Tilahun Tolessa Final Proposal
Tilahun Tolessa Final Proposal
Tilahun Tolessa Final Proposal
January, 2024
Addis Ababa, Ethiopia
Contributions Of Land Certification On Investment And Agricultural
Productivity wombera woreda, Benishangul Gumuz Regional State
By
Tilahun Tolessa Id: Ecsu2202169
January, 2024
Addis Ababa, Ethiopia
DECLARATION
This is to declare that the thesis proposal entitled “Contributions Of Land Certification On
Investment And Agricultural Productivity: The case of wombera woreda”, submitted in partial
fulfillment of the requirements for the degree of Master of Arts in the Development Policy,
College of Leadership and Governance, in Ethiopian Civil Service University, is a record of
original work carried out by me and has never been submitted to any other institution to get any
other degree or certificates. The assistance and help I received during the course of this work
have been duly acknowledged.
Candidate
Date ---------------------------
Signature-------------------------
APPROVAL OF PROPOSAL
I hereby certify that I have supervised, read, and evaluated this Research proposal on
“Contributions Of Land Certification On Investment And Agricultural Productivity”, The Case
of wombera Woreda Benishangul Gumuz Region Undertaken by, Tilahun Tolessa prepared
under my guidance. I recommend the Research proposal be submitted to department.
Advisor
Name -----------------------------------------
Signature--------------------------------------
Date: ---------------------------------------------
Table of Contents ------------------------------------------------- page number
ACRONYMS..............................................................................................................................................v
CHAPTER ONE........................................................................................................................................1
Introduction...........................................................................................................................................1
1.1 Background Of The Study..........................................................................................................1
1.2. Statements Of The Problem.......................................................................................................3
1.3. Objectives Of The Study............................................................................................................5
1.4. Research Questions.....................................................................................................................5
1.5. Significance Of The Study..........................................................................................................6
1.6. Scope Of The Study....................................................................................................................6
CHAPTER TWO.......................................................................................................................................7
2. Rewiew Of The Related Literature..................................................................................................7
2.1 Theoretical Review Of Literature...............................................................................................7
2.1.2 Review Of Land Certification Theories................................................................................18
2.1.3 Review Of Empirical Study...................................................................................................19
2.1.4 Conceptual Framework.........................................................................................................21
CHAPTER THREE.................................................................................................................................22
3. Research Methodology....................................................................................................................22
3.1 Description Of The Study Area................................................................................................22
3.2. Research Design And Research Approaches..........................................................................23
3.3 Type And Source Data.............................................................................................................24
3.4 Sample Design...........................................................................................................................24
3.5 Methods Of Data Collection.....................................................................................................26
3.5.1 Household Survey Questionnaire..............................................................................................26
3.5.2 Focus Group Discussion (Fgd)...................................................................................................26
3.6 Data Validity And Reliability....................................................................................................27
3.7. Methods Of Data Analysis........................................................................................................28
5. REFERENCE......................................................................................................................................29
ACRONYMS
BGRSC Benishangul gumuz regional state council
CSA Central Statistical Authority
EEA Ethiopian Economic Association
EPRDF Ethiopian People Revolutionary Democratic Front
FLL First Level Land Certification
FAO Food and Agriculture Organization
GDP Growth domestic Product
HA Hectare
LAC Land Administration committee
MOA Ministry of Agriculture
SSA Sub-Saharan Africa
SWC Soil and Water Conservation
UNCCD United Nation TO Combat Desertification
USAID United States Agency for International Development
UNEP United Nation Environment Development
UNDP United Nation Development Program
UNIDO United Nation Industrial Development
WWARDO Wombera Woreda Agriculture and Rural Development office
CHAPTER ONE
Introduction
1.1 Background Of The Study
One of the most valuable natural resources in the world is land, especially for farmers, both
urban and rural, whose livelihoods primarily depend on agriculture (USAID, 2007). Land
resources are the main source of employment and income for households, especially in Africa
where agriculture provides a living for the majority of the population. However, the
sustainability of agriculture in sub-Saharan Africa is now threatened by issues brought on by
climate change, dependence on traditional and unsustainable land management practices, and
population growth in humans and livestock.The main reasons behind the decline in per capita
food production are growing population density and the deterioration of the natural resource
base. In contrast to previous times when population pressure was less intense, it is now harder
to support the expanding population using conventional land use and land management
techniques, with little to no assistance from experts (Omiti et al., 2000).
