Development Land
Resume:
Transparency as a Solution for Uncertainty in Land Privatization
- A Pilot Study for Mongolia
Naranchimeg BAGDAI, Mongolia, Anne van der VEEN, Paul van der MOLEN and
Arbind TULADHAR, the Netherlands
Key words: Land Privatization, Transition, Uncertainty, Transparency
ABSTRACT
Land privatization has been initiated in many transition countries, to provide individual land
ownership rights to citizens, in order to enhance access to land, which also facilitates a socio-
economic development of the country. However, such markets do not emerge automatically;
it requires a transparent institutional and legal infrastructure that is still lacking in land
administration, because of uncertainty. The critical question in this paper is how to respond to
such a high level of uncertainty and how to reduce it.
This paper reviews the theory of uncertainty, which leads to a novel conclusion that the
transparency is the key to understand uncertainty and it is a solution for the implementation of
the land privatization law successfully under uncertainty. A pilot study in Mongolia
investigated that the current processes for land privatization are incomplete and slow, with
many steps, lack of coordination between stakeholders and considerable duplication. We
found that the degree of uncertainty, as experienced by citizens and officials is high, which
hampers a successful implementation of the new land privatization law.
An analysis of transparency reveals that two elements are crucial for process design: access
to information and participation, while the existence of corruption is considered as an
indicator when transparency is missing. We hypothesized that Transparent processes can
promote an effective implementation of land privatization law under uncertainty . As many
countries face uncertainty with respect to land privatization processes, approaching
uncertainty through the key-elements that constitute transparency is an important for them, as
it is for Mongolia.
1/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
Transparency as a Solution for Uncertainty in Land Privatization
- A Pilot Study for Mongolia
Naranchimeg BAGDAI, Mongolia, Anne van der VEEN, Paul van der MOLEN and
Arbind TULADHAR, the Netherlands
1. INTRODUCTION
Modern land administration systems in developing nations should facilitate in achieving
Millennium Development Goals (MDGs) as proposed by the United Nations (UN)1. Issues
such as tenure security, pro-poor land management, and good governance in land
administration are all key issues to be advocated in the process of reaching such goals
(Enemark 2007). Transition countries are facing a wide range of uncertainties in the
establishment and implementation of land administration systems to achieve these goals. In
general, much of the uncertainty exist where transparency is missing (Walker, Harremoes et al.
2003; Hood and Heald 2006). One of the ways to deal with uncertainty is increasing
transparency and it is an innovative approach to respond to uncertainty (Cooney and Lang
2007; Schultz 2008).
Globally, international bodies such as GTZ, UN/ECE, UN/HABITAT, FIG, ADB and
practitioners in general have recognized that the development of transparency is an essential
tool to improve effectiveness and efficiency of land management/land administration systems
in developing nations. Many researchers have stated that transparency is a vital condition for
the allocation of resources (Bellver and Kaufmann 2005; Hood and Heald 2006) and that lack
of transparency in privatization process can lead poverty and inequality (Nixson and Walters
2006). This argument is fundamental to implement the land privatization law successfully
under uncertainty (Deininger 2003; Swinnen and Vranken 2005; Ho and Spoor 2006; Lerman
and Shagaida 2007). However, so far, little rigor analysis on how transparency have affected
land privatization when uncertainty is involved.
The purposes of this study were to: develop a research hypothesis and identify the key
elements and indicators to test this hypothesis. In this context, the paper first discusses theory
on uncertainty and transparency to find out their relationship, which is fundamental to identify
specific key elements with respect to transparency such as access to information, participation
and corruption. The existence of corruption regarding these processes can be considered as a
secondary element of lack of sufficient transparency. In result, a research hypothesis is
developed as follows: Transparent processes can promote an effective implementation of
land privatization law under uncertainty . Secondly, current legal and institutional aspects in
Mongolia are analyzed to support the development of research hypothesis empirically. This
paper argues that transparency supports the improvement of effectiveness and efficiency of
the implementation of land privatization and the reduction of uncertainty on the emergent
phenomenon by developing new processes on land privatization within for Mongolia- the
context of the National Land Information System (NLIS) conceptual model. Finally, the
1
http://www.un.org/millenniumgoals/
2/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
specific indicators are developed, which can be the rationales to be used to test the research
hypothesis.
