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New Zimbabwe Lecture SeriesNew Zimbabwe Lecture Series

THE SCOURGE OF POLITICAL PATRONAGE: THE SCOURGE OF POLITICAL PATRONAGE:

AN ECONOMICALLY SUSTAINABLE PROGRAMME AN ECONOMICALLY SUSTAINABLE PROGRAMME FOR LAND REFORM IN THE NEW ZIMBABWEFOR LAND REFORM IN THE NEW ZIMBABWE

Dale DoréDale Doré

RETHINKING LAND REFORM AND ITS AFTERMATH:RETHINKING LAND REFORM AND ITS AFTERMATH:

IS THE ZIMBABWE “LAND REFORM” SUSTAINABLE AS IS THE ZIMBABWE “LAND REFORM” SUSTAINABLE AS A POLITICAL, ECONOMIC AND SOCIAL PROCESS?A POLITICAL, ECONOMIC AND SOCIAL PROCESS?

Crowne Plaza Monomotapa, HarareCrowne Plaza Monomotapa, Harare20th of March 200720th of March 2007

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The fundamental principles of land reform The fundamental principles of land reform

To resolve the historical imbalance of land To resolve the historical imbalance of land ownershipownership

To pay compensation to those whose farms To pay compensation to those whose farms have been acquired, andhave been acquired, and

To ensure a fair, transparent and economically To ensure a fair, transparent and economically sustainable resettlement processsustainable resettlement process

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Objective of presentationObjective of presentation

To meet the objectives of a just, transparent and To meet the objectives of a just, transparent and economically sustainable land reform economically sustainable land reform programme requires a shift programme requires a shift

from a from a political narrativepolitical narrative based on ‘lost lands’ to based on ‘lost lands’ to

an an economic programmeeconomic programme based on secure based on secure property rights and the development of a land property rights and the development of a land market.market.

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The political narrative of ‘lost lands’The political narrative of ‘lost lands’

White settlers stole the land from the indigenous black White settlers stole the land from the indigenous black population. Since the land was stolen, it cannot be population. Since the land was stolen, it cannot be bought from those who stole it (whites), nor should it be bought from those who stole it (whites), nor should it be paid for by those who receive it (blacks). paid for by those who receive it (blacks).

The state is the custodian of land on behalf of all black The state is the custodian of land on behalf of all black Zimbabweans. The state, represented by the President, Zimbabweans. The state, represented by the President, is entrusted to distribute land fairly and equitably to the is entrusted to distribute land fairly and equitably to the poorest and most deserving black Zimbabweans.poorest and most deserving black Zimbabweans.

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Key elements of a sustainable Key elements of a sustainable economic land reform programmeeconomic land reform programme

Land is a finite economic resource that must be used to its Land is a finite economic resource that must be used to its full potential by ensuring: full potential by ensuring:

That it should be utilised by those with the best farming That it should be utilised by those with the best farming skills, training and experienceskills, training and experience

Farmers should have secure property rights that can be Farmers should have secure property rights that can be used as collateral for loans to make farm investments used as collateral for loans to make farm investments and purchase inputsand purchase inputs

That land transfers should take place through a market That land transfers should take place through a market mechanism.mechanism.

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Outline of presentationOutline of presentation

The political narrativeThe political narrative An unsustainable land An unsustainable land

reform modelreform model Securing political control Securing political control

over farmlandover farmland The new custodians of The new custodians of

‘lost lands’‘lost lands’ Land distribution and Land distribution and

political patronagepolitical patronage Opportunity costs of Fast Opportunity costs of Fast

Track ProgrammeTrack Programme

The economic alternativeThe economic alternative Property rights promote Property rights promote

investment, productivityinvestment, productivity Land transfers through the Land transfers through the

marketmarket Misgiving about a ‘market-Misgiving about a ‘market-

assisted’ approachesassisted’ approaches Socially responsible land Socially responsible land

marketmarket Dissolving the dual Dissolving the dual

agrarian economyagrarian economy

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The political narrative is based on a economically The political narrative is based on a economically unsustainable land reform modelunsustainable land reform model

A massive fiscal gap must inevitably open up as the A massive fiscal gap must inevitably open up as the government has to pay more and more for land at government has to pay more and more for land at market prices and give it away free. market prices and give it away free.

