Communication from the Commission to the Council and the European Parliament - EU Guidelines to support land policy design and reform processes in developing countries [SEC(2004) 1289]
Date: 2004-10-19
Institutions: European Commission
Subjects: EU aid, EU relations, administrative reform, agricultural land, developing countries, development policy, land policies, political reform, production improvement

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 19.10.2004 
COM(2004) 686 final 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

EU Guidelines to support land policy design and reform processes in developing 
countries 

[SEC(2004) 1289] 

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EU GUIDELINES TO SUPPORT LAND POLICY

1

 DESIGN AND REFORM PROCESSES IN 

DEVELOPING COUNTRIES 

1. 

INTRODUCTION 

Rural land is an asset of the greatest importance in many parts of the world, both developing 
and developed. In the former, a high proportion of income, employment and export earnings 
stems from agricultural production and other land-based activities. Poverty is also particularly 
marked in rural areas and control of land is a major issue for peasant societies. 

Donor engagement with land reform and land policy has changed over time. In the 1940s and 
1950s  in  East  Asia,  and  in  the  1960s  and  70s  in  Latin  America,  agrarian  reforms  were 
supported as a means of defusing radical pressures for political change. The political character 
and complexity of such interventions has led many donors to withdraw from supporting land 
redistribution. 

Growing  land  scarcity  and  concern  about  land-related  conflicts  and  rising  rural  poverty, 
especially in Africa, have brought land back to the fore. This growing interest ties in well with 
the  focus  on  designing  effective  policy  frameworks  for  poverty  eradication,  and  promoting 
good governance, decentralisation, and democratic institutions at local and national levels. At 
the same time, new experiences in recent years have demonstrated the need for and feasibility 
of designing diverse types of interventions to suit a range of different settings.  

It is against this background that the Commission, alongside other donors2, has developed this 
communication. Attention to land issues flows directly from the overall objective of the EC 
development policy on poverty reduction, as sustainable land policies are an essential element 
of rural development and food security. These policy guidelines are a response to requests for 
support to land policy reforms from developing countries and countries in transition, without 
being prescriptive they aim to provide a common understanding to facilitate EU collaboration 
in  developing  countries  and  countries  in  transition  where  donors  are  engaging  in  support  to 
land policy reforms. 

This communication results from intensive collaboration with Member States in an EU Task 
Force which drafted the “EU Land Policy Guidelines”, a set of detailed policy and operational 
guidelines recently submitted for consultation with civil society and closely reflects the results 
of  both  these  processes3.  Operational  guidelines  (see  Commission  staff  working  paper 
SEC(2004) 1289) which provide an example of a practical application of the policy to assess 
the situation of land issues at a country level, complement this policy document.  

2. 

WHY IS LAND POLICY IMPORTANT? 

Land  policy  lies  at  the  heart  of  economic  and  social  life  and  environmental  issues  in  all 
countries. The distribution of property rights between people has a tremendous impact on both 

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See Commission staff working paper, SEC(2004) 1289, for key concepts. 
This  policy  draws  extensively  on  other  donors  work,  in  particular  WB,  FAO,  IFAD  and  EU  MS 
agencies. 
Although this paper mainly focuses on rural land, land issues are also crucial in urban/peri-urban areas.  

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equity  and  productivity.  Inequitable  land  distribution,  land  tenure  problems  and  weak  land 
administration can lead to severe injustice and conflict. Changes to legislation, the distribution 
of  property  rights,  and  administrative  structures  are  likely  to  have  long-term  consequences, 
positive  or  negative,  for  political,  economic  and  social  development  and  environmental 
management.  

Land tenure structures mirror the distribution of power within society. While access to land is 
not  recognised  as  a  human  right  as  such,  it  may  be  considered  as  a  means  to  achieve 
fundamental  human  rights  as  defined  by  international  conventions  and  as  illustrated  by  the 
case of indigenous people. 

