4th Proof - 16.11.2006 Putting Land First? Exploring the Links between Land and Poverty Edited by Diana Montero Melis Milanga Abeysuriya Nilakshi de Silva A publication of the Centre for Poverty Analysis (CEPA) Annual Symposium on Poverty Research in Sri Lanka Series No. 5 - 2006 i 4th Proof - 16.11.2006 ii 4th Proof - 16.11.2006 Putting Land First? Exploring the Links between Land and Poverty ORGANISED BY Centre for Poverty Analysis (CEPA) SPONSORED BY German Technical Cooperation (GTZ) International Development Research Centre (IDRC) The Asia Foundation (TAF) iii 4th Proof - 16.11.2006 Putting Land First? Exploring the Links between Land and Poverty © Centre for Poverty Analysis 2006 First Published – 2006 ISBN 955-1040-32-5 ISSN 1800-0142 National Library of Sri Lanka – Cataloguing Publication Data Putting land first? Exploring the links between land and poverty/ed. By Diana Montero Melis, Milanga Abeysuriya and Nilakshi De Silva.–Colombo: Centre for Poverty Analysis, 2006.- 376 p.; 21c.m (Annual Symposium on Poverty Research in Sri Lanka series) ISBN 955-1040-32-5 Price: Rs. 350 i. 333.31 DDC 21 ii. Title iii. Melis, Dianna Montero – ed. iv. Abeysuriya, Milanga - ed. v. De Silva, Nilakshi-ed. 1. Land reform Printed by : Karunaratne & Sons 67, UDA Industrial Estate, Katuwana Rd., Homagama, Sri Lanka Published by : Centre for Poverty Analysis The CEPA Publication Series currently includes the following categories; Studies, Edited Volumes, Working Papers and Briefing Papers. iv 4th Proof - 16.11.2006 Preface This volume contains the papers presented at the 6th Annual Symposium on Poverty Research in Sri Lanka which was held from 22nd to 24th November 2005 at the BMICH in Colombo. The Symposium was organised for the sixth consecutive year by the Centre for Poverty Analysis (CEPA) in association with the Social Policy Analysis and Research Centre (SPARC) of the University of Colombo, and was sponsored by the German Development Cooperation (GTZ), the International Development Research Centre (IDRC) and The Asia Foundation (TAF). More than 160 participants, including researchers, practitioners, government officials and other stakeholders, attended the Symposium. This year the Symposium’s theme was ‘Putting Land First? Exploring the Links between Land and Poverty’ and the papers presented focused on three main issues: (i) land ownership issues such as titling and tenure systems; (ii) access to land and rural poverty; (iii) land policies and land reforms. An introduction to some of the issues discussed in the research papers as well as an overview of land issues in Sri Lanka is provided in the first chapter of this volume. In addition to the presentation of research papers, two panel discussions were held on land policy and reform, and tsunami-related issues pertaining to land and poverty. This volume contains the papers presented during the Symposium including the keynote addresses delivered by Professor Savitri Goonesekere and Professor T. Jogaratnam. The main language of the Poverty Research Symposium was English, but presentations were translated simultaneously into Tamil and Sinhala. For the first time, the publication of the proceedings includes a translation in Tamil and Sinhala of the introductory chapter as well as the abstracts of the different papers. We hope that this will encourage wider readership of this volume. On behalf of CEPA, I would like to thank everyone who contributed to the Symposium and this publication, but in particular to the v 4th Proof - 16.11.2006 authors who put in a lot of work to incorporate numerous comments from the editorial and review panels. A special thank you is due to Professors Goonesekere and Jogaratnam who converted their addresses into papers at short notice, and to the sponsors, GTZ, IDRC and TAF, whose support enabled us to stimulate an interesting debate among a very diverse group of people. Priyanthi Fernando Executive Director, Centre for Poverty Analysis Colombo, June 2006 vi 4th Proof - 16.11.2006 Foreword Land is one of most significant determinants of poverty in a pre- industrial society. “Land is to rule.” In a pre-industrial society those who own land possess wealth, power and status. Land is not just a resource; it is a strategic resource. Those who have land are wealthy; those who do not are deprived. Land confers social status. Conversely some people’s social status, such as caste, deprives them of land. There are also political implications in land policies that have come to the forefront recently. Amartya Sen’s view of poverty as a lack of ‘entitlements’ is particularly useful in highlighting the links between land and poverty. The relationship people have with the land they live in and work on is a key determinant of the nature of the ‘entitlements’ they