To secure the To secure the supply of landsupply of land to meet its populist political to meet its populist political agenda the government is forced to seize and control agenda the government is forced to seize and control land through racist policies and a series of unjust laws, land through racist policies and a series of unjust laws, andand

To maintain its grip on power the ruling party has to buy To maintain its grip on power the ruling party has to buy loyalty from powerful interest groups: war veterans, the loyalty from powerful interest groups: war veterans, the military, civil servants, politicians and business people by military, civil servants, politicians and business people by rationing an infinite rationing an infinite demand for landdemand for land. .

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The process of securing farmland The process of securing farmland beforebefore 2000 2000

Constitutional Amendment No.11 (1990) states that compensation would no Constitutional Amendment No.11 (1990) states that compensation would no longer be based on longer be based on adequateadequate and and promptprompt payment, but on payment, but on fairfair payment payment within a within a reasonable timereasonable time..

The Land Acquisition Act (1992) drops ‘willing buyer- willing seller’ principle The Land Acquisition Act (1992) drops ‘willing buyer- willing seller’ principle and allows compulsorily acquisition of farms to speed up resettlement. and allows compulsorily acquisition of farms to speed up resettlement.

Constitutional amendment No. 13 (1993) prevents farmers seeking redress Constitutional amendment No. 13 (1993) prevents farmers seeking redress through the courts for unfair compensation.through the courts for unfair compensation.

In 1997 Mugabe declares: : “We are going to take the land and we are not In 1997 Mugabe declares: : “We are going to take the land and we are not going to pay for the soil.” going to pay for the soil.”

The government’s draft constitution includes clause 57, which states that The government’s draft constitution includes clause 57, which states that Britain is responsible for paying compensation for land compulsorily Britain is responsible for paying compensation for land compulsorily acquired for resettlement. acquired for resettlement.

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The process of securing farmland The process of securing farmland afterafter 2000 2000

When the people of Zimbabwe rejected the draft constitution in a referendum in When the people of Zimbabwe rejected the draft constitution in a referendum in February 2000, Mugabe pushed through February 2000, Mugabe pushed through Constitutional Amendment (No. 16)Constitutional Amendment (No. 16) that that restated the lost lands narrative and that Britain was obliged to pay compensation for restated the lost lands narrative and that Britain was obliged to pay compensation for land compulsorily acquired for resettlement.land compulsorily acquired for resettlement.

In In Land Acquisition Amendment Act (2003)Land Acquisition Amendment Act (2003) declares that | declares that |the government would no the government would no longer be bound by the criteria laid down by the Fast Track Programmelonger be bound by the criteria laid down by the Fast Track Programme, , allowing the government to seize the land of the remaining whites who only owned allowing the government to seize the land of the remaining whites who only owned one farm, plantations, agro-industrial property, export processing zones and wildlife one farm, plantations, agro-industrial property, export processing zones and wildlife conservancies. It also states that the government intended to acquire a conservancies. It also states that the government intended to acquire a minimumminimum of of 11 million hectares. (In 1998, only derelict, underutilised, multiple and foreign-owned 11 million hectares. (In 1998, only derelict, underutilised, multiple and foreign-owned land and land next to communal areas was eligible for acquisition.)land and land next to communal areas was eligible for acquisition.)

The The Acquisition of Farm Equipment and Materials Act (2004)Acquisition of Farm Equipment and Materials Act (2004) provides for the seizure provides for the seizure of the evicted farmers’ equipment and material.of the evicted farmers’ equipment and material.

Constitutional Amendment (No. 17) of 2005Constitutional Amendment (No. 17) of 2005, section 16B, nationalises all land that , section 16B, nationalises all land that had been identified for resettlement in a preliminary notice (Section 5 notice). had been identified for resettlement in a preliminary notice (Section 5 notice).

