Contents Page

GEOMATICA, Vol 51, No1 21-36,1997

THE JUSTIFICATION OF CADASTRAL SYSTEMS IN DEVELOPING

COUNTRIES

by

Ian Williamson

Professor of Surveying and Land Information

Department of Geomatics

The University of Melbourne

AUSTRALIA

Phone: +61 3 9344 4431

Fax: +61 3 9347 4128

Email: ian_williamson@mac.unimelb.edu.au

ABSTRACT

This paper provides a justification for cadastral systems in developing countries.

The paper commences with a brief overview of cadastral systems and argues that

the debate about such systems should move from whether cadastral systems are

important or appropriate for developing countries, to what constitutes an appropriate

cadastre for such countries.

The paper reviews the reasons for the dramatic increase in interest in cadastral

systems over the last decade and highlights some of the lessons and current

challenges facing policy makers in the design of appropriate cadastral systems.

The role of cadastral systems in both urban and rural situations is considered. In

rural areas the paper argues that a secure title is important: in promoting increased

investment in agriculture; for more effective husbandry of the land; for improved

sustainable development; to support an increase in GNP through an increase in

agricultural productivity; and providing significant social and political benefits

leading to a more stable society, especially where land is scarce. In densely

populated rural areas or areas of high value a cadastral system also permits an

effective land market to operate and allows an equitable land taxation system to

operate.

In urban areas it argues that a cadastral system is essential to support an active land

market by permitting land to be bought, sold, mortgaged and leased efficiently,

effectively, quickly and at low cost. In addition it argues that a parcel based land

information system (not necessarily computerised), based on the cadastre, is

essential for the efficient management of cities. Cadastral systems permit land taxes

to be raised thereby supporting a wide range of urban services, and allowing the

efficient management and delivery of local government services.

In promoting the importance of cadastral systems in developing countries, the paper

http://www.sli.unimelb.edu.au/research/publications/IPW_publ.htmlhttp://www.sli.unimelb.edu.au/research/publications/IPW_publ.html

draws heavily on the experiences of the World Bank, the Food and Agriculture

Organization of the United Nations (FAO), the United Nations Centre for Human

Settlements (Habitat) and several recognised authorities. The paper also argues that

an effective cadastral system is important for the support of sustainable economic

development and environmental management within the context of Agenda 21 as

agreed at the United Nations Conference on Environment and Development

(UNCED) in Brazil in 1992. The paper then reviews the trend for cadastral and land

information systems to be increasingly justified on rigorous economic grounds, both

in the developed and developing worlds.

Finally, the paper emphasises that cadastral systems must be appropriate to the

circumstances and needs of the individual country, otherwise the cadastral system

can do more harm than good!

INTRODUCTION

Land and its resources have been the basis of wealth for most societies since the

beginning of civilisation. However the management of such land and resources,

while being central to most societies, has seen many and varied approaches and

systems. Traditional agrarian societies, usually based on a complex form of

customary tenure, maintained a balance in the environment which sustained the

food supply over generations, subject to the vagaries of nature. Examples of such

societies are found in virtually every country in the developing or new world,

whether they are the Australian Aborigines, the North American Indians or as found

in the cultures of the African and Pacific Island nations. The management of the

environment in rural areas was generally controlled by a mixture of customary

regulation and traditional institutions.

Over the last hundred years or so, a number of factors have contributed to the

environmental degradation of many of these rural areas. First, due to inappropriate

government policies, migration and population growth, rapidly growing populations

have resulted in an increase in the clearing of forests for agriculture by rural

squatters and many other practises which have had an adverse affect on the

environment. Second, the historical rural balances have changed due to the impact

of efficient transportation systems, modern farming technologies and the

development of international markets with a move to cash crops.

From another perspective, the growth in international trade over the last couple of

centuries, combined with the Industrial Revolution, saw the development of many

large cities supporting industry and trade. In the majority of developing and

developed countries, such cities are the engines of economic growth. This trend has

increased rapidly throughout the 20th Century. This has placed a much greater

emphasis on the management of cities as institutions to support the economies of

countries. One unfortunate consequence of this growth has been the deterioration of

the urban environment and the resulting reduction in the quality of life in cities.

Today this is very evident in many, if not most, newly industrialised cities. In these

cities, infrastructure is deteriorating, roads are being choked by traffic and the high

pollution levels, whether from noise, air or garbage, are increasing at alarming rates,

with few solutions in sight.

Modern cadastral and land information systems offer one possibility of help solve

some of these problems, whether in cities or rural areas, through an improvement in

the management of land in general, with a particular focus on the environment. To

understand the growth in cadastral and land information systems it is important

however to take an historical perspective.

The development of modern civilisation saw the development of systems of land

taxation in both urban and rural areas as a major source of government revenue and

a way of managing and controlling the population. The modern cadastres of

Napoleon I in France and in many parts of Europe, are prime examples.

With a trend away from land taxes as the primary source of wealth for governments

in the 19th and 20th Centuries, and with a move to the development of active land

markets supporting the transfer of land rights and the expansion in the use of bank

finance for mortgages in supporting land markets, there has been a trend for

cadastral systems to become closely linked to title registration and land ownership,

rather than land taxation.

Over the last century, cadastral systems have developed in sophistication and have

also developed a multi-purpose role, especially in the last couple of decades in

developed countries due to the advent of computer technology. Such systems are

still used as the basis for managing land ownership records as well as valuation data

for land tax, but are increasingly developing into parcel based land information

systems. In cities, these systems are becoming a basic framework for local

government administration, city planning, collection and assessment of local

government taxes and rates, and managing utilities and transport systems. In rural

areas many authorities claim that the issuing of individual land titles to land holders

is helping to reduce rural poverty, redress regional income disparities and increase

the Gross National Product (GNP) of these countries. These initiatives have resulted

to some degree in increasing the investment in agricultural lands and ensuring more

environmentally sound agricultural practises are adopted.

As a result there is an increasing recognition that cadastral and land information

systems are fundamental to economic development and environmental management

in both cities and rural areas in the developing world.

