Accessing Industrial Land Methodology

The Accessing Industrial Land indicators quantify several aspects of land administration regimes important to foreign companies seeking to acquire land for their industrial investment projects: the strength of land rights, the scope of available land information, and the process of leasing land in or near a country’s largest business city. The indicators focus both on the economies’ land administration legal framework for investors and its implementation in practice. They advocate for predictable, transparent, and well-regulated land administration systems, which both do not overburden investors and provide sufficient protections for environments and citizens. The Accessing Industrial Land indicators comprise:

  • Strength of lease rights index (0-100)
  • Strength of ownership rights index (0-100)
  • Access to land information index (0-100)
  • Availability of land information index (0-100)
  • Time to lease private land (days)
  • Time to lease public land (days)

Strength of lease rights index

The Strength of lease rights index compares economies on the security of legal rights they offer to investors interested in leasing industrial land -- whether or not foreign and domestic companies are treated differently and whether the land can be subleased, subdivided, mortgaged, or used as collateral. Another factor measured is how easy it is to transfer the land to another entity.

The index takes values from 0 to 100, where 100 denotes a regime offering the most options and security to investors. The table below presents the complete list of survey questions that comprise the Strength of lease rights index. The middle column indicates how each question is scored, using a simple binary system where a good practice answer is scored with a “1” and a poor practice answer is scored “0.” The index also includes a list of bonus questions used to reward countries that offer companies additional options and enhance the protection of investments. The bonus questions do not penalize countries that do not offer these options and protections.

Composition of the Strength of lease rights index

Survey Question

How the question was scored

Example: Bolivia

Can a locally incorporated wholly foreign-owned company lease land from the government (e.g. public land)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored i

Yes = 1

Does a locally incorporated wholly foreign-owned company need an approval from minister level government official or parliament to lease public land?

“Yes” = 0 or “No” = 1, N/A = Not applicable / Not scored

No = 1

Are procedures for leasing industrial land the same for foreign- and domestically-owned companies?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Would a foreign-owned company be required to pay any transaction costs above those paid by domestic companies?

“Yes” = 0 or “No” = 1, N/A = Not applicable / Not scored

No = 1

What is the statutory maximum duration of a lease (in years) that a locally incorporated, wholly foreign-owned company would be able to obtain?

Maximum number of years divided by 100. If it’s 100 years or more or there was no statutory maximum, the country receives a score of 1.

10 years = .1

Are locally incorporated, wholly foreign-owned companies allowed to renew their leases?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Are locally incorporated, wholly foreign-owned companies allowed to transfer their leases?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

If Yes, can a locally incorporated, wholly foreign-owned company transfer land to another foreign-owned, domestically incorporated company?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Can a locally incorporated, wholly foreign-owned company sublease land from an existing leaseholder?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Can a locally incorporated, wholly foreign-owned company subdivide its lease?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Can a locally incorporated, wholly foreign-owned company sublease its acquired land?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Can a locally incorporated, wholly foreign-owned company use the leased land as collateral for the purchase of production equipment?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Can a locally incorporated, wholly foreign-owned company mortgage the leased land?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Can a locally incorporated, wholly foreign-owned company to lease an unlimited amount of land?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Bolivia total points:

9.1 (out of 14)

Bonus Questions

Is there a fast-track option for lease registration that allows foreign-owned companies to pay a higher fee to have their lease application processed faster?

“Yes” = + 1, No or N/A = Not scored

No = Not scored

Is a locally incorporated, wholly foreign-owned company legally required to do an environmental impact assessment during the process of leasing industrial land?

“Yes” = + 1, No or N/A = Not scored

No = Not scored

Is a locally incorporated, wholly foreign-owned company legally required to do a social impact assessment and community consultation during the process of leasing industrial land?

“Yes” = + 1, No or N/A = Not scored

No = Not scored

Bolivia total points + bonus:

9.1 (out of 14)

Bolivia index score:

65 (out of 100)

As can be seen in the country-specific example presented in the last column, Bolivia has a maximum statutory limit of 10 years on lease contracts for industrial land (a score of .1), does not allow the industrial land to be used as collateral or for mortgages (both scores of 0), and does not allow foreign-owned companies to sublease or subdivide their leased land (both scores of 0). All other questions receive full credit and Bolivia does not get any bonus question points, giving it a total of 9.1 out of a total possible 14 points. This is equivalent to an index score of 65 on the 0-100 index scale.

