Integrating land financing into subnational fiscal management

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. substantive and editorial suggestions regarding the paper. We also thank participants and their comments in the World Bank seminar on September 10, 2009, where the findings of the report was discussed, particularly by the two formal discussants: Sumter Lee Travers, Manager of Subnational Finance Group of the World Bank Group; and Christine Kessides, Lead Economist of the Urban, Water and Sanitation Department of the Europe and Central Asia Region of the World Bank. Valuable contributions were made by our colleagues in four countries who provided critical input in assembling the data on Indonesia, Kyrgyzstan, Serbia, and the UK.

Urbanization, Land Development, and Land Financing: Evidence from Chinese Cities

“…Therefore, in order to keep up with the budget shortfalls, local governments in China have to look for additional revenue sources that are not controlled by the central government. What they found is the “land financing,” which appears in many developing countries in recent years (Peterson & Kaganova, , p. 1).…”

Racionalidad del modelo de desarrollo chino: una perspectiva institucionalista

“…Para reducirlo, se han promulgado nuevas reglas, en las cuales los bancos valoran la tierra como colateral a su valor actual de mercado. En vez de su valor proyectado, al finalizar los proyectos se crearon impuestos en la reventa de propiedades en un periodo de cinco años, un precio límite a las parcelas, prohibiciones a los bancos de realizar préstamos a compra de tierras para especulación y competencia a las empresas estatales en las ventas públicas de suelo (Peterson y Kaganova, 2010).…”

Urbanization beyond Municipal Boundaries

“…They can be overcome, however, as seen in at least two cases of innovation in public land valuation. Kuwait now requires two separate private appraisals for public-private partnerships (Peterson and Kaganova 2010). And South Africa mandates that public land be taxed the same way as private land, which means that public land undergoes the same valuation processes (Peterson and Kaganova 2010).…”