2. THEORETICAL BACKGROUND
Uncertainty is a well known concept in information system research (Arun and Hindi 2000)
and also in other disciplines, such as water and natural resources management (Asselt 2000;
Refsgaard, van der Sluijs et al. 2007), engineering system planning and design and in
decision-making processes (Walker, Harremoes et al. 2003). Land administration practice,
like other disciplines, must also recognize rigorously that much of the uncertainty negatively
affects the success of information systems and processes. This section provides a general
theoretical background on uncertainty and transparency, and their relationships. Furthermore,
a discussion of the findings leads to the main issues of access to information and participation,
which appear to be the key elements to describe transparency for the implementation of land
privatization under uncertainty. The problem of corruption is then discussed as another
element that is a negative impact of non-transparency, but that at the same time enhances the
uncertainty level.
2.1 Uncertainty and transparency
In general, much of the uncertainty exist where transparency is missing (Hood and Heald
2006) and there is a demand to increase transparency in decision-making processes when
uncertainty is involved (Walker, Harremoes et al. 2003). The definition of uncertainty varies
among different scientific disciplines and varies depending on their discipline (Refsgaard, van
der Sluijs et al. 2007). However, in complex, interdependent decision-making environments, -
such as land administration- there is always considerable uncertainty (Walker, Harremoes et
al. 2003). Particularly in transition countries, uncertainties might increase in terms of
complexity of institutional arrangements and changes, legal and technical issues in relation to
land rights and in Mongolia- NLIS. Barry (2002) explains that in those countries land
management (e.g. the cadastral system) is implemented in an uncertain, changing situation
and has to serve within a complex social, political, legal, physical, technological and
economical environment. Moreover, Barry proposes to analyze the cadastral systems in
uncertain situation by using soft system approach as he did in South Africa. However, the
question how to deal with a high level of uncertainty in land administration systems still
remains unsolved.
Schultz (2008) and Kristin (2006) argue that increasing transparency is one of the ways to
deal with uncertainty and it is innovative approach to respond to uncertainty. Kristin (2006)
emphasizes that greater transparency related to the availability of perfect information, which
leads security and decrease the livelihood of conflict by reducing uncertainty. That means
security is also an important factor when private property concept is introduced in transition
countries under uncertainty. In addition to these challenges, Schultz (2008) argues for
adaptive collaborative management in forest policy, in which agencies and public work
together to set goals when there is scientific uncertainty; and such involvement of the public
would greatly increase transparency and serve trust between scientists, the public and decision
3/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
makers. Although, Dillen (1998) and Geraats (2006) highlight that transparency has become
one of the main features of monetary policymaking during the last decade, and it reduces
uncertainty, which leads to a more efficient policy and better service to citizens providing
more information. Notably, a character of uncertainty in land administration is very similar
with epistemic 2 uncertainty. This kind of uncertainty includes limited and inaccurate data,
incomplete knowledge, measurement errors, imperfect models, and subjective judgment
(Cooney and Lang 2007) and it is reducible by more studies, comprising research and data
collection (Refsgaard, van der Sluijs et al. 2007). However, theory shows that there is a strong
relationship between uncertainty and transparency.
What is transparency then ? Transparency is a mixed and complex concept and difficult to
deal with. However, for this paper, transparency is considered as a concept that all decisions
and land information are available to the general public and the increase of the clarity about
government rules, regulations, decisions3 and procedures. Bellver and Kaufmann (2005) argue
that the idea of transparency is that it improves the allocation of resources, makes government
more accountable, undermines the power of special interest, and thus leads to improvements
in their policies and institutions. Many researchers highlight that transparency is a vital
concept for the allocation of resources (Bellver and Kaufmann 2005; Hood and Heald 2006),
which is fundamental to implement land privatization law successfully (Deininger 2003;
Swinnen and Vranken 2005; Ho and Spoor 2006; Lerman and Shagaida 2007). However, the
complexity of current incomplete processes and ambiguous strategy has given a high impact
to the implementation of new laws in opaque systems with uncertainty. Land administration
systems are therefore, required to be transparent in terms of tenure security, equal distribution
of land, accuracy, quality, timeless, correctness and consistency of land information as
available for all users and other stakeholders.
