CASE STUDY 73154 Environmental and Gender Impacts of Land Tenure Regularization in Africa Pilot Evidence from Rwanda DANIEL AYALEW ALI, KLAUS DEININGER, AND MARKUS GOLDSTEIN ABSTRACT Although recent developments have increased interest in African land tenure, Rwanda’s nation-wide Land Tenure Regularization (LTR) program is one of a few models to address these issues at the required scale. A rigorous empirical analysis that is used to evaluate the pilot for this program highlights four main effects; namely, (i) significant and large investment impacts that are particularly pronounced for women; (ii) improved land access for legally married women and better recordation of inheritance rights; (iii) a reduction in the probability of having documented land ownership for legally unmarried women; and (iv) a reduction in land market activity rather than distress sales. The encouraging policy implications of the first two and the challenges as well as contextual understanding of the latter two are discussed below. BACKGROUND provide secure land tenure to all Rwandans in conducted in 2007/2008 in four cells which The right to land has become an increasingly the context of development and economic were chosen to reflect the country’s different contentious topic in Sub-Saharan Africa as the growth, and with the goal of creating the realities (Nyamugali in Kigali City, Kabushinge regional population continues to grow at preconditions for rapid structural transformation, in the North, Biguhu in the West and Mwoga in significant levels, urban expansion continues far-reaching legal and institutional changes the East). Subsequently, in 2009, the to intensify, and the global demand for were embarked upon. Adoption of the 1999 government started the national roll-out of the agricultural commodities and environmental inheritance law, key provisions of which were LTR program to register the estimated 10 services continues to rise. Land cultivation is also incorporated into the 2003 constitution, million parcels in a decentralized manner at a marked by substantial gaps in productivity, aimed to eliminate bias against female land cost well below any existing land registration and investments required to close these gaps ownership. It was followed by the 2004 land initiative (USD 5 per parcel). High precision will require secure rights. Additionally, the policy and its codification in the 2005 organic aerial photographs and satellite imagery are structural transformation from an agrarian to a land law (OLL). Establishment of institutional used by locally recruited and trained para- manufacturing and service based economy structures at national and local level then surveyors to demarcated general boundaries will require shifts of population and associated created the preconditions for the extensive (as opposed to GPS measurements) while the transfers of land to other producers. piloting of the Land Tenure Regularization process relies heavily on local authorities for Rwanda's Economic Development and (LTR) program, and the national program. The both demarcation and adjudication. Rwanda is Poverty Reduction Strategy (EDPRS) main objective was to create the precondition the first African country to implement such an identifies land registration as a critical element for formalization and full legal recognition of approach and the evaluation of the pilots, on to improve productivity of land use, functioning rights in the form of title certificates to land which this note is based, and subsequently the of land markets, reduce conflicts, empower holders. The program design relied on the national program can shed light on best women, and improve overall governance. To experience acquired during the pilot exercises practices. DESIGN for the adjacent (control) cells, we used high significant cell level interventions that The evaluation was designed to assess the resolution satellite imagery to identify dwellings could drive our results. However, local impact of LTR on: (i) land related investment; and establish a sample frame i. The figure below variations in soil quality, market conditions (ii) female land ownership; (iii) female illustrates the identification strategy. or other factors that could have remain a inheritance; and (iv) the frequency of land concern were addressed using spatial transactions. The pilot took place 2.5 years As tenure regularization was compulsory and fixed effects to control for unobservable before the national rollout. covered all private land in each pilot cell, but not local level characteristics in line with the beyond their administrative boundaries, the existing literature (Conley and Udry 2010, A key methodological challenge in undertaking decision to participate in the program was Goldstein and Udry 2008, Magruder 2011). a rigorous socio-economic impact assessment unlikely to be related to potential outcome of the pilots was lack of baseline data. To variables such as investment and land market PROGRAM IMPACT address this caveat, we interviewed 3,554 activity. The spatial discontinuity generated by households with some 6,330 parcels of land this allocation rule thus can be used to allow Land Tenure Security: A primary reason on both sides of the boundaries of the four identification of program effects by comparing for the Government of Rwanda to initiate pilot cells to allow comparison between treated individuals who live within a band on either side LTR was to increase levels of land tenure and non-treated households (inside and of the border following Magruder (2011). This security. As expected, a negative outside of the borders of the pilot cells, approach requires that communities on either relationship between LTR and the respectively) close to the borders of the pilot side of the border have to be identical and cell- subjective expropriation risk (for the cells. We