POLITICS OF LAND REFORMS IN MALAWI A CASE STUDY OF THE COMMUNITY by etssetcf

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pg          Research Programme
                Consortium on
            Improving Institutions
             for Pro-Poor Growth




 The economics and PoliTics of land RefoRms in malawi: a
case sTudy of The communiTy Based RuRal land develoPmenT
                  PRogRamme (cBRldP)




                       IPPG BrIefInG PaPer no. TwenTy
                                 DecemBer 2008
                By   ePhraIm w. chIrwa & BlessInGs chIsInGa




          IPPG Programme Office, IDPM, School of Environment & Development
            University of Manchester, Arthur Lewis Building, 2.023, Oxford Road
         Manchester M13 9PL; Telephone 0161 306 6438; ippg@manchester.ac.uk
                                      www.ippg.org.uk
                                                        IPPG


InTroDucTIon                                                   decisive manner. For instance, in the MPRS, land
    The Community Based Rural Land Development                 re-location and distribution was ranked seventh
Programme (CBRLDP) stands out as the most                      in terms of priority pro-poor strategies in the
significant intervention that has been implemented             agricultural sector.
in postcolonial Malawi to address the highly unequal              The deteriorating land situation has precipitated
land ownership patterns. This is particularly                  a series of land invasions and incidents of
attributed to the 1967 land reforms which, instead             encroachment across the country. These have been
of rectifying the unequal land ownership and                   quite widespread in southern Malawi, particularly
distribution patterns, instituted mechanisms for               in the districts of Thyolo and Mulanje where land
converting customary into leasehold land that                  scarcity is most acute. The increasing intensity of
reinforced the postcolonial agricultural strategy              incidents, coupled perhaps with the tragic turn of
that distinguished estate farming from smallholder             events in neighbouring Zimbabwe’s land reform
agriculture; a scheme in which the latter was                  programme, has prompted – the government in
marginalised in terms of the crops that could be               collaboration with its development partners – to
grown and access to credit and input markets.                  implement the CBRLDP as a means of beginning
While 55% of smallholder farmers cultivate less                to deal with the historical injustices and inequities
than a hectare, there are about 30,000 estates                 in land ownership and distribution. The CBRLDP
cultivating between 10 to 500 hectares. In addition,           is being implemented against the backdrop of
it is estimated that about 28% of the country’s                protracted efforts to enact a new land legislative
cultivable arable land (about 2.6 million hectares),           framework to facilitate the implementation of a
falling under freehold, lies idle in the rural areas.          new land policy. The reforms in the tenure system
    The question of land had, however, never                   are transitional, in which group titles that offer
been given serious attention until the launch of               rights under leasehold title will eventually be
the CBRLDP in 2004 – despite it being widely                   converted to family customary estate once the
acknowledged as the single most important                      new Land Act is in place. The lack of a legal basis
productive resource in the country. It is estimated            for the implementation of the new institutions
that up to 84% of Malawians earn their livelihoods             embodied in the new Land Policy has created
directly from agriculture: in fact agriculture                 considerable anxiety and has led to attenuation of
contributes over 90% to export earnings, 40%                   property rights in the CBRLDP.
to gross domestic product (GDP) and accounts
for 85% of total employment. While the advent                The economIcs       of The cBrlDP
of democratisation in May 1994 provided a rare                    The economic basis for land relocation and
opportunity to address the chronic imbalances in               reforming property rights is that the residual
the patterns of land ownership and distribution, the           claims on land provides incentives for efficient and
major development strategies that the government               productive use of land by land-owners or sale of
has since implemented, notably the Malawi Poverty              land to investors that would make the best use
Reduction Strategy (MPRS) and the Malawi Growth                of it. The implementation of the CBRLDP has had
and Development Strategy (MGDS), have strikingly               a significant positive impact on the maize (the
shied away from addressing the land question in a              most common crop grown on the acquired land)


Box 1: The communITy BaseD rural lanD DIsTrIBuTIon ProjecT (cBrlDP)
   The CBRLDP is a World Bank sponsored land redistribution programme being implemented on a pilot
basis in Thyolo and Mulanje – as sending districts and in Machinga and Mangochi – as receiving districts.
The main objective of the CBRLDP is to increase the incomes of about 15,000 poor rural families in the
four pilot districts by providing land to the landless and land poor.

   The beneficiaries of the programme self-select each other into groups of 10–35 households to seek
relocation to receiving districts. These groups are screened by Community Oversight Committees (CoCs)
in the sending districts to certify their eligibility according to the programme guidelines: the eligible
households must be Malawian, landless or near landless, facing food insecurity and once they qualify as
beneficiaries they must give up ownership of their land in the sending districts. In the receiving districts,
CoCs facilitate the integration of new settlers into the host communities.

