Moz land policy-for-agric-transformation

Background and MotivationData and Methodology

ResultsConclusion

Prospects for land policy reforms for agriculturaltransformation

Tenure security and Households' farm investment behavior inMozambique

Hosaena Ghebru Hagos (Ph.D)

Development Strategy and Governance Division (DSGD)International Food Policy Research Institute (IFPRI)

USA

October 18, 2012IFPRI-Maputo Workshop, (Maputo,Mozambique)

Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique


ResultsConclusion

Motivation

Background: Land tenure reform (LTR)

Rationale for LTR

Global focus on LTR

Theory behind LTR

Issues of land and Land tenure reforms

Land scarcity in Africa

Rapid economic growth in Asia

Globally increasing demand for land(food and energy consumption)

Focus on MDGs: Rights basedapproach (land as a saftey net)



ResultsConclusion

Motivation


Rationale for LTR

Global focus on LTR

Theory behind LTR


The African Union (AU) developedland policy guidelines (Land PolicyInitiative- LPI) approved in 2010.

The World Bank: currently has aportfolio of dedicated land projectstotaling USD 1.5 billion undersupervision

IFPRI (GP-LGA): land as tool forgetting access to cheaper and moresecure source of food

FAO: a set of voluntary guidelinesfor good governance of land



ResultsConclusion

Motivation


Rationale for LTR

Global focus on LTR

Theory behind LTR


Tenure security (Enhanceinvestment)

Transferability (Reallocate land tomore e�cient users)

Credit access (Land as collateral)



ResultsConclusion

Motivation

Evolutions of Land Policy Reforms in Mozambique


Major drivers of agricultural transformation in Moz

1. "Foreign Investors"

For injection of the much needed capital investment (FDI)

Enhance infrustructural development

2. "The Urban Elite"

Con�ict prone route (group)

3. "Advanced Peasants"

More educated

More receptive to new idea/technology

Few in numbers as compared to family farmers

4. "Family or Subsistent Farmers"

Dominant group (around 3 million in Mozambique)

Poor access to market and extension services

Group with tenure security issues


ResultsConclusion

Motivation

The 1997 law and the land privatization debate

Key issues surrounding the ongoing debate on land policy

Are private property rights a preconditions for economic

development?

de Soto, H. 2000. The Mystery of Capital: Why Capitalism

Triumphs in the West and Fails Everywhere Else.

de Soto vs. China vs. the current �nancial crisis

Distress sales and foreclosures during crises: What areappropriate policy responses?

How can land reforms be designed to stimulate moresustainable and productive land use?

How can land tenure reforms (titling) be made more pro-poor?


New land reform approachesThe Continuum of Land Rights Approach

Continuum Approach and the Land Reform in Mozambique

Focus of the study and key research questions

Focus of this study

To assess the perception and demand for more secured tenure rights andits correlations with smallholder farmers' engagement in longterm landrelated investment.

Longterm land related investment in the form of:

1 land-related investments in construction of boundary demarcationsand soil conservation activities, and

2 Adoption of technology (eg. organic and inorganic fertilizer)

Hypotheses

1 Tenure insecurity is higher the higher the land scarcity is.

2 Households demand for improved land rights is higher in high potentialareas

3 Households' higher level of percieved tenure security enhances investmentson the plot in form of building of new conservation and structures,

4 Higher level of percieved tenure security reduces investment in makingand improving boundary marks.

5 Higher percieved tenure security has productivity enhancing e�ect viahigher adoption of organic and inorganic fertilizer

Data and Methodology

Data

TIA-2008 Household survey data: both household and parcel level dataset

Geo-spatial data on agricultural potential, market access, land use andpopulation density

Methodological challenges:

1 Unobserved household heterogeneity:

Use of panel data: Not possible due to lack of information ontenure security indicators in earlier TIA data,Household �xed e�ects: Not possible due to inability of parcel levelmatching of data from various modules of the TIA-2008 survey,Causality (?)