The Strength of lease rights index is constructed by using the simple (equal) weighted average of the scored answers to the 14 questions for each country, in line with the Doing Business methodology. The 3 bonus questions are only scored if the country includes the practice. They are also equally weighted. All scores are then normalized on a scale of 0-100. Preliminary sensitivity analysis of the data using alternative sets of weights has yielded similar results.

Strength of ownership rights index

The Strength of ownership rights index compares economies on the security of legal rights they offer to investors interested in purchasing industrial land in those countries that allow it. 18 of the 87 economies surveyed do not allow private ownership of land, as all land is owned by the state. These 18 economies offer only leasehold land rights and are therefore not included in this index.

The Strength of ownership rights index measures options and security of land held in private ownership. IAB does not intend to advocate for governments to make implementing land ownership a policy priority. Rather, the Strength of ownership rights index encourages choice and proper protection and security for companies and citizens alike.

The index takes values from 0 to 100, where 100 denotes a regime offering the most options and security to interested investors. The table below presents the complete list of survey questions that comprise the Strength of ownership rights index. The middle column indicates how each question is scored, using a simple binary system where a good practice answer is scored with a “1” and a poor practice answer is scored “0.” The index also includes a bonus question to assess whether the country offers a fast-track option. The bonus question does not penalize countries that do not offer this option.

Composition of the Strength of ownership rights index

Survey Question

How the question was scored

Example: Kazakhstan

Can a locally incorporated, wholly foreign-owned company buy industrial land without entering into a partnership with a national?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Can a locally incorporated, wholly foreign-owned company buy an unlimited amount of industrial land?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Can a locally incorporated, wholly foreign-owned company sell the industrial land once purchased?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Does a locally incorporated, wholly foreign-owned company need permission to sell the land?

“Yes” = 0 or “No” = 1, N/A = Not applicable / Not scored

Yes = 0

Can a locally incorporated, wholly foreign-owned company sell the industrial land to another foreign-owned, domestically incorporated company?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Can a locally incorporated, wholly foreign-owned company subdivide and sell part of the industrial land?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Can a locally incorporated, wholly foreign-owned company use the purchased industrial land as collateral for the purchase of production equipment?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Can a locally incorporated, wholly foreign-owned company mortgage the industrial land?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Kazakhstan total points

5 (out of 8)

Bonus Question

Is there a fast-track option for purchase registration that allows foreign-owned companies to pay a higher fee to have their registration processed faster?

“Yes” = + 1, No or N/A = Not scored

Yes = +1

Kazakhstan total points + bonus:

6 (out of 9)

Kazakhstan index score:

67 (out of 100)

As can be seen in the country-specific example presented in the last column, Kazakhstan requires government permission to buy industrial land (score of 0); places a limit on the amount of the land that may be purchased, depending on the economic activity (score of 0); and does not allow foreign-owned companies to subdivide their purchased industrial land (score of 0). All other questions are scored with full credit and Kazakhstan receives 1 bonus point, because it offers a fast-track procedure for a higher fee to interested foreign-owned companies seeking to register their industrial land purchase quickly. This gives Kazakhstan a total of 6 out of a total possible 9 points (including bonus point). This is equivalent to an index score of 67 on the 0-100 index scale.

The Strength of ownership rights index is constructed by using the simple (equal) weighted average of the scored answers to the 8 questions for each country, in line with the Doing Business methodology. The bonus question is scored only if the country includes the practice, and like all other questions is equally weighted. Preliminary sensitivity analysis of the data to alternative sets of weights has yielded similar results.

Access to land information index

The Access to land information index compares economies on the ease of access to land-related information through land administration systems -- land registries, cadastres and land information systems. The index also evaluates the modernity of those systems. The index does not measure the quality of information provided through these institutions. The index takes values from 0 to 100, where 100 denotes a regime that offers easiest access to information, using the most modern and well-coordinated land administration and information management institutions.

The table below presents the complete list of survey questions that comprise the Access to land information index. The middle column indicates how each question is scored, using a simple binary system where a good practice answer is scored with a “1” and a poor practice answer is scored “0.”