    The CBRLDP uses a market assisted willing-seller/willing-buyer community driven decentralised system
of land acquisition in which beneficiaries actively participate in identification of land for purchase and enter
into initial negotiations with the potential seller on the basis of a price range set by the CBRLDP staff and
District Assembly officials in the receiving districts. Following successful conclusion of the transactions the
beneficiaries are ready to relocate to their new piece of land. Each beneficiary receives a uniform grant
of US$ 1,050 for land administration and farm development, with 30% devoted to land acquisition, 10%
to cover settlement costs and 60% for farm development. This grant is only provided in the first year of
resettlement, so that households have to find their own resources in subsequent years for developing
the land. The beneficiaries are vested with group ownership rights pending finalisation of the new land
legislative framework.

                                                         
                                                       IPPG

productivity levels of beneficiary households, but          The PolITIcs       of cBrlDP
questions remain as to whether these short-term                   The implementation of the CBRLDP has
gains can be sustained in the medium or long-                 been driven, influenced and shaped by political
term. The statistical analysis is quite revealing             processes resulting from the contestation of
when maize productivity levels of beneficiaries               diverse interests made up of differing forms and
and non-beneficiaries are compared and is equally             degrees of power, licit or illicit, formal or informal.
true when productivity levels of the beneficiaries            The CBRLDP implementation experiences show
are compared to the levels prior to relocation. The           that the design, reform and implementation of pro-
main reason for this is that beneficiaries have more          poor institutional arrangements is not a politically
than doubled their access from 0.4 hectares of                neutral exercise. Stakeholders involved have
land under cultivation to 1.41 hectares. The mean             interpreted, appropriated and engaged with the
maize produced among beneficiary households has               CBRLDP in accordance with the opportunities that
increased from 291kgs before the programme to                 they have discerned to promote their own interests
1,411 after the programme. There are statistically            and this has, in turn, shaped and impacted on the
significant differences in maize yields between               outcomes, successes and failures.
beneficiaries and non-beneficiaries in favour of                  The analysis shows that the implementation
beneficiaries with a mean difference of 814kgs per            of the CBRLDP has fallen prey to the dictates of
household. Nonetheless, the maize yields among                path dependence. The beneficiaries of the 1967
beneficiaries are still 31% of the potential yield            land reforms – chiefs, politicians, senior civil
and 78% of the national average maize yield.                  servants and high ranking parastatal and industrial
   The CBRLDP has also impacted positively on                 employees – have an interest in the existing land
technological adoption particularly in terms of the           tenure patterns. They are not prepared to give up
use of fertiliser and improved seed. The statistical          vast tracks of land accumulated under the aegis
results show that 63% of the beneficiaries devote             of the 1967 land reforms without compensation,
their landholding to hybrid maize production                  which has affected the pace and momentum of
compared with only 31% of land devoted to                     reforms leading to the enactment of a new land
hybrid maize by non-beneficiaries. However, the               legislative framework.
results show that beneficiaries resettled in 2006                 There is also evidence that the CBRLDP has been
(one season of cultivation) allocated more land               captured by the local elites – chiefs, traditional
to hybrid maize than those that resettled in 2005             leaders and community oversight committees
(two seasons of cultivation) compared to the base             (CoCs) – by steering its implementation in ways
category of non-beneficiaries.                                that largely benefit them in both the sending
   A further interrogation of the positive impact             and receiving communities. Traditional leaders
of the CBRLDP using econometric analysis reveals              are influencing the composition of CoCs so as to
that the positive impacts of the transitional                 dictate their decisions; CoCs are demanding bribes
arrangements of land reform are not substantial.              for households to be included as beneficiaries;
While the share of land devoted to hybrid maize               and CoCs are prioritising relatives and friends
cultivation (investment) has improved, when the               as beneficiaries, primarily to benefit from the
timing of land redistribution is taken into account,          resettlement grant. Moreover, fearing that the
there is no statistically significant evidence                migration of people in large numbers to receiving
that participation in the CBRLDP has increased                districts might weaken the stature of their
investment in agriculture. There is also evidence             leadership in the sending areas, traditional leaders
that male headed households are less likely to                in those districts have allowed beneficiaries to
devote more land to hybrid maize cultivation (low             retain their piece of land in the sending districts,
investment in agriculture) than female headed                 contrary to the implementation guidelines of the
households; education also plays an important                 CBRLDP: they cannot reign over a village without
role, with completing at least a secondary school             people.
level, being critical in investment decisions.                    Traditional leaders are protesting against the
Similarly, in terms of maize productivity, using              CBRLDP by not taking seriously their quasi-judicial
an extended Cobb-Douglas production function,                 role in dealing with land disputes involving the new
there is no evidence to suggest that there are                settlers and the local residents. This has resulted
significant differences in productivity between the           in widespread and unresolved land disputes
beneficiaries and non-beneficiaries of the CBRLDP.            and therefore a sense of anxiety among the
However, differences emerge when the timing of                settlers about the security of their land as these
land distribution and resettlement is taken into              disputes are underpinned by a forceful discourse
account, resulting in significant differences in              of dispossession that equates rights to land with
productivity levels between beneficiaries and non-            citizenship. This is compounded by the apparent
beneficiaries that have had one season of farming             lack of clarity about the objective of the CBRLDP
and – crucially – not among those that have had               as a pilot project: is it piloting the willing-buyer/
two seasons of farming. This provides evidence                willing-seller land redistribution philosophy or
of problems of sustainability benefits beyond the             provisions of the draft land policy?
season under which beneficiaries receive a lot of
complementary support through start-up grants
and agricultural inputs.


