G A V I N A D L I N G T O N L E A D L A N D A D M I N I S T R A T I O N S P E C I A L I S T

P R O G R A M T E A M L E A D E R E U R O P E A N D C E N T R A L A S I A ( E C A ) R E G I O N

W O R L D B A N K

Land Administration Great Changes Can Happen

Quickly

Contents

Introduction – The Europe and Central Asia Region

Imagine

Why the World Bank Was Involved and What Changed

The Lessons Learned Some Examples The Land Governance Assessment Framework

(LGAF) – if we have time!

Europe and Central Asia (ECA) Region

Countries 30

Population 893,314,335

Land area (sq km) 27,381,299

Properties registered

Estimated at 300-400 million

Three Stages of Land Administration in ECA

Progression of reforms of land administration and property rights in ECA:

1. Assign property rights to individuals and companies (farm restructuring, privatization, restitution)

2. Protect property rights and encourage real estate markets to operate efficiently (est. cadastres and property registers, systematic registration, improve service, legal framework)

3. Efficiency in the management and administration of property (improve planning systems, municipal finance and property tax, efficient management of state/municipal property, land consolidation, spatial data infrastructure and e-government )

Land Administration and Management (LAM) Projects Funded by the World Bank (1994-2013)

5

*43 projects – loan amount for LAM over $1.2 billion. *21 stand-alone LAM projects. *16 projects under implementation today.

*Policy and Analytical work in some countries also underway and we are providing cross support to other regions as required.

Our Team in ECA

Team Leader, Lead Land Administration Specialist

4 Senior Land Administration Specialists

1 Senior Land Administration Specialist that focuses on IT. Partnership arrangement with FAO.

2 Operations Officers that work as Project Team Leaders.

1 Extended term consultant for 2 years

1 Junior Professional Associate

Social Scientists as needed provided by our sector

A cohort of specialists we hire covering property law, geodesy, registration, cadastre, IT, valuation, institutional management. 8 of these work on more than one project. (Sometimes many more!)

Think A Little

1989-1991

2008

Tables turned?

No private companies

Now put yourself in their position

Really?

Law

Case law

Universities

Institutions

Rights?

Value?

Private sector?

Mafia, corruption,

Poverty

Private ownership of land?

Old people?

No budget

L A N D A N D P R O P E R T Y M A R K E T S , I N C L U D I N G C O N S T R U C T I O N , M A Y C O N T R I B U T E A S M U C H A S 1 5 % T O G D P I N A D E V E L O P E D C O U N T R Y , A N D N E A R L Y T W O T H I R D S O F A N A T I O N ’ S W E A L T H I S D E R I V E D F R O M P R O P E R T Y A S S E T S . - ( E C O N O M I S T M A Y 2 9 , 2 0 0 3 . )

S O C I A L S T A B I L I T Y A N D S O C I A L S A F E G U A R D S

Why Did The World Bank Get Involved?

The Mystery of Capital – de Soto 2000

RPM-50

11

Hypothesis: Capital is the force that raises the productivity of labour

and creates the wealth of nations.

The people in all countries of the World have sufficient savings and property assets to access the capital they need to create wealth.

In many countries the people can not access the capital they need because their ownership rights are not adequately recorded. (Dead Capital).

There is a direct correlation between a nation’s wealth and having an adequate property rights registration systems.

In 2000 de Soto equated transition countries systems with the developing world

“ … today they look astonishingly similar: strong underground economies, glaring inequality, pervasive mafias, political instability, capital flight and flagrant disregard for law.”

“ …most people can not participate in an expanded market because they do not have access to a legal property rights system that represents their assets in a manner that makes them widely transferable and fungible, …

ANY CHANGE?

And in 2013??

Doing Business 2014 shows 11 of the top 20 countries for registering property worldwide are

in ECA.

1 Georgia

3. Belarus

5. Armenia

6. Lithuania

9. Kyrgyzstan

11. Slovakia

13. Azerbaijan

15. Estonia

17. Russia

18. Kazakhstan

19. Moldova

How Did This Happen?

Political and Institutional Set up

More stable government led to:

Desire to reduce corruption and improve governance.

Provide better services to citizens.

Embracing free market economics more fully - the resultant need to have effective registration systems.

Requirements to establish cadastres because of the perception that land use was out of control:

Environmental degradation

Low agricultural outputs

Tax evasion

Informal developments

Attributes to successful land projects

1. Strong government, capable administration

2. Primary Focus on the Client

3. Secondary Focus on:

Training

IT

Private sector development

Cadastre/ registration run like a business

Transparent access to information

Gov asks

professions:

What needs to be

done?

How much will it

cost?

How long will it take?