Building on these results in social science, this paper argues that a transparent system
including processes and data can promote an effective and efficient implementation of land
privatization law under uncertainty. This leads to the novel conclusion that in general the
approach to reducing uncertainty in land administration is though the concept of transparency.
2.2 Access to information and disclosure
Piotrowski (2007) argues that individuals differ in their level of demand for transparency and
vary with which information they want to access. However, it is difficult to measure the
demand for transparency. A general principle of transparency indicates that access to
information is essential to the allocation of land resources. Deininger (2003) states that
information accessibility plays an important role for the successful implementation of a land
privatization law, and for example it is obvious that -in terms of tenure security- landowners
and possessors should have the right to access their property information held by land offices.
Another issue is how to legalize the right of access to information and how it can be
guaranteed by law. Bellver and Kaufmann (2005) state that countries, which adopted the
2
See definition from Warker (2003) and Refsgaard (2007) for more information on epistemic .
3
http://www.transparency.org, last accessed in November 2008.
4/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
Freedom of Information4 (FOI) laws, are the ones where citizens enjoy greater voice and are
able to demand the enforce of such laws and vice versa. A similar argument has been put
forward by many researchers (Rosset 2001; Cashin and McGrath 2006; Lerman and Shagaida
2007) namely that the land market requires reliable, transparent information; and -in the past-
even restrictions on land use and ownership have not been transparent.
2.3 Participation
Institutions are the humanly devised constraints that structure human interaction (North 1990)
and legitimacy is attained when legality, participation and representation is guaranteed (Veen
2006). Tuladhar (2004) has emphasized that institutional arrangements, cooperation and
communication between organizations and other concerned parties, are a key issue for the
development and implementation of new processes. Participation encourages high interactions
between various parties involved in carrying out the processes with certainties for the
emergent results and encourages increasing transparency. When many stakeholders (including
citizens) are involved in the processes, interaction and coordination between them and their
role is important in order to make the processes more transparent and effective. However, the
land privatization activities involve many government organizations, private sectors and
citizens; and participation is an essential issue for implementation of new land privatization
law in a successful way. North (1990) states that institutions reduce uncertainty by providing
a structure of everyday life. As stated in the Bogor Declaration (1996) the linkage and
coordination between authorities, which are responsible to maintain records on the ownership,
value and use of land, is extremely important.
2.4 Corruption
The practical experience in many countries is that corruption exists where there is lack of
transparency and by consequence it creates more uncertainty. There is a strong relationship
between transparency and corruption. History shows that it is intricate to distinguish between
these two issues. Transparency, integrity, anti-corruption in the land sector needs more
attention and possible measures should be tested in real life situations (Molen and Tuladhar
2007). Corruption becomes powerful especially when the private property concept is
introduced in opaque environment. Moreover, UN-HABITAT (2007) observes that land
offices are amongst the most corrupt institutions in most countries that lack of transparency3.
There is strong perception at international level that transparency in government decision
making and public policy implementation reduces uncertainty and can help inhibit corruption
among public officials. Unfortunately, corruption is increasingly prevalent in Mongolia and
reared its head in the process of privatizing public land (USAID 2005). By consequence, land
rights are allocated in a highly non-transparent mode.
4
See www.freedominfo.org
5/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
3. STUDY AREAS AND METHODS
In order to come to grips with the situation in Mongolia, a specific research design was a
qualitative in nature. Qualitative research methods are designed to help researchers
understand people and the social and cultural context in which they live and such approach
helps to understand the context of land information systems and processes (Avison and
Fitzgerald 1988; Myers 2002). Principally, research hypothesis developed from theory
(Babbie 2003) on uncertainty/transparency, and it is supported by empirical data. A pilot
study was carried out in Mongolia end of the year 2007. Its aim was to support a research
working hypothesis as well as indicators with empirical evidence. Mongolia occupies an
ecological transition zone in Central Asia where the Siberian taiga forest, Central Asian
steppe, the Altai Mountains and the Gobi desert meet. Mongolia has a land area of 1.567
million square km with an estimated population of 3.0 million people. In this research, three
main study areas were selected at different administrative levels: a) National level;
Ulaanbaatar city; b) Provincial level (called aimag ); Ovorkhangai aimag (central part of
Mongolia); and Municipal level (called soum ); KharKhorin soum (within Ovorkhangai
province).
