RONCO in the News: Archives

RONCO Completes Armenia Land Titling and Registration Project

On June 30, 2001, RONCO completed the implementation of the USAID/Armenia Land Titling and Registration Project (LRT). The LRT assessed the legal and regulatory environment for the necessary legal and regulatory reforms to support a free land market; improves on the design and implementation of a simple decentralized titling and registration system; develops a broad base of support for reform among key Armenian policy-makers; and, trains local professionals in all areas related to land titling, registration and land markets.

According to World Bank estimates, capital value of real estate exceeds half of a nation's total wealth, at times approaching 75%. Consequently, the efficient use and management of real estate is key to economic development. Because the centralized management and control structure of the former Soviet system demonstrably failed to an inordinate degree, the private sector market forces are key to success. The reason for allowing market forces to determine ownership, user and, subject to planning/zoning and environmental considerations, the use of land and buildings, is that competition and price mechanisms will move the key economic resource of land and buildings towards the highest and economically most efficient use.

Unlike market reform in larger countries such as Russia or Ukraine, Armenia has no comparative advantage when attempting to promote investment. Radical administrative and social change is required. The Land Registration and Titling Project represented a multi-faceted strategy to establish a foundation for an active real estate market that, complemented by tax, judicial and commercial law reform, promotes behavioral and substantive change.

The original LRT work plan was implemented in two phases. Phase I consisted of the introduction of a favorable legal and regulatory environment, including deregulatory initiatives, and, in collaboration with the Cadastre Department, the development of a simplified system for titling and registration that would result in a roll-out of a rapid, country-wide titling and registration process.

Phase II was initiated after the acceptance of the simplified system for land registration and titling. This phase included assisting the GoA to tile and register all agricultural and urban land; developing the Armenian private sector professional capacity in such areas as surveying and titling, appraisal, and mechanisms/instruments for leasing and sale of land with an emphasis on agricultural land; and, finally on building a constituency through a public education campaign to inform Armenians on agricultural and urban/industrial land privatization issues and ownership rights.