CADASTRAL AND LAND INFORMATION SYSTEMS

A Cadastre is a parcel based and up-to-date land information system (not

necessarily computerised) containing a record of interests in land (i.e. rights,

restrictions and responsibilities). It is a key part of the state infrastructure which

provides security of tenure for those interests. It includes a geometric description of

land parcels (usually as a map, but not necessarily) linked to other records or

registers describing the nature of the interests, and ownership or control of those

interests, and often the value of the parcel and its improvements (FIG, 1995). The

key processes within a cadastral system are the adjudication, transfer and sub-

division (and consolidation) of land rights. Cadastral systems comprise a land

registration system and a cadastral survey and/or mapping system as key

components. Cadastres have the flexibility to record a continuum of land tenure

arrangements from private and individual land rights through to communal land

rights, as well as having the ability to accommodate traditional or customary land

rights. Examples of such flexibility can be found in many developed and developing

countries.

For example, in countries like Australia which are perceived to have very rigid land

registration and cadastral surveying systems, adverse possession is permitted in

most states. In addition a significant percentage of the population lives in

apartments, row houses or free-standing houses held under strata or community title

legislation, where general boundaries are the norm and the administration of these

properties and common areas has much in common with the administration of a

village in more traditional societies, albeit within a legislative framework.

Over the past couple of decades cadastral systems have developed into parcel based

land information systems, especially in developed countries (Williamson, 1985).

Land titling, land registration and land reform projects, or projects to regularise or

formalise land tenure arrangements, all require the support of or result in cadastral

systems. However cadastral systems are not ends in themselves. They have the

potential to support effective land markets, increased agricultural productivity,

sustainable economic development, environmental management, political stability

and social justice, although it is absolutely essential that each cadastral system is

designed appropriately to serve the needs of the respective country.

There is a vast array of legal, technical, administrative and institutional options

available in designing and establishing an appropriate cadastral system, again

providing a continuum of forms of cadastre ranging from the very simple to the

very sophisticated. Cadastral systems designed for poorer countries should be

simple, flexible, freely accessible and low cost, and often have similarities with the

systems supporting the operation of informal land markets. On the other hand the

cadastral systems found in most developed countries are usually complex, rigid,

expensive, relatively slow and have a high level of technical sophistication. The

success of a cadastral system, however, is not dependent on its legal or technical

sophistication, but whether land rights are adequately protected, with those rights

being able to be traded where appropriate (i.e. land rights can be bought, sold,

leased and mortgaged), efficiently, simply, quickly, securely and at low cost.

However if the resources or systems are not available to keep the cadastral system

up-to-date then there is little justification for its establishment.

Usually a key component of all cadastral systems is a common large scale map

which may range from a simple photomap to a sophisticated computerised map

(also see Williamson and Enemark, 1995). The benefits derived from the multi-

purpose use of these maps (such as for planning, land management, city

administration, provision of urban and rural services, land development and land

tax) are often greater than the benefit from the original purpose for which the

cadastral system was established (which is usually to formalise land tenure

arrangements).

RENEWED INTEREST IN CADASTRAL SYSTEMS

There has been a dramatic increase in interest and activity in the establishment and

improvement of cadastral and land information systems over the past decade or so

as an important mechanism in supporting the provision of secure property rights in

land, which has become very evident over the last five years. As a result of this

improved understanding of the role of cadastral systems, the debate is moving from

"whether cadastral systems are necessary" (there is now almost universal agreement

that some form of regularisation of land rights is essential for all countries) to "what

is the most appropriate cadastral system for a particular country". A summary of the

reasons for this increased interest is set out below, which is followed by a more in

depth analysis of the justification in the remainder of the paper.

a resurgence of interest in land tenure, land titling, cadastral, land

administration and land management issues about ten years ago in the

international organisations, such as the World Bank and the United Nations,

as well as in individual country aid agencies. This was the result of a general

trend for such organisations to increasingly move their focus away from

building dams and roads to supporting national institutional and

infrastructure initiatives such as land titling. This move was supported by

the increasing recognition that land tenure was a major constraint in projects

undertaken by these organisations. Increasingly land matters have become a

regular component of sector work and structural adjustment operations

supported by the World Bank. Hence a new generation of land titling and

land management projects have commenced as a result of an improved

willingness of the lending agencies and borrower countries to fund such

projects.

influential publications and articles have increasingly promoted the

importance of cadastral systems and land titling programs over the last

decade. For example recent editions of the World Development Report have

recognised the importance of regularising land rights in support of poverty

alleviation, sustainable development, environmental management and

improved financial systems.

the Urban Management Program (UMP), a joint initiative of the United

Nations Development Programme (UNDP), the United Nations Centre for

Human Settlements (UNCHS - Habitat) and the World Bank (IBRD) has

given particular attention to cadastral and land information matters, as well

as issues concerned with land tenure and access to land. These issues will

have significant prominence at the "City Summit" or HABITAT II

conference in 1996 in Istanbul.

a recognition at the 1992 United Nations Conference on Environment and

Development (UNCED) or "Earth Summit" of the importance of cadastral,

land and geographic information systems to environmental management and

sustainable development.

cadastral and land information systems, are increasingly being accepted as

basic infrastructure required for sustainable economic development and

environmental management, especially in developed countries.

over the last decade or so the economic and social benefits of cadastral and

land information systems and land titling projects have been increasingly

quantified. At the same time the major international organisations have built

up their experience and expertise in the area, thereby providing further

support for such initiatives.

the growth in information technologies which have specific application to

the automation of cadastral records, and the associated growth of interest in

related land and geographic information systems, has given cadastral and

related projects a higher profile and priority due to the benefits to be derived

from the new information environment.

the last decade has seen a dramatic growth in enabling technologies which

have the ability of improving the efficiency and speed, and reducing the cost

of establishing and maintaining cadastral and land information systems.

Some examples include satellite position fixing (GPS), digital theodolites,

computing and advances in photogrammetric mapping.

since the 1980s there has been a growing interest and understanding from

researchers about cadastral and land information systems with the result that

there is now a substantial body of knowledge on the subject. In addition

there are now many conferences, workshops, professional activities,

research papers, reports, books, newsletters and journals providing

information in support of cadastral reform and related activities.

the dramatic changes in Eastern and Central Europe, with moves from

command to market driven economies, have resulted in urgent demands by

those countries for cadastral and land information systems to support

effective land markets which in turn support economic development. These

demands have raised the awareness of the importance of cadastral and land

information systems world wide.

the importance of cadastral systems, and more recently land and geographic

information systems, to economic growth, environmental management and

social and political stability has been equally recognised and promoted by

both rural and urban sectors, thereby supporting and making possible

national cadastral reform programs.

