Land fragmentation, cropland abandonment, and land market operation in Albania, Vol. 1 of 1

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Land fragmentation, cropland abandonment, and land market operation in Albania

Author:	Deininger, Klaus; Savastano, Sara; Carletto, Calogero;	Collection Title:	Policy Research working paper ; no. WPS 6032
Country:	Albania;	Date Stored:	2012/04/09
Document Date:	2012/04/01	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Public Administration, Law, and Justice; Agriculture, fishing, and forestry; Finance
Rel. Proj ID:	1W-Land Policies For Growth And Poverty Reduction: Moving Towards -- -- P095390;	Region:	Europe and Central Asia
Report Number:	WPS6032	Sub Sectors:	General agriculture, fishing and forestry sector; General public administration sector; Housing finance
SubTopics:	Land Use and Policies; Banks & Banking Reform; Municipal Housing and Land; Rural Development Knowledge & Information Systems; Rural Land Policies for Poverty Reduction	TF No/Name:	TF095610-Computerization; TF096734-Impact Evaluation of Land Tenure Regularization in Rwanda; TF097647-India Gendered impacts of NREGA; TF098730-BNPP-GENDER; TF092028-GENDER; TF091533-GENDER; TF091531-GENDER; TF092663-EVALUATING THE EFFECTIVENESS OF SUSTAINABLE LAND MANAGEMENT INTERVENTIO; TF098469-New Approaches to securing land tenure in Sub-Saharan Africa
Volume No:	1 of 1

Summary: Albania's radical farmland distribution is credited with averting an economic crisis and social unrest during the transition. But many believe it led to a holding structure too fragmented to be efficient, and that public efforts to consolidate plots are needed to lay the foundation for greater rural productivity. This paper uses farm-level data from the 2005 Albania Living Standards Measurement Survey to explore this quantitatively. The analysis finds no support for the argument that fragmentation reduces productivity. However, producers fail to utilize about 10 percent of the country's productive land, and, in the majority of cases, this land has been idle for at least five years. Farmers quote inefficiently-small plots as the reason for this in few cases, casting doubt on the scope for land consolidation to solve this issue. Instead, the data are consistent with the notion of land market imperfections, which can be traced to gaps in the legal and policy framework, as well as inefficiencies in registry operations, leading to land abandonment on a large scale. To maintain the productive potential of Albania's rural economy and, if and when needed, the ability to conduct consolidation in a cost-effective and sustainable manner, it will be critical to complement the emphasis on consolidation with an effort to address those gaps and inefficiencies on a priority basis.


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