The case of indigenous peoples 

Most  indigenous  peoples  (including  “tribal  peoples  and  pastoralists”)  have  culturally  distinctive  land  tenure 
regimes  based  on  collective  rights  to  lands  and  territories.  The  internationally  recognised  right  of  indigenous 
people  to  collective  identity,  survival  and  self-determination  depend  upon  their  access  to  land  and  natural 
resources in their traditional territories. Consequently, some countries’ laws and constitutions, as well as certain 
international laws and jurisprudence, recognise these peoples’ rights to their lands (including customary use or 
occupation) as inherent, based on “aboriginal title” or “immemorial possession”. However, effective recognition 
of  these rights  and  claims  is  often  incomplete,  leading  to  social  and  political  marginalisation,  impoverishment 
and land conflicts. Mechanisms for securing indigenous peoples’ rights to their lands are thus important for their 
cultural  survival  and  for  promoting  equity  and  protecting  their  immediate  environment.  Ethnic,  religious  and 
linguistic  minorities  other  than  indigenous  peoples  may  also  experience  similar  situations.  The  case  of 
indigenous peoples and minority groups illustrates how land rights are closely related to human rights. 

Equal rights for both women and men to hold and use property are a cornerstone of social and 
economic  gender  equality.  Women’s  human  rights  require  strengthening  under  both  formal 
and  informal  systems  of  tenure,  and  constitutional  and  inheritance  law  has  a  role  to  play 
alongside land law and institutions as well as family and marriage law. 

Population growth, changing economic circumstances and changes to the environment such as 
desertification  and  climate  change,  can  increase  competition  for  access  to  land.  Conflict  is 
likely to grow where scarcity of resources is increasing and access is reduced, where tenure 
rules are unable to adjust sufficiently rapidly, and where different and contradictory rules co-
exist. Illegal appropriation of land by political elites and forced displacement of rural dwellers 
can also lead to land conflicts. Addressing conflicting claims will be a pre-requisite for any 
land registration programme, to avoid repeated challenges and disputes. In countries coming 
out  of  conflict,  fair  and  just  handling  of  land  tenure  questions  will  often  be  central  to 
reconstruction,  both  to  maintain  peace  and  provide  conditions  under  which  sustainable 
economic growth can be re-established. 

Land policy has strong links with agricultural and economic policy. Securing access to land is 
a  necessary  condition  for  encouraging  investment  and  improvement  in  land.  However  land 
issues  are  rarely  the  only  limiting  factor  in  raising  productivity.  Working  to  address 
constraints  in  prices,  inputs,  credit,  markets  and  processing  may  be  a  greater  priority  than 
addressing land matters.  

Land has long been considered a key source of revenue for local and national government. It 
is a particularly easy asset to tax, especially in urban areas. Local land taxes may be legitimate 
in  the  eyes  of  local  people  when  they  are  accompanied  by  more  effective  and  secure  rights 
and by effective provision of public services. 

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Land  policy  is  also  crucial  for  environmental  sustainability  as  it  can  create  incentives  for 
sustainable land use and environmental management. Land provides for a range of ecological 
services  which  a  sound  land  policy  can  contribute  to  enhancing:  water  retention,  pollution 
mitigation, soil and coastal protection all depend on the sustainable use of natural resources. 
Therefore,  land  policy  has  a  role  in  preventing  environmental  degradation.  Clear  and 
protected  rights,  effective  rules  defining  access  and  regulating  use  of  land,  water  and  other 
natural  resources  are  essential  means  of  ensuring  long-term  management  of  land  and 
resources. 

In  the  absence  of  trade  and  agricultural  policies  to  support  the  small  farm  sector  the 
predominance  of  export-oriented  agriculture,  the  liberalisation  of  agricultural  imports  and 
governments’ withdrawal from the provision of rural extension services, have often resulted 
in land re-concentration and in exclusion and/or deprivation of vulnerable groups. Addressing 
these legacies and promoting both equity and productivity is thus a key issue. 

Hence,  land  policy  reform  is  an  essential  aspect  of  the  policy  and  institutional  reforms 
required  to  empower  the  poor  and  promote  equitable  and  sustainable  development;  it  is  an 
essential means to secure social justice and economic development objectives. Drawing up a 
land  policy  is  the  responsibility  of  the  state,  but  will  need  to  build  on  and  respond  to  the 
concerns of many non-state actors. Land policy reform has a key role to play in processes of 
democratisation, the drive for improved governance, and decentralisation. 