2 Potential plot selection bias (household versus parcel speci�c responseson adoption and tenure security)

Test shows household perception and investment decisions are moreof corner solution rather than parcel speci�c


ResultsConclusion

Variables of interest

1. Tenure security proxy variables

Possesion of DUAT

Possesion of other land rightdocumentations

Knowledge of the land law

Willingeness-to-pay for DUAT

Experience of land related dispute

Anticipation of land relateddispute

2. Farmers' investment andadoption indicators

Long-term land related investment

Investment in conservationstructuresInvestment in parcelboundary demarcation

Adoption of in-organic fertilizer

Adoption of organic fertilizer(manure)


Descriptive summary:Access to market versus tenure (in)security and demand for improved property rights

More potential arable land suitable for agriculture is located in communitieswitht less access to market/infrustructure

Percieved level of tenure insecurity and households's demand for improvedproperty rights (willingness-to-pay for DUAT) is, on average, higher incommunities with better access to market.

Potential disputes with members of a family (relatives) and outsiders(immigrants) were reported to be signi�cantly higher in communities with betteraccess to market as compared to areas in remote places.

Descriptive summary:Relative land scarcity versus tenure insecurity

Key results

Results show that households' percieved level of tenure insecurity (fear ofpotential land related dispute) is signi�cantly higher among communities withrelative scarcity of land

Comparing communities with relative land abundance with land scarcecommunities, �occupation� is reported to be the dominant mode of landacquistion in the former, while access to land via �inheritance� was reported asthe most common in land scarce areas.

Mapping: land scarcity versus tenure (in)security (Actualcultivated area)

Mapping: Land scarcity versus tenure (in)security (potentialarable land)

Mapping: Modes of land acquisition versus land scarcity

Descriptive summary:Household level

key �ndings

Results show that households with relative abundance of land have higher levelof percieved tenure insecurity

Tenure insecurity is higher among those households who resides in communitieswith densly populated and land scarce areas as well as in areas with betteraccess to market and higher agricultural potential.

Descriptive summary:Household level (continued)

key results

Results show that households with higher percieved tenure insecurity makesmore investment in the form of making thier parcel boundary marks moreclearer.

On the other hand, comparing households' status of tenure (in)security, there isno signi�cant di�erence in making investments in conservation structures andadotion of fertilizer


Key results

Results show that more educated hoseholds and households with larger familysize have a relatively higher demand for improved property rights(wilingness-to-pay for DUAT)

On average, demand for improved property rights to land is higher amonghouseholds who resides in communities with higher population density, relativeland scarcity and better access to market.


key results

Investment in long-term land improvements is higher among households with:

more clear property rights (DUAT and other form of documentations)Better understanding of the existing land law, andHigher willingness-to-pay for DUAT

Similarly, the adoptioon of organic fertilizer is higher among households withhigher tenure security than those otherwise.

Descriptive summary: Household level (contined)

.Comparing male with female headed households, results show that there issigni�cant di�erence in demand for improved tenure rights and level ofknowledge of the esisting land law.

Male headed households have relatively higher demand for improvedproperty rights protection and better knowldege of the existing land lawas compared to households headed by female

Results also show that there is signi�cant di�erence in means of access to landamong the two groups

While land access via family members (relatives) is more dominant forfemale headed households, land access via �occupation� was reported asdominant mode of land acquisition among male headed households

Regression results

Key �ndings

Probability of fertilizer (both organic and inorganic) adoption is correlatedpositively with better knowldege of the land law while chances of adoption islower the higher the demand for improved tenure security.

Results also show that, households with experience of land related dispute hascontrasting e�ect on adoption of inorganic fertilizer as compared to its e�ect onthe implementation of manure.

Households with land related dispute has lower chances of implementingmanure on their �elds while the chance of fertilizer adoption is highamong those with land related dispute cases.

Regression results (cont...)

.Results show that better understanding of the land law enhances investment inlong-term land related investment

The probability of investment is also higher for households with demand forimproved property rights (willingness-to-pay for DUAT)

Land related con�icts has contrasting e�ect on conservation investment (withpotential productivity enhancing e�ect) as compared to investment in parceldemarcation (investment with no/little farm productivity e�ect).

Results show that land related dispute increases the chance of household'sinvestment on parcel boundary demarcations while its e�ect onproductivity enhancing investents (conservation structures) is negative.


ResultsConclusion

Conclusion

...

Our analysis of the e�ects of households' perceived tenure security anddemand for improved land rights protection provides evidence thathouseholds' level of tenure security:

has stimulated long-term land investment in the form ofconservation,has reduced investment in the form of parcel boundary demarcation,andhas farm productivity enhancing role by increasing adoption oforganic fertilizer (manure).

Households' level of tenure insecurity and demand for improved landrights is higher in areas with relatively higher land scarcity andagricultural potential



ResultsConclusion


Moz land policy-for-agric-transformation

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