**Table 2. Land Readjustment Process in Germany**

|**Step 1**|Commencement of Land<br>Readjustment|•<br>Define area selected for LR based on land use plan<br>•<br>Map all properties and list all landowners<br>•<br>Record commencement of land readjustment in land registrar|
|---|---|---|
|**Step 2**|Preparation for Land<br>Readjustment|•<br>Mass all properties in site and designate for LR<br>•<br>Establish market value of land<br>•<br>Subtract land designated for public use from mass (e.g. roads, parks,<br>etc.) and allocate to municipality or development company<br>•<br>Designate either_relative size_or_relative value_as method of<br>redistribution<br>•<br>Determine share of each individual owner|
|**Step 3**|Value Capture and Reallocation|•<br>Determine readjustment gain difference to be paid to municipality<br>(relative value method) or retained in land (relative size method)<br>•<br>Consider present and proposed uses of land as well as needs and<br>suggestions of landowners<br>•<br>Allocate the right to readjusted plots back to each owner<br>•<br>Determine the right to compensation of landowners who have not<br>received their full share|
|**Step 4**|Readjustment Plan|•<br>Issue formal decision on LR<br>•<br>Determine rights and obligations of each party, including municipality<br>•<br>Include a map of new property boundaries<br>•<br>Arbitrate legal issues among parties<br>•<br>Issue a public notice that LR is legally binding once legal issues are<br>resolved or arbitration is exhausted|
|**Step 5**|Implementation of Readjustment<br>Plan|•<br>File readjustment plan with land registrar<br>•<br>Monitor implementation of readjustmentplan|
|_Source: Tabl_|_e adapted from Davy 2007, page 41._||

GERMANY’S MODEL IN ASIA: JAPAN, SOUTH KOREA, AND TAIWAN, CHINA Germany’s model of LR was first adopted by Japan (locally known as Kukaku Seiri), appearing in Japan’s City Planning Law of 1919. Japan further disseminated the German model of LR during its occupation of South Korea and Taiwan, China. The examples of Japan, South Korea, and Taiwan, China illustrate how LR developed under local contexts despite sharing similar origins.

A number of country-specific features enable the success of LR. In Japan, for example, a strong culture of ownership rights favors LR over expropriation in the Japanese context (Sorenson 2007). In addition, fragmented land holdings, and scarcity of public land holdings in rural areas make LR necessary for development. Japanese farmers are also highly organized and politically influential. While in Korea, rapid urbanization in the 1950s and 1980s coupled with the limited supply of arable land (Archer 1984: 14) led the way to LR for urban growth and land use conversion. The use of LR as a cross-subsidy tool for low-income housing provides a revenue generation tool that assures equity in the Korean LR process. Large readjustment areas in Taiwan, China such as Kaohsiung offered early success and opportunities to refine the LR process. High urbanization pressures in these cities have led also to rapid increases in land values, rendering the financing of local infrastructure through the sale of reserve land viable. While in Japan and Korea, landowners contributed predetermined percentages of their initial land area to the project, in Taiwan, China the contribution to the project was determined based on the expected change in land values after the implementation of the project.

_Origins and Legal Bases_ 14