Understanding the underlying causes is necessary for managing natural resources and
regulating the environmental effects of land use change. These causes result from the intricate
interaction of biophysical and socioeconomic factors (Serneels and Lambin, 2001; Fox, 2002;
Muller, 2003; Rasul et al., 2004).
Essential to the expanding interest in public policy around the world the issue of land tenure
security is on the research and development agenda (Holden, Deininger, and Ghebru , 2010).
While some contend that land certification has no bearing on boosting land investments,
studies (Deininger, 2003; Gebremedhin et al., 2003) and international organizations like the
United Nations for Human Settlement (UNCHS, 1999) have shown that there is a close
relationship between land tenure and property rights and that the protection of property rights
encourages farmers to invest in land management practices.
In Africa the population growth and technological advancements, especially Ethiopia, along
with the scarcity of resources have caused land values to rise beyond historical levels. Land
scarcity brought on by population growth puts rural farmers' survival in jeopardy and raises
demands for changes to land rights that give them a wide range of access options and legally
protected rights that can be enforced with little expense and Food insecurity and low
agricultural productivity are enduring issues in many developing nations(Tekelu, 2005). Thus,
it is appropriate that governments and international organizations have accepted agricultural
intensification as the principal means of bringing about technological change in densely
populated developing nations low agricultural productivity and pressure.
Everyone agrees that investments and resource efficiency are encouraged by secure land tenure
(ILC et al., 2004).Even though the present value of the productivity gains from such
investments, land tenure instability may result in the risk of losing land, which will act as a
disincentive to make investments. Insecure tenancy is another barrier to the smooth operation
of land markets. Farmers prioritize short-term profit maximization over land use, even if this
means hastening the degradation of the land (Lanjouw and Levy, 2002; Carter and Olinto,
2003; Deininger and Chamorro, 2004) and similarly Degradation of natural resources and
agricultural expansion into forested areas are caused by low land return or lack of access to
land. For example, giving farmers land tenure can be a useful way to address environmental
issues, land conflicts, and degradation of the environment (Do and Iyer, 2002).
Ethiopia has enacted and implemented various land policies, laws, and reforms regarding the
use and management of land. Ethiopian land rights have followed a historical path that began
in the 1900s and included a variety of tenure holdings, including collective, communal (rist or
risti), grant land (gult), private or freehold, church, and state holdings (Joireman, 2001; Adal,
2002). Land was held by a small number of absentee landlords prior to 1975, and tenure was
extremely unstable due to arbitrary evictions. Were widespread, and a significant hectare of
land was left undeveloped (Deininger, Ali, Holden, & Zevenbergen, 2007). During that time,
private tenures fell under the former "rist" system of land tenure, which was essentially
usufructuary tenures.
To increase farmers' perceptions of the security of their land tenure, the Ethiopian government
has been implementing land titling measures. It is believed that the titling process will motivate
farmers to manage their land sustainably even though it only results in certificates of holding
and does not grant ownership rights. However, it is still necessary to regularly evaluate the
long-term effects of the steps the government has taken to increase agricultural output through
land titling, including the nation's present land policy with regard to tenure security.
land certification in the Benishangul gumuz region started in 2010. The land certification
process in Wombera woreda began in 2016 due to capacity constraints. Farmers were educated
about land demarcation and the benefits of possessing a land certificate through meetings and
awareness campaigns conducted within each kebele. Farmers were then invited to apply for the
demarcation of their holdings after a land administration committee (LAC) was elected. Five to
seven people who are chosen by the kebele's citizens make up land administration committees.
At the kebele level, they are in charge of all the operational aspects of land management.
Committee members serve as volunteers, with a minimum of two female members required.
World Bank (2012) states that, rapidly growing rural population has increased impact on land
and land scarcity has been a focus of attention of the economy and politics in Ethiopia. The
lack of a land inventory (registration), corruption, and overlap in roles and responsibilities
among the various stakeholders pose threats to Ethiopia's land administration system. One of
the perceived obstacles to the land administration sector in Ethiopia was found to be the
absence of clear responsibilities among the various levels of government (ibid).For instance,
the authority to assign land to investors has been granted to both the investment authorities and
the land administration institutions (ibid).According to Transparency International, "lack of
clear policies, weak institutions, and lack of transparency, limited public participation and
capacity challenges" are the factors that encourage corruption in land administration (Lindner,
2014).
