According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1982, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

Out of the Crisis

Land policies are of fundamental importance to sustainable growth, good governance, and the well-being of, and the economic opportunities open to, both rural and urban dwellers - particularly the poor. To this end, research on land policy, and analysis of interventions related to the subject, have long been of interest to the Bank's Research Department, and other academic, and civil society institutions. The report aims to strengthen the effectiveness of land policy in support of development, and poverty reduction, by setting out the results of recent research in a way that is accessible to a wide audience of policymakers, nongovernmental organizations, academics in the Bank's client countries, donor agency officials, and the broader development community. Its main message rests on three principles: 1) provision of secure tenure to land improves the welfare of the poor, particularly by enhancing the asset base of those whose land rights are often neglected, and, creates incentives needed for investment, paramount to sustainable economic growth; 2) facilitation of land exchange, and distribution, whether as an asset or for current services, at low cost, through markets, and non-market channels, will expedite land access by productive, but land-poor producers, so that once economic growth improves, financial markets would rely on the use of land as collateral; and, 3) governments' contribution to the promotion of socially desirable land allocation, and utilization. The report discusses mechanisms to promote tenure security, demonstrates the importance of rental market transactions, arguing the removal of impediments to these can generate equity advantages, and positive investments. It also illustrates mechanisms, ranging from taxation, to regulation and land use planning to address these issues.

Land policies for growth and poverty reduction

We examine the impact of ambiguous and contested land rights on investment and productivity in agriculture in Akwapim, Ghana. We show that individuals who hold powerful positions in a local political hierarchy have more secure tenure rights and that as a consequence they invest more in land fertility and have substantially higher output. The intensity of investments on different plots cultivated by a given individual corresponds to that individual’s security of tenure over those specific plots and, in turn, to the individual’s position in the political hierarchy relevant to those specific plots.

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The Profits of Power: Land Rights and Agricultural Investment in Ghana

The evolutionary theory of land rights can be considered the dominant framework of analysis used by mainstream economists to assess the land tenure situation in developing countries, and to make predictions about its evolution. A central tenet of this theoryis that under the joint impact of increasing population pressure and market integration, land rights spontaneously evolve towards rising individualization and that this evolutioneventually leads rightsholders to press for the creation of duly formalized private property rights — a demand to which the state will have an incentive to respond. This article looks critically at the relevance of the evolutionary theory of land rights as currently applied to Sub-Saharan Africa. In particular, the question of whether the establishmentof private property rights is an advisable structural reform in the present circumstancesis examined, in the light of evidence accumulated so far. It will be argued that most of the beneficial effects usually ascribed to such a reform are grossly over-estimated and that, given its high cost, it is generally advisable to look for more appropriate solutions that rely on existing informal mechanisms at community level.

The Evolutionary Theory of Land Rights as Applied to Sub‐Saharan Africa: A Critical Assessment

Most work on the relationship between farm size and productivity strongly suggests that farms that rely mostly on family labor are more productive than large farms operated primarily by hired labor. This study began as an inquiry into how rental and sales markets for agricultural land in the developing world affect efficiency and equity. What emerged was the clear sense that great variations in land relations around the world and over time cannot be understood in the common paradigm of property rights and competitive markets. Under that paradigm, land scarcity leads to better definition of rights, which are then traded in sales and rental markets accessible equally to all players. The outcome should be the allocation of land to the most efficient uses and users, yet this rarely happens. Instead, land rights and ownership tend to grow out of power relationships. Landowning groups have used coercion and distortions in land, labor, credit, and commodity markets to extract economic rents from the land, from peasants and workers, and most recently from urban consumer groups or taxpayers. Such rent-seeking activities reduce the efficiency of resource use, retard growth, and increase the poverty of the rural population. The authors examine how these power relations emerged and what legal means enabled relatively few landowners to accumulate and hold on to large landholdings. The authors discuss the successes and failures of reform in market and socialist economies, and the perversions of reforms in both systems, manifested in large commercial farms and collectives. They survey the history of land relations and the legacies that history leaves. They discuss the three analytical controversies surrounding economies of scale, and the efficiency of the land sales and land rental market. They discuss the main policy issues and implications of various distortions and successful and unsuccessful reforms in the developing world, including land registration and titling, land taxation, regulations restricting land sales and rentals, fragmentation and consolidation of land, redistributive land reform, and decollectivization. In an epilogue on methodology, the authors examine how various strands of economic theory have contributed, or failed to contribute, to the explanation of variations in policies, distortions, and land relations over space and time.

Power, distortions, revolt, and reform in agricultural land relations

The report is based on case studies in seven countries, and relies on new data to examine the relationship between land holding rights, and agricultural production. Land remains the most important source of economic livelihood, security, and social status in Sub-Saharan Africa. But the extent to which existing tenure rules, and practices influence agriculture, is unclear. The report further questions whether indigenous African land tenure systems, accord farmers sufficient security for long-term investment in agricultural production, and, examines as well the major effects of land registration and titling, on agricultural production. The study represent the first rigorous quantitative analysis of the relationship between land tenure security, and agricultural production in the context of contemporary political economies of African countries.

Searching for land tenure security in Africa

Economists using a narrowly defined neo-classical model have derived the hypothesis, often treated as an empirically demonstrated proposition, that traditional African systems of ‘communal’ land tenure are inefficient when land has scarcity value. By way of contrast, individualised tenure, typically defined as demarcation and registration of freehold title, is viewed as superior because owners are given incentives to use land most efficiently and thereby maximise agriculture's contribution to social well-being.

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Land Tenure and Investment in African Agriculture: Theory and Evidence

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The Impact of Soil Conservation Investments on Land Prices

The issues in establishing and administering a transfer of development rights program are discussed, and an hypothetical program is empirically analyzed In the case study, administrative assignment of development rights and definition of development unit significantly affected the distribution of program costs Full compensation to restricted landowners would have required widely fluctuating development right prices Initial cost burdens varied with type of development as well as within development categories Timing of development right supply and demand may create problems in the market Although the TDR concept is promising, many practical difficulties remain

Transfer of Development Rights: An Analysis of a New Land Use Policy Tool

Economists have long argued that increasing security of individual property rights in land leads to increased investment. Feder and Onchan (FT) are among the first to empirically test this argument in a rigorous way. Based on data from Thailand, FT infer that ownership of land title increases capital accumulation and investment. Their analysis broadens our understanding of the linkages between capital markets and land investment and offers hypotheses for further research. This comment raises two issues concerning the FT article. First, the empirical results are open to several interpretations because of fundamental questions about causality and the definition of ownership security. A reinterpretation of the data suggests that the aggregate impact of title on investment may have been small. Second, inference from the Thailand study must be made with caution. Consideration of a more general model suggests other conditions which influence the impact of title on investment and productivity. Our comments do not diminish the importance of the FT study but raise conceptual issues that may prove useful for future land titling research.

https://www.jstor.org/stable/info/1241790

Richard Barrows

Papers

Searching for land tenure security in Africa

Land Tenure and Investment in African Agriculture: Theory and Evidence

The Impact of Soil Conservation Investments on Land Prices

Transfer of Development Rights: An Analysis of a New Land Use Policy Tool

Land Ownership Security and Farm Investment: Comment