DEVELOPMENT AND PROPERTY RIGHTS

The 1991 World Development Report titled "The Challenge of Development"

(World Bank, 1991) established a simple framework for development which can be

easily extended to cadastral systems. It states that the "... challenge of development,

in the broadest sense, is to improve the quality of life." And further that "....markets

cannot operate in a vacuum - they require a legal and regulatory framework that

only governments can provide."

The Report emphasises the importance of property rights in supporting

development, as follows, "In defining and protecting property rights, providing

effective legal, judicial and regulatory systems, ...the state forms the very core of

development." (p4). And further, "An efficient domestic economy requires public

goods of corresponding high quality. These include, most fundamentally, ... legal

and property rights that are both clearly defined and conscientiously protected." (p7)

The Report expands on the importance of property rights in supporting economic

development - "Reform must look at institutions. The establishment of a well

functioning legal system and judiciary, and of secure property rights, is an essential

complement to economic reforms." And further, "Businesses also need a legal and

contractual framework for their activities - one that protects property rights, ..."

(p70)

A cadastre is an essential part of the legal, regulatory and institutional infrastructure

which supports secure property rights in land, arguably the most important form of

property rights in a developing country. Without an appropriate cadastral system,

many of the "challenges of development" will not be met.

The importance of cadastral systems and efficient land markets has been promoted

strongly from another perspective by Hernando de Soto in his article in The

Economist (1993). This article was one of ten concerned with projecting the world's

future in 150 years, and was concerned with property and prosperity and titled "The

Missing Ingredient". De Soto claims that "Today only some 25 of the 185 nations of

the world have made the jump to a developed market economy" and in future only

those that have well established property rights that are widespread and protected by

law will join the 'club'.

De Soto notes that property rights are subject to frequent transfer which must be

cheap and efficient. He also emphasises the importance of determining "who owns

what" and what is required to formalise property rights speedily, massively and

cheaply. He concludes with the statement that "Until property formalisation is put at

the top of the developing world's Agenda, the long-run prospects for economic

reform (in the developing world: author) will remain poor". These arguments are

further expanded in an article by McLaughlin and de Soto (1994).

It must be realised, however, that the establishment of a land market, together with

the supporting infrastructure and institutions, has taken over 100 years in most

developed countries and that establishment of such systems by developing countries

does not occur "over night".

From a related perspective, the importance of infrastructure to development in

developing countries, where much of the provision is dependent on the above

institutions and legal structures, is discussed in the 1994 World Development

Report titled "Infrastructure for Development" (World Bank, 1994). The report

points out that nearly USD200 billion is invested in infrastructure annually in the

developing world. This amounts to about 4% of national output and about 20% of

all investment. It is also generally argued that provision of infrastructure raises

productivity and living standards - but still over one billion people lack access to

clean water while two billion lack adequate sanitation or access to electricity. At the

same time the world's population and urbanisation are increasing. It is axiomatic

that the provision and maintenance of this infrastructure requires large scale maps

and access to information about land rights to a significant degree. These are often

the direct result of the establishment of cadastral systems.

In summary it is argued that the developing world is dependent on the establishment

of a system of property rights and property formalisation in land, and associated

institutions, for economic development. Appropriate cadastral systems are

important, if not essential, for such systems to be established.

CADASTRAL SYSTEMS, SUSTAINABLE DEVELOPMENT AND

ENVIRONMENTAL MANAGEMENT

General

The relationship between property rights, sustainable development and

environmental management has been clearly enunciated in the 1992 World

Development Report titled "Development and the Environment" (World Bank,

1992). First it establishes the relationship between environmental management and

development - "The protection of the environment is an essential part of

development. Without adequate environmental protection, development is

undermined; without development, resources will be inadequate for needed

investments, and environmental protection will fail. " (p2)

The Report then states that the "scope for actions that promote income growth,

poverty alleviation, and environmental improvement is very large, especially in

developing countries. Such 'win-win' policies include: ...Clarifying rights to manage

and own land, forests, and fisheries." (p2). And further the Report states that there

are many policies which enable better environmental management, but two policies

are especially important, "the removal of distortions that encourage too much

resource use, and the clarification of property rights." (p10)

The Report explains the reasons for the emphasis on property rights as follows,

"When property rights to natural resources are non-existent or unenforced - when

there is open access - no individual bears the full cost of environmental degradation,

and there is no mechanism for regulating the use of the resources. The result is

exploitation..." (p70).

The Report provides specific support for individual land rights - "When land is

privately owned and managed, some environmental problems are less severe. Land

is less likely to be overused if its owners have a clear legal title. People who have

the secure rights to the land they cultivate are more likely to take the long view in

managing the soil." (p137), and further, "Clarifying rights of ownership and use

would improve environmental outcomes, especially where those who invest in

environmental protection would also benefit the most." (pp68-69).

The Report provides some examples linking property rights to good husbandry of

the land - "When people have open access to forests, pasture land, ... they tend to

overuse them. Providing land titles to farmers in Thailand has helped to reduce

damage to forests. The assignment of property titles to slum dwellers in Bandung,

Indonesia, has tripled household investment in sanitation facilities. Providing

security of tenure to hill farmers in Kenya has reduced soil erosion. Formalising

community rights to land in Burkina Faso is sharply improving land management."

(p12).

Wachter (1992) in a paper prepared jointly by the Land Tenure Centre at the

University of Wisconsin-Madison and The World Bank examines the relationship

between land degradation and land conservation, and land titling, from an economic

perspective, albeit his focus is primarily concerned with agricultural land in Africa.

In considering appropriate solutions he argues that the focus should not just be on

individual freehold land titles but also the options of common property and state

ownership. He argues that land titling is not always required where formal, legal

land rights are missing. He suggests that the need for land titling and registration

arises when there are growing uncertainties about the application and effectiveness

of indigenous systems to control land use and land transactions. Wachter however

supports the proposition that the institutional and legal environment are crucial for a

land-titling-oriented land conservation policy because it largely determines the costs

and the benefits of land titles for those who are to receive titles. In concluding he

argues that land titling for land conservation should not be seen in isolation, but

must be integrated in a coherent strategy of sustainable development, of which it is

one element.

