Posted December 2000

Final report

Bertinoro III
International Land Tenure School and High-Level Technical Seminar

Chapter 3: The 1999 Bertinoro International Seminar

3.1 Introduction

The Food and Agriculture Organization of the United Nations (FAO), in collaboration with the Italian Ministry of Foreign Affairs, organized the "1999 Bertinoro International Seminar" as part of the Bertinoro Initiative during 8 to 13 November.

The participants of the Seminar, which took place at the Bologna University Residential Centre in Bertinoro, Italy, came from Austria, Bulgaria, Canada, France, Germany, Greece, Hungary, Italy, the Netherlands, Romania, Russian Federation, Switzerland, Turkey, United Kingdom and Federal Republic of Yugoslavia.

The Seminar received technical assistance from the following institutions:

The objectives of the Seminar were the identification of institutional innovations and developments and to produce a range of essential elements which lead to the formulation of tools to improve and to develop land administration issues in Southeast European countries. The Seminar was designed to facilitate open discussion about the constraints and difficulties encountered as countries transform their land administration systems and how national and international organizations such as the United Nations could assist them in this regard. It is vital for countries in the region to overcome these difficulties and establish land tenure institutions with modern land use and administration practices in order to attract both national and international investment.

An example for bilateral co-operation and technical knowledge transfer demonstrated at the Seminar was the official agreement between the Russian Federation State Land Committee, the Province of Bologna and the Italian cadastre company ITALECO S.p.A., IRI Group. This agreement, signed by Mr. Valerij Alakoz (Director of the Russian Federation State Land Committee), Mr. Vittorio Prodi (President of the Province of Bologna) and Mr. Domenico Torlucci (Director, ITALECO), confirmed the strong interest of all partners to collaborate in the future.

The participants in the "1999 Bertinoro International Seminar" acknowledged the scientific, technical and financial support given to the Bertinoro Initiative by FAO, the Italian Ministry of Foreign Affairs, ITALECO and the Province of Bologna.

3.2 Issues

3.2.1 Background

Countries in Southeast Europe have largely completed the process of redistributing collective properties. However, land markets for freehold and leasehold properties face constraints since the registration of real estate, with its enhanced security of property rights, has met with limited success. In large measure this is due to the restrictive and complicated legal and administrative procedures in place. Urgently needed investments for the agricultural sector are lacking because access to financial services is limited.

A further constraint towards more efficient farm units is land fragmentation which originated with the creation of individual rights after the fall of the communist regimes. Land fragmentation has a negative effect on agricultural development and also hampers public and private investments (e.g., infrastructure) in rural areas and the allocation of land for non-agricultural purposes (e.g., industrial and manufacturing sites). Improving land tenure arrangements would increase the chances of creating new employment opportunities and services and, in general, of bettering the livelihoods of citizens.

Devising new land tenure arrangements should take into account the need to ensure sustainability of resources and should consider ecological impacts. Clear and transparent ownership rights and responsibilities are vital elements for natural resource management activities such as soil and water conservation. The protection of areas such as watersheds, river basins and national parks or smaller scaled biotopes and cultural monuments may require consolidation of fragmented parcels.

Although considerable efforts have been directed towards land registration and cadastral operations in transition countries, primary emphasis has been given to technical activities. Less attention has been paid to the "business side" of these agencies. Better management skills and expertise are needed to improve the effectiveness of agencies and also to help foster a private sector with the capacity to carry out work under contract for the public agencies. Agencies should identify their major constraints and needs and develop strategic plans to address them. During the Bertinoro Seminar, participants identified the current situation in their countries, along with the opportunities and resources needed to improve the process in developing efficient and effective land administration systems.

The sections below describe thematic approaches and country experiences drawn from the discussions at the Bertinoro Seminar. They provide brief illustrations of issues presented and observations regarding the improvement of land administration systems in Southeast European countries.

3.2.2 Land Consolidation

Turkey, which started its land consolidation programme in the 1960s, recognised that rural development was hindered by land fragmentation. Land consolidation is viewed as a multi-purpose activity with social, economic and environmental aspects.

Agricultural development is closely connected with the establishment of small and medium sized industries (e.g., food and textile industries) and services (e.g., tourism) in rural areas. Given the extensive task of land consolidation, procedures must be simple, quick, and inexpensive.

Farmland in Turkey is characterised by a variety of geographical, climatic, social and economic conditions. Despite the long programme of land consolidation, the process of fragmentation still continues because of:

· Inheritance law

· Property laws and laws of commerce which bias the effect of land consolidation in the rural context

· Land use policies

· Absence of agricultural infrastructure

· Leasing of state land and distribution of state land to farmers

Land consolidation must be approved by the government in order to facilitate its implementation. There may be a need to address general legal conditions connected with consolidation that hamper the whole process. In addition, emotional aspects have to be considered. Many farmers are reluctant to accept new tenure arrangements, even if this ensures an economic improvement for the rural areas.

After thirty years of experience, Turkey illustrates the positive effects of land consolidation on the social and economic development in rural areas. Particular attention should be paid to soil and water resources which play a very important role in the country and are subject to environmental protection. Land consolidation helps increase awareness among the rural populations so that they can improve protection of their environment.

3.2.3 Development of a Land Market

Land restitution in Bulgaria is nearly completed. Most former state-owned property is now in the hands of private owners who are free to hold, manage, lease and sell their land, and to purchase other lands. Land restitution and privatisation represent the first steps to be taken for accession to the European Union.

