[DEBATE] : (Fwd) Land reform failure

[Patrick Bond]

("In the three years 2004 to 2007, state redistribution of formerly 
white owned land to black owners has increased by less than a half a 
percent, from 4.3% of commercial land to 4.7%.")

Sluggish, flawed land reform threatens the entire economy, says think tank

May 07, 2008 Edition 1

Babalo Ndenze

SOUTH Africa's slow and flawed land reform process is putting the 
economic well-being of many rural regions under threat and this could 
cause serious negative consequences for the entire economy, the Centre 
for Development and Enterprise has warned.

In its latest report, the centre said land redistribution was happening 
far too slowly to meet the expectations raised by the government's 
target for 30% of commercial agricultural land to be owned by black 
people by 2014.

The Centre for Development and Enterprise is an independent policy 
research organisation and is one of South Africa's leading development 
think tanks, focusing on national development issues.

It said the country faced two likely trajectories - "nobody wins" and 
"everybody loses". Neither was desirable. Each threatened agricultural 
production, investor confidence, race relations and the prospects of the 
rural poor.

"The future of South African commercial agriculture is now on the 
table," said executive director Ann Bernstein. "The economic viability 
of many rural regions of the country is under threat, which could lead 
to serious negative consequences for the broader economy and society. 
And all this is happening in the midst of a global rise in food and 
commodity prices. South Africa is not only losing out on important new 
opportunities but starting to undermine its competitiveness and capacity 
in the agricultural sector."

The centre's study reviewed the land market, the private sector's role 
in land reform, state programmes and policy developments.

"The realities of competitive international agriculture and the 
implementation of current land reform policies are at odds. South 
African agri-businesses are shifting an increasing proportion of their 
assets and energy into neighbouring and other countries. The country is 
slipping as a competitive place in which to do agri-business."

The report said the restitution process had successfully settled most 
urban claims but was now bogged down.

"Land redistribution is taking place far too slowly to meet the 
expectations raised by the government's target that 30% of commercial 
agricultural land should be owned by blacks by 2014. In the three years 
2004 to 2007, state redistribution of formerly white owned land to black 
owners has increased by less than a half a percent, from 4.3% of 
commercial land to 4.7%."