Bad-faith Expropriation Bill not grounded in South Africa’s land realities - 17th April 2008
John Kane-Berman says that giving the government greater expropriation powers will not remedy the problems of large-scale failure in land reform. This column appeared in Business Day on 17th April 2008.
Apart from undoing the damage done to education by Verwoerdian
policies, correcting the injustice of apartheid land engineering is the
greatest challenge South Africa faces. How does one rectify a century
of exclusion, confiscation, and forced removal?
Financial compensation, applied to restitution claims, is one way. As
land affairs officials have observed, however, this may not work with
rural land as some communities have taken the money, spent it, and then
come back and asked for the land too. Although 93% of restitution
claims have been settled, the outstanding claims will be the most
difficult.
Nor are these the only problems with land reform. In November last year
the new director general of land affairs and former chief land claims
commissioner, Tozi Gwanya, estimated in the Sunday Times that ‘close to
half our land reform projects have failed’. The real question about
land reform, he added, was, ‘What will happen to the land once it has
been transferred?’
One reason for the shocking failure rate is that this question was not
asked. The amount of land transferred was all that counted. Another
reason is the attitude that farming is a piece of cake, typified in the
recent remark of the agriculture minister, Lulama Xingwana: ‘We have to
lure our youth back to the lands [and] show them that agriculture is
not only about working in the sun and mud, but that there are more sexy
options – such as making cheese, ice-cream, wine, beer, or
whiskey.’
Also in November 2007, Gwanya acknowledged to the Farmer’s Weekly that
land delivery – 4 million hectares out of a target of 25 million – had
been slow, but added that the targets were too steep. ‘If we are to
give another 25% of our agricultural land to the previously
disadvantaged, we must ensure that they can participate in the
commercial agricultural economy.’ New targets should reflect jobs
created, income earned, and productivity. There was little point in
dishing out land and ‘ending up with assets that are dying in the hands
of the poor’.
Gwanya’s deputy, Mdu Shabane, said some beneficiaries of land reform
had ended up ‘worse than before because they lack the skills and
resources to unlock the potential of the soil in a profitable and
sustainable manner… We will be wasting a precious resource by
indiscriminately settling people on arable land simply for the sake of
transformation.’
Despite the reservations of senior officials, the Expropriation Bill
currently going through Parliament shows that the government is
determined to accelerate the pace of Xingwana’s promised ‘agrarian
revolution’. The bill will supposedly accelerate transfers for both
restitution and redistribution purposes by giving the state wider
expropriation powers.
The bill serves three main objectives, only one of which is to rectify
the injustice of the land acts of 1913 and 1936, which reserved most
land for whites. Its second, revolutionary, objective is to satisfy
those in the African National Congress and among its communist and
trade union allies who are ideologically opposed to the
willing-buyer-willing-seller principle and the respect for private
property ownership it implies. Its third, political, objective is to
create the impression that the government can remedy the hitherto
largely disastrous execution of land reform. The bill is both a
smokescreen to deceive the supposed beneficiaries of land reform and a
means of making the free market a scapegoat for the government’s
ineptitude. No proof of the failure of willing-buyer-willing-seller has
been produced.
Conceived thus largely in bad faith, the proposed legislation shows no
regard for its potential impact on confidence, investment, or even food
production.
Even though there may not be many ‘sexy options,’ there will no doubt
be successes. Some will depend on the 5 000 agricultural
extension officers to be trained over the next three years – though
when their expertise will become available is anyone’s
guess.
For the government to reach its target of transferring 30% of white
farm land to blacks by 2014 would mean doubling, tripling, or even
quadrupling the annual rate of transfer so far. Given the incompetence
that pervades so much of government, the greater expropriation powers
may not achieve this. But if it is achieved, the result will probably
be even more assets dying in the hands of the poor.
* Kane-Berman is the Chief Executive of the South African Institute of
Race Relations.