Gov tells professions:

This is what needs to be

done.

This is how much money you

have.

This is when it must be

completed.

Which Is The Right Approach?

Ensure the basic legal and institutional responsibilities are in place – refinements to policy, law and regulation can be addressed as experience is gained. They may take a long time.

A ‘champion’ has the greatest impact – more so than legal frameworks, project designs or supervision.

Single agencies covering both cadastre and the registration of legal rights are more efficient and more likely to succeed – they are preferable but not essential if it is not politically acceptable.

Support services in valuation, surveying, legal advisory services, notarization and real estate agency will develop through market forces if you allow private sector involvement.

Projects should contain a major focus on training and human resource development.

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Lessons Learned -1. Institutions

IT systems are basic requirements in the modern day and can provide huge benefits in the quality, transparency and speed of service provision.

IT system development requires strong support in IT project management capacity building.

Home grown IT systems have been more successfully implemented than large internationally tendered contracts.

IT systems require substantial periods for piloting, testing and training before being ‘rolled out’.

Put the Results on the WEB

20

Lessons Learned -2. IT systems

Good use of modern technology (especially CORS, GPS, digital maps, orthophotomapping) can reduce costs and increase accuracy. Should aim for less than $10 per parcel for systematic registration work.

Competition brings down prices.

Sporadic registration (on a case by case basis as transactions occur) should be implemented as a priority.

Systematic registration (area by area complete coverage) is not always necessary. It is better to complete it quickly and worry about accuracy later. Avoid many of the traditional or overly complex surveying methods.

21

Lessons Learned -3. Cadastre and Surveying

Focus on providing customer service according to publicised

service standards. (Aim for instant access to information, preferably on-line, and one day registration.)

Be responsive to professional users – they often drive the need to reform.

Office designs, workflow procedures and automation can help to reduce corruption and improve efficiency of service.

Land Administration can be a self-funding, revenue generating activity run along business lines providing good services to customers.

The public need to be informed (through public awareness campaigns), interviewed (through customer surveys) and provided with quick and up to date service, preferably on-line.

The results of projects need to be measured and analysed regularly. (Monitoring and Evaluation Systems in place).

22

Lessons Learned -4. A Service Industry

Some Examples

CORS-TR Stations 146 (T.R.N.Cyprus included)

Turkey Slides – Thanks to Sedat Bakici – Turkey General Directorate of Land Registry and Cadastre.

CORS-TR Stations

Erzurum-Meteorology

Iğdır-TKGM Cabinet Viranşehir-Meteor.

Siirt-Meteorology

CORS-TR Control Center Ankara - GDLRC

Renovating the Cadastre

Aerial Photograph+Cadastre; Orthophoto+Cadastre;

Old-dated aerial photographs from the archieve used to renew and update cadastral maps

It is quite hard to use these images at cadastral works, which are not in orthophoto format, having no coordinates & scale and including errors arising from field slope.

Cadastre after renewal + Coloured Orthophoto

First cadastre Renovated cadastre

Ukraine - New Cadastre System in operation-January 2013

Simplified procedure for registering new property

decreased steps from 5 to 2

Decreased Time for registration reduced from several weeks to

average 21 min

Decreased waiting time from several hours to average 10

min, no need to book in advance

Decreased Cost for extracts by 50%

for registration by 30%

Data sharing with Registration System and Notaries

National Cadastre System roll out in 1 month to

all 592 offices.

1 900 staff plus private surveyors trained.

Public Cadastre Map available on the WEB.

29 Thanks to Rumyana Tonchovska, FAO, for slide.

Albania is the first country in ECA, using LADM - adopted as

ISO standard on Nov. 1, 2012

The Land Administration Domain Model (LADM) provides a basis for national and

regional profiles and enables the combining of land administration information from

different sources in a coherent manner.

30

Albanian Property IT System:

- Locally developed with independent Quality Control (KPMG, Italy)

- In operation in 5 largest offices

- Roll out is ongoing

- Scanning of archives of 10 big offices ongoing

- E-services to Notaries

- Online appl. tracking system

- Public information for ongoing first registration data

A Modern Government ICT Center in

Tirana, hosts the key Government registers,

incl. Property Register

Thanks to Rumyana Tonchovska, FAO, for slide.

Regional offices

38 222 people

Central office

615 people

Federal Cadastral

Chamber of Rosreestr 33 150 people

71 987

employees

DATABASE:

over 137,4 million land parcels,

real estate units

over 253 million registered titles,

restrictions (encumbrances)

Daily – over 450 thousand applications Every year – over 50 million registry actions

1,5 petabytes

(about 17 million IPADs)

31

Russian Property Registration System is one of

the biggest in the world

Slides from Vadim Andropov, Federal Service for State Registration, Cadastre and Cartography

≈ 10 min.

