Towards a Palestinian Land Management Reform Program

Many developing countries around the world have cadastres and registration systems that have been established for a long time. Following years of poor governance these inefficient systems have become a huge constraint on property markets. Legal documents and records often go back over a hundred years, can be often contradictory or fraudulent, and tend to have a history of conflicting or unclear legal documentation or seriously dysfunctional government held records.

Resolution of such dysfunctions in cadastre and registration systems is a pre-requisite for sustainable economic growth in both the urban and rural space of countries. Secure cadastral and registration systems are essential to enhance land tenure security and property rights which are fundamental for a well functioning economy, for the accumulation of wealth and for giving confidence to investors. Cadastral systems need to (i) permit the real estate market to grow; (ii) allow the flow of credit using real estate as collateral and greatly reduce the transaction costs associated with the provision of credit; (iii) improve the efficiency linkages; and (iv) form the basis for broad based
property taxation and local economic development.

While many other factors affect economic growth, by ensuring that effective land administration and
management systems are in place, governments can ensure that economic growth is not hindered because of the lack of such systems that impede the development of real estate markets. Once a country has made the political decision to allow capitalism to operate, it becomes a necessity to support the development of stable, transparent, and efficient real estate markets, essential for acquiring land for development, asset reallocation for business and private purposes, and as a source of credit.

Secure land tenure and property rights have taken on greater historical and cultural significance for Palestinians in recent years. The Palestinian Authority emphasized land management and surveying as its top priority in its Palestinian Reform and Development Plan (PRDP). Implementation of this key PRDP priority is being done under a program called the “Land Administration Program”, which aims to enhance economic growth by developing, within a framework of laws, an efficient and trusted
system of land registration and cadastre that would establish private land rights for citizens
and businesses. Long term donor support for this Program aims to increase the confidence of
Palestinians in the security of titles, enable an increase in the number of formal transactions
as well as collateralized lending, enhance local revenues from land and property related fees and
taxes, and support the establishment of a strategy for Public Land Management, including its use
and disposal.

First Land Administration Project
Land2The objective of the first phase of donor support for this Program, provided through the Land Administration Project (LAP), was to assess the feasibility of introducing reforms in land administration. Assessing feasibility required first and foremost, the accumulation of substantial detailed knowledge of the various steps that, if implemented, would ultimately lead to the issuing of titles. LAP 1 was implemented over 3 years and 9 months, and closed on December 31, 2008 with significant accomplishments.

While a complete evaluation of LAP 1 is underway, the preliminary findings so far make clear that there was significant learning that took place during implementation, and substantial knowledge was generated. Excellent studies were undertaken, informing on changes that would need to be made for a more efficient and affordable path to the issuing of titles in West Bank and Gaza (WB&G) – changes to existing policies, laws, and regulations and procedures for surveying and registration.

Under LAP 1, systematic land surveying and registration was resumed for the first time in 40 years. Using the private sector, LAP1 demonstrated lowered unit costs for surveying. For the first time, a manual of procedures for systematic surveying and registration was prepared, establishing a foundation for transparent dissemination of procedures that could contribute to building the public’s
trust in the Land Administration Program.

Computerization of land records was initiated and is ongoing. Close to 200 surveyors were licensed, and 1800 parcels of land were registered. Public awareness campaigns led to the empowerment of women. A dispute resolution mechanism established under LAP 1 has provided clarity on future actions. Finally and most importantly, “informed” discourse is taking place on an issue that was
taboo before.

With the technical knowledge generated, the development of a strategy for surveying and registration of about 3.2 million dunums or about 1.2 million parcels of land is now possible. It is clear that a strategy that delivers on the task within a realistic, affordable and acceptable time frame, will need to (i) optimize inputs, (ii) develop partnerships for surveying and registration with many stakeholders, (iii) enhance public-private cooperation, and (iv) transfer knowledge. Depending on the level of
innovation integrated into the surveying and registration process, the costs of the program could vary between US$300 million to US$600 million, even possibly as low as US$110 million.

Second Land Administration Project
The Second Land Administration Project (LAP 2), aims to support the Palestinian Land Authority (PLA) develop and implement a strategy for surveying and registration that embraces innovation, and delivers measurable results in record time. The proposed project is under preparation, and is expected to be supported by the Government of Finland and the World Bank.

What will make LAP 2 a success?
International experience highlights that without a “champion” on the client side that takes ownership and becomes the “change agent” constantly galvanizing a constituency of support for new and innovative ways of doing business, success is often elusive.

For LAP 2, PLA will need to be the champion and the change agent. While much has been accomplished under LAP 1, it is now time for the PLA to set the agenda, strategy, and pace of work that will deliver results for the Land Administration Program. It is a new institution, and well positioned to harness the high willingness of municipalities, educational institutions and the private
sector to partner with it to deliver expeditiously on its mandate, and meet the expectations of the Palestinian people.