Tag: urban revenue

Publication: Understanding Urban Land Leasing System as a Strategic Value Capture Instrument to Enhance Urban Revenue in Ethiopia: A Case Study of Bahir Dar City

Since 1993, the Ethiopian government has been using the urban land leasing system to monetize the increase in land value created due to factors other than private investment. Thus, this paper by Seid Hussen Yimam, Hans Lind and Belachew Yirsaw Alemu aims to explore and understand whether Bahir Dar city is leveraging the urban land lease system as a strategic value capture instrument to enhance its local revenue or not.

This study has used the qualitative research method and in-depth analysis. The information needed to reach the goal of this study has been gathered through a desk review of documents and key informant interviews with experts and brokers. The study has found that most urban land is held under a permit system, with landholders paying a small amount of land rent per annum. The study also found that most of the city’s land was given away through administrative allotment at low and out-of-date benchmark prices, which hurt the city’s lease income.

Also, it has been found that there isn’t enough enforcement of lease payment collection, which hurts the city’s ability to make money from urban areas. So, the city isn’t using the public land leasing system as a strategic way to get more value out of the land. Based on these results, this paper suggests that the government set up a modern property tax system to capture the increase in value of land with a permit. Also, the study plans to do empirical research to find the factors that significantly impact benchmark prices and to update the benchmark price based on those factors regularly. Moreover, the study has suggested proper enforcement of the lease payment collection in the city.

Click here to read the research.

New Research Explores Relationship between Landownership Inequality and Education Attainment in Kenya

We are pleased to announce the publication of a new research paper by John Kamau Gathiaka, which examines the relationship between landownership inequality and educational attainment in Kenya. The study, published in the Tanzanian Economic Review, used data from the Kenya Integrated Household Budget Survey and the Kenya Population and Housing Census to investigate the Gini of landownership’s influence on the Gini of education attainment across counties and the determinants of educational attainment in Kenya.

While previous research has documented an inverse relationship between unequal land ownership and educational attainment in other countries, the evidence generated in this study does not support this strong relationship in Kenya. The study found that government financing of free education, coupled with bursaries, reduced the impact of landownership inequality.

To reduce inequality in education across countries, the research paper suggests that the government should invest more in education and make policies that promote equality in household income, urbanization, and public employment participation.

We encourage you to read the entire research paper (DOI: 10.56279/ter.v12i2.119) and learn more about the findings and their implications.

Please click here to view the research on our website.