1. Background and Motivation
Data and Methodology
Results
Conclusion
Prospects for land policy reforms for agricultural
transformation
Tenure security and Households' farm investment behavior in
Mozambique
Hosaena Ghebru Hagos (Ph.D)
Development Strategy and Governance Division (DSGD)
International Food Policy Research Institute (IFPRI)
USA
October 18, 2012
IFPRI-Maputo Workshop, (Maputo,Mozambique)
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
2. Background and Motivation
Data and Methodology
Motivation
Results
Conclusion
Background: Land tenure reform (LTR)
Issues of land and Land tenure reforms
Land scarcity in Africa
Rationale for LTR Rapid economic growth in Asia
Global focus on LTR Globally increasing demand for land
(food and energy consumption)
Theory behind LTR
Focus on MDGs: Rights based
approach (land as a saftey net)
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
3. Background and Motivation
Data and Methodology
Motivation
Results
Conclusion
Background: Land tenure reform (LTR)
Issues of land and Land tenure reforms
The African Union (AU) developed
land policy guidelines (Land Policy
Initiative- LPI) approved in 2010.
The World Bank: currently has a
Rationale for LTR portfolio of dedicated land projects
Global focus on LTR totaling USD 1.5 billion under
supervision
Theory behind LTR
IFPRI (GP-LGA): land as tool for
getting access to cheaper and more
secure source of food
FAO: a set of voluntary guidelines
for good governance of land
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
4. Background and Motivation
Data and Methodology
Motivation
Results
Conclusion
Background: Land tenure reform (LTR)
Issues of land and Land tenure reforms
Tenure security (Enhance
Rationale for LTR investment)
Global focus on LTR Transferability (Reallocate land to
Theory behind LTR more ecient users)
Credit access (Land as collateral)
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
5. Background and Motivation
Data and Methodology
Motivation
Results
Conclusion
Evolutions of Land Policy Reforms in Mozambique
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
6. 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
Conict 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
7. Background and Motivation
Data and Methodology
Motivation
Results
Conclusion
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 are
appropriate policy responses?
How can land reforms be designed to stimulate more
sustainable and productive land use?
How can land tenure reforms (titling) be made more pro-poor?
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
8. New land reform approaches
The Continuum of Land Rights Approach
12. Focus of the study and key research questions
Focus of this study
To assess the perception and demand for more secured tenure rights and
its correlations with smallholder farmers' engagement in longterm land
related investment.
Longterm land related investment in the form of:
1 land-related investments in construction of boundary demarcations
and 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 potential
areas
3 Households' higher level of percieved tenure security enhances investments
on the plot in form of building of new conservation and structures,
4 Higher level of percieved tenure security reduces investment in making
and improving boundary marks.
5 Higher percieved tenure security has productivity enhancing eect via
higher adoption of organic and inorganic fertilizer
13. 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 and
population density
Methodological challenges:
1 Unobserved household heterogeneity:
Use of panel data: Not possible due to lack of information on
tenure security indicators in earlier TIA data,
Household xed eects: Not possible due to inability of parcel level
matching of data from various modules of the TIA-2008 survey,
Causality (?)
2 Potential plot selection bias (household versus parcel specic responses
on adoption and tenure security)
Test shows household perception and investment decisions are more
of corner solution rather than parcel specic
14. Background and Motivation
Data and Methodology
Results
Conclusion
Variables of interest
1. Tenure security proxy variables 2. Farmers' investment and
Possesion of DUAT adoption indicators
Possesion of other land right Long-term land related investment
documentations
Knowledge of the land law Investment in conservation
structures
Willingeness-to-pay for DUAT Investment in parcel
Experience of land related dispute boundary demarcation
Anticipation of land related Adoption of in-organic fertilizer
dispute Adoption of organic fertilizer
(manure)
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
15. Background and Motivation
Data and Methodology
Results
Conclusion
Variables of interest
1. Tenure security proxy variables 2. Farmers' investment and
Possesion of DUAT adoption indicators
Possesion of other land right Long-term land related investment
documentations
Knowledge of the land law Investment in conservation
structures
Willingeness-to-pay for DUAT Investment in parcel
Experience of land related dispute boundary demarcation
Anticipation of land related Adoption of in-organic fertilizer
dispute Adoption of organic fertilizer
(manure)
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
16. 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 communities
witht less access to market/infrustructure
Percieved level of tenure insecurity and households's demand for improved
property rights (willingness-to-pay for DUAT) is, on average, higher in
communities with better access to market.