Composition of the Access to land information index

Survey Question

How the question was scored

Example:
Angola

Is there an investment promotion agency (IPA) that provides information about land plots available for interested foreign-owned companies?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Is this agency linked with other publicly provided land information (such as a land registry or cadastre) to share data and coordinate and maintain accurate land information?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

N/A

Is there a land registry with public information about registered land plots?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Does the registry have an inventory of public lands?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Does the registry have an inventory of private lands?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Does the registry provide information about available lands accessible remotely?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Does the registry provide information online for everyone?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Does the registry provide information on both the land plots and buildings/physical structures on the land?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Does the law require all transactions to be registered at the registry?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Is there a cadastre with descriptions of land parcels?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Does the cadastre make information about land parcels available to everyone?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Does the cadastre provide information about land parcels online for specific interest parties?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Does the cadastre make information accessible online?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Does the cadastre provide information about both land plots and buildings?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Are the land registry and cadastre located together within same public agency?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Are the land registry and cadastre linked to share data?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Is there a single searchable electronic database for all land-related information, also known as a land information system (LIS)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Is there a single searchable electronic database for all land-related spatial/geographic information, also known as a geographic information system (GIS)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Would you typically consult the land registry to look for land information if you were hired by a foreign-owned company?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Would you typically consult the land cadastre to look for land information if you were hired by a foreign-owned company?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Angola total points:

7 (out of 19)

Angola index score:

37 (out of 100)

As can be seen in the country-specific example presented in the last column, Angola does not have its land laws available online (scores of 0) nor does it have an investment promotion body with land information (score of 0). Despite the fact that Angola has both a land registry and a cadastre, they do not have inventories of public or private lands (scores of 0) and the agencies are not linked to share data (scores of 0). The information is not available remotely or online (scores of 0), and Angola also does not have an LIS or GIS (scores of 0). Note that since Angola does not have an IPI, the question on whether the IPI is linked with other public records is not scored, and Angola is thus evaluated on a total of 19 points and not 20 points. With a total of 13 “no” answers to the 19 possible questions. This is equivalent to an index score of 37 on the 0-100 index scale.

The Access to land information index is constructed by using the simple (equal) weighted average of the scored answers to the 20 questions for each country, for a total of 20 possible points, in line with the Doing Business methodology. Preliminary sensitivity analysis of the data using alternative sets of weights has yielded similar results.

Availability of land information index

The Availability of land information index compares economies on the availability of key land-related information to interested private parties through the countries’ public land administration institutions. Again, the index does not measure an often even more critical factor related to land information - the quality of land information provided by public institutions.

The index takes values from 0 to 100, where 100 denotes a regime that offers the most information to interested private parties. The table below presents the complete list of survey questions that comprise the Availability of land information index. The middle column indicates how each question is scored, using a simple binary system where availability of information is scored with a “1” and its absence is scored “0.”

Composition of the Availability of land information index

Survey Question

How the question was scored

Example:
Thailand

Is there publically available information about annual lease payments?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Are land laws or regulations available online?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Is the following information about land plots available to foreign-owned companies?

Information about the land contract (lease versus ownership, number of years on the lease)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Land plot size?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Appraisal of land value?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Street address?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Mailing address, if different from the street address?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Immovable property on the land (a description of the buildings and physical structures on the land)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Spatial information/land boundaries?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Geotechnical report/geographic location description?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Documentation about any environmental impact assessments completed?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Zone classification?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Tax classification?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Information on surroundings (whether the land is near residential, commercial, or industrial lands)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Carrying capacity of the land (maximum # of units allowed per plot)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Local population density?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

No = 0

Whether the land has utility connections?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Encumbrances (liens or mortgages held against the land)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Existing land claims (disputes held against the land)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Legal jurisdiction to which the land belongs (which municipality, neighborhood, or locality)?

“Yes” = 1 or “No” = 0, N/A = Not applicable / Not scored

Yes = 1

Thailand total points:

14 (out of 20)

Thailand index score:

70 (out of 100)

As can be seen in the country-specific example presented in the last column, Thailand does not have public information about lease payment prices, mailing addresses, geotechnical descriptions of property, documentation on environmental impact assessments, carrying capacity of the land and local population density (all scores of 0). With a total of 6 “no” answers to the 20 possible questions, Thailand receives 14 points. This is equivalent to an index score of 70 on the 0-100 index scale.

