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Rapid urban population growth and spatial expansion of urban centers have brought unprecedented demand for land in developing countries such as Ethiopia. The dramatic shifts in urban land tenure from Feudal System (pre-1974) to Socialist Land Policy (1974- 1991) and to the current system (post-1991) have left the urban populations uncertain about their property rights. The historical context coupled with the complex legal and institutional structure and the absence of proper records of rights and restrictions have invigorated corruption in the land sector. Despite of the anti-corruption aspirations of post-1991 laws, corruption and rent-seeking have become pervasive in the urban land governance. This paper intends to analyses five common urban governance sectors: the political economy of urban land governance, lease based land acquisition and lease contract administration, urban planning and development, land registration and regularization, and urban land dispute settlement. It then argues that the law itself opens a loophole for corruption through ambiguous stipulations, non-transparent implementations and the new metaphor ie ‘appropriate body' common in all the five dimensions. Inspired by Robert Klitgaard’s influential corruption formula (Monopoly + Discretion - Accountability = Corruption), the article recommends urgent revision into the laws in a way to reduce discretionary powers.