In Ethiopian history, the issue of land tenure has been a crucial and delicate political one. In
addition, another troublesome aspect of the land reform that led to frequent land distribution
was the land reform carried out in Ethiopia in 1975 under the Derg regime. Land distribution
was thought to be the cause of land fragmentation, unstable tenure, and a lack of farm inputs. It
was also noted that many landholders avoided investing in land improvement techniques like
planting trees and terracing, as well as in managing soil fertility techniques like crop rotation,
intercropping, composting, etc., out of concern that they would not receive payment for the
improvements they made to their property.
Contrarily the current government policy trend discloses that the chance to carry out land
distribution looks to be very little or will not happen at all. This may be an important measure
to guarantee land holding right by granting a certification of holding as legal evidence. To this
end the legal administration institute is established at grass root level (Stephanie, 2015).
Above all, there are a number of diverse implications of land rights insecurity that may have an
impact on farmers' social and economic well-being. The primary indicators of tenure insecurity
are the poor agricultural sector's performance, the absence of incentives for household
investments on land, the impracticability of legally recognized women's land rights, and the
rise in land disputes.
farmers in Wombra woreda felt insecure about their private and communal holding lands due
to frequent land redistribution and shifting patterns of land ownership brought about by
government changes. As a result, they refrained from making land-related investments and
conservations. In light of this, it is imperative to look into how wombera worda farmers reacted
to government intervention concerning the certification of rural land, which aims to increase
agricultural investment and productivity.
In Wombera Woreda, land certification is a relatively new phenomenon and the contribution of
land certification on investment and agricultural productivity has not been investigated which
may lead to a knowledge gap regarding its relationship to investment and agricultural
productivity. Since land certification has been in place for the past eight years, little is known
about how farmers view the security of their land rights and how land management practices
are carried out. The main goal of this study is to close the information gap regarding the
contribution of land certification on investment and agricultural productivity and to determine
how land certification affect investment and agricultural output in Wombera woreda,
Benishangul Gumuz region. With the use of this information, local stakeholders will make
more informed choices regarding agricultural development projects, investment plans, and land
management that will enhance livelihoods and promote economic growth.
The study will contribute by giving policymakers and stakeholders in Ethiopia insightful
information as well as best practices and recommendations to improve resource management
and agricultural sustainability. Additionally, conducting research in Wombera Woreda can
directly affect and further develop the local community. The study can clarify the possible
advantages and difficulties faced by farmers and investors in the area by assessing the
contribution of land certification.
Land policy has multifaceted socio-economic and legal advantages which states how land itself
and related benefits are allocated. Land management involves the implementation of basic
policy decisions regarding the nature and extent of investment in land. The four major
objectives that usually initiated governments in the implementation of land policy are,
improving land tenure security, regulating land markets, land use planning and land taxation
(van der Molen, 2002). Land policy, according to Torhonen (2000), is a tool used by
governments to establish goals and strategies for the socioeconomic and environmental uses of
a nation's natural resources. It serves as a manual, a guide, and a suggested place to start when
it comes to land administration.
Though appropriate land policy is crucial in securing tenure rights and enhance land
investment, there are some identified challenges facing the current policy formulation and land
administration in Africa. As stated by Ogendo (2000) the first challenge is failure of designing
practical tenure arrangements which fits to complex land use systems. The second one is
identified as a challenge which focuses on the lack of providing a framework within which
customary and tenure and law that can evolve in an orderly way. The focus of the third issue is
how to organize systems of land administrations and related structures in order to provide
efficient and transparent for decision making during the practical implementation of the land
policy formulated.
Land policies exercised in Ethiopia falls into different regimes and all have their own
respective characteristic features with regard to their focus towards tenure right and land
management aspects. Land policy is a set of rules for the sustainable use of land, equity and
social justice, economic development, and environmental protection (UNECE, 1996).
There are a number of benefits to land policy reform, which may include: improving security
of tenure and serving as the foundation for figuring out how to distribute land rights among
citizens, fostering social stability by outlining the government's goals and objectives regarding
land, fundamental to economic development since expectations and certainty inform decision-
making, guaranteeing sustainable land use and prudent land management, and providing
direction for the creation of institutions, rules, and laws to carry out the policy and assess its
effects (Bell, 2006).
As stated above, the goals of land policy are to guarantee tenure security, the sustainable use of
land resources, and the creation of laws that will enable institutions to assess the policy's
impacts. Therefore, land policy is a set of guidelines outlining the government's plans.
Furthermore, it is regarded as a tool for outlining all aspects of land acquisition procedures as
well as the legal and social tenure systems.
