Economic Analysis of Rural Land Administration Projects

As part of its efforts to improve the rural economies of its client countries, the World Bank is supporting programs to strengthen land administration and undertake land reform. Land administration projects can include a variety of activities. Usually, the most expensive and that which is most likely to have direct, tangible benefits is land titling. The provision of titles to landowners is only part of complex process, however. Titles by themselves are unlikely to bring lasting benefits unless there is a functioning registry and cadastre and a system to adjudicate disputes. Land titling can generate many benefits, including improved efficiency of land markets, reduction in conflict over land, enhanced access to credit, and improved incentives to invest in agricultural production. Where the conditions are appropriate, titling can bring important benefits. Conditions, however, are not always appropriate. Moreover, land administration projects can be quite costly. Carrying out an economic analysis is necessary to determine whether the benefits to be achieved in a given situation are sufficient to justify the costs. Until recently, however, economic analyses have generally not been carried out for land administration projects. This manual explains the principles and approach that such an economic analysis should follow.