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In all cases we have filmed the best available copy. Uni> licroriims Intemdtkxvil 300 N. ZEEB RD., ANN ARBOR, Ml 48106 8208063 Pfeifer, Karen Ann AGRARIAN REFORM AND THE DEVELOPMENT OF CAPITALIST AGRICULTURE IN ALGERIA The American University Ph.D. 1981 University Microfilms Internstionei soon.TM o Roan,AnnArbor.MMSlOO Copyright 1981 by Pfeifer, Karen Ann All Rights Reserved PLEASE NOTE: In all cases this material has been filmed in the best possible way from the available copy. Problems encountered with this document have been identified here with a check mark V 1. Glossy photographs or pages. 2. Colored illustrations, paper or print_____ 3. Photographs with dark background_____ 4. Illustrations are poor copy_____ 5. Pages with black marks, not original copy_____ 6. Print shows through as there is text on both sides of page. 7. Indistinct, broken or small print on several | 8. Print exceeds margin requirements_____ 9. Tightly bound copy with print lost in spine___ 10. 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Other__________________________________________________________________ University Microfilms international AGRARIAN REFORM AND THE DEVELOPMENT OF CAPITALIST AGRICULTURE IN ALGERIA by Karen Ann Pfeifer submitted to the Faculty of the College of Arts and Sciences of The American University in Partial Fulfillment of The Requirements for the Degree of Doctor of Philosophy in Economics Signatures of Committee: Chair : Cynthiania %^ft MjaoMisy w # i s y of the College s Paul D a t e H 7 1981 The American University Washington, D.C. 20016 THE AMERICAN UNIVERSITY ÏIBRAHY AGRARIAN REFORM AND THE DEVELOPMENT OF CAPITALIST AGRICULTURE IN ALGERIA BY Karen Ann Pfeifer ABSTRACT Algeria was chosen as a case study of a "state capitalist" former colonial country in which the state owns the major means of production, promotes rapid industrialization and economic change, and encourages both the public and private spheres to adopt capitalist/ wage-labor social relations. Within a Marxian framework, three alter­ native explanatory hypotheses concerning the impact of the agrarian reform on the structure of the private agricultural sector were exam­ ined. They were dependency theory, the theory of the non-capitalist way, and the theory of the capitalist way. The research procedure entailed an investigation of the methods and institutional changes accompanying the agrarian reform, both on a macro level and on a micro level for twenty communities representing all agricultural regions. In each case, the pre-reform socio-economic class structure (not including the "self-managed" sector) was described in terms of the distribution of the forces of production, including the land, crops, irrigation, animals, mechanization, use of fertilizer 11 and other improving techniques, and employment of wage labor. The impact of the reform on this structure was then evaluated. It was found that the reform predominantly curtailed the pre­ capitalist tenures, more on publically than on privately-held land, and mainly the holdings of small-scale absentees. The capitalist tenures, even large-scale ones, were generally left intact. In some cases, the capitalist farmers benefitted from the reform. In all cases, the number of poor peasants and agricultural workers who benefitted from the reform was a small proportion of the eligible population. The minority who became beneficiaries were organ­ ized into cooperatives under the authority of the ministry of agricul­ ture and the national bank and expected to run their farms as business firms, often employing wage labor. Because of the closing out of the pre-capitalist tenures, most other poor peasants and agricultural workers have been moving into wage labor. The rural and urban wage- labor class has been enlarged as a result. The conclusion reached is that the theory of the capitalist way is more correct in this case study than either of the other theo­ ries. The agrarian reform in Algeria appears to have promoted the development of a capitalist/wage-labor social system. This conforms to the overall thrust of the "state capitalist" development path. Ill ACKNOWLEDGMENTS 1 should like to express my gratitude to some of those whose help and support made this dissertation possible. Claudine Chaulet, Rachid Benattig, and the other staff members at the CREA institute in Algiers provided me with access to information and with an atmosphere of friendly encouragement and positive critical thinking. My friends, Dorothy and Mahfoud Bennoune, made ny stay in Algeria both pleasantly memorable and productive. Jim Paul supplied key critical commentary at strategic points to make the dissertation measurably better than it otherwise would have been. And Beki Mahieu typed the copy with a me­ ticulous care far beyond the call of duty. It is with deep affection that I record my debt to two persons in particular, Cynthia Taft Morris and David Kotz, who have seen the project through from beginning to end. Cynthia, my "first reader" in many senses of the term, galvanized the work at its early stages, de­ voted unremitting energy to its progress, and provided the intellectual and emotional encouragement needed to see it through to fruition. David provided not only the intangible emotional support expected of a spouse in this situation, but also spent many extra hours engaged in much more than his share of our home and child care in order to free up the time I needed to work on the dissertation. It is the product of their labor as well as mine. iv OO < <3 21 TABLE OF CONTENTS FRONTISPIECE: Northern Algeria, showing communities studied . ii ACKNOWLEDGMENTS............................................... iv LIST OF TABLES ................................................. viii CHAPTER 1. INTRODUCTION ........................... I Statement of Purpose of the Dissertation.................... 1 The Algerian puzzle ........... 3 Hypotheses Guiding Research ................. 9 Dependency theory ..... .......... .... 9 Theory of the non-capitalist way ............. 12 Theory of the capitalist way ........................ 15 "Capitalism" defined ..................... 16 "State capitalism" as a particular form of capitalism . 17 Hypotheses to be tested ....... ........... .... 18 Pre-capitalist tenure systems ......... 18 Impact on capitalist f a r m s ............ '.............. 21 Impact on wage labor ......................... 23 Impact on social relations of production ........ 24 Evidence to Be Examined ................... 24 CHAPTER 2. HISTORY OF ALGERIAN AGRICULTURE, 1830-1970 31 Impact of Colonial Domination ............. 33 Changes in Algerian Agriculture in Colonial Era ....... 39 Agricultural Classes and the War of National Liberation . 47 The peasantry ........... 47 The working class and resistance to colonialism ...... 51 The war and its socio-economic consequences ........ 53 The Self-Management Movement and the Establishment of State Capitalism after Independence ......... 55 The nature of "state capitalism" ........................ 59 Situation in Algerian Agriculture, 1965-1971 ......... 61 Impetus for the 1970s Land Reform ........... 70 The Mitidja, A Case History ................. 76 The Chêlif Valley, A Case History .............. 83 CHAPTER 3. THE PLACE OF THE 1970s AGRARIAN REFORM IN STATE CAPITALIST DEVELOPMENT .................................... 90 Trends in the