An analysis was carried out from different sources: literature review, documents, archival
records, interviews, and direct observations, and supported with other sources of evidence
such as newspaper and internet. Extensive literature survey was done to find out the
relationship between the concept of uncertainty and transparency. In order to know
landowners and possessors perceptions of land privatization law, collection of data at different
administrative level was pursued. In addition, qualitative interview was held with 17 heads of
provincial land offices out of 22 local provincial land offices, which is supported by
Cadastral survey and land registration ADB project. Although, we have managed to collect
a relevant statistical data and information on the implementation and progress of land
privatization law in Mongolia, by help of land privatization specialists of ALAGaC. The
general question for the interviews with land owners and possessors at different
administrative level was Are you satisfied with the land administration service? In total 395
landowners and possessors responded to this question at national, provincial and municipal
level. The result of analysis assisted in better understanding of the perception of landowners
and possessors on emergent phenomenon and how current land administration services
behave to the new land privatization law.
4. ANALYSIS AND RESULTS ON LAND PRIVATIZATION IN MONGOLIA
In this section, the results of the pilot study are presented to show the general state of the
implementation progress of land privatization with respect to the legal and institutional issues
and to find out is there any complexity to implement the law successfully.
4.1 Legal issue/Implementation progress of Land Privatization Law
Land privatization has been a fundamental part of the radical restructuring of social, economic
and political institutions during the transition from central planning to market oriented
6/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
economies in Central and Eastern Europe as well as in some African, Asian and Latin
American countries (Deininger 2003). Mongolia is not the only case. The major problem is
how existing land administration systems should be able to cope with the new legal
arrangements, especially when the system is complex. A transparent system and procedures
on private land property rights is valuable to the citizens and vice versa. In this line, Nixson
and Walters (2006) investigates the implication of land privatization to a society such in
Mongolia and how the emerging pattern of poverty and inequality has been changed through
privatization. He concludes that in any future mass privatization, for example, the
privatization of land, a very much higher priority must be given to transparency. The process
of transferring from planned-economy to market-economy requires extensive land market
development and the introduction of private land ownership. Therefore, in the case of
Mongolia, the government believes that the land law reform, especially the creation of private
land ownership, would lead to better economic development and better livelihood for its
citizens. The government of Mongolia has given a high priority to strengthening the land
reform policy, by extending rights of land, creating legal conditions that give guarantees to
citizens, economic entities and organizations to own, possess and use land, as well as to
attract foreign investment. Understanding of a private ownership concept by Mongolians has
been a new phenomenon, after a long history of socialist regime. One of the key elements
within the land reform policy is land privatization. A new Land Law was introduced to the
Mongolians in 2002, with the purpose of expanding rights for possession (GOM 2002).
Within the concept of the new Land Law in order to regulate land ownership, the Mongolian
Parliament approved a Land Privatization Law in June 2002. In result, the number of private
owners is increasing in all levels, but its economic circulation or use is not efficient and hence
privatization has not succeeded to the level that government expected (Batsukh 2005). Land
shall be allocated to Mongolian citizens for the following purposes and sizes (Table 1): for
family purpose; and for commercial purpose (not for pasture land).
# Location Size of land / ha /
1 Capital City up to 0.07
2 Centers of aimags up to 0.35
3 Center of soums or villages up to 0.50
Table 1; Size of land to be allocated to citizens (GOM 2002)
The law allows every Mongolian family (not individual citizens, see hereafter) together, to
own a piece of land free once in their life for their family purposes. Companies, other legal
entities, such as profit or non-profit entities, non-Mongolian or business entities with full or
foreign investment, cannot own land in this Law. The most recent government decision made
in May 2008, however, extended the duration of the family-privatization process up to 5 years
with a remarkable change that now every individual Mongolian citizen can own a small piece
of land. In this regard, every member of family has right to own a piece of land. Due to the
lack of proper land use planning, there is no information available to potential landowners,
where the possibilities are for owning a piece of land. Quantitative data collected during the
pilot and the number of registered lands as a property, indicates a slow process of land
privatization. Only 31% of the estimated number of families obtained the required governor
decision on the allocation of private land at national level. At the city level, only 20% of the
7/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
total estimated private lands are registered as property by end 2007. In total 558,065 families
were recorded as private land owners for family purpose, and statistics of 2007 show that in
total 174,016 families obtained governor decision during the last 5 years and out of this
number only 22,274 family lands were registered as private property. The registered number
of private properties is too low to indicate land market developments in Mongolia.