have access to. The conditions under which people hold land are important; whether it is owned, leased or rented, the type of lease and rental amounts. In addition, the productivity of land also determines people’s ‘income entitlements’ if they are relying on the land as a primary livelihood. The links between land and poverty are therefore manifold in a predominantly agricultural and rural society. The significance of land diminishes as an economy diversifies and other economic opportunities become available. Sri Lanka has begun this process of transition – land is not as significant today as it was 30 years ago. However, even today, despite the fact that only 16% of GDP comes from agriculture, over 35% of the population is directly or indirectly dependent on land. Therefore, until further economic diversification, land is an important determinant of poverty. Aside from agriculture, land is vital for housing, industry and recreational activities. There are also ecological issues connected with the utilisation of land and conflicts over how scarce resources are used and distributed. vii 4th Proof - 16.11.2006 In legal terms there have been significant developments over the past 50-60 years on land issues, such as the Paddy Lands Act of 1958 and the land reforms of 1972 and 1974. These have been partial attempts to rectify disparities in incomes and livelihoods in the country. However, their impact has been minimal and the terms on which land is held continue to be controversial. Despite the significant relationship between land and poverty, discussion of the pertinent issues has been limited to the point of neglect in recent years. However, it is an issue that will certainly emerge in importance in the near future. With this in mind, the Centre for Poverty Analysis (CEPA) selected this theme for the 2005 Annual Symposium on Poverty Research. It focussed on land reforms, the social implications of land ownership, the requirements to change the distribution of land holding and links with the ethnic conflict. The papers published in this volume explore different facets of the issue and implications for poverty reduction. Several papers deal with land issues relating to poverty, such as the land rental market and the links between land and poverty through a rights based approach. It includes, inter alia, papers on spatial clustering of the poor, on negotiating land tenure rights in pre-conflict Sri Lanka and on revitalising productivity and income effects of social capital for rural poverty reduction in Sri Lanka. The paper ‘How the Current Situation of Land Grants and Permits Impacts on Poor Households, and How Reforms of the Land Development Ordinance Could Benefit the Poor’ is particularly topical at present. The volume also includes a paper on the Indian experience of land possession, landlessness and poverty in three states. The backgrounds, affiliations and experiences of the authors are varied and interesting and their explorations of the varied facets of, and links between land and poverty will greatly contribute to future debates and policy discussions on the issue. I sincerely hope viii 4th Proof - 16.11.2006 that this volume will assist those who are engaged in the formulation of land policies and poverty reduction strategies relating to land. Nimal Sanderatne Chairperson, Centre for Poverty Analysis Kandy, June 2006 ix 4th Proof - 16.11.2006 x 4th Proof - 16.11.2006 Table of Contents Abbreviations and Acronyms xiii 1. Exploring the Links between Land and 3 Poverty in Sri Lanka: An Overview 2. Keynote Addresses 39 T. Jogaratnam and Savitri Goonesekere 3. A Tentative Exploration of the Links between 67 Land and Poverty through a Rights Based Approach Ranjit D. Wanigaratne 4. How the Current Situation of Land Grants and Permits 129 Impacts on Poor Households and How Reforms of the Land Development Ordinance Could Benefit the Poor Dinusha Dharmaratna, Asha Gunawardena, Dilhani Marawila, R.M. Ranaweera Banda, Paul Steele and Chamindra Weerackody 5. Is the Land Rental Market of Sri Lanka Helping the Poor? 183 P.A. Samaratunga and Dilhani Marawila 6. Audacious Institutions: Negotiating Land Tenure 223 Rights in Pre-Conflict Sri Lanka Rachel Brulé 7. The Relationship between Land Possession / Landlessness 281 and Poverty: Experiences from Orissa, Kerala and West Bengal Rathi Kanta Kumbhar 8. Spatial Clustering of the Poor: Links with Availability 331 and Access to Land Upali A. Amarasinghe, Madar Samad, Sarath Abayawardana and Markandu Anputhas Contributors 367 Organisers and Sponsors 374 xi 4th Proof - 16.11.2006 xii 4th Proof - 16.11.2006 Abbreviations and Acronyms ARTI Agrarian Research and Training Institute CENWOR Centre for Women’s Research CEPA Centre for Poverty Analysis CPA Centre for Policy Alternatives