3. 

4 
DIFFERENT TYPES OF LAND POLICY REFORMS

In its broadest sense, land policy reform can involve deliberate changes to the distribution of 
land resources or the forms of tenure under which they are held (land tenure reform), the rules 
regulating land use, and the institutions which administer and manage land and regulate land 
use. It may include an action on the distribution of rights itself (agrarian reform). 

Land  redistribution  is  a  major  issue  wherever  land  rights  are  highly  polarised  and  access  is 
very unequal, land is underused by large owners, or historical injustices are to be addressed. 
However,  land  redistribution  by  itself  is  not  sufficient  and  may  produce  a  temporary  fall  in 
productivity if there are insufficient economic incentives, institutional support and inadequate 
financial and technical measures to help new farmers develop their holdings and get access to 
markets.  Furthermore,  intensification  of  cultivation  in  highly  fragile  lands  may  be 
accompanied  by  environmental  degradation  in  the  absence  of  adequate  land  use  planning. 
Land  redistribution  should  thus  take  place  within  a  sustainable  agricultural  policy  that 
supports family farming. 

Historically,  governments  have  implemented  land  reforms  by  expropriating  large  owners. 
This  type  of  land  reform  has  been  criticised  as  being  politically  difficult  and  creating 
conflicts.  “Market  assisted  land  reform”  has  then  been  tested,  on  the  principle  of  willing 
buyer/willing  seller.  Both  these  types  of  reforms  can  encourage  price  escalation,  inflated 
demands  for  compensation  and  the  disposal  of  marginal  land  by  landowners,  which  can  in 
turn lead to significant debt burdens for beneficiaries or high costs to the state. 

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Reform  processes  differ  widely  between  countries  and  there  is  limited  scope  for  generalisation. 
Commission  staff  working  paper,  SEC(2004)  1289,  provides  an  indicative  list  of  components  and  an 
overview of issues prevailing in different geographical regions. 

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The case of Zimbabwe 
The  Zimbabwean  land  reform  illustrates  well  the  linkages  between  land,  governance  and  productivity.  Poor 
design  of  the  land  reform  coupled  with  political  motives,  have  led  the  Government  to  enforce  a  land 
redistribution  scheme  which,  as  much  as  it  may  have  been  necessary,  has  greatly  affected  the  country’s 
agricultural production capacity. 

Lack  of  participation  in  the  design  of  the  reform  led  to  breakdown  of  dialogue  between  parties.  Violence  and 
forced  evictions  have  followed  in  a  climate  of  insecurity  and  lawlessness  which  left  free  rein  to  the  most 
extremist  factions.  Government  intervention  and  piecemeal  legislation  has  created  a  sentiment  of  insecurity 
where private property is no longer secured 

Reasonable  compensation  corresponding  to  the  value  of  improvements  to  the  land  and  its 
productive  use  and  potential  should  be  the  leading  principle  in  the  case  of  expropriations. 
Such  measures  should  however  never  lead  to  the  eviction  of  indigenous  and  local  peoples 
from their traditional land or restrain their access to vital resources. Where large land holdings 
have  been  created  illegally,  they  should  not  be  eligible  for  compensation  or  disposal  on  the 
free market. Political will, national consensus on the legitimacy of land redistribution, support 
from  rural  social  organisations  and  urban  population  are  thus  political  conditions.  Strong 
financial  and  technical  support  from  donors  is  also  needed.  Independent  monitoring  is  also 
necessary to ensure transparent and equitable procedures and avoid political manipulation. 

While  market-led  reforms  avoid  some  of  the  risks  and  difficulties  of  forced  acquisition  and 
redistribution,  the  availability  of  land  for  sale  and  funding  constraints  greatly  limit  both  the 
speed  and  impact  of  such  reforms  on  the  poor.  If  extensive  inequality  cannot  be  corrected 
through  market-based  mechanisms,  state  led  agrarian  reforms  may  still  be  necessary.  Other 
means  to  influence  the  distribution  of  rights  may  however  be  explored:  land  taxation, 
negotiating long term leases for the landless, regulating land sales markets giving priority to 
local  farmers,  subsidised  credit  for  land  purchases  targeted  towards  the  poor,  are  all 
alternative ways to discourage the accumulation of idle land in the hands of few and to favour 
access for smallholder farmers. 