thus exploit the discontinuity which level effects that could drive our results need to purpose of public interest) was observed administrative boundaries created in the be absent. To assess the validity of this even if it was not statistically significant. introduction of the pilot program as an assumption, we note that key policies with Possible reasons for the absence of identification strategy. The key assumption is respect to land rights and use (e.g., land significant impact on expropriation risks that before the start of the program, inheritance and soil conservation policies) are include the fact that LTR does not change households close to a cell boundary were set and enacted at the national level and overall policy and that households’ similar in unobservable and observable factors planning and coordination of socio-economic knowledge of the policy may be limited, or affecting relevant outcomes. Data was activities are done at the district level. Although that it is difficult to capture a complex collected in 2010, 2.5 years after the start of the cell administration plays an important role in measure such as perceived expropriation LTR in the pilot cells. To sample inside pilot key aspects of implementing the LTR process risks with a single question. cells, we used parcel index maps created by such as public sensitization, conflict resolution, the program. As no such maps were available display, and registration, all of these are part of Soil Conservation Investments: When the treatment of interest and there are no assessing the program’s impact on soil conservation measures, the analysis found household behavior that is consistent with a lengthening of time horizons due to LTR- induced increase in tenure security. Households affected by LTR are almost 10 percentage points more likely to make soil conservation investments – building or maintain structures such as bunds, terraces and check dams. This is about double the change in investment in the control group, representing a staggering effect. Women seem to benefit even more in this respect; estimated effects of LTR on such investments by female headed households is double that of men headed households, with the former exhibiting a 19 percentage point increase in the likelihood of investment in soil conservation. This suggests that low levels of tenure security acted as an obstacle to investment and that LTR’s increased tenure security can Fig. 1. Example of Sample Design from Kabushinge Cell (Source: 2011 World Bank Land Tenure Regularization Survey) 3 efficiently remove such constraints. Gender Equity and Access to Land: Prior to the introduction of the 1999 Inheritance Law, customary law reigned and dictated that women in Rwanda have usufruct rights to land only through their husbands whose lineage controlled the land. The 1999 law changed this by granting sons and daughters equal rights to inherit their parents’ property, subject to the provisions of the family law (which under the most common conjugal property regime mandates equal shares), protecting property rights of women under a legally registered marriage and requiring spousal consent for transaction (e.g., sale, mortgage or exchange) of matrimonial property by any of the marriage partners. Nevertheless, the law does not protect property rights by women who live with partners or are in marriages Fig. 2. Adjudication (photo credit: Marguerite Duponchel) that are unregistered. Arrangements such as consensual unions, customary or religious necessitate augmentations and unclear during the pilot and beneficiaries marriages, and polygamous unions are not enhancements to programs like LTR in order preferred holding on to their land because they formally recognized by the law. For women who to avoid long term emulations of such expected its value to increase as others would were part of a union formalized through a practices. realize the benefits of having secure land marriage certificate (76 percent of the sampled ownership documentation when LTR was to couples), the effect of the program was Market Activity: A great concern for start at a large scale. The contextual overwhelmingly positive. They were 17 interventions seeking to improve land tenure background for the decrease in activity and size percentage points more likely to be regarded as is that they could lead to distress sales, where of land is critical when assessing the joint land owners after LTR than before. households without access to credit and relationship between LTR and land markets. However, the analysis revealed that LTR resulted insurance sell their land in periods of distress The national rollout of the program and the in a small but statistically significant reduction (of at below the fair market value, leading to implications of the results will provide us with eight percentage points) in the likelihood legally landlessness and greater vulnerability and greater insight on whether the data can be unmarried women to become documented poverty. However, we found a significant viewed as contextually conditioned or whether owners. decrease in both the land market activity and other factors were driving the results. the size of land area traded as a result of Gender and Inheritance: LTR also LTR. To interpret this finding, two contextual demonstrated significant impact on inheritance POLICY IMPLICATIONS factors are relevant. One possible explanation related knowledge and awareness. We found a is that the low level of market activity may nine percentage point increase in the likelihood Increased global demand for land and higher have been related to the transfer fee increase. that landholders in the program areas would now and more volatile food prices, together with the Indeed, the change from a rate of six percent know who would inherit their parcel. This is most potential prospect of payments