Potential disputes with members of a family (relatives) and outsiders
(immigrants) were reported to be signicantly higher in communities with better
access to market as compared to areas in remote places.
17. Descriptive summary:
Relative land scarcity versus tenure insecurity
Key results
Results show that households' percieved level of tenure insecurity (fear of
potential land related dispute) is signicantly higher among communities with
relative scarcity of land
Comparing communities with relative land abundance with land scarce
communities, occupation is reported to be the dominant mode of land
acquistion in the former, while access to land via inheritance was reported as
the most common in land scarce areas.
21. Descriptive summary:
Household level
key ndings
Results show that households with relative abundance of land have higher level
of percieved tenure insecurity
Tenure insecurity is higher among those households who resides in communities
with densly populated and land scarce areas as well as in areas with better
access to market and higher agricultural potential.
22. Descriptive summary:
Household level (continued)
key results
Results show that households with higher percieved tenure insecurity makes
more investment in the form of making thier parcel boundary marks more
clearer.
On the other hand, comparing households' status of tenure (in)security, there is
no signicant dierence in making investments in conservation structures and
adotion of fertilizer
23. Descriptive summary:
Household level (continued)
Key results
Results show that more educated hoseholds and households with larger family
size 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 among
households who resides in communities with higher population density, relative
land scarcity and better access to market.
24. Descriptive summary:
Household level (continued)
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, and
Higher willingness-to-pay for DUAT
Similarly, the adoptioon of organic fertilizer is higher among households with
higher tenure security than those otherwise.
25. Descriptive summary: Household level (contined)
.
Comparing male with female headed households, results show that there is
signicant dierence in demand for improved tenure rights and level of
knowledge of the esisting land law.
Male headed households have relatively higher demand for improved
property rights protection and better knowldege of the existing land law
as compared to households headed by female
Results also show that there is signicant dierence in means of access to land
among the two groups
26. Regression results
Key ndings
Probability of fertilizer (both organic and inorganic) adoption is correlated
positively with better knowldege of the land law while chances of adoption is
lower the higher the demand for improved tenure security.
Results also show that, households with experience of land related dispute has
contrasting eect on adoption of inorganic fertilizer as compared to its eect on
the implementation of manure.
Households with land related dispute has lower chances of implementing
manure on their elds while the chance of fertilizer adoption is high
among those with land related dispute cases.
27. Regression results (cont...)
.
Results show that better understanding of the land law enhances investment in
long-term land related investment
The probability of investment is also higher for households with demand for
improved property rights (willingness-to-pay for DUAT)
Land related conicts has contrasting eect on conservation investment (with
potential productivity enhancing eect) as compared to investment in parcel
demarcation (investment with no/little farm productivity eect).
Results show that land related dispute increases the chance of household's
investment on parcel boundary demarcations while its eect on
productivity enhancing investents (conservation structures) is negative.
28. Background and Motivation
Data and Methodology
Results
Conclusion
Conclusion
...
Our analysis of the eects of households' perceived tenure security and
demand for improved land rights protection provides evidence that
households' level of tenure security:
has stimulated long-term land investment in the form of
conservation,
has reduced investment in the form of parcel boundary demarcation,
and
has farm productivity enhancing role by increasing adoption of
organic fertilizer (manure).
Households' level of tenure insecurity and demand for improved land
rights is higher in areas with relatively higher land scarcity and
agricultural potential
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
29. Background and Motivation
Data and Methodology
Results
Conclusion
Hosaena Ghebru (IFPRI) IFPRI-Maputo Workshop, 2012, (Maputo, Mozambique
