Land Reform In Colombia

By: EconomyWatch   Date: 21 April 2010

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Land reform in Colombia has been implemented to replace the old method of land distribution which was characterized by confiscation of large agricultural land by the state. The government intended to bring about changes in the restrictions imposed on the size of the land possessed by individuals. These restrictions were either eased or eradicated altogether under the land reform policy. Agricultural land owned by the state were handed over to the agricultural workers, who irrigated and cultivated the land. With the introduction of the new land reform policy; renting out of land and sharecropping was permissible. Laws pertaining to foreign leasing as well as corporate leasing were framed. As per norms of land reform in Colombia, registration of land was also encouraged. The Land Reform Policy of Colombia did not allow individuals to use land as collateral in their credit transactions.

For the last thirty years, the government in Colombia along with the World Bank have undertaken several projects to bring about stability in land reform in the country. The number of people living in the villages in absolute terms, had escalated from 6 million in the year 1938 to 11 million people in the year 1993. The number of people indulging in farming activities have also increased from 1.9 to 2.7 million in the years 1938 and 1993 respectively.

Causes of failure of land reform in Colombia:

World bank has been an active participant in land reform policies of Colombia. In the year 1996, the World Bank disbursed loans for the purpose of land reform. These loans were used in reform of land market, as the agricultural land were made available at a subsidized rate. This program was formulated according to Law 160, in the year 1994. This subsidy program assured people of accessibility to the agricultural land. It also assured people that the state would in no way interfere in matters related to land. This program was known as Incora. But, Incora failed because the rate of interest offered under this loan program were very high and people who had taken loan under this program failed to return the money.

Land reform in Colombia- 1980 to 2000:

In this period Colombia experienced a lot of uncertainty. On one hand, people were investing in real estate development projects in the villages of Colombia. On the other hand, owing to crisis in farming activities, the businessmen in the villages were declaring bankruptcy.

It was later realized that only creating committees and groups would in no way benefit the farmers. Land reform in Colombia would be beneficial only if the farmers actively participate in the programs of land reform.


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