By S.I. Cohen
This learn is an try to give a contribution to our figuring out of 1 of an important reforms at the moment recommended by way of improvement economists to minimize rural poverty in constructing nations: land reform. Dr. Cohen has established his research on versions during which 3 social teams are appearing: those, for brevity's sake, are known as land lords, peasants and the teams who contain the non-agricultural region. Peasants comprise the so-called landless peasants which western international locations as a rule time period agrarian staff. the tactic might be prolonged to bigger numbers of teams. The actors are concerned about a number of actions, together with construction, intake and saving, the latter being to be had both for actual or for monetary make investments ment. this means that quite a few wealth parts look within the version along flows of products and companies. Use is made from determinate types with linear and non-linear equations of a dynamic personality. The versions are hired to estimate socio-economic improvement below substitute regimes. Regimes range, at the one hand, in accordance with which workforce is in energy and, nonetheless, in response to the tools of monetary coverage they use. it really is an enticing function of Dr. Cohen's examine that the types are utilized to 2 nations for which the entire priceless statistical fabric has been predicted: India and Chile. For either nations a short socio-political comic strip precedes the numerical program of the versions. For India 5 tools of socio-economic coverage are thought of: land transfers, measures to stimulate productiveness, credits rules, taxes and tenure and salary regulations.
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Extra info for Agrarian structures and agrarian reform: Exercises in development theory and policy
The administrative difficulties are equally serious. The dangers of evasion are equally acute. 6. Tenancy and wage regulations Tenancy arrangements wherein the tenant transfers to the owner, as rent payment, about half of the crop are the most common type. Although the abolition of tenancy has been the ideal of many landreform movements, it is debatable whether tenancy can ever be entirely abolished in any system which recognizes the right to own private land property. As long as the demand for land exceeds its supply it can be observed that the landless and small land- THE ECONOMICS OF AGRARIAN REFORM 39 owners are bound to take, and the big landowners are bound to offer, land under tenancy arrangements of one kind or another.
It is often held that these costs are exhorbitant but there is so far little systematic analysis of benefits against costs to allow drawing clear conclusions. The socio-political context in which colonization is implemented, mostly in Latin American countries, has greatly reduced the general effectiveness of colonization. According to Thiesenhusen (1971), some countries have misused colonization: a few showpiece projects may be offered as a substitute for institutional change in the countryside.
The same may apply to agricultural income taxes, see Cohen (1972). The difficulties in assessing, revising or administering these taxes are no less then in the case of traditional land taxes. It is also argued by many that a major purpose of the traditional land tax is to mobilize the surplus in the agricultural sector and transfer it to the industrial sectors of the economy. For example, increased taxes increase the farmer's monetary requirements and compel him to sell more of his output as marketed surplus for use by the rest of the economy.