Commission  staff  working  paper,  SEC(2004)  1289,  provides  a  set  of  principles  which  can 
help to ensure the sustainability of land policy reform processes. 

4. 

ELEMENTS OF AN EU APPROACH TO SUPPORT LAND POLICY IMPLEMENTATION 

4.1. 

Securing rights over land and related resources 

To improve equity and promote agricultural productivity, policy must improve access to land 
and security of land-related rights. Rights are secure if they are not contested without reason 
and  if,  in  case  of  contestation,  they  can  be  confirmed  by  the  legal  or  arbitration  authorities 
(whether these be customary, or governmental or both). Securing land rights is thus largely a 
question of having effective institutions and enforcement of rules for the management of land 
rights, and not merely a question of the formal legal nature of the rights themselves. 

Informal tenure systems are generally dynamic and evolving, but they can (although they may 
not always) be efficient and adaptable, within limits to changing economic and technological 
conditions. Customary and informal tenure systems should not be assumed to be a constraint 
impeding agricultural intensification.  

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4.2. 

Building on existing rights and practices 

Land  policy  reform  aims  to  change  land  use  practices,  but  the  diagnosis  is  often  poorly 
informed,  so  that  the  policy  misses  its  objective.  In-depth  qualitative  analysis  of  local 
practices  and  regulations  over  land,  problems  of  insecurity,  type  of  conflicts,  and  modes  of 
transfer are required to understand the nature of the problems faced and how to address them.  

4.3. 

Titling may or may not be the solution 

Land  registration  or  titling  was  thought  necessary  to  achieve  security  of  rights,  increased 
productivity, and access to credit, but experience shows that titles may be neither necessary 
nor sufficient to achieve these aims. Firstly, land rights are the product of recognition by both 
government and local community. Informal land rights may not be insecure if they are locally 
recognised and not contested.  

Secondly, investments in land depend on a favourable economic context, so changes in land 
rights  alone  may  not  make  any  difference.  Moreover,  programmes  of  land  titling  in  a 
macroeconomic context which undermines the viability of small holders can induce distress 
sales of land causing landlessness for many, land accumulation and concentration for few and 
resulting in increased poverty and inequality.  

Thirdly, while titles were once considered essential as collateral for accessing official sources 
of credit, in practice banks, in the absence of a functional market, have been in most countries 
unwilling to lend money in rural areas. Moreover, land registration programmes are reliable 
only  if  the  registry  is  regularly  updated.  This  involves  considerable  costs  that  have  to  be 
covered by either government or land users.  

A broad view of cadastral systems and titling methods is therefore needed to establish reliable 
and appropriate records of village, family or individual land rights, and register broad sets of 
rights, at low cost. Innovative systems offer new solutions and alternative options (e.g. official 
recognition of written contracts drawn up locally) require attention. 

4.4. 

The need to establish sustainable land administration systems 

Land  administration  involves  a  range  of  different  functions  (see  Commission  staff  working 
paper  SEC(2004)  1289)  which  can  be  fulfilled  at  different  levels,  by  a  range  of  different 
bodies,  therefore  the  design  of  the  land  administration  system  is  a  crucial  issue:  too  often, 
centralised land administration is heavy, inefficient, and costly and inaccessible for farmers. 
Clearly, some degree of subsidiarity helps to achieve more effective land and natural resource 
management,  since  more  relevant  and  detailed  knowledge  regarding  land  rights  is  held  at 
local level. The key to any devolution of authority is to ensure that the chosen system includes 
adequate checks, balances and accountability, including oversight by higher bodies, given the 
risk of corruption and patronage coming to dominate local land administration. 

