Land titling is a form of land reform in which private individuals and families are given formal property rights for land which they have previously occupied informally or used on the basis of customary land tenure.[1] Proponents argue that providing formal titles increases security of land tenure, supports development of markets in land, and allows better access to credit (using land titles as collateral). Peruvian economist Hernando de Soto Polar is the most well-known advocate of the approach, but it has a long history.[2] Recently, "inspired by these ideas, and fostered by international development agencies, land titling programs have been launched throughout developing and transition economies as part of poverty alleviation efforts."[3] Research in China by Landesa and others has found that more than 40% of farmers lack written documentation to confirm their land rights, and that local governments can frequently take away or sell off their land rights. Where policy reforms have been implemented, the organizations report, farmers invest in and benefit from their land, and they estimate that secure land rights represent the equivalent of $1.2 trillion in farmers' hands. [4] UN Habitat launched a "Global Campaign for Secure Tenure".[5]
Evidence on the effectiveness of land titling for poverty reduction and economic development is mixed, with the key issue being the impact of titling on the security of land tenure, which varies.[5] Particularly where customary land is involved, the introduction of formal land registration may have unpredictable effects, with the efficiency and marketisation of existing forms of land tenure underestimated, and the costs of formal registration underestimated and the security of formal land title overestimated.[2] In many countries, recipients of formal title have later found that their titles did not give them the expected security in the face of market or state requirements to obtain their land.[5] Some studies have found positive outcomes, albeit less strong than expected; one recent study on land titling in Argentina found that "entitling the poor increases their investment both in the houses and in the human capital of their children."[3]
The way in which land titling is carried out may raise gender issues.[6]