Agenda 21

Agenda 21 was the key outcome of the United Nations Conference on the

Environment and Development (UNCED), the "Earth Summit", in Brazil in 1992. It

specifies a number of key areas of interest to land managers (Byrne, 1994). These

include issues regarding access to information, development of appropriate data

bases, exchange of information, land use and transportation planning, legal

frameworks and in particular land tenure. Byrne states "Agenda 21 requires us to

create efficient and accessible land markets that meet community needs by

improving land registry systems and streamlining procedures in land transactions;

and to establish appropriate land tenure to provide security for all land users,

especially indigenous peoples."

Byrne describes a number of key activities or institutions raised by Agenda 21

which highlight the importance of cadastral systems to sustainable development and

environmental management. These include; clear title, human settlement, land

information systems, land management, land registries, land tenure, land titles, legal

framework and secure tenure.

In reviewing the outcomes from AGENDA 21, the United Nations Centre for

Human Settlements (Habitat) (1993) has promoted sustainable human settlements

development and highlights the importance of appropriate land management

practices in promoting access to land in urban areas.

The above statements both by the World Bank and United Nations confirm that the

formalisation of private property rights in land, which are an integral component of

an effective cadastral system, is very important for sustainable economic

development and environmental management in both urban and rural areas.

CADASTRAL SYSTEMS AND THE RURAL SECTOR

Economic development

The World Development Report, the FAO and numerous authorities have argued

the importance of the legal recognition of property rights in land supported by

appropriate cadastral systems for the support of agricultural productivity, effective

land markets and economic development.

The 1989 World Development Report on Financial Systems (World Bank, 1989)

states that:

"The legal recognition of property rights - that is, rights of exclusive use and control

over particular resources - gives owners incentives to use resources efficiently.

Without the right to exclude others from their land, farmers do not have an incentive

to plough, sow, weed, and harvest. Without land tenure, they have no incentive to

invest in irrigation or other improvements that would repay the investment over

time. Efficiency can be further served by making property rights transferable."

(p86)

The Report argues strongly for cadastral systems which permit mortgages over land

to be used as collateral for loans:

"The assignment and transferability of property rights promotes economic

efficiency directly by creating new incentives....They do this by allowing borrowers

to offer security in the form of mortgages over real estate or other collateral....When

taking collateral, the lender is mainly interested in the efficient transfer of property

rights,...Mortgages over land and other real estate are therefore one of the best

forms of collateral. In most countries real estate accounts for between half and

three-quarters of national wealth. If ownership is widely dispersed, tenure is secure,

and title transfer is easy, real estate can be good collateral for nearly any type of

lending. Unfortunately, these conditions are not always met in developing countries.

Land distribution is often skewed, tenure (if any) insecure, and title transfer

cumbersome. One key to a smoothly functioning system of land tenure is land

registers supported by cadastral surveys. In many developing countries these are

still woefully inadequate or missing altogether." (p87)

In an FAO publication by Platteau (1992) concerned particularly with land tenure,

land reform and land titling issues, and the policies of the World Bank, some

relevant conclusions are presented. He argues that formalisation of land rights

through the issuance of titles or other land register documents is an urgent step to be

taken in all the areas where competition has become so stiff as to impose high ex

ante and ex post transactions costs on the agents. He concludes by suggesting that a

policy of official registration of land rights should not be limited to issuing

individual titles but should also provide for group titles to be accorded to all

communities, associations or groups willing to secure their access in a collective

manner.

For an indication of the World Bank's view on land rights, land titling and land

tenure reform, reference should be made to an article by Feder and Noronha (1987)

published in the Bank's journal, the "Research Observer". They state that "In poor,

but uncrowded rural societies, land rights are typically defined for groups rather

than individuals." They argue that such systems provide reasonable security of

tenure and encourage investment in land "...as long as land is abundant and farming

methods primitive." They then state that:

"The evolution of permanent and enforceable land rights is closely related to

increases in population density, advances in farming technology, and the emergence

of agricultural markets. As land becomes scarce, societies can no longer rely on

long fallow periods to maintain land fertility....One nearly universal development is

a unified system of land documentation and registration, giving a land owner proof

of ownership....land rights link up with another feature of agricultural development,

the emergence of rural credit markets. Credit transactions often require some form

of collateral. Land is an attractive collateral, provided that the owner-borrower can

assure the lender that the land can be transferred. Again, such an assurance is

greatly enhanced by an effective system of land registration." (pp143-144)

Regarding land as a commodity, they argue that "The most important factors

contributing to the development of a land market are the growth of population, the

use of new technology and inputs, the development of markets for products, the

growth of communications, and the rise of alternative uses for land." (p151). If

these circumstances occur and appropriate institutional and legal arrangements are

not put in place to buy, sell, lease and mortgage land (ie an appropriate cadastral

system), it is most likely an informal land market will develop to meet this demand.

Feder and Noronha then argue that "The main (and obvious) effect of a lack of

secure ownership is the uncertainty in a farmer's mind about the value of

improvements made to land. This uncertainty tends to increase as farming becomes

more commercialized". Feder has linked security of tenure, land titling, agricultural

productivity, availability of credit and the value of land in a well publicised model

(p145) which shows that "...even when the availability of credit is not a binding

constraint, insecure ownership can reduce productivity because farmers have less

incentive to invest. Even when eviction and land disputes are rare, the lack of secure

formal ownership could reduce productivity significantly if credit is an effective

constraint on farmers' activities. As land value is related to its productivity, it

follows that titled land is more valuable than untitled land."

And finally in support of more efficient cadastral systems they argue that:

"Apart from these implications for productivity, the ownership systems also raise

questions of equity. In some countries the procedures required to prove ownership

are extremely complex and involve significant fees for lawyers, surveyors and

government departments. Since these costs vary little according to the size of the

farm, larger landowners are better placed to afford them. By the same token,

wealthier farmers usually have better access to information about land law,

administrative procedures, and farm prices. They may therefore buy out poorer and

less knowledgeable small holders." (p146).

In a paper titled "Land management, titling and tenancy" by François Falloux

(1987), a World Bank adviser on land issues, the approach by the Bank to

addressing such issues through land titling projects is described in detail. In

considering such issues Falloux considers sociological, technical, financial, legal,

fiscal and economic issues. As summarised by Falloux:

"Since the beginning of the 1980s, the Bank has implemented a series of new

projects with a new approach to land-related issues. This approach is based much

more on gradual and region-specific land interventions than on technically and

politically difficult nationwide land reform. In addition, emphasis has been put on

land titling and the establishment of a reliable cadastre which constitute the basic

tools for further land actions, such as correcting land distribution, consolidating

agricultural land and establishing or improving land taxation." (p194).

