RP land administration system among the worst

The Philippines has one of the most inefficient land administration systems in the world, according to a study conducted by the World Bank.

The Philippines was second to last among 12 countries in terms of efficiency in registering land transactions. This was attributed to weak and inefficient institutional structure, rigid and outdated land laws and regulations, multiple and inconsistent land valuation systems used in various government agencies, and widespread corruption in the land registration process.

Under the Land Management and Administration project (LAMP), it was learned that "the inefficiency in the land administration system constrains economic development, reduces opportunities for the poor, and discourages sustainable management resources."

Moving forward, the Philippine government and the World Bank decided to implement LAMP II with a total project cost of $54.3 million (roughly P3 billion). Funds will be provided by the Australian Agency for International Development (AusAID) which will extend a $8.5-million loan, and the World Bank, through the IBRD, which will contribute $32.7 million. The Philippines will shoulder the balance of $13.1-million as its counterpart fund.

The implementing agency is the Department of Environment and Natural Resources (DENR).

The study, which was participated in by the Philippine government, points out that an inefficient land administration system can lead to severe land insecurity and lower government revenues from land related taxes and fees.

It takes anywhere from six months to several years to obtain original title while a land transaction can take several weeks to a few months to register. About a third of rural parcels are untitled.

The cost of obtaining a title that can be defended in the courts is over $2,000 (over P100,000), one of the highest worldwide. Smallholders, unable to afford land titles, are in a constant threat from "land-grabbers."

"Even if a title is obtained, disputes are costly and time-consuming to resolve due to multiple agencies being involved in land administration and the lack of an overall institutional mechanism to resolve outstanding issues. This is exacerbated by poor land records, arising from years of illegal alteration, fire and water damage, and misplacement from transfers," it added.

The study reveals the fragmented responsibilities for land management among several government agencies without appropriate mechanisms for coordination resulting in rigid and outdated land management and administration policies. Different government agencies have developed multiple and inconsistent land valuation systems, and the absence of a national land-valuation standard leads to, among other things, long court battles over compensation delaying government programs.