Manual The Political Economy of Rural Poverty: The Case for Land Reform

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The objectives of land redistribution are largely classified into i social, ii economic iii political and iv environmental.

Land Reform and Sustainable Economic Development | Dollars & Sense

As expressed by Binswanger et al. To them, the main thrust of agricultural development is to come from large-scale farms and the supporting agro-industrial sectors. The advocates of economic land reform stress the productive superiority of family farms; and they expect the land reform to make a significant contribution not only to agricultural production, but also to rural employment, self-employment, and poverty reduction.

The arguments in favor of economic land reform presented above are also consistent with the economic theory which states that a one-time egalitarian distribution of assets in an environment of imperfect markets is associated with permanent higher levels of growth Deininger et al.

Consistent with this notion, Aghion et al. Furthermore, cross-country regressions Birdsall and Londono, ; World Bank, also provide evidence that greater inequality in the distribution of assets such as land is associated with lower subsequent growth.

#9, land reforms - General reforms - Reforms in Indian agriculture - Indian economic development

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Land reform

This is a preview of subscription content, log in to check access. Aghion, P. Google Scholar. Binswanger-Mkhize, H. Birdsall, N. Birdsall, C. Graham, and R.

Wendy W. Wolford and Timothy Gorman

Blundell, R. Caliendo, M. Chirwa, E.

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Deininger, K. First, if the present trends in market-based access to land were to continue into the twenty-first century, what would be the prospects for the hundreds of millions of landless and near-landless rural poor?


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And second, can a wage-dependent landless worker purchase land in his or her lifetime? How long would the worker need to save all or part of his or her daily wage in order to purchase land in the open market? Empirical evidence suggests that opportunities to buy land through the market are virtually nonexistent, owing to i the downward trend in cropland availability per working person in agriculture, especially between and , due to rapid urbanization and budget cuts in public spending for irrigation; ii inflated land-sale prices combined with falling daily wages in real terms and increases in the cost of living; iii the increasing demand for land—which is viewed in this paper not as a commodity or as a factor of production, but as a unique social amenity a secure form of holding wealth, and of gaining social and political advantages and family food security ; and iv the impossibility of obtaining land mortgages and the high risk of lending capital to landless workers and asset-poor peasants.

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In Section V, it is argued that the land market has special socio-political aspects that require a different mode of analysis. Some assumptions behind the land market approach are challenged, particularly the view of the land market as a culturally isolated economic mechanism serving to equilibrate supply and demand.


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Some ways are proposed for making the land market approach workable and socially acceptable, bearing in mind the alarming statistics of increasing numbers of rural poor, landless workers and undernourished children, especially in the Middle East and sub-Saharan Africa. Palais des Nations Geneva 10 Switzerland info.