Writing Sample

TOPIC: EVOLUTION OF WORLD BANK LAND POLICY LAND MARKET AND MANAGEMENT
The paper talks about the accessibility of land ownership rights to different users in rural areas. The emphasis is given on
the need of ownership of land and related assets in the enhancement of productivity of a particular individual. The
complex procedure of land ownership and its sticky nature makes it difficult for an individual to possess the assets and
thus options of rental and other means of land titling has been in focus.

The World Bank land reform policy, thus, in 1975 recommended abandonment of the communal ownership of land in
order to increase freehold title. This was solely done to subdivide the land. However, in the latter part, communal
ownership and rental was seen as a much better option. As all these regulations comes under the; land policy, land
policies are considered an integral part in the broader development process.

The World Bank land policy argued in three observations related to property rights. The first one is related to the residual
rights given to the farmer. Taking examples from China, Ghana and Niger, the paper developed a relation between
ownership of land and increase in output and productivity. The reason being that, land acts as a collateral and provides
with security and risk taking in terms of investments in farm improvements. The second observation access to credit, as
secure ownership of land can increase the supply of credit from formal sources. For example, in China, more secure
transfer rights are associated with higher allocative efficiency in the economy. One thing which is also highlighted while
talking about productivity of land in this paper is the relation between farm size and productivity. According to various
evidences, there exists a negative relationship between farm size and productivity, and these results due to labour
imperfections, such as; hiring of labour in large tracts of land is less productive than family members working on the same
land.

The third observation is the Importance of land market transactions: as mortgaged land cannot be used as collateral; the
borrower would not be able to maximize its benefits. In addition, the tax, and subsidies which further increase the price
of land, which cost the farmer more than the agriculture profits, would further decrease the involvement of poor. This
will make it difficult for the landless farmers to finance or purchase land.one of the reason stated for the above statement
is that, presence of liquid assets to the households determine its ability to enter high risk but high return activities.

The localized nature of land and segmented market reduces the further transaction of land. The alternative for this is
either informal market or tenancy. However, tenants only invest in long term investments when the output they are
getting is more than the input given.

The paper also talks about the land reforms, which were supported by the World Bank land policy 1975. Firstly, it supports
the egalitarian approach towards distribution of land as it provides, at the time of distress, food security and with stand
shocks. Three things which are discussed in the paper, which enhance productivity are

1. Access to markets and credit on the availability of collateral

2. Credit and insurance because of ownership
3. New technology inclusion or ease of adaptation

The process of formal titling is difficult due to the high transaction cost incurred in the process; this widens the gap
between large producers who can access it but difficult for the small producers. However, examples from Mexico have
suggest that clear formal title is always not necessary to facilitate operations of market.

CONCLUSION

The formal titling of land, which has been believed to be the most desirable way to ensure tenure security. However,
taking examples from different countries and keeping in mind the transaction, nature, taxation and other factors, which
comes with the formal title of land, other process of rental and communal ownership, seem suitable. Thus, the policies
should additionally focus on the new model of land tenure security and more effective toward other forms of land titling.