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Access to land and the right to food 2010, para. 19
- Paragraph text
- Finally, the creation of a market for land rights may itself have a series of undesirable consequences. The primary justification for the establishment of such a market is that it facilitates the reallocation of land towards more efficient users, thus providing an exit route from agriculture for rural residents for whom farming is not sufficiently profitable. Accordingly, the World Bank notes, "secure and unambiguous property rights … allow markets to transfer land to more productive uses and users". However, the impact of titling on farm productivity has often been unclear when it has not been complemented by schemes providing producers with appropriate levels of support. Land sales tend to favour not those who can make the most efficient use of land, but those who have access to capital and whose ability to purchase land is greatest. In fact, the creation of a land rights market can cause land to be taken out of production in order to be held as an investment by speculators, resulting both in decreased productivity and in increased landlessness among the rural poor. The poorest farmers could easily be induced to sell land and then be "priced out", particularly if they have fallen into debt as a result of a bad harvest or other circumstances. Thus, considered in isolation from other policies, individual titling may have counterproductive effects, increasing the vulnerability of the poor. Indeed, the idea that individual titling contributes to poverty reduction as land is transformed into capital presupposes that property is transformed into collateral, collateral into credit and credit into income. However, the poor, for whom land is an essential social safety net where no others are available, may in fact be reluctant to mortgage their land in order to gain access to credit. Nor does titling necessarily result in significantly greater access to the credit offered by private financial institutions.
- Body
- Special Rapporteur on the right to food
- Document type
- Special Procedures' report
- Person(s) affected
- All
- Year
- 2010
- Date added
- Aug 19, 2019
Paragraph
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