World Bank (Ali, Deininger, Goldstein) · Rwanda · 2011
Summary
Rwanda's land tenure regularization program provided one of the cleanest estimates of the investment effect of formal property rights in a low-income country. Before formalization, Rwandan farmers reported reluctance to invest in long-term land improvements — particularly soil conservation and tree planting — because land could be reallocated by village committees. After receiving formal titles, investment in erosion prevention increased, land rental markets became more active, and women gained formal co-ownership rights that reduced their vulnerability to dispossession. The program illustrates a consistent finding across the property rights literature: secure tenure increases the payoff to long-run investment and enables markets to function. The Rwanda case was particularly significant because the country conducted near-universal registration — not just selected plots — allowing evaluation of program effects without selection bias.
Research question
"Does formalizing land titles improve investment in land improvements, soil conservation, and land market activity?"
Methodology
Intervention
Rwanda's National Land Centre conducted systematic land registration across the country between 2009 and 2013. Researchers used the randomized rollout across sectors to evaluate whether obtaining a formal land title changed household investment behavior — specifically, investment in soil conservation, tree planting, and land transfers.
Assignment
Difference-in-differences exploiting the randomized rollout sequence across sectors; comparison of households who received titles in early rollout rounds vs. those who received them later
Sample size
Approximately 6,000 households across 150 sectors
Primary outcome
Investment in land improvements (soil erosion control, tree planting, terracing); land rental market activity; female land rights
Effect estimate
Investment in soil erosion prevention increased by 6.1 percentage points in titled areas; land rental market activity increased significantly; female ownership rights strengthened as titles formally registered both spouses
Decision
Rwanda's land formalization program became a model for systematic titling in Sub-Saharan Africa; evidence contributed to World Bank land policy guidance; similar programs subsequently evaluated in Ethiopia, Tanzania, and Mozambique
Investment in soil erosion prevention increased by 6.1 percentage points in titled areas; land rental market activity increased significantly; female ownership rights strengthened as titles formally registered both spouses