private and public professionals.
Furthermore, an appropriate standard for technical equipment is required in order to guarantee high quality results. Large projects might remain in public hands whereas smaller ones could be carried out by private contractors. From an economic point of view, private contractors should be more flexible when purchasing and using new software.
Data exchange using international standards should help to make the land market situation in a country as clear as possible. This, in turn, should be attractive to national and foreign investors.
The transfer of tasks from public to private actors should be carried out with respect to the following recommendations. Private actors (real estate agents, etc.) should process information needed for buying and selling property. Furthermore, the private sector should be involved in facilitating transactions (through notaries, etc.) but the final management of transactions should remain in public hands. This, of course, emphasises the need to operationalise new legal frameworks so that governments are able to deliver the services demanded by their public. By turning time consuming and technologically expensive tasks over to private sector contractors, governments should be better positioned to focus on their main tasks of quality assurance and guaranteeing the fair and transparent nature of land tenure procedures.
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Technology: 1. Technologies should be added in a competitive way to achieve: · Quick and efficient services · Cost reduction · Better services 2. Governments should establish technical standards for new technologies to avoid private providers using different standard systems. 3. Security standards such as the "digital signature" should be widely introduced in order to implement the interchange of information. 4. European Quality Standards should be adopted in Southeast European countries. 5. Computerised cadastral LIS should provide information on environmental protection as well. 6. Data collected by new high-resolution satellite missions will be available at the beginning of year 2000. These satellite data should be suitable for the generation of new cadastral systems, for updating existing ones, and for land use data collection. |
The participants, who included those with expertise in the use of modern geomatics technology, observed that the private sector is generally able to allocate resources to new technology more efficiently than the public sector can. The school concluded that government agencies should increasingly be responsible for quality control functions and should not place high priority on acquiring rapidly developing tools. Instead, the private sector should be encouraged to invest in the use of new technologies.
The 1999 Cervia International Land Tenure School provided an important opportunity to promote and strengthen the relationship among experts. The participants appreciated the technical and scientific support of FAO, the Italian Ministry of Foreign Affairs and the University of Bologna as host organisation at the School. The understanding of the development of land tenure in countries around the world is essential to carrying out the analysis and evaluation of opportunities and constraints of land tenure reform within CEE countries.
The participants noted that achieving widespread support by citizens and private sector organisations in CEE countries will require improved co-ordination of international efforts promoted by different bodies such as the United Nations, the European Union, the World Bank and the Italian Government.
The participants concluded by expressing their view that the International Land Tenure School should continue in the future. By being able to bring together a number of international resources, UN technical agencies such as FAO are able to play a special role in providing training opportunities.
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