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Making negotiated land reform work : initial experience from Brazil, Colombia, and South Africa

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  • Deininger, Klaus

Abstract

The author describes a new type of negotiated land reform that relies on voluntary land transfers negotiated between buyers and sellers, with the government's role restricted to establishing the necessary framework for negotiation and making a land purchase grant available to eligible beneficiaries. This approach has emerged-following the end of the Cold War and broad macroeconomic adjustment--as many countries face a second generation of reforms to address deep-rooted structural problems and provide a basis for sustainable economic growth and poverty reduction. The author describes initial experiences in Brazil, Colombia, and South Africa. It is too soon to know whether negotiated land reform can rise to the challenges administrative land reform failed to solve but the data so far suggests that: 1) Negotiated land reform can succeed only if measures are taken to make the market for land sales and rentals more fluid transparent. 2) Productive projects are likely to be the key to market-assisted land reform. The potential for project productivity establishes an upper bound on the price to be paid and a basis for financial intermediaries to evaluate the project. It also requires beneficiaries to familiarize themselves with the realities they're likely to confront as independent farmers and the limits to how much land reform can help them achieve their goals. 3) The only way to effectively coordinate the entities involved in the process is through decentralized, demand-driven implementation. 4) The long-run success of land reform depends on getting the private sector involved and using the land purchase grant to"crowd in"private money.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2040.

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Date of creation: 31 Jan 1999
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Handle: RePEc:wbk:wbrwps:2040

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Related research

Keywords: Banks&Banking Reform; Environmental Economics&Policies; Agricultural Knowledge&Information Systems; Municipal Housing and Land; Land Use and Policies; Environmental Economics&Policies; Agricultural Knowledge&Information Systems; Municipal Housing and Land; Rural Land Policies for Poverty Reduction; Banks&Banking Reform;

References

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  1. Jalan, Jyotsna & Ravallion, Martin, 1999. "Are the poor less well insured? Evidence on vulnerability to income risk in rural China," Journal of Development Economics, Elsevier, vol. 58(1), pages 61-81, February.
  2. Hoff, Karla & Lyon, Andrew B., 1995. "Non-leaky buckets: Optimal redistributive taxation and agency costs," Journal of Public Economics, Elsevier, vol. 58(3), pages 365-390, November.
  3. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, vol. 60(1), pages 35-52, January.
  4. Horowitz, Andrew W, 1993. "Time Paths of Land Reform: A Theoretical Model of Reform Dynamics," American Economic Review, American Economic Association, vol. 83(4), pages 1003-10, September.
  5. Eckstein, Zvi & Zilcha, Itzhak, 1994. "The effects of compulsory schooling on growth, income distribution and welfare," Journal of Public Economics, Elsevier, vol. 54(3), pages 339-359, July.
  6. Fafchamps, Marcel & Pender, John, 1997. "Precautionary Saving, Credit Constraints, and Irreversible Investment: Theory and Evidence from Semiarid India," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 180-94, April.
  7. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-98, April.
  8. Otsuka, Keijiro, 1991. "Determinants and consequences of land reform implementation in the Philippines," Journal of Development Economics, Elsevier, vol. 35(2), pages 339-355, April.
  9. Jonakin, Jon, 1996. "The impact of structural adjustment and property rights conflicts on Nicaraguan Agrarian reform beneficiaries," World Development, Elsevier, vol. 24(7), pages 1179-1191, July.
  10. Birdsall, Nancy & Londono, Juan Luis, 1997. "Asset Inequality Matters: An Assessment of the World Bank's Approach to Poverty Reduction," American Economic Review, American Economic Association, vol. 87(2), pages 32-37, May.
  11. Barraclough, Solon L, 1970. "Agricultural Policy and Land Reform," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 906-47, Part II, .
  12. Abhijit Banerjee & Dilip Mookherjee & Kaivan Munshi & Debraj Ray, 1997. "Inequality, control Rights and Rent Seeking - A Theoretical and Empirical Analysis of Sugar Cooperatives in Maharashtra," Boston University - Institute for Economic Development 80, Boston University, Institute for Economic Development.
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Cited by:
  1. Johan van Zyl & Nick Vink & Johann Kirsten & Daneswan Poonyth, 2001. "South African agriculture in transition: the 1990s," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 725-739.
  2. Fuwa, Nobuhiko, 2000. "Politics and Economics of Land Reform in the Philippines: a survey," MPRA Paper 23394, University Library of Munich, Germany.
  3. World Bank, 2004. "Colombia : Land Policy in Transition," World Bank Other Operational Studies 14351, The World Bank.

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