Interview with officials, land owners and possessors in different administrative level
The results of interviews demonstrate that in -comparing with local level-, a complicated,
bureaucratic land administration system exists in Ulaanbaatar6 (UB). During the pilot study,
we observed that people or citizens are exhausted to visit land related offices in UB city. Land
officials and landowners indicate that the lack of advertisement on the implementation of land
privatization law. There is not sufficient publicity and information available on procedures
and land privatization activities to make people understand the significance of ownership of
land right in the future. Interviews with local officers show that land privatization activities
are going slow, particularly at the local level. They expressed that there are no specific
guidelines to implement the law at the local level. The major question is described in Table 2.
In the municipality level 91 (53%) landowners and possessors were satisfied in great and
moderate level with the existing land administration service, but that it is only 33 (28%) in
city level. The result summarizes that landowners and possessors are generally less confident
not satisfied with the current land administration service (about 62%).
Table 2: Are you satisfied with land administration service?
Are you satisfied with land administration Total
service?
great extend moderate not happy at
extend all
level of National level Count 4 29 84 117
observation % within level of 3,4% 24,8% 71,8% 100,0%
observation
Provincial level Count 14 14 78 106
% within level of 13,2% 13,2% 73,6% 100,0%
observation
Municipality level Count 7 84 81 172
% within level of 4,1% 48,8% 47,1% 100,0%
observation
Total Count 25-127-***-***
% of Total 6,3% 32,2% 61,5% 100,0%
4.2 Illegal distribution of land under possession right
When the first Land law was passed in the Mongolian Parliament in 1995, well informed
people started to fight for large pieces of land on a good location. Land grabbing greatly
accelerated after the land privatization law came into force in 2003. Unfortunately,
government is managing land allocation process in a non-transparent fashion that is
undermining their stated goal (Myers and Peter 2004). Now -in UB city- it is difficult to
possess or use a piece of land for commercial purposes or for summer cottage, because most
of the valuable land is already occupied. For example, playgrounds for children, green areas,
sport areas for the schools, and common lands do not exist anymore and they have been
replaced by constructions such as bars, night clubs, restaurants, hotels and apartments. This
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TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
creates violation of civil rights. For the ordinary citizens, the procedures for applying land,
where and how much is still not clear. Some examples illustrated below to show the current
status and what the nature of the conflicts between people and organizations are in real life
situation. Figure 1 shows illegal size of land in peri- urban area. It is very common to see now
large empty fenced pieces of land in Mongolia. The next example demonstrates a conflict
between a Korean company and the local citizens at Gachuurt settlement area. It is not clear
how the Korean company managed to obtain 50 ha land illegally to build a golf course area
near a source of drinking water for UB city. Local people established Gachuurt movement
Figure 1; A large piece of illegal land in the peri-urban area of UB city
against this action in order to protect the beautiful nature of landscape. The Ministry of Nature
and Environment (MNE) approved temporary decision to stop the activity of Korean
company at Gachuurt area. The Gachuurt movement stated that if the related organization
will not make any right decision on that matter, they will move to the next step of protest.
Figure 2 shows the result of a conflict between the city property office (CPO) and the
ecological education centre (EEC). In 1990 when the CPO allocated the land to the EEC the
parcel was 40 ha, but during the last 18 years it has been reduced to 0.9 ha. The process is still
uncertain for them how it is done.
Our income is
important, not
a green area!
