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Good Governance in Land Administration Peru Case Study Victor Endo February 2008

Good Governance in Land Administration Peru Case Study Victor Endo February 2008. Outline . Foreword: exploratory nature of this review Case study purpose: reviewing land administration functions from the perspective of good governance

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Good Governance in Land Administration Peru Case Study Victor Endo February 2008

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  1. Good Governance in Land AdministrationPeru Case Study Victor Endo February 2008

  2. Outline • Foreword: exploratory nature of this review • Case study purpose: reviewing land administration functions from the perspective of good governance • Principles – expression in performance of land administration agencies

  3. Context information from Peru • Area 128.5 million Has • Population 27.5 million • Administrative organization: • Central Government • 25 Regional Governments • 194 Municipal Provinces • 1898 Municipal Districts GDP Growth 2005 4.50% 2006 6.40% 2007 8 %

  4. Land policies and tenure security • Constitution and Land Policy • State ownership of natural resources and of any land not in private hands • Recognition of private property and guarantees against unfair government expropriation • Recognition of communal property (comunidades campesinas and comunidades nativas) • Recognition of women’s rights

  5. Land policies and tenure security • Functions of land administration carried out through separate systems • Competencies distributed at national, regional and local levels • Sector-driven visions of development • Sporadic attempts to articulate project investments or programs • Priorities set by the Ministry / Regional President / Major • Coordination usually to deal with short term issues Unclear, Overlapping functions Confusion for the citizen Space to discretionary power Informal modes of service delivery

  6. Land policies and tenure security Examples of silo approach to land policies • Formalization efforts 1990’s • Urban - rural division - Same principles but two different agencies • Urban formalization disconnected to housing programs - Incentive to invasion? • Limited linkages to urban development / rural promotion policies • Coordination of cadastral mapping and surveying activities • 14 different agencies at Central Government plus local governments • Consensus building to create standards and synergies. 2004 Law • Little progress to date

  7. Locally accepted systems to record land rights Systematic land formalization PRINCIPLES • Dynamic legal framework • Harmonization of law and informal rules • Permanent feedback legal framework - field oper • Conflict resolution mechanisms • Institutional coordination • Attention on constraints and incentives • Techniques and technology • Simplest possible • Robust • Upgradeable PENDING ISSUES OUTCOMES Difficult typologies: centros poblados comunidades Urban 1.43 million Rural 1.5 million RECENT DEVELOPMENTS • Reversion of the reforms • Tax clearance to register rights • Increase of transaction costs notaries

  8. Locally accepted systems to record land rights Urban development and building regularization: What is the purpose of registering? • Registration of the soil only? • Succesive laws to regularize non authorized developments • Succesive laws to simplify construction licensing • Inability of local governments to control urban development

  9. Overlapping rights • Cumbersome and costly registration processes Service Delivery by land institutions Registration system : do records reflect reality? Is the system cost – effective, accessible and reliable ? • Weaknesses of parcel description in traditional registry • Registry officials have limited incentives to efficiency • No standards for processing applications • Registered owners have limited incentives maintain subsequent transactions • Which records are valid? • A system of information that requires expert assistance • High transaction costs Tax control / Escrituras públicas

  10. Transparent public land management processes Inventories and procedures to transfer state owned land • SBN establishes sound principles for transferring state owned land. • Public auction is the rule • Unification of state owned land inventory • Initially envisaged as the only agency in charge • However exceptions: privatization of idle land (reported corruptive practices) • Decentralization law poses challenges to regional and local governments

  11. Challenges of the study • Broad principles and overlapping indicators • Use of existing statistics: reliability and consistency • Aggregated indicators

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