The Availability of land information index is constructed by using the simple (equal) weighted average of the scored answers to the 20 questions for each country, for a total of 20 possible points, in line with the Doing Business methodology. The 20 questions focus on whether key land information is available to interested private parties. If the information is available the country receives a score of “1”, if not it receives a score of “0”.

Ease of leasing land indicators: Time to lease private and public land

The Ease of leasing land indicators are 2 separate quantitative measures that compare economies on the time (number of calendar days) it takes to lease land from both a private holder and the government. To ensure consistency and comparability of data across all 87 economies, the Ease of leasing land indicators are based on a hypothetical case study of a manufacturing company seeking to acquire industrial land. Survey respondents are asked to use the case study to indicate the step-by-step procedures that a foreign-owned company and/or its legal representatives would go through in order to formally lease land both from a private individual and from the government. This allows the focus of the indicators to be on objective and verifiable data, rather than opinion- and perception-based information. The details of the case study assumptions are provided below:

Assumptions about the foreign company:

  • Has recently been locally/domestically incorporated in the country’s largest business city as a limited liability company (LLC), or an equivalent of this legal form. This LLC is the parent company’s first investment in the host country.
  • Is a wholly foreign-owned and controlled subsidiary of its parent company, which is a multinational private company with no equity interest or management control by the government of its home country (that is, the investor is not a state-owned enterprise or a sovereign wealth fund).
  • Is looking to lease an appropriate site on the outskirts of the country’s largest business city to set up a manufacturing plant. The indicators thus measure access to land for a foreign-owned, domestically incorporated company, and not for a foreign investor as a natural person. This distinction is important, as many economies have specific residency requirements related to the acquisition of land by foreign individuals, whereby it is often more difficult for a foreign national to acquire land than for a foreign company.
  • Is not applying to receive any special benefits and privileges from the country (for example, extraordinary tax holidays, breaks, or exemptions; customs duty exemptions), apart from the investment incentives available automatically on a legal basis.

Assumptions about the land:

  • Is designated for industrial use (no rezoning will be required).
  • Is not part of an export processing zone (EPZ), special economic zone (SEZ), or any other industrial zone that is governed by a special investment legal or regulatory regime.
  • Is currently unoccupied by any buildings or other immovable property, and the foreign company intends to construct a production facility that meets all zoning regulations on the site.
  • Is not close to a national border, coastline, or any other area where land may not be privately held for national security reasons.
  • Covers 3 acres (1.21 hectares), providing sufficient space for the construction of a main building, warehouse, and loading and unloading dock as well as space for future expansion and storage.
  • Has no natural reserves, natural water sources, historical monuments, or occupants (legal or illegal) of any kind.
  • Should be free of all encumbrances, such as mortgages, liens, restrictive covenants, easements.
  • Will only be used for its designated purpose of manufacturing the foreign company’s product. As a result, there are no requirements for special permits such as permits for residential use, waste management, or specialized agricultural activities.

In order to calculate the amount of time it takes foreign companies to lease private and public land, IAB uses the methodology pioneered by Doing Business. The Ease of leasing land indicators record all procedures required for a foreign-owned company to lease land based on the experience of the expert survey respondents using the case study assumptions (above). The list of procedures for leasing land from a private holder and from the government are different, although both lists assume that the foreign-owned company intends to acquire the land in the form of a lease, which must be registered with the appropriate public institution.

For the indicator on the time to lease private land, it is assumed that a private owner owns the land. This could include communal or customarily held freehold land, if applicable, depending on the country. The starting point (that is, the first procedural step) is when the foreign-owned company contacts the private owner with an expressed interest in leasing a piece of land for its manufacturing facility. The ending point (that is, the last procedural step) is when the land is fully registered under a long-term lease in the name of the foreign-owned company. In those economies where there is no private ownership of land (for example, Tanzania, where all land is owned by the state) the case study assumes that the foreign company will sublease the land from an existing private long-term leaseholder (who already holds the land in lease contract from the government).

For the indicator on the time to lease public land, it is assumed that the land is currently held by the national, subnational, or municipal government, or any other administrative subdivision, as applicable. If several of these options are possible in the country, the most common leasing arrangement is analyzed. The starting point is when the foreign-owned company’s representatives contact the appropriate public authority with an expressed interest in leasing a piece of land for the company’s manufacturing facility. The ending point is when the land is fully registered under a long-term lease in the name of the foreign-owned company.

