Analyzing actors’ interaction behavior in land transactions in informal settlement settings: A case study of Burayu city, Ethiopia

Abstract

Informality plays an imperative role in offering housing for households in developing countries when the formal market cannot provide enough to keep up with residents' demands. The actors' interaction, with one another, plays an imperative role in land transactions in informal settlement areas. As informal actors operate outside the formal land transactions their activities and methods of operation are rarely understood. Therefore, based on social network theory, this paper aims to identify and examine informal actors, their functions, interactions, and power relationships in informal settlement areas. To this end, this study employed key informant interviews, focus group discussions, structured questionnaires, and a review of published literature, as well as official documents. In the study area, most residents acquired land through informal mechanisms. Major actors include farmers, local land administrators, speculators, land brokers, residents, government officials, and religious leaders. The study also uncovers that the role of each actor varies from information provision to price fixing. Their roles and interactions are governed by dynamic networks and occasionally overlap functions. Among the network actors, land brokers are considered the most influential and powerful because they possess a high degree of centrality, closeness, betweenness, and eigenvector. They hold a pivotal position in the network and act as a liaison between the network's actors. Therefore, the roles of land brokers, who often actively influence the land transaction process, should be considered in urban land governance and incorporated in policy formulation and implementation.