Another good article from my friend
Barun Mitra (2nd from right in photo) of Liberty Institute in India, co-authored with his wife Madhumita
Mitra, posted before the on-going India general elections started early this
month.
I particularly like
their point on
"Abolish land
ceiling laws, particularly in agriculture to facilitate consolidation such
fragmented land into viable farm units."
That is similar to
the campaign to end the no-time table agrarian reform (AR) program and forced
redistribution of agri land here in the Philippines. AR was started in 1972 by
the Marcos government, then a new law on AR in 1988 during Pres. Cory Aquino’s
time with 10-years time table. The 1998 deadline came, and AR was extended to
2008. And further extended to June 2014. Now there are moves to further extend
it for many years more.
-----------
India’s land
management regime has for decades been mired in obsolete laws and misguided
policies that distort markets, enable corruption, and deny fundamental property
rights. Current land policies are a mix of outdated laws and even more obsolete
ways of thinking, many of which are rooted in colonial India.
The paradox is best
illustrated by the fact that many landowners, including farmers, would like to
move out of agriculture, but cannot find remunerative price for their land
assets, while industrialists and investors who would like to buy land cannot
find access to land at a reasonable price. Tens of billions of dollars of
investment, in public and private projects have been stalled due to land
related conflicts. This land alienation is also contributing to a section of
society sympathising with leftwing insurgency in some parts of India.
Land is the only
asset that most Indians, even the poorest, possess to at least some degree, but
technicalities often prevent them from claiming legal ownership over what they
possess. A functioning land market founded on strong property rights would
expand the opportunities for economic advancement for those who possess land,
empowering them as citizens in a democratic India. Such a market would also
allow those with wealth to access and invest in property and engage with land
owners in mutually-beneficial transactions, rather than trying to use their
waning political influence to access land.
The 16th General
Elections to the Indian Parliament, the House of the People, (Lok Sabha), is
being held thro’ April-May 2014. A new government will take office by the end
of May. Reforming land management will be a key factor shaping the political
and economic trajectory of the country. In that context, we suggest the
following agenda items, which may be considered by the incoming government, and
the country at large, in the coming months and years.
§ Clearly articulate the need to create a
functioning land market which will significantly reduce the need to invoke
eminent domain.
§ Partner with private, community and
public-sector stakeholders to build a modern land recordkeeping infrastructure
based on GIS and other imaging technologies.
§ Abolish land ceiling laws, particularly in
agriculture to facilitate consolidation such fragmented land into viable farm
units.
§ Eliminate capital gains tax. In a poor country,
taxing capital is self-defeating.
§ Drastically reduce or eliminate fees and taxes
that impede land transactions and increase the potential for corruption,
replacing them with a nominal fee to cover only the administrative costs of
keeping up-to-date land records.
§ Transfer authority over land-related regulation
such as zoning, land use and environmental concerns, to local governments and
councils.
§ The scope of eminent domain needs to be
severely restricted to truly public purposes, and with the consent of those
affected, not to facilitate private investment and business projects.
§ Recognise the land owners rights over forest
and other environmental resources, including minerals, whether above or below
the ground.
§ A new mines and mineral law, which recognises
the rights of land owners and communities, and allow them to directly negotiate
access and royalty with investors, is much awaited.
§ A land titling law to grant conclusive title
guarantee to land owners is imperative. Property transfers must legally
validate transfer of titles rather than merely enabling registration of the
deed.
§ Restoration of Right to Property as a
fundamental right in the Constitution.
----------
See also:
Agri Econ 7: Bt Eggplants vs Environmentalism, December 20, 2010
Agri Econ 8: On Rice Price Stabilization, January 16, 2013 Agri Econ 9: On Agrarian Reform and Agri Credit, April 29, 2013
Agri Econ 10: On Rice Price Spikes, September 29, 2013
No comments:
Post a Comment