Lecture 3.ppt
- 1. Approaches of Land Reform Land reform is a very complicated process that takes place at different scales, with different actors, and that interacts with other processes and in the society There are three alternative perspectives/approaches to design and implement land reform policies. These approaches are: ◦ State-led (Political economy) Approach to land reform ◦ Market-Driven (Neo-liberal) Approach to Land Reform ◦ Actor Oriented Approach to Land Reform
- 2. 1. State-Led (Political economy) Approach In reality there would be no complete land reform without a coverage of imposed type of land reform. Political economists favoring state-led land reforms argue that the solution to the inequalities in the distribution of wealth would be alleviated by direct intervention of state. As the poor classes generally lack proper political representation, the state is responsible for helping these farmers to better their position on the market and in
- 3. Cont…… The units of analysis are the state policy elites (policymakers and managers), and the agencies and organizations responsible for carrying out public policies. Exponents of this approach, see the state as an institution of governance autonomous(acting independent) from society The state as an independent actor and independent variable, state-centered scholars often assume that the state is autonomous in making policy choices and in transforming them into authoritative actions,
- 4. Cont……. This approach is widely employed in most Latin American, Asian and African countries Political economists favoring state-led land reform see capitalism (free market) as a force that leads to the exploitation of the weak and poor They argue that the increasing exposure of the poor to the forces of privatization and commercialization lead to the
- 5. Cont….. State-led Political economy approaches to land reform: ◦ Focus on relation between economy and politics ◦ Focus on power relations and classes ◦ The state, instead of the market, should be in control ◦ Capitalism weakens production of small ◦ Multiple objectives, beyond efficiency and productivity
- 6. Cont…. Criticism and limitations of State-led Land reforms According to pro-market critique, state led approach is: Top-down initiatives that cause land reform programs to miss out important developments on the ground and fail to enlist support from relevant actors. It relies heavily on the central state and its huge bureaucracy for implementation through top-down methods that fail to capture the diversity Unable to respond quickly to the actual needs at the local villages. state-led approach has been also criticized by being
- 7. 2.Market-Led (Neo-liberal) Approach This approach centers itself on the workings of market and profit maximization. Market is seen as an ordering mechanism that can be used to promote development. Firms, including farms, operate in the market and are assumed to maximize profit. They compete with other firms for resources and this ensures the optimal use and allocation of scarce resources.
- 8. Cont….. Neoliberal land policies emerged and became an important aspect of, mainstream thinking and development policy agendas in early 1990s by end of cold war. Currently, neo-liberal policies include: ◦ Privatization and individualization of public/ communal lands, ◦ Privatization and individualization of property rights in state and collective farms in (ex-)socialist and capitalist settings, ◦ Promotion of land rental markets, and Land sales.
- 9. Cont…. Neo-liberal Approaches to Land Reform ◦ The rule of the market ◦ Privatization ◦ Deregulation ◦ Applying new and improved technology ◦ Large-scale is the norm
- 10. Key features of state-led and market-led approaches to land reform Issues State-led Market-led Land Acquisition method Coercive; cash-bonds payments at below market price Voluntary; 100% cash payment based on 100% market value of land Beneficiaries Supply-driven; state-selected beneficiaries Demand-driven; self-selected Implementation method Statist-centralized; with low degree of transparency and accountability Privatized; decentralized; with high degree of transparency and accountability Pace and nature Protracted; politically and legally contentious Quick; politically and legally non-contentious Land prices Higher Lower Land markets Land reform: cause of/ aggravates land market distortions; progressive land tax and land titling program not required Land reform: cause and effect of land market stimulation; progressive land tax and titling program required Program Sequence; development and extension service Farm development plans after land redistribution. Protracted, uncertain and post – land transfer development; extension service statist centralized= inefficient Farm development plans before redistribution. Quick, certain, and dynamic post-land transfer development; extension service privatized & decentralized = efficient Credit and investments Low credit supply and low investments Increased credit and investments Exit options Little or None Ample Financing Mechanism State ‘universal’ subsidies; beneficiaries pay subsidized land price; dole out mentality among beneficiaries Flexible loan-grant mechanism; co-sharing of risks; beneficiaries shoulder full cost of land; farm development cost given via grant Cost of reform High low
- 11. 3.Actor Oriented Approach Contemporary land reform policies in most countries are to a large extent shaped either by the neo-liberal perspective which focuses on market dynamics or state led political economy approaches to land reform. Both neo-liberal views and political economy views have however often been criticized by scholars. Actor oriented approach is another alternative as a remedy to the limitations of neo-liberal and political economy approaches.
- 12. Cont……. Taking social classes and interest group formations in society as their units of analysis, Advocates of an actor/society-centred approach identify social mobilization from below as the key to successful land reform implementation. Currently, land policies that are more human centered and pro-poor and less driven by economic prescriptions are being promoted by different international development and financial institutions like the World Bank.
- 13. Cont……. According to actor oriented approach, policy makers must look from the perspective of the actor rather than assuming external forces (such as the market or powerful classes) determine the existence or survival of specific classes. Because actors have ‘agency’: ◦ they have knowledge of their own situation, ◦ they can reflect on things that are happening to them and they can find ways to cope under pressure. So even though the market may be a force that restricts the behavior of peasants, these peasants may still devise ways to cope with this without disappearing
- 14. Cont…… Thank You