The Gazetted Land (Consequential Provisions) Act (2006)The Gazetted Land (Consequential Provisions) Act (2006), makes it illegal for farmers , makes it illegal for farmers to remain on their farms (state land) without a lease from government.to remain on their farms (state land) without a lease from government.

Virtually no compensation is paid. As the ruling party assumes political control Virtually no compensation is paid. As the ruling party assumes political control over a key economic resource on which 70 percent of the population depends, over a key economic resource on which 70 percent of the population depends, it also controls their livelihoods and their liberty.it also controls their livelihoods and their liberty.

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The new custodians of ‘lost lands’The new custodians of ‘lost lands’ The objectives of the The objectives of the Intensive Resettlement ProgrammeIntensive Resettlement Programme (1985) were to (1985) were to

decongest the communal areas by resettling the landless, unemployed and decongest the communal areas by resettling the landless, unemployed and master farmers.master farmers.

By 1998 the beneficiaries also included ex-combatants, displaced farm workers, By 1998 the beneficiaries also included ex-combatants, displaced farm workers, women, as well as persons of means women, as well as persons of means andand ability who wanted to farm. ability who wanted to farm.

When the When the Fast Track ProgrammeFast Track Programme was implemented the aim was also to was implemented the aim was also to indigenise commercial farming. All Zimbabweans were eligible to become A2 indigenise commercial farming. All Zimbabweans were eligible to become A2 farmers if they showed proof of experience and/farmers if they showed proof of experience and/oror resources. resources.

The custodians of ‘stolen land’ are no longer the landless and unemployed, The custodians of ‘stolen land’ are no longer the landless and unemployed, but every Zimbabwe. but every Zimbabwe. TwoTwo things happen: things happen:

The political demand for land becomes infinite, which the government – The political demand for land becomes infinite, which the government – which controls land - can allocate to the chosen few. which controls land - can allocate to the chosen few.

The rich, powerful and well connected party loyalists will muscle their way The rich, powerful and well connected party loyalists will muscle their way to the front of the queue for free land.to the front of the queue for free land.

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Land redistribution and political patronageLand redistribution and political patronage As the resettlement of landless blacks slowed – only 10,000 families were As the resettlement of landless blacks slowed – only 10,000 families were

resettled in the 1990s – land allocations to the ruling elite soared.resettled in the 1990s – land allocations to the ruling elite soared.

In 1994, a scandal erupted with the publication that land acquired for In 1994, a scandal erupted with the publication that land acquired for resettlement had been distributed to senior government officials, including resettlement had been distributed to senior government officials, including ministers and military officers. ministers and military officers.

By 1999, 400,000 hectares of state-acquired land had been leased to By 1999, 400,000 hectares of state-acquired land had been leased to numerous senior government officials and army officers, politicians and numerous senior government officials and army officers, politicians and business people. business people.

In 2000, government security services orchestrate land invasions known as In 2000, government security services orchestrate land invasions known as jambangajambanga and in 2001 settlement targets are set for operation “40 days and and in 2001 settlement targets are set for operation “40 days and 40 nights”. 40 nights”. A1 settler selection is based purely on ruling party loyalists seizing A1 settler selection is based purely on ruling party loyalists seizing land.land.

The Flora Buka’s Report (2003) listed 30 senior army and police officers, The Flora Buka’s Report (2003) listed 30 senior army and police officers, ministers and members of parliament, and senior party officials who owned ministers and members of parliament, and senior party officials who owned more than one farm, often by displacing poor and newly settled A1 farmers.more than one farm, often by displacing poor and newly settled A1 farmers.

the Utete Committee Report (2003) found that, “The multiplicity of ‘allocating the Utete Committee Report (2003) found that, “The multiplicity of ‘allocating authorities’ gave rise to double allocations, multiple allocations, and authorities’ gave rise to double allocations, multiple allocations, and favouritism in land allocations.” favouritism in land allocations.”