Teshome (2009) argues that even though some policies of the Derg regime which have
negative effects on sustainable land use such as prohibition of transfer rights and lease/rent
rights are halted, it seems that the overall effects of the present rural land policy has remained
more or less the same to that of the Derg regime.
The argument, according to Daniel (2012), was that the lack of tenure security brought about
by state ownership hinders property markets like credit availability and land mortgages and
offers little to no incentives to improve land management through long-term investment.
However, the government defends such critiques and claims that government provides better
security through the implementation of land registration and certification process. Concerning
the argument from the government‘s side, a recent study conducted by the World Bank
(Deininger et al., 2007) confirmed that land registration and certification provides tenure
security.
In contrast to the aforementioned findings, some contend that because of the conclusion drawn
from the land registration and certification process, some landholders lack confidence in the
land certification process. Given this, Rahmato (2004) contends that farmers cannot feel secure
about their holdings because the government has the authority to seize land at any time in order
to make investments or carry out development projects.
According to some research, land tenure in Africa has been a major concern since the 1970s,
especially in Sub-Saharan Africa, where there is a growing need for more land productivity to
feed the region's expanding population (Teshome, 2009). Given this, it is reasonable to argue
that the social, political, and economic structures of a nation are significantly influenced by
land tenure. It is a multifaceted idea that unites institutional, legal, political, technical, social,
and economic elements that are frequently overlooked but that merit consideration (FAO,
2002).
Various academics provide varying conceptual interpretations of the term "land tenure" based
on their individual research vantage points. According to Middleton (1988), land tenure is a
system of relationships between individuals and organizations that is expressed in terms of
their shared rights and responsibilities regarding land. Reyena and Downs (1988), on the other
hand, define the land tenure system as a whole, noting that it can be thought of as a collection
of laws, customs, or rules pertaining to people's rights to land, including institutions in charge
of enforcing these rights and the ensuing landholding practices. As further explained, one's
land and other natural resources are governed by a system of formal and informal laws,
regulations, and organizations.
Acording to Waiganjo and Ngugi (2001), Land tenure may be classified as customary and
statutory (Waiganjo and Ngugi, 2001).
Assefa (2010), on the other hand explained customary land tenure based on its historical
existence and implementations as, land in most parts of Africa was governed by traditional
procedures and rules on land utilization, access and transfers commonly known as customary
land tenure.
Statutory land tenure refers to written and codified rules that define the relationship between
land and people. This type of modern land tenure system was exported from Europe to Africa
as part of the colonization packages with their respective management structures. Unlike
customary land tenure system, in statutory land tenure system, land rights are defined by law
and supported by recognized document as evidence (Kalabamu, 2000).
The new constitution of 1995 approved and confirmed the state ownership of land in Ethiopia
(FDRE, 1995). Article 40 of the 1995 Ethiopian constitution states that: the right to ownership
of rural land and urban land, as well as of all natural resources is exclusively vested in the State
and the Peoples of Ethiopia. Land is a common property of the Nations, Nationalities and
Peoples of Ethiopia (FDRE 1995, Article 40). The article further specifies a right to obtain land
without payment for Ethiopian peasants for grazing and cultivation purposes as well as a right
to be protected against eviction from the possessions (FDRE 1995, Art. 40 Sub 4 and 5). The
article further stipulates that any transfer of land is prohibited and shall not be subject to sale or
other means of exchange (FDRE 1995, Art. 40 Sub Art. 3).
The constitution also states (FDRE 1995, Art. 51) that the Federal Government shall enact laws
for the utilization and conservation of land and other natural resources. Moreover, the
constitution states (FDRE 1995, Art. 52) that Regional Governments have the duty to
administer land and other natural resources according to federal laws. Such law was enacted in
July 1997 Rural Land Administration Proclamation, No. 89/1997. All regional proclamations
at least formally affirm that land rights, including the right to lease or rent out land, are to be
granted to men and women. As a result, rather than falling under the purview of technical
ministries, regional governments now have the authority to directly oversee the implementation
of the most recent land laws and land administration.
According to Sabita (2010), there are issues with the existing system of land tenure. Based on
his research in the Amhara, Oromia, and Tigray regions, he believed that the government had
only one crucial course of action to take: a shift from the current unstable tenure system to one
that is more secure and stable.