                                                        
                                                        IPPG


PolIcy consIDeraTIons                                          services estimated at 38% is very thin to produce
   Several policy implications can be drawn from               the intended desired strategic impact.
this study with significant potential to promoting                • The context within which reforms are taken
the successful implementation of land reform                   and the range of stakeholders involved matters
programmes of this nature. The study demonstrates              in determining outcomes, successes and failures.
that success in promoting pro-poor growth and                  Understanding the interface between formal and
development is not merely a matter of conjuring                informal institutions in the context of the reforms is
good institutions: their design and implementation             vital particularly in terms of anticipating and dealing
critically depends on agents and agencies to                   with unexpected consequences. The objective of
implement them. The key policy implications                    the CBRLDP, for instance, was officially to relocate
include:                                                       land stressed families to places with excess land
   • Land reforms without a well-thought-out                   where they could enjoy security of tenure and
supportive infrastructure in the short to medium               robust livelihoods. However, while people in
terms are unlikely to be sustainable. This is to say           sending districts see the CBRLDP as a means of
that land reform is more than just access to land: it          gaining access to a valuable productive resource,
must be accompanied by access to non-land assets;              those in the receiving districts have embraced the
access to credit; access to extension services;                CBRLDP as a platform to assert their claims over
and training of beneficiaries in modern farming                their ancestral land. Traditional leaders and CoC
techniques. The classification of beneficiaries                members have exploited it as a source of rent
into groups that have been under the CBRLDP for                but, in addition, traditional leaders in the sending
one season and those that have participated for                districts feel the CBRLDP poses a serious threat
two seasons reveals that the package of financial              to the stature of their leadership; and in receiving
assistance plays an important role that diminishes             districts traditional leaders have seized it as an
over time, shedding more light on the question                 opportunity to contest any perceived modification
of sustainability of the CBRLDP given the missing              to their authority implied by the draft land policy
or imperfect markets that exist in Malawian                    by protesting against the CBRLDP in hugely subtle
agriculture. The point is that the functioning of              ways.
other markets such as transport, output, labour and               • Pilot land reforms should have clearly defined
financial are critical for households to maximise the          objectives backed up by a complete and definitive
benefits from access to land and improved tenure               legal framework. It is not clear whether the
security. Reforms of this nature are therefore                 objective of the CBRLDP is to pilot the provisions
unlikely to generate substantial benefits in terms of          of the draft land policy or the willing- seller/buyer
investments, incomes and sustainable livelihoods               philosophy of land redistribution. This is further
without the accompanying financial assistance to               compounded by the fact that there is currently
farmers through access to other agricultural inputs            no legal framework for transfer or registration of
such as fertilisers and improved seeds.                        land to customary estates. The new Land Act is
   • A gender-balanced selection of beneficiaries              being drafted but it is yet to be presented before
would enhance the positive impact of the CBRLDP.               Parliament and this state of affairs is creating
The participation of female headed households in               uncertainty about the rights individuals have over
the CBRLDP is limited yet the economic analysis                the portions of land that they have acquired under
reveals that male headed households invest less                the auspices of CBRLDP.
in hybrid maize production compared to female-
headed households. The level of education of                 references
households is also important. The higher the level                Chinsinga, B. (2008) ‘Exploring the Politics
of education of the household the higher the uptake            of Land Reforms in Malawi: A Case Study of
of modern technology such as hybrid maize and                  the Community Based Rural Land Development
chemical fertiliser. The intensification of access to          Programme (CBRLDP)’. IPPG Discussion Paper
extension services by beneficiaries would therefore            Series No. 20
enhance the productivity impact of the CBRLDP on                  Chirwa, E.W. (2008) ‘Land Tenure, Farm
their overall welfare. The coverage of extension               Investments and Food Production in Malawi’. IPPG
                                                               Discussion Paper Series No. 18




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