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Opportunity costs of the Fast Track ProgrammeOpportunity costs of the Fast Track Programme

Opportunity cost is the cost of choosing a less efficient alternative: that is, Opportunity cost is the cost of choosing a less efficient alternative: that is, unskilled A1 and A2 occupiers based on political patronageunskilled A1 and A2 occupiers based on political patronage

Agricultural production foregoneAgricultural production foregone: production halved and large swathes of land : production halved and large swathes of land remained unutilisedremained unutilised

Training foregoneTraining foregone: +25 year of agricultural training and experience are wasted by : +25 year of agricultural training and experience are wasted by settling untrained, unskilled and inexperienced ‘new farmers’settling untrained, unskilled and inexperienced ‘new farmers’

Inputs foregone:Inputs foregone: Z$2.09 trillion was spent on ‘new farmers’ in 2004, and less than Z$2.09 trillion was spent on ‘new farmers’ in 2004, and less than 40% of loans were repaid 40% of loans were repaid

Redistribution methods foregoneRedistribution methods foregone: Lengthy, costly, bureaucratic methods of : Lengthy, costly, bureaucratic methods of administrative land acquisition and allocationadministrative land acquisition and allocation

Communal land development foregone:Communal land development foregone: huge expenditure on resettlement sidelines huge expenditure on resettlement sidelines on pro-poor programme and poverty alleviation in communal areas. on pro-poor programme and poverty alleviation in communal areas.

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An economically sustainable land An economically sustainable land reform programmereform programme

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Secure property rights promote investment, Secure property rights promote investment, productivity and libertyproductivity and liberty

The ability to use land as collateral to secure The ability to use land as collateral to secure loans for farm investments and inputs loans for farm investments and inputs

Land is vested in the people themselves, so they Land is vested in the people themselves, so they cannot be held hostage to politicians or chiefscannot be held hostage to politicians or chiefs

The prime task of the Land Commission will be The prime task of the Land Commission will be to put land back into the hands of genuine to put land back into the hands of genuine farmers. farmers.

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Land transfers through the market Land transfers through the market

Land is treated as a finite resource whose Land is treated as a finite resource whose supply is supply is limitedlimited

Demand is limitedDemand is limited by the price farmers are prepared to by the price farmers are prepared to pay for access to land (as an economic resource)pay for access to land (as an economic resource)

Land is transferred (allocated, bought and sold) through Land is transferred (allocated, bought and sold) through a land market a land market

Direct payments are made by the beneficiary or buyer to Direct payments are made by the beneficiary or buyer to the person whose land has been acquired or wishes to the person whose land has been acquired or wishes to sellsell

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Misgiving about a ‘market-assisted’ Misgiving about a ‘market-assisted’ approaches to land reformapproaches to land reform

Rich elites will hold land speculativelyRich elites will hold land speculatively

The rich will buy up land, leaving others The rich will buy up land, leaving others ‘landless’ and destitute‘landless’ and destitute

Small farmers will not be able to afford farmsSmall farmers will not be able to afford farms

Private land ownership is alien to African culturePrivate land ownership is alien to African culture

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A socially responsible land marketA socially responsible land marketA legal and institutional frameworkA legal and institutional frameworkA land market can be controlled to protect the poor by attaching certain rights and A land market can be controlled to protect the poor by attaching certain rights and

conditions on registered land, such as size, consolidation, subdivision, sale, rent, tax, conditions on registered land, such as size, consolidation, subdivision, sale, rent, tax, and so on.and so on.

A land tax will:A land tax will: suppress the price of land and reduce its speculative value suppress the price of land and reduce its speculative value encourage subdivision and, hence, smaller and more affordable farmsencourage subdivision and, hence, smaller and more affordable farms ensure it is more efficiently and fully utilisedensure it is more efficiently and fully utilised raise revenueraise revenue

Support for new farmersSupport for new farmersWhere farmers have demonstrated that they have the training, skills or experience to Where farmers have demonstrated that they have the training, skills or experience to

farm, they could apply for special government packages to buy farms, including farm, they could apply for special government packages to buy farms, including generous loans, with low interest rates and generous repayment schedules.generous loans, with low interest rates and generous repayment schedules.

