2009 - Fundo Zamorano Slides - Work Conclusion University of Florida

1. Conclusions

2. Land Inequality During the 1960 Agrarian Reform period Venezuela continued to have one of the highest levels of land inequality in Latin America, according to the Gini Index Since the 2001 Law of Land and Agrarian Development this situation has improved dramatically The 2001 measure has benefited around 2 million people and reduced land concentration in Venezuela In both the case study and in other FundosZamoranoscampesinos and impoverished urban workers have obtained access to land previously denied to them under other administrations. The limits placed on the re-sale of land and the temporary nature of the CartasAgrarias represent an attempt by the government to prevent a re-concentration of land in the hands of larger producers in the future.

3. Problems of Cooperative Membership Retention of members – both in the case study and in other cooperatives Some cooperatives are close to the minimum legal limit Membership fell due to: Administrative breakdown of the fundo Initial living conditions at the fundo – buildings initially lacked electricity, running water, no basic services. Lack of infrastructure and remote location meant members found it difficult to retain other occupations outside the Fundo, and some were forced to leave Income problems among cooperative members – government was not always timely in awarding credit Strained family relationships – due to inadequate income and prolonged time away from families VuelvanCaras preparation is inadequate Leads to administrative breakdown Members have no previous experience in cooperatives and differing degrees of commitment Difficulties in decision making Misallocation of resources by the cooperative’s administrators Increasing reliance on hired labor To compensate for the decline in membership Is the decrease in membership numbers linked to the ability of members to continue their pre-reform income generating activities and the proximity of the fundo to an urban center? HOWEVER: having only a few members means cooperatives are able to work together better and reach the targets set out in the Plan Emergente The shift to cattle production will decrease the number of members needed in the cooperatives Cooperatives could also benefit by offering membership to some of the more experienced and efficient hired workers.

4. Improvement in Living Standards In FundosZamoranos close to Caracas the government has: built solid tile roof houses Provided individual houses with their own personal decorative gardens Provided electricity, refrigerators, gas kitchens, televisions, furniture, recreation areas and sometimes even cable television. Allocated a bus to transport the children to school In contrast, at the more productive Fundo Alejandro de Humboldt living conditions remain precarious The slow improvement in infrastructure has required the constant mobilization of the vocero and members of the fundo Some members of FundosZamoranos have improved their living conditions as a result of the agrarian reform whereas others are actually earning less than they did as salaried workers. The majority of members of the Fundo Zamorano Alejandro de Humboldt were either unemployed or earned a small salary as a wage worker FundosZamoranos have provided employment to a substantial sector of the unemployed rural population in an effort to reduce poverty levels in the countryside. Sense of brotherhood and camaraderie at most of cooperatives – people work, eat, sleep, hunt and celebrate together as equals

5. Availability of Credit Benefited private and public producers Fundo Alejandro de Humboldt: Credits awarded for both animal and crop production Governmental credit institutions set low interest rates Are lenient in forgiving farmers if they are unable to repay their loans Government has increased rural investment and funding for credit institutions in the past few years Private producers said access to credit was the greatest improvement in the agricultural sector since Chávezcametopower Credit has beenawardedtosmall and mediumscaleproducers and allowedthemtopurchase vital inputs HOWEVER, thegovernment’s credit policy has been criticised for being too lenient in its distribution and follow up of loans Failures in crop production at the fundo have been excused by the government for an array of different reasons and loans have been pardoned. Misuse of government credits for personal enrichment Producers were confident government was improving accountability and would soon crack down on those who misused the system As of 2008, despite billions invested in agriculture there have only been limited returns in terms of agricultural production

6. Conflict between Members, Production Units and Technicians Conflict between different parties is common, not just in the Fundo Alejandro de Humboldt but in FundosZamoranos across the country Lack of an extension agronomist living at the Fundo = major cause for mistrust and misunderstanding High level of distrust of government officials and strangers due to intimidation from previous owners Lack of support from local police Delays in the implementation of measures promised by the government

7. Fear of Expropriation Chávez’s agrarian reform has increased fear of expropriation among both large and medium sized producers. The regime has increasingly moved towards socialism, sparking fears of expropriations among many medium sized producers who had obtained land under the 1960 reform. Fears about abolition of private property and the transformation of land titles into temporary usufruct rights of production. Many owners face difficulties in proving their legal ownership of land due to Fake land titles Inadequate documentation of their property Widespread feeling that government expropriations are arbitrary, and that the government could designate any land titles as illegal Uncertainty about land ownership and government price controls has decreased large land owners’ incentive to invest in their property Also difficulty in finding reliable workers Regional agrarian authorities have the final say about what constitutes adequate production levels Fear that these regional authorities will, in reality, mainly serve the interests of the central government

8. Ideas for the Improvement of the Fundo Zamorano Alejandro de Humboldt Have an agronomist or other government worker assigned permanently to the fundo. Some NDE and FundosZamoranos have a resident extension agronomist Having extensionists diminishes but does not eliminate communication problems between cooperative members and government workers. Improving road conditions is imperative for the adequate functioning of the fundo and coordination between cooperatives and government entities. A means of communication such as radio transmitters or improve cellphone reception would increase communication and reduce the number of hours lost by production units as they coordinate their efforts. A reorganization of the fundo a redistribution of land to active and functioning cooperatives as well as increasing cooperative membership numbers would increase the sustainability of the fundo. There continues to be a large amount of idle or unproductive land in the fundo, particularly, within the land originally given to currently inactive production units. Some cooperatives may be attempting to reconcentrate land at the fundo.

9. Further Research Need for further study of other FundosZamoranos A continuation and update of this study A new study of the Venezuela agrarian reform, taking into account the changes that have taken place since the most recent studies (Wilpert, 2005; Soto 2006). An updated study of the sustainability of agrarian production cooperatives in Venezuela.