Guiding Principles:
Land Tenure in Development Cooperation

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Orientierungsrahmen:
Bodenrecht und Bodenordnung

Deutsche Gesellschaft
für Technische Zusammenarbeit
Abt. 45 / Div. 45

 

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3.7 Agrarian Reforms: An Unanswered Challenge

The term "land reform" describes measures for revising the distribution of property in land. The term "agrarian reform" can be defined as a bundle of measures for overcoming the obstacles to economic and social development that are based on shortcomings in the agrarian structure. Agrarian reform includes both the conditions for land tenure (like ownership, lease, etc.), known as reform of land ownership, and those aspects of land use (like farm size, supporting institutions, etc.) called land management reform (Kuhnen 1982).

Many goals are intended to be reached simultaneously through agrarian reform. In the past, great expectations were anticipated, however "a frequent problem is that as one goal is attained others escape the policy makers' grasp. For example, to assure that marketable production remains high, transitional or "rich" peasants may be selected as land recipients. While this helps to keep farm production at an acceptable level, lower-income peasants do not benefit and the goals of equity and justice are shortchanged." (Thiesenhusen 1996:20). (For further in-depth analysis on agrarian reforms, see as well Binswanger et al. 1995 and the literature quoted there.)

Definition: agrarian reform
List of agrarian reform goals

1. Political goals

  • Adjust village social and power structures

  • Eliminate the feudalistic structure and large landholdings

  • Satisfy smallholders, leaseholders and farm laborers

  • Democratize the society

  • Protect the society from revolutions

  • Redistribute existing land

  • Reduce the inequality of landholdings

  • Partition of large farms

  • Protect the leaseholders, reduce the rent limit or eliminate the lease and replace with ownership

2. Agrarian policy goals

  • Promote family-based farming

  • Reorganize the farm size structure

  • Create cooperative large farms

3. Economic goals

  • Intensify agricultural production, mobilize the agricultural production potential, colonize new land

  • Improve the factor and market contribution of agriculture

  • Diversify production

  • Create additional employment opportunities

4. Social goals

  • Distribute income and property of the rural population more equally

  • Improve the social status of the rural population

(Bergmann 1980; Kuhnen 1982)

The extent of an agrarian reform depends upon the intensity of the planned measures, especially the determination of the maximum ceiling for the amount of landed property allowed. This can vary from country to country depending upon the political ideas of the reformer, but also on the land capability and farming system. The maximum size, for example, in South Korea was three hectares, in the Philippines seven hectares and in Egypt after the agrarian reform law of 1952 it was even 126 ha (reduced to 42 ha in 1961) and in Cuba 402 ha in 1959 (reduced to 63 ha in 1963). The number of people and the amount of land that have to expropriated and the number of those receiving expropriated land is based upon the maximum ceiling.

Opportunities and limitations of agrarian reform

When one considers the fact that the large group of medium-sized landholders are not affected by the reforms, it is not surprising that even in the case of drastic agrarian reforms such as in Iran, Syria, Sri Lanka and Egypt only 10% to 25% of the land was redistributed, and only 10% to 22% of the agricultural households received land as a result of the reform. More radical agrarian reforms such as in South Korea and Iraq that effected a redistribution of 65% and 60%, respectively, of land and in which 77% and 56%, respectively, of the households received agricultural land are an exception.

The magnitude of these ranges should be considered when land reforms are evaluated, especially with respect to its effect on production. The psychological effect of agrarian reform is a fundamental contribution to rural development. The reforms show the lower strata that the influence of the once powerful landowners can be weakened, while their social status is in fact improved.

The following Lorenz curves show examples of the relative equality or inequality of the land distribution in four countries. (The higher the Gini coefficient, the more unequal the land distribution and the stronger the deviation from the diagonal which corresponds to equal distribution. The Gini coefficient, therefore, corresponds to the quotient of the area between the diagonal and the distribution curve and the total area underneath the diagonals. It can have a value between zero and one).

Extent of land redistribution

Overview 5: Distribution of holdings in selected countries

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Gini Coefficient (Pakistan 1988): 0.67

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Gini Coefficient (Argentina 1988): 0.83

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Gini Coefficient (Thailand 1988): 0.42

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Gini Coefficient (Germany 1993): 0.65

 

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