4.1 Entrepreneurship and Property
4.1.7. Generalisation of the experience
of land reform
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The great progress of land reform in Nizhni
Novgorod oblast is
related to the allocation of plots of land for horticulture
and
market gardening, and individual acquisitions of such plots.
The allocation of land in suburban areas is a most complicated
problem, connected with the interests of numerous groups
of
individuals, production collectives and local authorities.
Federal Government solutions adopted in 1991 and at the
beginnning of 1992 involving land relations in Russia give
no
clear-cut legal mechanism for the confiscation and allocation
of land, and are contradictory and intended for further
legislative work. By the end of 1991, the regional authorities
had received up to 125,000 applications for the allocation
of
land plots for horticulture and market gardens. The
administration was the initiator and developer
of quite an
effective mechanism (as shown by expe rience) for transferring
land ownership to private individuals.
This mechanism includes three key aspects:
the allocation of
land, appraisal of plots of land, and the sale of those
plots.
At the first stage, the standards for allocation
of plots of
land were communicated to the heads of the administrations
of suburban regions. Payment for the plots allocated was
stipulated in accordance with the usual procedure (on
average, approximately 17,000 roubles per hectare). Direct
administrative pressure on the leadership of the regions
and
control by the governor assisted in the allocation of about
8,000 hectares out of the 9.5 requested.
At the same time, research conducted by
the Committee for
Land Reform and Land Resources indicated that the land
allocated was within a radius of 70-100 kilometres from
the
city, and that a significant portion was made up of
graveyards, swamps, and other land unsuitable for
agricultural use.
Consequently the administration drafted
and proposed a new
system for appraisal of plots of land, proceeding from the
criteria of their proximity to the city and transport lines.
It was proposed that the administration of the suburban
regions allocate additional plots of land 20-25 kilometres
from the cities of Nizhni Novgorod and Dzerzhinsk, but at
a
price of 80,000 to 150,000 roubles per hectare, and
moreover, with virtually immediate (two-stage) payment for
the plots. By a decision of the regional council, 191
million roubles were allocated from the regional budget
for
this purpose. This had an immediate effect, improving the
financial standing of the regional authorities. For example,
the value of plots of land in Dalnekonstantinovsk Region
alone purchased by the oblast was 80 million roubles, as
compared with an annual regional budget of approximately
40
million roubles.
This considerably speeded up the regions'
allocation of the
plots of land requested, assisted the regional
administrations' "search" for land reserves, and
their
redistribution among the region's farmers.
The third step consisted of the sale to individuals of the
these plots of land.
To simplify the submission, collection, and processing of
individuals' applications for plots of land, a single day
was chosen for the collection of the applications, which
had
been distributed in district offices, which resembled their
electoral counterparts. The current voters' lists were used
to register applications.
Prior to the collection of the applications, the population
was informed of the plots of land allocated, their location
and prices. Tenders were organised in the districts.
Consequently family members, relatives, or acquaintances,
who had reached the age of majority, were included on land
applications.
In this system, the number of applications
rapidly dropped
to 23,000, which set the actual demand. In one of the more
prestigious regions, which had witnessed eight applications
for a particular plot of land, the successful applicants
were five legal adults, including one from a special
category of individuals (the disabled, veterans, etc.)
granted privileges.
After analysis and verification, approximately
17,000
correctly submitted applications remained. All of them were
formally accepted.
The payment of the cost of the plots of
land was set in
instalments over 10 years for individuals with lower incomes
per family member, and up to 3 years for families with
incomes above 3,000 roubles per month per person. Given
the
official indexing of minimum wages, the balance of the
payment is subject to similar indexing.
The monetary funds were transferred to special budget
accounts of the administrative regions, where the district
offices were located.
Prior to full payment of the cost of the plot of land and
the individuals' receipt of the state deed of land tenure,
the heads of the regional administrations issue them
temporary certificates for the right to use the plots.
When introducing this procedure for land
distribution,
problems arose, which were on the whole related to the
ineffectiveness of the system of committees for land reform.
Even after examination, much of the land allocated turned
out to be located in swampy locations, or bereft of any
piping or electric transmission lines, etc. Consequently,
only 10,000 out of the 17,000 applications which formally
passed through the competition process for the land which
had already been purchased by the oblast. This led to a
wave
of investigations, complaints, etc.
The second stage of land privatisation, for horticulture,
market gardens, and construction of individual dwellings,
is
now being prepared in the oblast.
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