According to Crewett et al. (2008), there was general agreement that the current system had a
negative influence on agricultural productivity and the preservation of natural resources since it
did not ensure tenure security and undermined incentives. Furthermore, farmers' secure rights
over the land they use are not upheld by current land policy, which also fails to maintain fair
access to land over time, offer incentives for conservation or improvement investments, and
support their innovative and enterprising efforts to improve their plot. Therefore, in terms of
policy, it doesn't support rural development, enhanced environmental management, accretion
capital formation, or agricultural intensification.
Private: the assignment of rights to a private party who may be an individual, a married couple,
a group of people, or a corporate body such as a commercial entity or non-profit organization.
Communal: a right of commons may exist within a community where each member has a right
to use independently the holdings of the community.
Open access: specific rights are not assigned to anyone and no-one can be excluded. This
typically includes marine tenure where access to the high seas is generally open to anyone; it
may include rangelands, forests, etc., where there may be free access to the resources for all.
State: property rights are assigned to some authority in the public sector. For instance, in some
countries, forest lands may fall under the mandate of the state, whether at a central or
decentralized level of government (FAO, 2002).
Lund and Odgaard (2006) asserted that, before land becomes a scarce resource of many
African countries,it was relatively an abundant resources. However currently, Land scarcity in
African countries has led to increased conflicts over open land, affecting landholders'
confidence in securing their land rights, as per Lund and Odgaard (2006). Here land rights
security becomes low when the demand over land is increasing and land become scarce.
Therefore, one especial feature of land right is that cannot be directly measured and to a large
extent, it is what people perceive it to be and its attribute may change from one context to
another (FAO, 2005).
Secondly, secure land rights also are thought to influence agricultural productivity because
such rights encourage efficient (intensity) resource use.
Thirdly, it has also been claimed that secure land rights can stimulate efficient resource use as
such rights can reduce land related disputes
The definition of rural land administration, as provided by the BGRS Council in 2010, is as
follows: it is the process through which land use planning is carried out, disputes between land
holders are settled, and the rights and obligations of all landholders are upheld. It also involves
the collection, analysis, and dissemination of information to users regarding holders' farm plots
and grazing land. Therefore, the improvement of land administration has the potential to
significantly increase investments in agriculture by all producers, improve rural livelihoods,
reduce (in the mid- to long-term) conflicts over land, reduce land degradation, and improve
resource use (FDRE, 1997; BGRS Council, 2010).
2.1.4 Land Certification
According to Lyons and Chandra (2001), the process of registering and obtaining rights over
land is known as land titling. Accordingly, certification refers to the process of registering
landholding rights and providing a certificate of holding as proof that the rights are tenaciously
protected by law (Lyons and Chandra, 2001). As a result, as previously mentioned, the terms
"land certification" and "land titling" primarily relate to the process of registering a person's
holding or use rights in land, while "holding certificate" and "land titling" refer to the
documentation of that right. It is preferable in this instance that the terms used to discuss the
same problem be interchangeable.
One of the goals of granting freehold tenure rights is to give landowners strong tenure security,
which will encourage investment and efficient use of the land. This is achieved through land
titling and certification. The inadequacy of the timing of these reforms may have contributed to
the past inability of African land certification programs to generate such investment and tenure
security impacts (Holden and Ghebru, 2012).
The process land certification has gone through two phases: the first phase was known as the
First Level Land Certification and started in the Tigray region in 1998, followed by Amhara
(2003), Oromia and SNNP regions in 2004 (Alemu, & Assaye, 2021).
Ethiopia has started a rural land reform process with the goals of reducing poverty, increasing
land tenure security, and promoting sustainable agricultural development. Nonetheless, it is
anticipated that the reform process will require a significant amount of time and maximal effort
on the part of the institution tasked with carrying it out (USAID, 2004).
The fundamental component of land administration and use laws in Ethiopia is the registration
and certification of rural lands. This is a crucial step in improving tenure security among
farming households, which in turn promotes long-term land investment and enhances land use
rights transactions. Accordingly, identifying the property to be registered and its owner was the
main responsibility of Ethiopia's land certification program (also known as the land registration
program) (Tigistu, 2011).
Sub-Saharan Africa has received the highest delivery of non-freehold land rights per time unit
thanks in part to Ethiopia's land certification program. The program's primary characteristic is
its decentralized implementation process, which is carried out by village-level elected Land
Use and Administration Committees. Furthermore, the process's rapid implementation is
demonstrated by the fact that most Ethiopian rural households were under its purview within
two to three years of its inception. According to Deininger et al. (2011), the program can be
deemed successful in its overall implementation because it is relatively pro-poor, follows
procedures precisely, and recipients value the certificates (which is further supported by an
examination of their willingness to pay for them). Hence, the ultimate goal of certification is to
protect landholding and land use rights of landholder by undertaking registration and providing
holding certificate to individual landholders and to confirm that landholding and land use rights
are legally secured.