Since 2010 - 22% of all interactions with

customers have been transferred into an

electronic form 32

ZERO (0) e-documents (e-services)

≈ 4 hours

for individuals = $4,6 for legal entities = $9,2

delivered 10 949 610 e-documents

for individuals = $12,3

for legal entities = $37

Only three years (2010 – 2013) and we have saved:

$ 121,5 million for our

customers

4791 years in lives of all our

customers (or about 70 human

lives)

2009 2010-2013

The land governance assessment framework

(LGAF): A tool for diagnostic and monitoring

A D A P T E D F R O M A P R E S E N T A T I O N M A D E B Y V I C T O R E N D O A T T H E W O R L D B A N K C O N F E R E N C E O N L A N D A N D

P O V E R T Y , A P R I L 2 0 1 2 .

Critical areas covered

Legal & institutional framework

Recognize existing rights and allow users to exercise them at low cost. Policies are clearly stated & regularly monitored.

Land use planning & taxation

This section also deals with informality and housing.

Management of state land

Clearly identified and managed efficiently. Fair expropriation, compensation and appeals. Divestiture of state lands and property.

Public provision of land information

Land information accessible at reasonable cost - comprehensive, current and reliable.

Dispute resolution & conflict management

The LGAF methodology

Principles of LGAF application Local expertise/ownership: CC rather than imposition of outside experts Constructive rather than evaluative: Good practice virtually everywhere Technical rather than political: Aims to be objective, replicable, actionable

Step 1: Put together background information Tenure typology and key issues for each tenure type Information on all the dimensions based on existing data (by experts) Preliminary ranking & tentative priorities

Step 2: Panel sessions to rank& identify priority actions Ranking panels with participation by a broad range of stakeholders Priority recommendations & ways to monitor Peer review of draft report & finalization

Step 3: Agree on a process for follow-up Country-level validation workshop to confirm rankings & articulate policy

messages Policy dialogue with suggestions to get policy-maker reactions Ideally, annual follow-up meetings

LGI 9,

Dimension i

Assessment

Applications

for building

permits for

residential

dwellings are

affordable

and

effectively

processed.

Please rank below and also fill out following matrix for background information:

A – Requirements to obtain a building permit are technically justified, affordable, and

clearly disseminated.

B – Requirements to obtain a building permit are technically justified and affordable

but not clearly disseminated.

C – Requirements to obtain a building permit are technically justified but not

affordable for the majority of those affected.

D – Requirements to obtain a building permit are over-engineered technically

Step A

g

e

n

c

y

Justification Efficiency and

transparency of

process

Estimate time

(days)

Comments

[add steps here]

Codes: 1 = Clearly justified;

2 = Somewhat

justified;

3 = Not justified

1 = Efficient &

transparent;

2 = Some discretion

in implementation;

3 = Significant

discretion

Estimate

typical

number of

days

Provide comments on the appropriateness of the

agency, justification

Comments for LGI 9 (i)

1. Analysis: [complete the table above]

a. Provide details concerning the process of obtaining a building permit.

b. Are there technical justifications for the key steps?

c. What is the cost of obtaining a building permit?

d. List the channels/methods used to disseminate information about building permits.

1. Data source:

1. Data reliability:

Example for an LGAF dimension & coded answers

2. LAND USE PLANNING AND TAXATION GE GH NG SA

7 i Urban planning based on public input C B C B

7 ii Rural planning based on public input C D D B

7 iii Public capture of changes in land use B C C B

7 iv Speed of land use change C A D A

Efficiency of Land Use Planning

8 i Planned development process: Largest city C C D A

8 ii Planned development process: 4 next cities C C D A

8 iii Planning copes with urban growth C C C C

8 iv Plot size adherence B C C A

8 v Plans for other uses in line with reality A D D

Speed and Predictability

9 i Res. building permits affordable/transp. A C C B

9 ii Time to get building permit A C C A

Transparency of Valuation

10 i Clear process of property valuation D C D A

10 ii Public availability of valuation rolls A C C A

Tax Collection Efficiency

11 i Property tax exemptions justified A C B A

11 ii Completeness of tax roll A D D A

11 iii Assessed property taxes are collected A C C B

11 iv Taxes higher than cost of collection C C D A

LGAF Results used to work with government on future support

It guides policy makers and helps to understand specific interventions needed in the sector.

Cross- country comparisons are easily made.

Completed in Kyrgyzstan, Georgia and Ukraine.

Studies underway in Moldova, Azerbaijan and planned for Croatia.

Thank You