Falloux believes that these projects achieve similar objectives to those promoted by

Feder above:

"The main objective is usually to provide farmers with increased land security and

thereby stimulate the establishment of self-sustained production systems through

increased long-term farm investment; other associated objectives may be to correct

a biased land distribution, improve land use planning and eventually establish a

reliable data base as a tool for both land management and land taxation."

Falloux argues for complementarity and synergy between structural adjustments

within countries supported by the Bank and land-related projects. He reviews a

range of categories of policy adjustments which support the establishment of

appropriate cadastral systems in such projects:

1. restructuring the legal framework to provide farmers with land security. In this case he provides good arguments for and against individual and

communal ownership. He does not promote either approach but suggests

that both approaches can coexist;

2. streamlining and decentralising land institutions. Falloux points out that "Most developing countries need to reduce the excessively high number of

institutions involved in land management. They usually are public, highly

centralised, and ill-managed with overlapping responsibilities". He argues

strongly that land should be administered at the village level under the

responsibility of the village community, but he also recognises the

difficulties in such an approach;

3. reducing public expenditures by improving institutional arrangements, administrative procedures, using cost effective technologies and reducing

duplication, especially in surveying and mapping; and

4. establishing or improving the data base, but in particular promoting the concept of a common base map available to many users including the

cadastre.

It can be argued however that Falloux's objectives should be modified. The first

objective should be to clearly determine desirable land policy adjustments and an

appropriate form of land processes such as land transfer, land subdivision and land

development required, prior to determining new land laws, since the laws are

dependent on the specific desired land policies and processes. It is unfortunately

quite common for countries to prepare a new set of land laws before a land policy

framework has been developed setting out what the laws are meant to achieve.

Falloux concludes by stating that providing titling to land and increasing land

security is a necessary condition to establish agricultural sustainable production

systems, through resolving conflicts in ownership, establishing rights to land and

improving access to credit.

In recent discussions (1995) with Hans Binswanger, a Senior Policy Adviser in the

Agricultural and Natural Resources Department of The World Bank, he provided an

up-to-date view on the Bank's policy on land titling. He emphasised that security of

tenure should not necessarily be equated with freehold title. He stated that

communal forms of tenure can be efficient and secure. He emphasised that property

rights in land should be tradeable, but in establishing the environment where this

could occur, the Bank was very much against ad hoc or sporadic adjudication of

land rights as part of a land titling project due to the possibility of the process being

abused. As a result the Bank only supports systematic approaches to adjudication.

Within a land titling project, he believed that it was more important to get the legal

systems in place to support land policies before land titling projects were

commenced.

In general Binswanger stated that he believed the Bank was still fully committed to

the policy that land titling (cadastral) projects were important for economic

development along the lines of the Thai model (also see Angus-Leppan and

Williamson, 1985 and Williamson, 1990). However he believed more attention had

to be given to streamlining land laws and making the land transfer processes more

efficient.

Poverty

In a similar manner, World Development Reports and other authorities have argued

the importance of the formalisation of property rights to poverty alleviation in rural

areas, especially where land is under increasing pressure and becoming scarce.

The 1990 World Development Report titled "Poverty" (World Bank, 1990)

summarises the Bank's policy on land reform as "Where it can be done,

redistribution of land should be strongly supported. But the political obstacles to

such reform are great." (p3) It recognises that the reality has been that "In the

twentieth century virtually all the major redistributions of property rights in land

were precipitated by social revolution, defeat in war, or national liberation from

colonial rule." It is argued that in the absence of major upheaval "...the impact on

the poor has been modest." (p64)

The Report points out that the more successful strategies of assisting the rural poor

concern "...policies that expand tenancy, provide clear land rights where traditional

systems fail, and improve the management of common property resources... Such

policies should help reduce poverty and make the land more productive at the same

time." (p64) Importantly all these strategies rely on an effective cadastral system of

some form.

With regard to Africa the Report accepts that "Africa's traditional forms of land

ownership seem to be evolving towards individual property rights. This is mainly

because of population growth and the increasing commercialisation of agriculture."

However the report cautions that:

"the shift towards individual land rights tends to undermine the ability of traditional

systems to ensure that all members of the extended family have access to land. This

feature of their land systems has helped some countries in Africa avoid the extremes

of poverty and landlessness that are common in much of Asia and Latin America:

traditional systems have provided secure land tenure and encouraged farmers to

invest in their land. In such cases, encouraging individual land registration and

titling may be undesirable. Where traditional systems have failed to provide clear

land rights, land titles and registration are useful." (p65)

In an FAO paper on land reform by Gaiha (1993), it is recognised that the

relationship between rural poverty and access to land is complex, however taking all

issues into account he states that "land reforms are crucial to poverty alleviation."

(p75). The paper also states that a "prerequisite to designing land reforms is the

compilation and regular updating of land records", which means the establishment

of cadastral systems.

Gaiha accepts that tenancy reforms to regulate property rights and land sales and

rentals, in an effort to help alleviate poverty and improve equity, have had mixed

results. As a result of investigating the benefits of land titling for poverty

alleviation, he again suggests that the evidence in support of land titling is not

conclusive, however in the context of increasing land scarcity, he accepts "it is

essential for the state to take on the task of regulating access to land and

guaranteeing land titles with a view to avoiding all the efficiency and equity costs of

non-intervention." (p85).

CADASTRAL SYSTEMS AND THE URBAN SECTOR

The importance of cadastral and land information systems in support of effective

land markets and urban land management has been clearly enunciated by the World

Bank, the United Nations Development Programme (UNDP) and the United

Nations Centre for Human Settlements (UNCHS - Habitat) and other authorities.

For example, the World Bank's housing policy and its relationship to the

establishment of effective cadastral systems is highlighted in the 1993 Annual

Report of the Bank. It states that "Each year some 12 million to 15 million new

households, requiring an equivalent number of dwellings, are added to the cities of

the developing world." It then emphasises the Bank's new urban policy which

encourages borrowing member governments to adopt policies that "enable housing

markets to work" and recognises that "they typically include the development of

property rights, creation of healthy and competitive mortgage-lending institutions,.."

and that these policies "...are applicable, to a greater or lesser degree, in all

borrower countries." (p56).

However it is important to note that many of the World Bank publications on urban

land markets assume the existence of effective cadastral systems when this may not

be the case.