2.1.4.3 Rural Land Certification In Benishangul Gumuz Region
The Ethiopian constitution which states that all land belongs to the state and peoples of
Ethiopia and shall not be subject to sale or to other means of exchange (article 40.2
proclamation No. 1/1995 reenacted in 1995). The constitution bestows the prerogative to
administer land and other natural resources to regional governments under the current federal
structure. Regarding rural land legislation, land administration and land use has been reenacted
both at the federal and at the regional levels. The federal rural land Administration and land use
proclamation of 1997 (No. 89/1997 (which was recently replaced by 456/2005) elaborates the
rights specified in the 1995 constitution and provides among others the principles that guide
the development and enactment of regional laws for rural administration. It also clearly
specifies that farmers have a perpetual use right on their land holdings, and that this right will
be strengthened by issuing certificates and keeping registers (Tesfaye, 2003; Deininger et al.,
2006). Accordingly, the regional governments have enacted laws that determine land use and
administration in their respective regions one of which is the Benishangul gumuz regional
state. In view of this, the Benishangul gumuz rural land proclamation was enacted in 2010 by
Benishangul Gumuz Regional state Land Administration and use proclamation number
85/2010. land registration and citification in Benishangul gumuz region, started in 2010 by
regional land administration staff at district level. For the actual implementation of the program
at grass root level, land administration committees (LAC) were established at community
(Kebele) level with representatives from the villages (sub-Kebeles).
Generally, the main goal of land certification is to ensure security of tenure and protect the
rights of farmers by registering their respective holdings and provide certificates that will
further guarantee holders so that they will not face another loss through land redistribution at
least for a period of 20-30 years (Nzioki, 2006). In this regard, as the regional rural land
proclamation emanates from the Federal land proclamation, target of land certification holds
true to Benishangul gumuz region as well. That seems why the land certification program was
being carried out carefully and given due attention in the Benishangul gumuz region with the
ultimate objective of ensuring to protect land holding and land use rights of landholders by
taking the necessary information through registration and providing holding certificate to
individual farmers to verify that land holding and land use rights are legally secured.
2.1.5 Contribution Of Land Certification
2.1.5.1 Positive Impact Of Land Certification
The contribution of securing land tenure on investment and land values in rural areas have been
demonstrated in China (Jacoby et al., 2002), Thailand (Feder et al., 1998), Latin America
( Bandiera, 2007), Eastern Europe (Rozelle and Swinnen, 2004), and Africa (Goldstein and
Udry, 2006).
The cost of renting land in Ethiopia would be decreased by having affordable access to
trustworthy information about an individual's land ownership through a public registry
(Deininger et al , 2009). By renting out their land, owners can generate additional revenue
while holding onto it for insurance or retirement purposes, or to combine it with other land to
create larger farming areas. Fears that rental land may be taken away by the government
through redistribution or by a tenant who refuses to leave at the end of the rent period can be
allayed by a certificate of land ownership. When landowners must temporarily relocate due to
migration or when the volume of registration transactions exceeds the ability of unofficial,
local mechanisms to manage them transparently, certificates can be helpful. The key benefits of
certification are the ability to rent land to strangers and the associated ability to use land as
collateral for credit (De Soto, 2000).
Regarding the impact of land certification on long-term investment, there are several points of
contention. While there are many other factors that positively impact land investment, some
contend that when land owners feel more confident in their ability to maintain long-term use
over their land, they are more likely to make land-related investments; additionally, the higher
returns on investment that come from long-term land improvements and other conservation
measures encourage farmers to make better investments (Brasselle et al., 2001). The
importance of land right security is further highlighted in certain research on the effects of land
certification. According to a study done in Ethiopia by Deininger et al. (2006), land
certification boosts individual or collective investment because it significantly increases
farmers' incentives to provide labor for projects meant to promote communal investment.
Land is ideal collateral if a reliable land registry provides a formal and low-cost way to identify
land ownership without physical inspection or inquiry with neighbours. At the same time, to
take advantage of credit that formal land ownership can make possible, households need to
have other bankable projects, be credit-worthy, and be willing to take the associated risk
(Boucher et al. 2008).