Only the time for procedures required of all foreign-owned companies leasing land is covered. Time for industry-specific procedures are excluded. For example, procedures to comply with environmental regulations are included only when they apply to all investors leasing land for their general commercial or industrial activities. Procedures that the company undergoes to connect to electricity, water, gas, and waste disposal services, and those procedures required for construction on the piece of land once it is registered are not included.

Once the list of procedures is drawn up and agreed upon by expert survey respondents, the total time in calendar days is recorded. It measures the median duration that expert respondents indicate is necessary to complete each procedure with minimum follow-up with government agencies and no extra payments. It is assumed that the minimum time required for each procedure is 1 day. Although procedures may take place simultaneously, they cannot start on the same day (that is, simultaneous procedures start on consecutive days). A procedure is considered completed once the company has received the final documentation, such as a lease registration certificate, confirming that the lease is registered with the relevant public authority (in most cases the land or real property registry). If a procedure can be accelerated for an additional cost, the fastest procedure is chosen. It is assumed that the foreign-owned company does not waste time and commits to completing each remaining procedure without delay. The time that the foreign company spends on gathering information is ignored.

Limitations of the accessing industrial land indicator

  • The process for accessing industrial land may differ by city, province, or region within countries -- especially large or federal countries. The indicators assume that the process of leasing land occurs in the country’s largest business city and they do not explore possible variations in other parts of the country.
  • The Accessing Industrial Land indicators do not cover:
    • The ease of acquiring agricultural land by foreign individuals and companies. Many countries there may have additional restrictions for foreign investment in agricultural land (as in the European Union and the United States). Due to the sensitive nature of the topic and its potential negative consequences for communal land holders in rural areas, it was deliberately excluded.
    • The ease of purchasing private or public land, because purchasing land is not possible in some of the economies surveyed.
    • The amount of land (public or private) registered in land or property registration systems, and the quality of this information.
    • The proportion of land held privately rather than publicly.
    • The ease of acquiring, securing, and using land by individuals -- domestic or foreign.
    • The ease of acquiring land for specialized purposes such as developing residential real estate, renting office space, and buying or leasing land in special economic zones or industrial parks.
    • The process for foreign leasing of land in various parts of a country. Leasing processes may differ by city, province, or region within countries -- especially large or federal countries. The Ease of leasing land indicators assume that leasing occurs in the country’s largest business city and do not explore possible variations in other parts of the country.
    • The amount of land available for investment in or near the country’s largest business city. Many large urban centers have limited industrial land available for investment, but this is not measured by the indicators.
    • Acquisition of land along a country’s borders or coastlines.
    • The ease of developing land, including factors such as land privatization, land use planning, location permits, construction permits, rezoning applications, utility connections, and sector-specific regulations.
    • The quality and effectiveness of complementary financial and legal institutions (such as credit bureaus and courts).
    • Aspects of the functionality of land registries and cadastres.
    • Land and property tax regimes for foreign companies and investors.
    • The cost of acquiring land (through lease or purchase).
    • Environmental and social protections for host countries, beyond what is measured by the Ease of leasing land indicators.
    • The Accessing Industrial Land indicators do not encourage governments to promote efficient land transactions at the cost of environmental and social protections. Despite an explicit effort to strike the proper balance between the benefits and costs of regulation in the indicators, major limitations remain. As noted, the indicators do not highlight issues related to environmental and social protections for host countries, though the IAB survey did examine these in the context of leasing land. In most countries environmental and social impact assessments are not conducted when a foreign company leases or buys land, but instead when it intends to construct on it or to begin operations in a sector sensitive to environmental and social concerns.
    • When interpreting and using the Accessing Industrial Land indicators, it should be kept in mind that they focus primarily on laws and regulations governing foreign companies’ access to industrial land, and less on legal protections for host countries’ citizens and environments. The indicators (like many other data sets) should not be considered in isolation, but in conjunction with other indicators and reports -- such as the Land Governance Assessment Framework (LGAF)ii-- that reflect a country’s other needs, circumstances, and socioeconomic development.

    i - N/A means that the question is not applicable because the question is not possible to answer given the country’s legal system. For example, it may not allow full ownership rights of land and thus the question of whether or not purchase land can be mortgaged cannot be answered.

    ii - Burns and Deininger (2009).