It is increasingly recognized that well-defined property rights are crucial for realizing the benefits of market exchange and that such rights are not exogenously given but evolve over time in response to economic and political forces. The reduction of expropriation risk and the facilitation of market transactions are the two main categories through which property rights systems affect economic outcomes. However, the mechanisms by which these two categories affect outcomes differ in important ways.
I recently had the opportunity to organize and take part in an exchange learning visit to Thailand and Vietnam. The visit was aimed at improving the effectiveness of Ethiopia’s land administration system by enhancing stakeholders’ understanding of the sector’s policies and institutional constraints and how to address them through integrated but multi-faceted reforms and programs.
Over the past decade, Ethiopia has successfully implemented the worlds’ largest rural land registration program. The registration is implemented equitably and with clear positive impacts on conflict, productivity, investment, and rental market participation. However, constraints still exist. There’s a disconnect between urban and rural registration and administration, stagnant policy revisions remain, and there is often weak institutional capacity to act on and implement innovative ideas with the required speed.
When I first entertained the idea of heading to the Far East to learn from the experiences there, I was very skeptical and thought Vietnam and Thailand were just way too far… and I don’t just mean geographically. Once I arrived there, I realized that I was wrong and was pleasantly surprised to discover lots of very useful lessons that can help to initiate, improve, or at least reaffirm the course of Ethiopia’s land administration system.