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310 Diagnosing Corruption in Ethiopia
In urban areas, there is little consultation in the preparation of land
use plans and building codes. The real reasons behind the decisions
relating to land use changes are not even discussed in many cases,
except in academic circles. Urban land use plan changes are known
only when the design has been completed, yet the completed plans are
not well publicized.
The public does not capture benefits arising from infrastructure
development in urban areas mainly because of outdated valuation
benchmarks that limit the potential return through building and transfer
taxes.
Although land use plans are in place in Addis Ababa, the development
of the central and older parts of the city occurs in an ad hoc manner with
infrastructure straining to catch up. In periurban areas, development
almost invariably occurs well in advance of infrastructure. Although master
plan preparation processes have been initiated in the major cities and
urban centers, these plans have yet to be effective in controlling urban
development.
Building permits are normally issued within a period much shorter
than three months except where building permits are being used for
purposes other than actual construction—for instance, as a means of
establishing ownership or as evidence of rights in a dispute.
Key land use planning issues that create opportunities for corruption
include the following:
• The lack of public consultation in preparing and changing land use
plans and the fact that land use plans are not well publicized limits
public awareness of the planning process as well as the plans themselves
and therefore creates opportunities for abuse of authority by
officials.
• Land use plans that exist are not implemented, which creates opportunities
for officials to abuse their authority and leads to unsustainable
and unplanned development (such as the substantial encroachment of
the green area in the master plan for Addis Ababa).
• The weak or limited enforcement of land use plans is due in part to the
weak link between the technical institutions responsible for planning
and the judiciary. Courts often make decisions without reference to the
relevant proclamations.
Valuation and taxation. In Ethiopia, the system to value land for taxation
bears little or no relationship to market prices. The valuation of property