Further in support of improved cadastral systems, Jones and Ward (1994) cite Linn,

J. in his book titled "Cities in the developing world: policies for their equitable and

efficient growth." They quote Linn as arguing that (p182) the major problem in

cities in developing countries is the inefficiency and bottlenecks in the supply of

land, and particularly with regard to fully serviced land. Jones and Ward (1994: 13)

state that the key in this regard is designing policy prescriptions which facilitate the

smoother operation of the largely privately produced land market. They claim that it

is the market supply mechanisms which have become blocked and the role of public

sector intervention is to clear those blockages. They quote Linn as proposing

specific actions which include:

the "regularisation" of illegal ("clouded") land titles, ostensibly to provide

security to de facto owners, and

the development of effective land registration and cadastre, from which clear

property ownership and taxation responsibilities may be identified.

Jones and Ward (1994:14) then turn to the Urban Management Program (UMP)

supported primarily by UNDP, UNCHS (Habitat) and the World Bank and point out

that its emphasis is on overall public administration with development assistance

focussing on the broader objectives of economic development and macro economic

performance. For a review of this program from a surveyor's perspective, reference

should be made to Williamson (1991).

Jones and Ward emphasise that the four planks of the UMP are:

municipal finance

infrastructure

urban land management

the urban environment

And that the policy issues under "Urban land management" are:

urban land and related markets: identifying and rectifying constraints

institutions and instruments to support land markets: the role of land

registration, information management, urban planning and informal land

management and administrative practices

urban land tenure and property rights

Jones and Ward (1994) classify these issues as "the removal of 'constraints' from the

land market" and suggest they are the same as those promoted by the World Bank in

the 1970s. More specifically land markets are to be freed from constraints,

supported and formalised. The policy argues that effective land management

requires institution building as well as the development of administrative capacities

and regulatory measures. Virtually all the issues raised under "urban land

management" are concerned with the establishment and operation of effective

cadastral systems.

Jones and Ward (p20) however caution that in many developing countries land

markets are operating relatively well although illegally and with no service

provision. They suggest that insensitive regulatory controls that impede the supply

of land, or demand compliance with servicing norms from the outset, may actively

undermine many of the benefits and "efficiencies" of the informal/illegal system.

Doebele in "Urban land and macro economic development - moving from 'access

for poor" to urban productivity" (1994) takes a broader perspective by arguing for

more attention to the role of land markets from a macro economic perspective and

job creation rather than a narrow emphasis on "access to land for the poor".

Doebele (p48) argues that one of the key areas requiring re-examination is the

emphasis on the importance of security of legal tenure, as opposed to the security of

"a claim on the system", as follows:

"Current research, rather than depicting a duality of "legal" and "not legal",

delineates a real world that contains very complex mixtures of formal and informal

systems with infinite variations in between. The interlacing and interdependence of

the formal and informal, with special local variations depending on customary law,

appear to be the norm rather than the exception. This should not be surprising. The

general literature on the nature of 'formal' and 'informal' economic sectors in cities

has long painted a similar picture."

Doebele (p52) argues that the "assumption that markets that are 'formal' or

'regularised' are more efficient and productive is not yet proven. However, he does

suggest that if the regularisation can be "massive and rapid" it may be beneficial.

On the other hand he also accepts that very little is known about the complexity of

the mechanics and processes of land markets. He concludes by stating there is a

major need for an improved understanding of informal systems that deliver land and

services to the majority of inhabitants of major cities in the developing world.

A key conclusion that can be derived from Dobelle's paper is the need to develop

cadastral systems that are flexible and can accommodate a range of different land

tenure arrangements. His paper also supports the premise that the focus should be

on reforming cadastral processes (adjudication, land transfer, subdivision) rather

than the individual systems themselves (title registration or cadastral surveying).

At a recent Habitat II Inter Regional Seminar for African and Arab States sponsored

by the Urban Management Program held in Abidjan, March, 1995, and attended by

21 countries (6 Arab countries, 7 countries from Francophone Sub-Sahara Africa

and 8 countries from Anglophone Sub-Sahara Africa), the major focus was on

regularising cities and urban land management. The main conclusions and

recommendations included the recognition that the need to institutionalise and

systematise regularisation programmes (ie establish some form of cadastral system)

in irregular popular settlements is today widely accepted (Urban Management

Programme, 1995). Further it concluded that if a settlement is to be provided with

infrastructure then it is logical to unsure that the inhabitants have a certain degree of

security of tenure.

Some observations from one of the two working groups at the Seminar (Byrne,

1995) included:

while it is recognised that "irregular" settlements need to be regularised,

many existing systems for regularisation are too costly, too slow and too

inflexible;

it was often said at the meeting: surveying is too expensive and too slow;

land information systems (LIS, GIS, spatial and non spatial) commonly do

not exist, or have lapsed, or are seen to be too expensive;

a reticence to change existing legal frameworks or relax current "bullet-

proof" registration systems;

group titling and customary or traditional titles need to be included in city

systems.

The Declaration from the Seminar included:

the recognition of the acute state of the urban crisis and the urgent need to

seek effective solutions to it;

the recognition that land management has a strategic role to play in

addressing the urban crisis;

the recognition that "...all countries were in the process of decentralizing,

and redefining the role of the State due to the fact that most government land

management policies turned out to be failures."

problems in urban land supply due to the practice that public authorities are

not bound to provide services for settlements where the occupancy is not

recognised. However it was recognised that all countries "...are compelled to

recognize the right of use and agree to its transfer, and thus gradually lead to

the establishment of land markets."

Another HABITAT II Regional Policy Consultation organised by the Urban

Management Programme on access to land and security of tenure for sustainable

development, involving delegates from 12 Asian countries, was held in Jakarta,

August, 1995. There was again recognition that urban land problems in many Asian

countries, compounded by rapid and massive urbanisation, are getting worse, and

making it increasingly difficult to implement development programmes such as

housing, infrastructure, and environmental services for the benefit of all citizens,

especially the urban poor. Major problems identified in this regard in the Asian

region included:

inefficient urban land market processes, and

inappropriate, overly detailed, and inflexible planning, regulatory and legal

frameworks.

Major areas identified for reform included:

existing laws and processes governing land tenure,

land information, titling and registration systems as a pre-condition to well-

functioning land markets, and

restrictive and costly legal and regulatory processes, planning systems,

standards and development regulations.

