AGRICULTURE AND RURAL DEVELOPMENT 48896 Public Disclosure Authorized Public Disclosure Authorized Agricultural Land Redistribution TOWARD GREATER CONSENSUS Public Disclosure Authorized Hans P. Binswanger-Mkhize Camille Bourguignon Rogier van den Brink Editors Public Disclosure Authorized AGRlCULTURAL LAND REDISTRIBUTION AGRICULTURE AND RURAL DEVELOPMENT Seventy-five percent of the world’s poor live in rural areas and most are involved in agriculture. In the 21st century, agriculture remains fundamental to economic growth, poverty alleviation, and environmental sustainability. The World Bank’s Agriculture and Rural Development publication series presents recent analyses of issues that affect the role of agriculture, including livestock, fisheries, and forestry, as a source of eco- nomic development, rural livelihoods, and environmental services. The series is intended for practical application, and we hope that it will serve to inform public dis- cussion, policy formulation, and development planning. Titles in this series: Agricultural Land Redistribution: Toward Greater Consensus Agriculture Investment Sourcebook Changing the Face of the Waters: The Promise and Challenge of Sustainable Aquaculture Enhancing Agricultural Innovation: How to Go Beyond the Strengthening of Research Systems Forests Sourcebook: Practical Guidance for Sustaining Forests in Development Cooperation Gender in Agriculture Sourcebook Organization and Performance of Cotton Sectors in Africa: Learning from Reform Experience Reforming Agricultural Trade for Developing Countries, Volume 1: Key Issues for a Pro-Development Outcome of the Doha Round Reforming Agricultural Trade for Developing Countries, Volume 2: Quantifying the Impact of Multilateral Trade Reform Shaping the Future of Water for Agriculture: A Sourcebook for Investment in Agri- cultural Water Management The Sunken Billions: The Economic Justification for Fisheries Reform Sustainable Land Management: Challenges, Opportunities, and Trade-Offs Sustainable Land Management Sourcebook Sustaining Forests: A Development Strategy AGRlCULTURAL LAND REDISTRIBUTION Toward Greater Consensus Editors Hans P. Binswanger-Mkhize Camille Bourguignon Rogier van den Brink © 2009 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved 1 2 3 4 12 11 10 09 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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ISBN: 978-0-8213-7627-0 eISBN: 978-0-8213-7962-2 DOI: 10.1596/978-0-8213-7627-0 Library of Congress Cataloging in-Publication Data Agricultural land redistribution: toward greater consensus / edited by Hans P. Binswanger-Mkhize, Camille Bourguignon, Rogier van den Brink. p. cm. — (Agriculture and rural development) Includes bibliographical references and index. ISBN 978-0-8213-7627-0 — ISBN 978-0-8213-7962-2 (electronic) 1. Land reform—Developing countries—History—20th century. I. Binswanger- Mkhize, Hans P, 1943- II. Bourguignon, Camille, 1979- III. Brink, Rogerius Johannes Eugenius van den, 1958- HD1333.5.A37 2009 333.3'1091724—dc22 2009009701 Cover and chapter opener illustration: Diego Rivera © 2009 Banco de México, Fiduciario en el Fideicomiso relativo a los Museos Diego Rivera y Frida Kahlo. Av. Cinco de Mayo No. 2, Col. Centro, Del. Cuauhtémoc 06059, México, D.F.; Reproducción autorizada por el Instituto Nacional de Bellas Artes y Literatura, 2009. Cover design: Patricia Hord Graphik Design. CONTENTS Boxes, Figures, and Tables x Foreword xiii Acknowledgments xv About the Authors xvii Abbreviations xxi Part I. The Growing Consensus on the Importance of Land Redistribution 1. Introduction and Summary 3 Hans P. Binswanger-Mkhize, Camille Bourguignon, and Rogier van den Brink Why Do We Need a Book on Agricultural Land Redistribution? 