The ability to freely own all types of property and to easily transfer and register property is a fundamental facet of economic growth in an emerging economy such as Uganda. In most economies, for example, land and improvements to land account for most of the wealth of the country. Moreover, registration and protection of intellectual property rights encourages foreign direct investment and marketing of needed consumer goods. It also supports innovative research and development of new domestic products. Thus, a strong legal and institutional framework is imperative in order for businesses to own, use, and sell all types of property; to manufacture and sell products and services; to raise capital; and to obtain credit. Secure ownership of property and an objective, transparent, and uniform system of property registration is necessary in all economies.
This chapter is grounded upon the World Bank’s Doing Business indicators for Registering Property. Those indicators examine the legal and institutional underpinnings of registering real property – land and fixtures on land – in a country. They first consider the right of various constituencies to buy, sell, inherit, and otherwise own real property and to use it with only limited constraints. They then examine the ability of individuals and companies to register property with the government, thus signaling legal ownership, which is a critical component of using the property to access credit.
This chapter begins with a discussion of registering real property, and then addresses Uganda’s legal and institutional framework pertaining to intellectual property. (The registration of so-called movable property – automobiles, equipment, inventory, livestock, and other chattel that can be moved – is discussed in this report’s chapter on Getting Credit.) As with the other topics covered by this diagnostic, the role of supporting institutions, including professional associations, trade and industry groups, universities, and the media, is also assessed.
The BizCLIR indicator scores for Registering Property fall among the weaker scores in this diagnostic. Above all, Uganda’s social dynamics and implementing institutions for registration of property need continuing attention and reform. The other areas – legal framework and supporting institutions – also warrant continued constructive assistance.
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