In summary the UNDP, UNCHS (Habitat) and the World Bank have given strong

support to the establishment of cadastral systems in their Urban Management

Program. Even though some authors qualify their support for improved cadastral

systems in urban areas, especially for the urban poor, it appears the over-whelming

view as shown from the two meetings described above, is that reform of inefficient

land markets and associated cadastral reform is of major importance on the

developing worlds agenda, especially in urban areas.

As an example of the relationship between quality of life, sustainable economic

development and cadastral and land information systems in the context of the City

of Bangkok see Williamson and Mathieson (1992 and 1993).

ECONOMIC JUSTIFICATION OF CADASTRAL SYSTEMS

There has been a great deal of interest and attention given to the economic

justification of cadastral and land information systems over the last decade. With

regard to cadastral systems in the developing world the emphasis has been on the

benefit to the national economy and to the land holder. Within the developed

countries where cadastral systems are accepted as basic infrastructure in support of

free market economies, the emphasis has been on the economic justification of the

provision of land related data in digital form, usually to support or as part of a land

or geographic information system.

With regard to developing countries most of the economic analysis has been done

by organisations such as the World Bank, with the work of Feder (1987) often

citied. In this case security of tenure, agricultural productivity and the value of land

are linked. As stated by Feder and Noronha (1987), the justification for the change

in land tenure arrangements however will be dependent on the level of

development, the pressure on land and other factors. They argue for a careful

analysis of the benefits and costs of different systems, including any equity

considerations. They state that the gain in efficiency may or may not outweigh the

costs of introducing a new system. However they also point out, unfortunately, that

there is still a shortage of rigorous quantitative research that would help to assess

the costs and benefits of such policies.

Also as pointed out by Falloux (1987), "social benefits of a land titling/cadastral

project are reflected by the increase in land values due to titling. Recent

computations, particularly in the Thai case, show an extremely high return, which

indicates that titling may be one of the best investments in the agricultural sector."

He also suggests "some quantitative estimates can be made such as the possible

increase in public revenue due to better tax collection,..., equally, public savings can

be expected from a better institutional organisation in the cadastral and cartographic

field."

In the book "Searching for land tenure security in Africa", edited by John Bruce and

Shem Migot-Adholla (1993), eight case studies from Sub-Sahara Africa are

documented. The objective of the research was to assess the relative efficiency of

indigenous customary land use arrangements and state-imposed tenure in promoting

agricultural production in Africa. It claims that the vast majority of African farmers

still hold their land under indigenous, customary land tenure systems, whatever the

formal legal position might be under national law.

The research was inconclusive as to the value of regularising land rights in rural

areas having customary land tenure in Sub-Sahara Africa, particularly where other

markets have not developed, such as for the sale of cash crops. The research also

recognised that "security of tenure" is a multi-faceted concept, not easily

operationalised, and needs to be used with care. Where titling was demanded by

farmers, it was often not for reasons of productivity or securing credit but to prevent

the state from allocating the land to someone else. It also noted that where titling

existed, customary norms usually still applied.

The research however recognises that titling is usually necessary to encourage

investment of urban capital in rural areas. It also recognises that free land policies

may lead to environmental degradation through unsustainable use.

In drawing conclusions from this research the following should be noted:

the case studies focussed on rural areas, not urban areas, so

recommendations should not be applied on a country wide basis;

there is little recognition that cadastral systems and land titling processes

vary from the very simple to the very complex depending on laws,

regulations, custom, administration, and official and informal processes, and

as such the success or failure of a system in one location cannot be

transferred to another;

there appears in the book a lack of distinction between land titling and land

reform. These are two very different processes; land titling documents

existing land rights while land reform redistributes land rights, a much more

politically sensitive issue.

in many cases land holders with both formal and informal land rights had

difficulty getting access to credit. However as the research recognises, a

major problem in Africa is the poor or non existent financial systems.

However the broad conclusions and policy implications stated in the book (p261)

appear reasonable, which:

cast doubt on the wisdom and cost-effectiveness of large-scale, systematic

programs of compulsory titling for small holders in rain fed agriculture ( but

noting the research is concerned only with areas where customary tenure is

operating in Sub-Sahara Africa),

redirect attention to more incremental approaches to change in indigenous

tenure systems; and

redirect support of titling activities toward efforts focussed on localities of

particular need.

The book also suggests (p262) that programs of compulsory and systematic titling

and registration should be confined to circumstances in which land has become

valuable and is the subject of intense competition and disputes (as in urban and peri-

urban areas), and where the customary tenure system is failing to cope with the

conflicts. Similarly it makes a similar suggestion when land is being distributed by

the state and there is no customary tenure system.

Even recognising the limitations of cadastral systems, the conclusions specifically

support their improvement in many cases. They suggest that aid donors "... should

be receptive to strengthening registry facilities and capabilities and to upgrading

land survey capabilities." (p263). They also state that "Cadastral survey and

registration will remain an important part of any country's land policy repertoire."

(p262), and assumes that "...a market economy will eventually produce a land

tenure system that, while not identical, will bear a strong family resemblance to the

Western concept of ownership."

The difficulties of introducing the "western" concept of land titling and cadastral

systems into land tenure systems which have a significant customary or traditional

component have also been analysed by Ezigbalike et al (1995) and Rakai and

Williamson (1995).

In developed countries the emphasis has been on examining the economic gains

from developing, maintaining, improving and providing access to land and

geographic data at a state and national level (ANZLIC, 1995). As stated in this

comprehensive report for the Australian and New Zealand Land Information

Council (ANZLIC), which analyses the benefits of land and geographic data across

Australia, cadastral data is the major spatial data set and comprises over 25% of all

spatial data produced by spatial data suppliers. The result of the analyses revealed a

benefit:cost ratio for overall data usage of approximately 4:1. This indicates that for

every dollar invested in producing land and geographic data, $4 of benefit was

generated within the economy.

The report states that benefits:

"took the form of improved business and strategic planning, increased productivity,

the development of new business opportunities, improved scheduling and

coordination of investment projects, and improvements in the utilisation, pricing,

maintenance and disposal of fixed assets. These benefits were distributed across the

broad spectrum of economic activities ranging from the operation of electricity, gas,

and water utilities to the development of projects involving agriculture, mining and

environmental management."

And further,

"Survey results also indicated that the existing infrastructure for supplying data had

provided information to users at a cost far lower than alternative methods. If this

infrastructure had not been in place, and users had been forced to meet their data

requirements from other sources, their cost would have been approximately 6 times

higher."