Figure 2; Land conflicts
4.3 Organizational issue/Agency of Land Affairs Geodesy & Cartography (ALAGaC)
Even when the technical and legal aspects are well taken care of, bad organizational
arrangements will still be a great problem (Zevenbergen 2002). Well defined institutional
frameworks are the key to success or failure of privatization programs in transition (Simoneti,
9/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
Damijan et al. 2005). Institutional problems were also among the most difficult to resolve in
the establishment and maintenance of the NLIS in Mongolia (Bagdai 1999). Three ministries
have been involved with the land administration activities: the Ministry of Nature and
Environment (MNE), the Ministry of Infrastructure Development (MID) and the Ministry of
Justice (MOJ). At the beginning of 2002 -in order to implement the new Land Law and Land
Privatization Law-, the Government took a decision to improve land related organizational
structures. The ALAGaC was established according to the Decree No162 of the Government
of Mongolia dated August 14, 2002. There are considerable advantages in having main
functions (land management, geodesy and cartography, real property registration)
administered by a single agency. Unfortunately, the new agency of ALAGaC was reorganized
again after three years, because a new Governmental decision taken in August 2006 regarding
to the ALAGaC; the property registration department became separated from ALAGaC and
again became an independent agency called State Registry of Titles (ASRT) under the MCUD.
History of organizational changes shows that institutional issue is uncertain in Mongolia. In
addition, land organization ranks in third from 15 top governmental organizations in
Mongolia by level of bureaucracy5.
4.3.1 Land privatization process in UB city
A citizen can apply for privatization by making an application on the appropriate forms with
related documents to the land division of their local land district or soum office to get a
governor decision . Citizens go from one office to another with documents in hard copy and
it might be changed -parcel map- by request of different organizations. The majority of people
5
http://www.olloo.mn/, in total 1311 citizens voted by time accessed in December 2008
10/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
Figure 3; Privatization process at UB city (by year 2007)
are a land possessor, who hold a small piece of land under possession right and the law allows
transferring their possession right to ownership right that can be used as collateral. During the
pilot we observed that the land allocation process is not clear for citizens, because dependent
on purpose and subject there are different steps and procedures. As an example, the
registration process of land ownership right for a family purpose by a citizen at UB city is
illustrated in Figure 3. The first big step is to get a governor decision ; next one is to register
land rights at ASRT. The land allocation process is not clear for citizens and the lack of land
use planning makes potential landowners exhausted of their visits to all the various land
offices, in order to acquire a small piece of land for ownership where and how and how
much .
5. FINDING EVIDENCE FOR REDUCING UNCERTAINTY
The above pilot study shows that the transparency/uncertainty moderates the relationship
between new land privatization processes and effectiveness and efficiency of the land
administration system (Figure 4). Specified indicators within the key elements access to
information, participation/stakeholders and corruption to assess level of transparency with
respect to land privatization described below in detail with following indicators.
11/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
Figure 4; Research model
a) Access to information
The main goal of the element is to assist in the understanding of the complexity of the existing
situation in more specific indicators in terms of time, procedure and information availability
for landowners and possessors and how land rights are secured in relation to the
implementation of land privatization law in Mongolia. In addition, information should not
only be available to the public, but it should also be accurate, complete, and of good quality.
The element on access to information will cover the following indicators:
1) information availability for the landowners and possessors to own or possess piece of
land from land office (how, where, how much);
2) citizens have a right of access to own (personal) parcel information;
3) steps of existing procedures in order to privatize and to possess land (transaction time,
cost and bureaucracy);
4) administrative procedures (technical) and organization supporting openness
(service standard, archive, register, information services and digital services);
5) providing information to the public/publicity ;
6) accuracy and quality on land information;
7) human and technical capacity in relation to the service;
8) policy or legal document on the provision of access to information;
9) and land disputes and appeals situation and procedure (some additional statistical data
will be collected to find out proportion of land disputes in court cases).
b) Participation/Main stakeholders
The aim of this element is to find out who the related users and stakeholders are and what
their demand and supply of land information in relation to the development of new processes
on land privatization; and help to come across there is any complexity or difficulty between
ALAGaC and other stakeholders. The following indicators of the participation are listed
below:
1) the identification of stakeholders at different administrative levels;
2) the main role of stakeholders in land privatization process;
3) land information demand for daily service (which kind of information the users need,
how get it, and what are difficulties);
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TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
4) supply of information to ALAGaC;
5) complexity on transfer of personal information and conflict with land office;
6) legal document and regulation on the provision of information security between the
agencies;
7) and some relevant statistical data will be collected from stakeholders.
c) Corruption
The element of corruption supports the understanding of citizens (landowners and possessors)
perception of corruption in organizations operating at different administrative levels in
Mongolia and to understand the any harmful consequences for landowners and possessors.
