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Moz land policy-for-agric-transformation

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  • 1. Background and Motivation Data and Methodology Results ConclusionProspects for land policy reforms for agricultural transformationTenure 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 ConclusionBackground: 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 ConclusionBackground: 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 ConclusionBackground: 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 ConclusionEvolutions 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 ConclusionThe 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 approachesThe Continuum of Land Rights Approach
  • 9. Continuum Approach and the Land Reform in Mozambique
  • 10. Continuum Approach and the Land Reform in Mozambique
  • 11. Continuum Approach and the Land Reform in Mozambique
  • 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 ConclusionVariables of interest1. 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 ConclusionVariables of interest1. 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 householdss 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.
  • 18. Mapping: land scarcity versus tenure (in)security (Actualcultivated area)
  • 19. Mapping: Land scarcity versus tenure (in)security (potentialarable land)
  • 20. Mapping: Modes of land acquisition versus land scarcity
  • 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 households investment on parcel boundary demarcations while its eect on productivity enhancing investents (conservation structures) is negative.
  • 28. Background and Motivation Data and Methodology Results ConclusionConclusion ... 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