The above strong support for the use of spatial data, and particularly cadastral data

derived from a cadastral system, should not be seen as a panacea for solving the

problems of developing countries using land and geographic information systems.

In support of this claim the above report points out that in Australia the most

commonly used form of land and geographic data was still paper maps! However

the report does show that investments in basic spatial data infrastructure is

recoverable and does lead to future economic benefits.

While it is very difficult to transfer the benefits of land and geographic data in

developed countries to the developing world, the author believes the above analysis

does provide strong support for basic cadastral mapping in developing countries.

More importantly the work of people such as Feder have clearly shown the

economic benefits from the formalisation of land rights and the establishment of

cadastral systems in developing countries.

LESSONS FROM CADASTRAL PROJECTS

Some of the lessons that have been learnt from investigating land issues and the

establishment and maintenance of appropriate cadastral systems over the past

decade or so, include:

the design of cadastral systems must be appropriate, systematic, sustainable

and sensitive to the culture, needs, resources and level of development of

individual countries. They should be designed for the needs of land holders,

not a central government bureaucracy. Unfortunately many donors and

policy makers have preconceived notions of the ideal cadastral system

which result in the establishment of inappropriate systems.

the establishment and maintenance of cadastral systems should be

decentralised to the local, village or district level, albeit within a national

framework, as seen in the Thai (Angus-Leppan and Williamson, 1985;

Williamson, 1990) and Peruvian projects (McLaughlin and de Soto, 1994).

For example it is highly desirable that the adjudication office is established

in a local village within each project area, the project is advertised widely

through the media in the village, the project utilises local staff where

possible and the project works closely with the local political hierarchy.

the necessity and importance of an appropriate base map for the cadastral

system which can also be used for many other purposes. It is also desirable

that the base map is made freely available. However the cadastral system

must be designed with the land registers having equal importance to the

cadastral map. Simply the registers and the map should be considered "two

sides of a coin" and as such should not be separated, with the result that they

are treated as one system.

cadastral systems must be kept up-to-date otherwise there is little

justification for their establishment.

the appropriate use of new and enabling technologies to support the

establishment and maintenance of cadastral systems, noting that while the

use of computers, for example, may speed up some activities, such as the

creation and maintenance of cadastral indexes, it may also slow down

others. For example the creation of a computerised or digital cadastral base

map as part of a geographic information system will usually slow down a

land titling or cadastral project, not speed it up. The creation of a digital base

map should not be attempted unless the country has an established

information technology infrastructure within government, has well trained

professional staff to operate the systems, and has access to local hardware

and software maintenance, and system expertise. Unfortunately such IT

infrastructure is rarely available throughout developing countries.

cadastral systems should be designed with a national focus, but should be

sufficiently flexible to accommodate both urban and rural requirements.

cadastral systems are not ends in themselves but should be designed to

support a variety of purposes and in particular the operation of efficient and

effective land markets.

Many of the above lessons were confirmed at a workshop on cadastral systems in

developing countries jointly organised by Commission 7 (Cadastre and Land

Management) of the International Federation of Surveyors and SWEDESURVEY at

Gävle, Sweden from 29th May - 2nd June, 1995. In all 21 developing countries

from most continents were represented. After extensive debate the participants

agreed on the most pressing cadastral issues and the most important lessons for

cadastral reform in developing countries. These are set out below:

the establishment of an appropriate legal and institutional framework

local level involvement for the establishment and operation of the system

the design of systems which are sustainable and can be maintained

the need for emphasis on establishing an appropriate resource capacity

(education and training) to operate the system

the importance of appropriate and reliable maps

the use of appropriate and sustainable technology

the importance of listening to the users of the system

keeping the users, politicians and senior bureaucrats informed of

developments, achievements and needs i.e. marketing and promotion

• developing a culture that cadastral reform requires a long term perspective

CONCLUSION

Where population densities cause land to be scarce, as farming becomes more

commercialised, when farming technologies improve and with the emergence of

land markets in both urban and rural sectors, the analyses in this paper justify,

especially when considered collectively, that the formal recognition of individual

and communal land rights, and the establishment of cadastral systems is very

important, if not essential, in developing countries to:

promote security of tenure,

improve access to land,

promote economic and sustainable development,

reduce poverty,

support environmental management, and

support national development in the broadest sense.

Cadastral systems usually address equity, economic and social needs, and are

equally applicable in both the urban and rural sectors.

With the dramatic increased interest and activity in cadastral systems world-wide

over the past decade, the claim can now be made that the establishment of cadastral

systems is now "on the agenda" of the developing world.

The question now should not be whether cadastral systems are important - that

debate, to a significant extent, should be put aside. The more important question

should be what constitutes, from a technical, legal, institutional, administrative,

economic and social perspective, an appropriate cadastral system for a particular

country or jurisdiction at some point in time. This is where land administrators

should be turning their attention, noting that many donors and policy makers often

have preconceived notions of the ideal cadastral system which sometimes results in

the establishment of inappropriate systems. The debate should recognise that no two

cadastres will be the same due to different geographic sensitivities and needs of

each region or country. Unfortunately, unless appropriate cadastral systems are

established, such systems can do more damage than good, to a nation's economy

and society.

ACKNOWLEDGMENT

The author wishes to acknowledge the assistance and suggestions in the preparation

of this article by colleagues in the Food and Agriculture Organisation of the United

Nations in Rome. Special thanks are due to Jim Riddell, Service Chief and Richard

Trenchard from the Land Tenure and Settlement Service and John Lindsay from the

Legal Service.

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Ian P.Williamson

Professor Williamson holds the Chair of Surveying and Land Information in the

Department of Geomatics at The University of Melbourne, Victoria, Australia. He

holds bachelors, masters and doctorate degrees in Surveying and is a Registered

Professional Land Surveyor and a Chartered Professional Engineer. He is both a

Fellow of the Institution of Surveyors, Australia and the Institution of Engineers,

Australia. Prior to his academic career, he worked for a state government in

Australia, an American engineering corporation based in the USA and ran his own

consultancy practice. He is Chairperson (1994-98) of Commission 7 (Cadastre and

Land Management) of the International Federation of Surveyors. He has consulted

widely to state and federal governments in Australia and overseas, United Nations

agencies and the World Bank on the establishment of cadastral, land and geographic

information systems.