stock-taking of land reform and farm restructuring

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Stock-Taking of Land Reform and Farm Restructuring Results of a World Bank-FAO policy research study David Sedik FAO

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Stock-Taking of Land Reform and Farm Restructuring. Results of a World Bank-FAO policy research study. David Sedik FAO. Why a Stocktaking?. Why a Stocktaking?. Though land reform can be essential for rural growth and poverty alleviation, it does not seem to have lived up to its potential - PowerPoint PPT Presentation

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Page 1: Stock-Taking of Land Reform and Farm Restructuring

Stock-Taking of Land Reform and Farm Restructuring

Results of a World Bank-FAO policy research study

David SedikFAO

Page 2: Stock-Taking of Land Reform and Farm Restructuring

Why a Stocktaking?

Country or region Period Duration (years)

Land transferred (million ha)

Mexico 1917-92 75 100

Brazil 1964-94 30 11

Japan 1945-52 7 2

Korea 1945-50 5 0.5

Taiwan (Rep. of China) 1949-53 4 0.2

CEE countries 1990-2000 10 33

CIS countries 1990-2000 10 116

Page 3: Stock-Taking of Land Reform and Farm Restructuring

Why a Stocktaking?

Though land reform can be essential for rural growth and poverty alleviation, it does not seem to have lived up to its potential

Production, yields, services declined, unemployment increased – did land reform contribute to this?

Page 4: Stock-Taking of Land Reform and Farm Restructuring

Four case studies

• Azerbaijan, Bulgaria, Kazakhstan, Moldova How did reforms affect farm performance and

rural well-being between farm types and across countries?

• Farm performance measured by growth in yields, productivity, and profitability

Well-being measured by subjective perceptions

Page 5: Stock-Taking of Land Reform and Farm Restructuring

Sources of information and data

Primary– Household surveys– Farm enterprise surveys– Focus groups– Key informant interviews– Semi-structured interviews

Secondary– Literature review– Official statistics– Data from other surveys and studies

Page 6: Stock-Taking of Land Reform and Farm Restructuring

Overview of presentation

Selected comparative results– Agricultural production and land reform– Enabling environment for agriculture– Economic performance– Households’ perceptions on well-being and rural

services– Households’ acceptance of land reform– Gender findings

Policy implications

Page 7: Stock-Taking of Land Reform and Farm Restructuring

Overview of presentation

Selected comparative results– Agricultural production and land reform– Enabling environment for agriculture– Economic performance– Households’ perceptions on well-being and rural

services– Households’ acceptance of land reform– Gender findings

Policy implications

Page 8: Stock-Taking of Land Reform and Farm Restructuring

Land reform not the reason for agricultural decline in the 1990s

In all four countries, agricultural production and productivity began to– fall before land reform– grow after land reform

Page 9: Stock-Taking of Land Reform and Farm Restructuring

Moldova

0

20

40

60

80

100

120

140

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

GA

O, G

DP

In

dic

es (

1985=

100)

0

20

40

60

80

100

120

Lan

d in

div

idu

aliza

tio

n (

ind

ex)

Land Priv GDP GAO

Begin agrarian reforms

Farm "share privatization"

Land distribution

Page 10: Stock-Taking of Land Reform and Farm Restructuring

Azerbaijan

0

20

40

60

80

100

120

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

GA

O,

GD

P I

nd

ice

s (

19

85

=1

00

)

0

20

40

60

80

100

120

140

160

180

200

La

nd

in

div

idu

ali

zati

on

(in

de

x)

Land Priv GDP GAO

Begin agrarian reformsLand distribution

Page 11: Stock-Taking of Land Reform and Farm Restructuring

Good enabling environment yet to be established in CIS countries

55.8 5.8 5.4

7.8

4.8

6.66 6

8.29.3

5.3

0123456789

10

Azerbaijan

Kazakhstan

Moldova

Bulgaria

CEECIS

1997 2003

Page 12: Stock-Taking of Land Reform and Farm Restructuring

Yield and area growth drives recovery in Azerbaijan

40

50

60

70

80

90

100

110

1990 1995 1996 1997 1998 1999 2000 2001 2002

Year

1990

=100

Crop yields

Sown area

Livestockyields

Page 13: Stock-Taking of Land Reform and Farm Restructuring

Crop yield growth drives recovery in Kazakhstan

40

50

60

70

80

90

100

110

120

130

1990 1995 1996 1997 1998 1999 2000 2001 2002

Year

199

0=10

0

Crop yields

Sown area

Livestockyields

Page 14: Stock-Taking of Land Reform and Farm Restructuring

Crop yield and area growth drive recovery in Moldova

40

50

60

70

80

90

100

110

120

1990 1995 1996 1997 1998 1999 2000 2001 2002

Year

1990

=100

Crop yields

Sown area

Livestockyields

Page 15: Stock-Taking of Land Reform and Farm Restructuring

Individual farm crop yields equal to or higher in all CIS (official stats)

