Corruption and Land Access

Taken together, these results indicate that government restrictions that limit access to land and permits are a serious impediment to economic development in transition countries. Limited access to land creates an environment in which firms report that they are much more likely to be asked to make informal payments, or bribes, in order to get things done. Policy recommendations for improving economic development strategies in these countries would therefore first include removal of land access impediments. That can be accomplished by land privatization and financial market liberalization, or alternatively through a clearly implemented system of transferable land use rights supported by long term land leases. Removing government obstacles to effective use of land resources is essential. Once these policy issues are resolved, much of the reason for bribery and corruption will also be removed enabling the economy to operate more efficiently.

That if from this paper by John E. Anderson.