This element could comprise the indicators listed here:
1) degree of corruption before land privatization law approved;
2) degree of corruption after land privatization law approved;
3) illegal registration (one land many owners);
4) and anti-corruption policy and preliminary activities within agency.
6. CONCLUSIONS
The described theoretical background illustrates that the increasing transparency is the way to
deal with situations of uncertainty and that it is an innovative approach to respond to
uncertainty in land privatization. The pilot study summarizes that citizens and officials
experience uncertainty on the land privatization processes because from an institutional and
operational level the privatization process is complicated, especially in the capital, while at
the local level processes are not settled yet. Unawareness of legal rights, lack of access to
relevant information, and misuse of power are at stake, caused by non-transparent law and
enforcement, while the misuse of power in itself exaggerates the uncertainty amongst the
citizens. Citizens need information and a fast, simple service as well, which indicates
transparency as an important factor during the land privatization in transition.
At this stage, it is too early to make conclusions on the effectiveness and efficiency of the
existing land administration system in Mongolia, because the level of uncertainty is high, in
terms of legal and institutional matters and at operational level the processes are non-
transparent. Moreover, it is feasible that in case of such a high level of uncertainty, the
existing land administration system can not be effective and efficient in the expected
circumstances. Lack of coordination exists between different institutions and stakeholders,
and no logical working procedures occur between them to provide information to the citizens.
Landowners and possessors are generally less confident, 243 (62%) respondents answered to
be not satisfied at all with the current services. From the result obtained, we conclude that
the new land privatization law requires a transparent system, but at this period it is difficult to
define the degree of transparency without further research. However, a research hypothesis is
developed based on academic evidence and it is supported by empirical data: Transparent
processes can promote an effective implementation of land privatization law under
uncertainty . Access to information, participation and corruption are key elements to describe
transparency in relation to land privatization in transition and specific indicators are identified
to test hypothesis.
13/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
This study is limited by pilot data from Mongolia. There is a demand to study in other
transition countries experiences to add valuable empirical data to strengthen the research
hypothesis and to increase the reliability of the research. The development of transparent
processes requires to testing the research hypothesis based on specified indicators and the
outcome is expected to assist in defining the dilemma and source of uncertainty and to operate
land privatization smoothly under uncertainty . The study challenges in Mongolian situation,
and it is expected that other countries in transition going through this process can benefit from
this research.
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TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
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15/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
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BIOGRAPHICAL NOTES
Naranchimeg Bagdai (Mongolia) is a PhD student at the Department of Urban and Regional
Planning and Geo-Information Management (PGM), School of Land Administration at
International Institute for Geo-Information Science and Earth Observation (ITC) in Enschede
(NL).
Anne van der Veen is a professor of Governance and Spatial Integrated Assessment at ITC
and Professor in Spatial Economics at University of Twente in Enschede (NL).
Paul van der Molen is currently director of Kadaster International and a professor at ITC in
Enschede (NL).
Arbind Man Tuladhar is assistant professor at the ITC in Enschede (NL) and visiting
professor in Land Administration at Chang an University in Xi an (China).
CONTACTS
ITC
Department of Urban and Regional Planning and Geo-information Management (PGM)
P. O. Box 6
7500AA Enschede
THE NETHERLANDS
Email: ***********@***.**; ****@***.**; ****.***********@********.**; ********@***.**
16/16
TS 3G Land Policy and Reform
Naranchimeg Bagdai, Anne van der Veen, Paul van der Molen and Arbind Tuladhar
Transparency as a Solution for Uncertainty in Land Privatization A Pilot Study for Mongolia
FIG Working Week 2009
Surveyors Key Role in Accelerated Development
Eilat, Israel, 3-8 May 2009
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