Deininger et al. (2011) state that the features of the land certification program can offer a
preliminary evaluation of the economic effects of certification and outcome variables
concentrated on three domains: perceived tenure security, land-related investment, and rental
market participation.
First, the high level of tenure insecurity prior to the program, and the fact that certification was
expected to affect this variable quickly.
Second, literatures suggested that higher levels of tenure security would lead to greater
voluntary land-re lated investment, possibly with some hold-up.
Third, at least in the case of Ethiopia, possession of a certificate should have made it easier to
rent land
This theory argues that land certification improves the efficiency of resource allocation by
allowing farmers to use land as collateral for credit. With formal land titles, farmers can access
credit to invest in better farming techniques, purchase high-quality inputs, and expand their
agricultural operations (Ali, Deininger, & Yamano, 2011).
This theory posits that land certification raises investment security by reducing the risk of
expropriation. When land rights are legally recognized, individuals are more willing to invest
in long-term projects, such as permanent crop cultivation or farm infrastructure development
(Galiani, Gonzalez-Rozada, & Schargrodsky, 2015).
This theory suggests that land certification promotes market access for smallholder farmers.
Secure land rights allow farmers to engage in long-term contracts with agribusinesses and
access modern markets, leading to increased agricultural productivity and profitability (Ali,
Deininger, & Goldstein, 2014).
Dessalegn (2009) claims that a number of factors can both cause and have an impact on tenure
insecurity. The holders' perception that their land rights won't be arbitrarily violated is at the
heart of the matter. In this regard, freehold tenure is generally regarded as the most secure
tenure arrangement. It grants the holder a complete sense of ownership, so long as a just and
efficient land adjudication system is in place. Expectations regarding additional land
redistribution, or how long farmers believe they can maintain their current holding, are
additional factors contributing to insecurity. Despite government claims that farmers believe
they own the land they farm, an EEA/EEPRI study from 2002 shows that 84% of farmers are
aware that, as the laws stand at the moment, the land actually belongs to the government.
Merely 4.4% of respondents think that the cultivator is the rightful owner. Moreover, a
substantial majority of the households (76 percent) do not feel confident that their claim to
their current holding will last longer than five years, and only 3.5 percent of them think they
can keep it for more than 20 years. "Land Certification and Rural Investment: Evidence from a
Field Experiment in Ethiopia" conducted by Klaus Deininger and Daniel Ayalew Ali (2017),
examines the impact of land certification on investment and agricultural productivity in rural
Ethiopia. The authors explore how providing legal titles to land affects the behavior and
decision-making of farmers in relation to investment, land use, and agricultural productivity.
The study follows a randomized controlled trial design, involving 2,800 rural households in
Ethiopia. The participants were randomly assigned to a treatment group that received land
certificates or a control group that did not. Baseline and follow-up surveys were conducted to
collect data on various aspects, including investment patterns, agricultural productivity, and
land use changes. The study found that land certification has a positive and significant impact
on both investment behavior and agricultural productivity. The provision of land certificates
led to an increase in investment in permanent improvements such as terracing, irrigation, and
tree planting. Furthermore, certified landholders experienced higher productivity gains
compared to the control group.
2.1.4 Conceptual Framework
The Overall Conceptual Framework For This Study Is Based On The Notion That Each Region
Prepares Its Own Regional Land proclamation and associated regulations after the federal level
first formulates the land policy framework in the proclamation.
when land owners feel more confident in their ability to maintain long-term use over their land,
they are more likely to make land-related investments; additionally, the higher returns on
investment that come from long-term land improvements and other conservation measures
encourage farmers to make better investments. The key benefits of certification are the ability
to rent land to strangers and the associated ability to use land as collateral for credit. Literatures
suggested that higher levels of tenure security would lead to greater voluntary land-related
investment, possibly with some hold-up.
CHAPTER THREE
3. Research Methodology
3.1 Description Of The Study Area
Wombera woreda is one of the 22 districts of Benishangul Gumuz Regional State which is
Structured in to 34 rural and 2 town Kebele. Debreziet the town of the districts is 653
Kilometer from the capital of Ethiopia, Addis Ababa to the North West part of the country.
Total land area coverage 736425 ha (WWARDO, 2022). The reason why we select this study
area is land certification is a recent phenomenon in the study area which possibly creates
knowledge gap in terms of its contribution of land certification to investment and agricultural
productivity.
