Transcript Ukraine_en

Center for Land Reform Policy in Ukraine
UKRAINE’S EXPERIENCE
IN THE FIELD OF LAND REFORM
special report for
INTERNATIONAL CONFERENCE ON
LAND REFORM POLICIES IN TRANSITION ECONOMIES
October 28-29, 2005
Ulaanbaatar, Mongolia
Presented by Maxym Fedorchenko, LL.M
http://myland.org.ua
LAND RESOURCES OF UKRAINE
Ukraine’s total land stock - 60 mln. ha
Agricultural lands - 43 mln. ha (71,6%)
Productive agricultural lands 41,764 mln. ha
(69,6%)
Ploughed lands 32,4 mln. ha (54%)
Favorable climate conditions. Cross-road of
transit routes. Border with the EU.
Normative value of productive agricultural
lands USD 1729 / 1 ha
http://myland.org.ua
Land reform:
options for transition economies
THE GOAL:
NEW STRUCTURE OF LAND OWNERSHIP
WAYS:
 To distribute land among ALL CITIZENS;
 To distribute land among THOSE WHO
PROCESS LAND;
 To create prerequisites for transfer of land to
EFFECTIVE OWNERS/USERS.
http://myland.org.ua
Land reform in Ukraine:
essence and milestones
Land reform is a process of transition from exclusive state ownership over land
resources to a complex land ownership structure with simultaneous redistribution
of land resources between new owners and users. Principle of redistribution: land
is transferred to those who process land.
January 1, 1991 – new Land Code of Ukraine
March 15, 1991 – formal start of land reform in Ukraine
August 24, 1991 – declaration of independence of Ukraine
1994-1997 – transition from kolkhoz system to the system of collective agricultural
enterprises with collective ownership over land
1994 – declaration of certificate privatization and virtual sharing of agricultural lands
(without allocation of land in kind)
1994 – 2001 – free trade with land certificates
2000 – start of land sharing and mass certificate privatization
2000-till present – exchange of land certificates for land titles
February 16, 2001 – January 01, 2007 – moratorium on trade with land certificates
January 1, 2002 – new Land Code of Ukraine
http://myland.org.ua
Land reform: stage 1
Conversion of kolkhoz into collective
agricultural enterprises (CAE),
cooperatives and farms.
State agricultural lands were transferred
into collective ownership of CAE.
Former members of kolkhoz became
members of CAE and collective owners of
agricultural lands.
http://myland.org.ua
Land reform: stage 2
Virtual privatization (sharing) of collective
agricultural lands.
Members of CAE received certificates
confirming their ownership over certain
share of land without allocation of land
parcels in kind.
Free trading with land certificates. Chaotic
land market.
http://myland.org.ua
Land reform: stage 3
Land titling – issuance of land titles with
allocation of land parcels (shares) in kind.
Moratorium over trade with land
shares.
Development of the concept and legal
framework for the functioning of land
market.
http://myland.org.ua
Land reform: results-1
Change of land ownership structure in Ukraine, 1992-2004
100
90
80
70
%
60
50
40
30
20
10
0
1992
1993
1994
1995
1996
1997
1998
1999
2000
years
state
private
collective
http://myland.org.ua
2001
2002
2003
2004
Land reform: results-2
New strata of the society – private land
owners.
11,5 million persons privatized land parcels
for housing, gardening, garage
construction and other similar purpose.
6,9 million persons acquired property rights
over 27,7 million ha of agricultural lands.
http://myland.org.ua
Land reform: results-2.1
Comparative table: European countries ranked by GDP’04 (output approach) with
reference to area and population
Country
Area,
thsnd
sq.km
To Ukraine’
area
Population,
mln.
To Ukraine’
population
GDP,
USD mlrd.
Ratio of GDP
to that of
Ukraine
Germany
357
0.56
82
1.71
2163.826
8.41
France
551
0.87
62
1.29
1651.518
6.42
UK
241
0.38
60
1.25
1649.315
6.41
Italy
301
0.48
58
1.21
1497.075
5.82
Spain
505
0.80
41
0.85
909.982
3.54
Poland
312
0.50
38
0.79
438.480
1.71
Sweden
450
0.71
9
0.19
258.356
1.004
Ukraine
630
1
1
257.176
1
48
http://myland.org.ua
Land reform: problems 1
PARCELIZATION of agricultural lands.
Average size of a land share is 4 hа. It varies from 1,1
ha to 9 ha. According to estimation of Ukrainian
experts, the optimal size of a farm is 300 ha.
MONOPSONIC leasehold market.
INCOMPLETE titling:
6,9 million owners of land certificates received 5,55
million land titles during 2000-2005.
11,5 million citizens who privatized land parcels for
non-agricultural use received 3,68 million land titles
during 1991-2005.
http://myland.org.ua
Land reform: problems 2
Most owners of land titles are not able to
process their land parcels (because of age,
illness, lack of knowledge or funds). They are
not allowed to sell the land.
Most land shares are in lease (20 million ha).
Ground rent is very low (USD 24 for 1 ha per
annum at the average).
Significant social and economical deterioration
of rural areas. People are moving to cities.
http://myland.org.ua
Land reform: problems 3
No single concept of a land market.
Moratorium on sale of agricultural lands
is effective from January 18, 2001 till
January 1, 2007.
No land market. No market price for
land. No possibility to find effective
owners for agricultural lands. No
corollary for funding.
http://myland.org.ua
Land reform: problems 4
No full-fledged land cadastre.
Underdeveloped system of registration of
rights over land and limitations thereof.
Conflicts between laws regulating land
relations (first of all between Land Code
and Civil Code).
http://myland.org.ua
Land reform: perspectives
1) Completion of land titling (planned for January
1, 2005 – unrealistic);
2) Opening of land market (strong opposition in
the Parliament – Communists, Socialists);
3) Mass sale of land shares (first round);
4) Formation of market for agricultural lands;
5) Second round of sale of agricultural lands
(search for effective land owners).
http://myland.org.ua
Land reform in settlements
1) Delimitation of boundaries of
settlements;
2) Demarcation and separation of state and
municipal lands;
3) Cadastral inventory of land;
4) Privatization of land;
5) Transition from permanent use to
leasehold and privatization.
http://myland.org.ua
Land reform in settlements
g
See the publication of
Center for Land
Reform Policy in
Ukraine
(available in English). This
publication was made possible
through financial support
provided by Poland-AmericaUkraine Initiative for
Cooperation (PAUCI) financed
the U.S. Agency for
International Development
(USAID).
http://myland.org.ua
Contact information
Center for Land Reform Policy in Ukraine
Contact persons:
Olexij Yanov, Max Fedorchenko
Address:
Office 12, Narodnogo Opolchennya str. 3,
Kyiv, 03151, Ukraine
Phone/fax: +38 (044) 275-18-03
E-mail: [email protected]
URL: http://myland.org.ua
http://myland.org.ua