The objective of a land administration system should be to offer effective security to the rights 
to  land  and  natural  resources,  held  by  rural  people  and  to  promote  sustainable  land 
management. Key aspects to consider in land administration include removing contradictions 
between  norms;  offering  simple,  accessible  procedures,  with  well  known  rules  that  address 
the problems faced by farmers; promoting efficient arbitration systems which are accessible to 

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inefficiencies 

people;  removing 
land  administration  and  ensuring  accountability; 
maintaining an open public record of land claims; ensuring effective publicity of land claims 
prior  to  their  registration  and  conversion  to  title;  avoiding  opportunities  for  corruption 
presented by difficult and complex procedures; and providing avenues for appeal. 

in 

Provided that they are seen as tools to further a user-oriented system, new technologies (e.g. 
GPS and GIS) can improve the quality and efficiency of land information systems and reduce 
costs.  Similarly,  communal/village  participatory  mapping  combined  with  customary  land 
administration systems can significantly cut costs while providing a useful tool for land use 
planning and the management of local disputes. 

4.5. 

The role of rental markets to enhance productivity and access 

Land transactions transfer rights to land between users. However, land sales markets may be 
inaccessible  to  those  with  limited  purchasing  power  and  are  distorted  by  imperfect 
information and lack of financial services in rural areas. As a result, land sales markets can 
lead  to  greater  inefficiency  and  inequality  through  speculation,  acquisition  of  rural  land  by 
urban or outside entrepreneurs, and distress sales by the poor. 

By  contrast,  land  rental  markets  can  be  more  efficient  and  fair.  Rental  markets,  given 
adequate  guarantees  of  security  for  the  transacting  parties,  provide  flexible  means  whereby 
users  can  increase  or  decrease  land  holdings  according  to  changing  needs.  Sharecropping 
arrangements  may  also  be  an  efficient  way  to  address  increased  risks  or  cash  shortages. 
Procedures for legal validation by local authorities of written contracts by farmers can help in 
securing land rental agreements, as attempted in Bangladesh. 

However, these solutions are limited in case of high asymmetry between owners and tenants. 
Therefore, clarifying the rules (e.g. level of fees, duration of contracts), giving access to credit 
and advice to the poor contributes to encouraging the emergence of effective rental markets. 

5. 

THE ROLE OF EU DONORS 

In the past, many donors, including the EC and the EU Member States, have been reluctant to 
get involved in the politically highly sensitive field of land policy reform. Donor support has 
often  been  limited  to  promoting  titling  and  land  information  systems,  non-contentious 
activities believed to be technical, neutral and universal. This neutrality is only apparent, and 
this position has often led to choices unsuited to local realities, thus excluding the poor. 

While  land  policy  reform  is  a  long  and  complex  process,  requiring  broad  political  debate 
inside the country, donors can make a major contribution, if they play a cautious role. They 
can facilitate public debate, support processes without forcing the pace, and offer to fund the 
costly  parts  of  preparing  and  implementing  land  policy  reforms,  including  in  particular  the 
purchase of land for redistribution, without taking over from government. They can contribute 
to research, institutional and capacity building for the different actors involved (local/central 
government, farmers’ organisations, etc.) and monitoring and evaluation. 

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Key principles for donor engagement drawn from experience:  

Land policy reforms are extremely case specific. Donors should support tailor-made solutions, strongly linked 
to the local social and institutional context and avoid blueprints. 

Land  policy  reforms  are  complex  undertakings  which  require  firm  political  commitment  by  the  state  and 
support  from  society  at  large.  Donor  support  must  be  non-dogmatic,  non-intrusive  and  well  informed  on  the 
situation prevailing locally. Programmes must be appropriate to the local social and institutional context. 

Donor  support  must  be  accompanied  by  an  in-depth  dialogue  with  the  state  at  the  highest  level,  and  must 
encourage large inter-ministerial coordination and debate. 

Land policy reforms are long-term processes, going through a series of successive phases requiring an iterative 
approach. Donors  should  stand  ready  to  accompany  such  processes over  a  long  period. Sector  approaches  can 
provide some safeguards against the risk of one or the other donor discontinuing support. 

Gender-aware legislative reforms are essential, though not sufficient to secure enforceable access to, control 
over and use of, land resources by both women and men. 

Information  and  awareness  are  key.  Donors  must  contribute  to  the  understanding  of  different  stakeholder 
interests and strategies and should encourage the search for consensual solutions. 