for of the property value to a flat fee of RwF likely linked to the required explicit record of environmental services, have translated into 20,000 during the pilot meant that the fee persons of interest that provides clarity on pre- higher demand for land globally. To increase could easily exceed 25 percent of the land existing succession-related uncertainty. This productivity and prevent that this pressure value of small plots. The observed decrease increased certainty also established security for deprives the most vulnerable of their land, in transactions could also have been tied to children as they were 13 percentage points more countries need to improve their land law enforcement on small transfers as most likely to inherit their parents’ land with boys and administration institutions. Given the parcels in the sample fell below the legally girls benefitting almost equally (10.2 compared to complexities of land tenure in most African prescribed minimum size of one hectare for 9.6 percentage points). Girls in female headed countries, a framework and guidelines have land transactions. Further, the formal system households were significantly less likely to inherit been developed and endorsed by African heads to register land transfers was not installed at their mothers’ land when compared to girls in of State but their implementation needs to be the time of the survey and people did not want male headed households. This unforeseen guided by evidence-based monitoring. With a to risk losing their new found tenure security. finding requires further research and may massive program to register the country's Additionally, the benefits of registration were 4 estimated 10 million parcels at a cost well family law and the importance of legal union below traditional norms (USD 5 per parcel in to women during the project implementation the national rollout), Rwanda is a protagonist to ensure that these women are not in this area and lessons can be drawn from excluded from the land registration process. its experience to input land tenure The legal recognition of customary or regularization initiatives elsewhere. religious marriages could also likely prevent the observed negative impact of the This pilot assessment demonstrates the program. significant positive effects of land tenure (Photo credit: Marguerite Duponchel) regularization. First, improved tenure Further investigation will be required to security increased land related investments, identify the reasons why land tenure as households whose parcels had been regularization has a depressing impact on registered through LTR, in particular female land market activities. The evaluation of the headed ones, were much more likely to national rollout, which is currently on-going, invest in soil conservation. Second, should shed light on the potential causes. clarification and documentation of rights Transaction costs and regulation related to significantly reduced uncertainty over who ownership transfer registration should be would inherit land, with substantial benefits reviewed and the laws amended for female children who might otherwise accordingly. In particular, the minimum one have been discriminated against. Third, the hectare size restricting subdivision, on program also provided large additional grounds of economic productivity, may gender benefits. Legally married women require revision as it imposes a serious were significantly more likely to have their constraint on transactions particularly in informal ownership rights documented and cases where collective ownership is not Fig. 3. Female planting tea secured after registration. By touching on feasible. As a large number of parcels lie improvements in women’s access to land under the one hectare threshold, this about a New Technology: Pineapple in and increased investment, especially for restriction could otherwise render the Ghana." American Economic Review 100 women, while avoiding an increase in cadastre obsolete if households continue to (1): 35-69. distress sales, LTR presents considerable subdivide land but cannot legally transfer Goldstein, M. & C. Udry. 2008. "The Profits conduits to socioeconomic reform in the ownership rights. In addition, it will be of Power: Land Rights and Agricultural Investment in Ghana." Journal of Political country. essential for the land administration to have Economy 116 (6): 980-1022. the capacities and means to ensure that the LTR poses noteworthy policy implications for flows of transactions can be efficiently and Magruder, J. 2011. "High unemployment yet few small firms: The role of centralized both Rwanda and other land scarce timely registered. bargaining in South Africa." Working countries in Sub-Saharan Africa. The Paper. Berkeley, CA: University of i lessons learned and risks realized can Figure 1 illustrates the procedure. To California. strengthen investment, boost productivity, ensure that the share of households in each Sagashya, D. & C. English. 2010. and promote environmental protection while pilot cell corresponded to the cell’s share in "Designing and establishing a land implementing substantial reforms in the area the target population, the width of the band administration system for Rwanda: of gender equity. from which households were selected was Technical and economic analysis." In adjusted accordingly. ii Innovations in Land Rights Recognition, Results of the pilot assessment call for Women in unregistered marriage can be Administration, and Governance. World caution regarding vulnerable groups. While recorded as persons of interest on the land Bank: Washington, DC. 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The findings, interpretations, and conclusions expressed are entirely those of the authors. They do not necessarily represent the views of the World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.