Cultural sensitivitiesCultural sensitivitiesIn 1994 the ZFU stated that “a land tenure system based on individual ownership is the In 1994 the ZFU stated that “a land tenure system based on individual ownership is the

only system that assures that individuals develop a long term perspective to land only system that assures that individuals develop a long term perspective to land utilisation and development.” utilisation and development.”

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Structural agrarian transformationStructural agrarian transformation

Structural transformation is a stylised fact of development, whereby an ever Structural transformation is a stylised fact of development, whereby an ever greater share of GDP is generated by the manufacturing and service greater share of GDP is generated by the manufacturing and service sectors. It is therefore premised on macro-economic stability, an open sectors. It is therefore premised on macro-economic stability, an open economy and the attraction of direct foreign investment.economy and the attraction of direct foreign investment.

It is the process by which people living in the rural areas take up employment It is the process by which people living in the rural areas take up employment opportunities in towns and cities, thus relieving pressure on agricultural land opportunities in towns and cities, thus relieving pressure on agricultural land (decongestion).(decongestion).

A land market will facilitate this process by: A land market will facilitate this process by: allowing people to realise the value of their rural land for other assets;allowing people to realise the value of their rural land for other assets; leaving more land to fewer genuine farmers to make a decent livelihood leaving more land to fewer genuine farmers to make a decent livelihood

from their agricultural expertise;from their agricultural expertise; encouraging the subdivision of large properties and the consolidation of encouraging the subdivision of large properties and the consolidation of

small properties to break the insidious ‘dual economy’ and create a more small properties to break the insidious ‘dual economy’ and create a more egalitarian agrarian structure.egalitarian agrarian structure.

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Transformation of the communal areasTransformation of the communal areas

CommercialisationCommercialisationThe promotion of high value crops in the smallholder sector through The promotion of high value crops in the smallholder sector through

contract growing, out-grower schemes and syndication.contract growing, out-grower schemes and syndication.

Land tenure reformLand tenure reformThe gradual introduction of land tenure reforms to unlock the collateral The gradual introduction of land tenure reforms to unlock the collateral

value of land to promote more efficient agricultural production – but value of land to promote more efficient agricultural production – but only within a framework of democratic participation and the informed only within a framework of democratic participation and the informed consent of communities.consent of communities.

Poverty alleviationPoverty alleviationGovernment and international assistance can focus on pro-poor Government and international assistance can focus on pro-poor

programmes and projects, safety nets, and the building of physical programmes and projects, safety nets, and the building of physical and social infrastructure to ensure the livelihoods and well being of and social infrastructure to ensure the livelihoods and well being of the poorest and most vulnerable households.the poorest and most vulnerable households.

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ConclusionConclusionTo a brutalised and impoverished people yearning for peace, it is To a brutalised and impoverished people yearning for peace, it is

understandable that some believe that a just, transparent and economically understandable that some believe that a just, transparent and economically sustainable programme is beyond our reach. sustainable programme is beyond our reach.

This would be a tragic mistake. Peace cannot be bought by sacrificing This would be a tragic mistake. Peace cannot be bought by sacrificing justice.justice.

We must start thinking now of how we will peal away layer upon layer of We must start thinking now of how we will peal away layer upon layer of unjust and senseless legislation that has stripped Zimbabweans of their unjust and senseless legislation that has stripped Zimbabweans of their constitutional rights, their human rights and dignity, and their property rights. constitutional rights, their human rights and dignity, and their property rights.

We should start thinking now of how to reconstruct simple, clear and concise We should start thinking now of how to reconstruct simple, clear and concise constitutional provisions and protections, as well as land and agricultural constitutional provisions and protections, as well as land and agricultural legislation on which: legislation on which:

to construct a way forward that restores full agricultural productivity; to construct a way forward that restores full agricultural productivity; is founded on justice and the rule of law;is founded on justice and the rule of law; and that brings economic and social recovery for the benefit of all and that brings economic and social recovery for the benefit of all

Zimbabweans. Zimbabweans.

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Email addressEmail address

If anyone would like a copy of this If anyone would like a copy of this presentation please contract me at:presentation please contract me at:

daledore@zol.co.zwdaledore@zol.co.zw