One of the major problems Bulgaria faces after restitution is the development of a land market. Most properties are fragmented and farmers do not enjoy efficient and profit-oriented agriculture. A land consolidation bill is being prepared for discussion and approval by the Parliament. At present, farmers try to consolidate land by selling, buying or leasing it, thereby allowing them to achieve profitable arable plots without a governmental programme of land consolidation. This situation emphasises the need to develop a land market that guarantees legal security and stability for agricultural production and trade. It is still difficult to obtain information on different types of land, and on procedures to buy, sell and lease it, but the Ministry of Agriculture, Forestry and Agrarian Reform is taking steps to improve the situation. These include creation of a database with relevant information, and establishment of a computerised information system on the supply of land in order to make the land market more transparent.

From a legal point of view, the cadastre and registration law is necessary for the improvement of land administration in the country. Major constraints are the legal controversies between the cadastre and the property register, the legal consequences of registration, and the involvement of private surveying experts. In view of the development of an efficient land administration system, the matter of legal issues should be taken into consideration.

3.2.4 Institutional Development

The transition from a communist system to a market economy in Romania has required the modernisation of the cadastre and land registration system. Achieving an efficient system requires the following:

· Protection of real property rights

· Support for the real property taxation system

· Provision for security of credits

· Development and monitoring of the land market

· Protection of real property rights

· Mechanisms for resolution of controversies

· Facilitation of land reform for agriculture

· Improvement of urban planning and development of urban infrastructure

· Protection of the environment

At present, responsibility for land registration and cadastre is in the hands of a number of ministries and agencies which require co-ordination. An inter-ministerial committee formulated a law to promote the new legal framework for a general cadastre. This law was approved by parliament in 1996. The main task of the general cadastre is to identify and register land within each territorial administration and to relate each property to a specific owner. All the necessary details should have a common information source.

To accomplish this task, the general cadastre was established as an agency under the authority of the Prime Minister's Office, thus being financially independent from other ministries. The three main functions (technical, legal and financial) of the general cadastre have been delegated to sub-agencies. The National Office of Cadastre, Geodesy and Cartography (NOCGC) is responsible for coordination and implementation of the technical and economic functions of the general cadastre. The Ministry of Justice is assigned responsibility for legal issues such as the identification of owners. The Ministry of Finance is charged with collecting data for land taxation in collaboration with the NOCGC. Coordination between these agencies is important in order to avoid overlapping and duplication of tasks.

3.2.5 Land Ownership and Registration Reform

The Former Yugoslav Republic of Macedonia (FYR Macedonia) is confronted with an urgent need to implement land ownership and registration reforms in order to promote economic growth through the real estate market.

The first step has been the creation of appropriate legal and institutional provisions for creating a land market. Title registration is being unified with cadastral mapping in order to place property information within a single registration system. De-centralised registration offices, which are guaranteed by the state, are to be established. To implement these objectives, the following constraints are being addressed:

· Inadequate legal basis for a land market

· Lack of legislation to allow sporadic registration of real estate rights

· Incomplete and inadequate legal rights and real estate records

· Long and bureaucratic procedures for mortgage foreclosure

· Lack of cooperation between regional cadastre offices and basic courts

· Slow systematic registration of real estate rights

· Lack of an organisation responsible for coordinating registration of property rights

· Lack of a clear plan of action to resolve these issues as a whole.

The EU PHARE land reform project in the FYR Macedonia encountered problems that occur also elsewhere in the region. Technical and IT issues tend to be overemphasised, leading to adoption of inappropriate technology. Instead, efforts should be focused on the essentials of developing land markets. Ineffective management and inadequate training can contribute to project failures. Institutional issues must be coordinated in order to avoid overlapping responsibilities between private and public organisations as well as between public institutions (such as ministries, cadastral offices, etc.).

A strong governmental support is essential for the successful implementation of land reforms. Land reform is closely connected with policy and legislation that introduce institutional changes. This should be done in concert with local experts who can articulate the needs and constraints of their institutions. In the long term, projects should focus on key aspects of economic development such as ensuring secure land rights and improving access to credit rather than attempting to achieve too many objectives in too short a time.

3.2.6 Urban and Peri-Urban Agriculture and the Establishment of Private Property Rights

Urban agriculture can be defined as a farming-related activity conducted within the purview of urban authorities. Urban agriculture may take place within urban jurisdictions but yet at some distance from urban centres, while peri-urban agriculture takes place beyond often well defined urban boundaries even though its outer boundaries may be less well defined.

At the beginning of the 1990s, the Russian Federation implemented a policy of free distribution of land to citizens. This policy, carried out by the local governments, was intended to create:

· Personal household plots

· Collective orchards and vegetable gardens

· Individual housing and family farms

· Dachas

One form of urban or peri-urban agriculture common in Eastern European countries is the "dacha". Dachas were introduced in the 1960s and 1970s when governments granted city dwellers perpetual use rights over small land parcels of an average size of 6,000 to 10,000 square meters. Dachas helped relieve societal tensions when food supply ran short in cities. At the beginning of the 1990s the land reform promoted private ownership of dachas.

3.2.7 Public and Private Sector Co-operation

The development of the Greek Cadastre is taking place through the involvement of the public and private sectors. The establishment of a legislative infrastructure, the organizational structure of the cadastre, and the collection and valuation of data for initial cadastral registrations are the result of a fruitful collaboration between the private and the public sector. This collaboration has gone through a complex development process and much uncertainty has been reduced since the initiation of the Greek Cadastre Project in 1995.

The executive management of the Cadastre Project has been able to overcome various obstacles, to build consensus among the interested parties involved even at political level, to keep the project on track, and to avoid major setbacks.