  1990 1995 2002

Moldova

Individual farms 50 42 33

Corporate farms 46 35 33

Azerbaijan

Individual farms 54 38 41

Corporate farms 27 15 20

Kazakhstan

Individual farms 31 9 20

Corporate farms 13 5 10

Page 16: Stock-Taking of Land Reform and Farm Restructuring

TFP and land productivity greater in family farms from sample

  N TFP Labor productivity

Land productivity

Moldova

Family farms 176 5.9 9.9 10.8

Corporate farms 24 1.7 16.7 3.3

Azerbaijan

Family farms 65 2.3 7,803 1,762

Corporate farms 15 1 3,692 840

Red italics indicate figures are statistically different at 20% or better level.

Page 17: Stock-Taking of Land Reform and Farm Restructuring

TFP and land productivity greater in family farms from sample

  N TFP Labor productivity

Land productivity

Kazakhstan

Family farms 178 4.4 683 60

Corporate farms 22 2.7 1446 44

Bulgaria

Family farms 23 3.1 9.1 3.4

Corporate farms 34 6.2 34.3 0.5

Red italics indicate figures are statistically different at 20% or better level.

Page 18: Stock-Taking of Land Reform and Farm Restructuring

Rural HH subjective well-being: MD better than BG, but not as high as AZ

or KZ

Bulgaria Azerbaijan Kazakh Moldova

Today

Good 6 14 31 14

Bad 69 21 20 35

3 yr. change

Better 10 18 36 29

Worse 36 4 27 23

Percent of households

Page 19: Stock-Taking of Land Reform and Farm Restructuring

High portion of income from farming in Moldova and Azerbaijan

36.3

4.9 9.221.7

27.4

8.912.9

18.5

0102030405060708090

100

AZ BG KZ MD

Agricultural sales Own-consumption

%

36.3

4.9 9.221.7

27.4

8.912.9

18.5

0102030405060708090

100

AZ BG KZ MD

Agricultural sales Own-consumption

%

Portion of family income from agriculture

Page 20: Stock-Taking of Land Reform and Farm Restructuring

Rural public services deterioration worst in AZ, BG, improvements in MD,

KZ

1. Scale from 0 to 100: 0=not available, 100=always available.2. “Before” refers to the period before dismantling of collective/state farms.

  Azerbaijan Moldova

Present level of household satisfaction1) with service

Before2 Today Before2 Today

Electricity 84.1 43.7 73 79.0

Gas 18.4 3.5 35.7 37.7

Drinking water 68.9 66.7 42.5 38.6

Telephone 25.8 30.2 35.4 50.8

Page 21: Stock-Taking of Land Reform and Farm Restructuring

Rural public services deterioration worst in AZ, BG, improvements in MD,

KZ

1. Scale from 0 to 100: 0=not available, 100=always available.2. “Before” refers to the period before dismantling of collective/state farms.

  Kazakhstan Bulgaria

Present level of household satisfaction1) with service

Before2

) Today Before2) Today

Electricity 68.1 86.2 91.9 71.6

Gas 65.2 78.5 30.6 33.4

Drinking water 70 72.6 89.6 75.7

Telephone 48.2 55.0 79.6 65.3

Page 22: Stock-Taking of Land Reform and Farm Restructuring

Land allocation resulting from land reforms is least widely accepted in

Moldova

92

5660

53

0

10

20

30

40

5060

70

80

90

100

AZ BG KZ MD

%

Percentage of households perceiving land allocation as fair

Page 23: Stock-Taking of Land Reform and Farm Restructuring

Land legislation is gender neutral but access to information, resources and power seems to disadvantage women

In all four countries, female headed households– Use less land– Have lower perceived well-being– Rent out more land

Qualitative interviews suggest that in all countries women as compared to men have

– Less access to information and legal resources– Less access to agricultural equipment– More household responsibilities

Page 24: Stock-Taking of Land Reform and Farm Restructuring

Overview of presentation

Selected comparative results– Agricultural production and land reform– Enabling environment for agriculture– Economic performance– Households’ perceptions on well-being and rural

services– Households’ acceptance of land reform– Gender findings

Policy implications

Page 25: Stock-Taking of Land Reform and Farm Restructuring

Implications for policy

Ag production stable or grows after robust land reforms in MD, BG, AZ. This suggests that these reforms were beneficial.

In CIS countries, individual sector yields equal to or higher than those in corporate farms.

Land reform alone not sufficient to ensure better farm performance or better well being