Research can be a powerful tool for understanding and steering national processes. Donors can be instrumental 
in accompanying implementation with research and encouraging feedback and debate on emerging issues. 

Donor  support  for  land  reform  should  in  no  case  result  in  further  deprivation  for  women  and  poor  people 
from  access  to  and  control  over  land nor  in  the dispossession or  eviction of  ethnic minorities or tribal and 
indigenous peoples from the territories they traditionally occupy. 

The growing importance of land policy reform processes, and land issues in general, for rural 
development  and  poverty  eradication  provide  strong  grounds  for  enhanced  engagement  by 
and  coordination  among  Member  States  and  the  EC.  Given  Europe’s  experience  and 
substantial funding in land policy, land management, support to family farming and regulation 
of land markets, the EU has a major role to play in international debates and in development 
policy  regarding  land  tenure  and  land  regulations.  Such  a  role  needs  to  take  a  balanced 
approach, recognising that markets are not the only means to achieve social ends.  

The EC has a comparative advantage in initiating and accompanying the creation of flexible 
donor  consortia  drawn  from  EU  Member  States  to  tackle  land  issues  in  partner  countries. 
More generally, options to be considered include: 

•  initiating a common approach to land policy and tenure reform, encouraging the sharing of 
experience  between  the  EC  and  Member  States  and  supporting  greater  coordination  and 
common understanding of land issues;  

•  advocating  for  a  more  balanced  approach  to  land  policy  reforms  by  multilateral 
institutions  and  for  stronger  integration  of  land  tenure  issues  into  national  development 
processes (PRSPs, national/rural development strategies, etc.); 

•  actively  encouraging  coordination  and  collaboration  of  other  donors  in  particular  within 
the  UN  family  (FAO,  IFAD  and  UNDP),  in  support  to  national  reform  processes  in  line 
with  each  agency’s  comparative  advantage,  specific  field  of  expertise  and  in-country 
presence; 

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•  developing initiatives for applied research and development on the linkages between land, 
equality and social development, land agricultural development and poverty and between 
land tenure and the environment, as well as for independent monitoring/evaluation of land 
policy reforms. 

More specifically the EC and the EU Member States can strongly improve the impact of land 
policy reforms by jointly supporting national reform processes and, in particular, by: 

•  supporting  debate  and  sharing  of  experience  on  land  issues  and  land  policy,  in  relation 

with economic policies in particular at the regional level;  

•  contributing to make the design of land policy and reforms a truly participatory endeavour 
by encouraging government to stimulate the participation of civil society, minority groups 
and  indigenous  peoples  and  local  communities  in  the  debate  and  supporting  their 
participation,  and  making  available  to  them  the  results  of  knowledge  and  international 
experience; 

•  supporting the design and implementation of sector approaches to implement participatory 
land policy and land tenure reforms which take into due account institutional development 
and are attentive to issues of sustainability and recurrent costs implications; 

•  supporting  land  reform  and  land  redistribution,  in  particular  where  high  inequality 
persists.  This  may  involve,  where  conditions  allow,  the  funding  of  transparent  and 
accountable land acquisition schemes by the state, or the beneficiaries, or other agencies on 
their behalf depending on what is most appropriate in local circumstances. 

•  supporting  capacity  development  in  land  administration  at  all  levels,  including  local 

communities; 

•  supporting monitoring and evaluation of the impact of the reform and encouraging proper 
dissemination  and  discussion  of  research  findings,  so  as  to  make  land  policy  reform  a 
dynamic process. 

6. 

CONCLUSIONS 

With  this  Communication  the  Commission  outlines  a  new  reference  framework  to  support 
land  policy  reform  in  developing  countries.  It  is  expected  that  this  will  facilitate  support  to 
national  reform  processes  and  enhance  coordination  and  collaboration  with  MS  and  other 
donors. 

The  Commission  adopts  the  present  Communication  and  transmits  it  to  Council  and 
Parliament for endorsement. It further notes that the operational guidelines (see Commission 
staff working paper SEC(2004) 1289) provide a practical tool to guide the Commission and 
Member States in designing and implementing programmes in support of land policy reform 
processes in developing countries and countries in transition. 

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