3 The Problem of Land Redistribution 5 Why Redistribute Land? The Growing Consensus 7 How to Redistribute Agricultural Land: Emerging Principles 14 Conclusion 35 Annex 37 Notes 40 References 40 Part 1I. The Historical Origins of Land Concentration and Past Attempts to Redistribute Land 2. History of Land Concentration and Redistributive Land Reforms 45 Hans P. Binswanger-Mkhize and Klaus Deininger The Emergence of Property Rights in Land 48 v Interventions to Establish and Support Large Farms in Sub-Saharan Africa 57 Success and Failure in Land Reform 63 The Social Cost of Delayed Reform: Revolts and Civil Wars 70 Credit, Policy Distortions, and Land Sales Markets 74 Policy Implications for Redistributive Land Reform 76 Notes 79 References 80 3. Land Redistribution in Kenya 87 Karuti Kanyinga Kenya’s Land Question: The Political Economy of Colonial Agriculture 89 Early Attempts to Redistribute Land 92 Re-Africanizing the Highlands: The One Million Acre Settlement Scheme 99 The Politics of Redistribution 105 Conclusion: Some Key Lessons 114 Note 115 References 116 4. Land Reform throughout the 20th Century in China 119 Zhou Feizhou and Camille Bourguignon The First Land Redistribution in Modern China 120 Land Collectivization and the People’s Commune 124 Decollectivization and Reintroduction of Individual Land Rights 127 Conversion of Rural Land to Urban Uses 129 Conclusion 131 Notes 132 References 133 Part I1I. Ongoing Land Reform Programs, Their Mechanisms, Achievements, and Limitations 5. Land Redistribution in Zimbabwe 137 Simon Pazvakavambwa and Vincent Hungwe Land Redistribution under the Colonial State 138 Early Attempts to Redistribute Land, 1980–99 141 The Fast Track Land Redistribution Program, 2000–05 151 Conclusion 164 Note 164 References 165 6. Land Redistribution in South Africa 169 Edward Lahiff Land Reform since the End of Apartheid 169 vi CONTENTS Key Emerging Policy Issues in South Africa’s Land Reform 179 The Future of Land Reform in South Africa 186 Conclusion 195 Notes 196 References 197 7. Land Reform in South Africa: Additional Data and Comments 201 Rogier van den Brink, Glen S. Thomas, and Hans P. Binswanger-Mkhize Alarming Trends in Rural Income and Agricultural Employment 201 Exploiting Multiple Sources of Livelihood and Periurban Farming 203 Economies of Scale in South African Agriculture 203 Land Reform Opportunities in Arid and Semiarid Areas 204 Negotiated Transfers versus Expropriation 205 Underused Flexibility in the Land Redistribution for Agricultural Development Program 206 Sales of Parcels by Developers 207 Inadequate Decentralization and Community Empowerment 208 Large-Scale Farmers’ Opposition to Land Reform 209 Land Reform Funding 210 Recommendations 210 Notes 213 References 214 8. Land Redistribution in the Philippines 215 Saturnino M. Borras, Jr. Key Features of CARP 217 CARP Implementation Dynamics 223 Land Reform Achievements and Their Interpretations 229 Conclusion 235 Annex 237 Notes 238 References 239 9. Learning from Old and New Approaches to Land Reform in India 241 Tim Hanstad, Robin Nielsen, Darryl Vhugen, and T. Haque First-Generation Reforms to Land Policy and Law 242 Women’s Land Rights: Overcoming Past Inequities and Leading New Approaches 250 New Approaches 253 Lessons Learned 257 Annex 260 CONTENTS vii Notes 260 References 262 Part 1V. The Wide Array of Objectives, Mechanisms, and Tools for Land Redistribution that Remain the Focus of Heated Debate 10. Expropriating Land in Brazil 267 Zander Navarro Land Reform in the 1950s and the Years of the Military Cycle 268 Brazil’s Legal Structure for Implementing Land Reform 270 The Second Moment of Land Reform: 1995 Onward 274 Current Challenges and Dilemmas 284 Conclusion 286 Notes 287 References 288 11. Negotiated Agrarian Reform in Brazil 291 Gerd Sparovek and Rodrigo Fernando Maule Agrarian Reform in Brazil 292 Evolution of Negotiated Agrarian Reform 295 Main Results of Negotiated Agrarian Reform Evaluations 299 Challenges to the Permanence of Negotiated Agrarian Reform 305 Conclusion 307 Notes 308 References 308 12. Agricultural Land Tax, Land-Use Intensification, Local Development, and Land Market Reform 311 Malcolm D. Childress, Andrew Hilton, David Solomon, and Rogier van den Brink