3.1.1 Location
Wombera woreda has a total area of 6,425 square kilometer and for administrative purpose east
to west with most drainage being directed to the Abay River and 610 Kilometers from Asossa
the capital of the Region. The district is bordered with Guba and Dangur in the west, Kamesh
in the East, Bullen in the north and Assosa and Kemash in the south directions.
Topographically, the district lies within an elevation range of 500 -2774 meters above sea
level. The slope in general declines found in Metekele Zone. Wombera woreda located
between10°13’-11°02’N and 35°42’-35°83’E, (WWARDO, 2022).
1 + N (e)2
Whereas,
N= Total Population
n= Sample size
e= Confidence level (0.05)
n= 848 = 848 n= 271
1+848(0.05)2 1+848(0.0025)
Where 'n ' is the required sample, 'N' is the total HH population.
The interviewees were also calculated proportional to their HHs using the formula:
nx = (Nx/N) *n..............................................................................................................Equation
(2) Where' nx' is the sample size of the Kebeles,' Nx' is the HH population of the Kebeles , 'N'
is the total HH population and 'n' is the total required sample.
n Mensibu = 301/848*271 = 96 HH
n Addis Alem = 282/848*271 = 90 HH
n Senkora = 265/848* 271 = 85 HH
Table 1: Sample size determination proportionality
Focus group discussion or sometimes known as focus group interview, one of the critical
sources of primary data in addition to the household surveys as data gathering tool. The
compositions of the kebele focus group members include (both male and female households,
elders and youth) religious leaders, community elders, kebele leaders and community members
will be selected in the study area. Data collect from the stakeholders about their experience
through the focus groups discusses land management practice and land related issues. In each
study site five FGDs will be conducted . with six participants In each group and each lasting
about one to two hours. The results of focus group discussion will be analyzed with the
objective line of the study.
3.5.3 Field Observation
Field observation is one of the important methods of primary data collection. This study will be
carried out through systematic watching, listening and recording of data. It helps to generate
ideas helpful to modify questionnaire for survey, group discussion and also to acquire
information about the physical setting of the area. Field observation are started while writing
the proposal and continued onto the whole process of data collection to make sure the validity
of acquired information.
3.6 Data Validity And Reliability
Reliability and validity are two concepts that are used to evaluate the quality of an instrument.
One way to assess reliability is to use the test-retest method, which involves administering the
same instrument to the same group of people at two different times and comparing the results.
Another method is the split-half method, which involves dividing the instrument into two
halves and comparing the results obtained from each half.
Validity can be assessed using different methods, such as content validity, criterion-related
validity, and construct validity. Content validity refers to the extent to which an instrument
measures the intended content domain. Criterion-related validity refers to the extent to which
an
instrument is related to an external criterion. Construct validity refers to the extent to which an
instrument measures the intended construct.
It is important to note that the choice of method for assessing reliability and validity depends
on the purpose and design of the instrument. For example, if the instrument is designed to
measure aspecific construct, then construct validity would be the most appropriate method to
use. Similarly, if the instrument is designed to predict future performance, then predictive
validitywould be the most appropriate method for us.
3.6.1. Reliability Of The Instruments
Kimberling and Winterstein (2008) state that a research instrument is reliability accounts for
the consistency and precision of the measurement device. Alpha reliability measurement,
according to Robert (2006), should be higher than 0.7 in the reliability test.
3.6.2. Validity Of Instruments
Validity, in the words of Gideon (2015), is the completeness and accuracy of the conclusions
drawn from the study. It is the extent to which the phenomenon being studied is accurately
reflected in the findings of the data analysis. The following actions will be performed to
guarantee the validity of the data collected for this study: a thorough literature review will be
carried out to comprehend the methods used for conducting in-depth interviews and surveys
with
individuals. Amin (2004) states that the content validity index (C.V.I.), which employs the
following formula, can be utilized to ensure validity.
3.7. Methods Of Data Analysis
The major task during analysis will be organization, generating categories of them and
patterns, reviewing the emergent ideas, summarizing, coding and encoding the data in to
computer and searching for alternative explanation. Based on this, the collected data will be
discuss, interpreted, and analyzed by using both quantitative and qualitative method of data.
The quantitative used to analyze, and present questionnaires and different data, which will
gathered from respondents were through simple statics like frequencies, percentage, tables,
graphs, charts of SPSS (statistical package for social science)will be used for this study.
Qualitative data generate through structured interview, observation, focus group discussion and
secondary sources will organized and analyses to compliment the survey results by narrative
description.
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