Tag Archives: Joe Hanlon

Transforming Zimbabwe’s agrarian economy: why smallholder farming is important

In a recent article in the Cape Times , prompted by Max du Preez’s review of Joe Hanlon and colleague’s book, Tony Hawkins (professor of economics at UZ) and Sholto Cross (research fellow at UEA) make the case that Zimbabwe’s land reform has been a disaster, and that a smallholder, ‘peasant’ farming is not a route to economic growth.

Beyond the wholly inappropriate ad hominem attack on Hanlon (respectable newspapers should not publish such insults I believe – although they have printed a response), what is their actual argument? The views of a neoliberal economist and a one-time communist should be interesting I thought.

The full-page article starts with a slightly bizarre critique of what has become to be known as ‘peasant studies’, a strand of academic work that has built over the years (it’s the 40th anniversary of the Journal of Peasant Studies this year – and you can read 40 of the ‘classics’ in a free virtual issue – just sign in, it’s quick and easy!) that examines the dynamics of change in agrarian societies. They pinpoint the work of Frank Ellis at UEA and those at Sussex, including myself – but probably more appropriately Michael Lipton – who have advocated a smallholder path to economic development.

But it is a very odd caricature of these positions. There are very few who argue for a permanent condition of subsistence peasantry, somehow preserved in aspic. The point is that as a labour intensive, efficient form of production, small-scale agriculture, given the right support, can be an important driver of economic growth and poverty reduction (inclusive, pro-poor growth to use the current jargon). Diversification out of agriculture is an important dynamic too, as Frank Ellis’ work has shown from across Africa. As Michael Lipton argues in his magisterial book (now thankfully available in paperback), based on a mass evidence and experience, land reform can be an important spur to such a transformation. This is the foundation for the so-called East Asian economic miracles – in Korea, Taiwan, Japan and elsewhere.

This process of change is always dynamic, and takes time. Resettlement success, just as wider economic change resulting from large-scale redistribution, is never immediate, as Bill Kinsey and Hans Binswanger have shown. Restructuring of agricultural production has to be combined with the reconfiguration of supply industries and wider value chains. And following any redistributive land reform, there are inevitable processes of differentiation among agrarian classes. Some end up with larger plots, some smaller, others as labourers. It is the well-known multiplier effects of small-scale agriculture that can create economic opportunities elsewhere, and provide other non-farm livelihood opportunities, and so broader based growth. Migration to urban areas is also important, but maintaining a rural base as part of a wider social security mechanism is also crucial. And, yes, as the economy grows, there is a greater pull towards higher paid, industrial jobs and people leave the countryside over time. In their article, Hawkins and Cross forget this historical experience, and misinterpret the experience of China. Ha-Joon Chang has written a brilliant piece in JPS that is well worth a read if you want to get to grips with the comparative historical lessons – from Europe, Asia, Latin America and beyond.

Such transformations are therefore long-term processes, and always highly context specific. In the developmental states of East Asia (and elsewhere, and earlier in Europe), the state has an important role to play: protecting people and new businesses, and so guiding and nurturing the transition through targeted incentives and subsidies. You cannot expect the existing arrangement to be appropriate to a new scenario, so it’s important to facilitate the change of the wider agro-industrial base. What we are seeing in Zimbabwe is not so much “deindustrialisation” but a fundamental restructuring. Supporting such a transformation is essential, and this requires investment – something starkly absent in Zimbabwe due to a bankrupt government, a lack of private finance and donors refusing engagement due to sanctions.

Hawkins and Cross appear to reject such an agrarian vision for Zimbabwe. A welter of statistics are presented that fail to engage with the now substantial evidence base on Zimbabwe’s rural economy, presenting once again dubious production, employment, displacement and GDP figures to support their argument. Without reviewing the data (in Hanlon et al’s book, as well as ours, Matondi’s, Moyo and Chambati’s and many others), they proclaim that Zimbabwe’s land reform has been a failure, and that only option for economic growth in Zimbabwe is the old model of a large-scale commercial agricultural sector, combined with industrial manufacturing, reclaiming the assumed halcyon days of the 1990s (which of course they were not).

This view is deeply problematic. A focus on the large-scale agricultural sector may produce some growth, although in the globally competitive markets of today it is unlikely to produce much, but will it produce jobs and livelihoods? Jobless growth creates social divisions, inequality and pressure on the state to provide social protection to the economically disenfranchised. Look at the ‘third world’ in Europe and you can see the challenges. Zimbabwe’s own history, from the liberation war to the events of 2000, should show anyone that a return to an economic structure dominated by a few, but excluding the majority is not a politically viable option, even if it made any economic sense (which is very doubtful).

Hawkins and Cross seem blind to the opportunities of the new agrarian structure, rejecting these out of hand. Have they done any field research I wonder (I could not find any – only multiple ‘opinion’ articles from Hawkins)? Research from diverse sources has shown how across the new resettlements there are large numbers of new farmers ‘accumulating from below’ – generating surpluses, investing and accumulating. Not everyone, but enough to generate an economic dynamic that creates investment and employment. This has been done with vanishingly little external support. What more could be done if such support was larger and more effectively directed? Hawkins and Cross begrudgingly acknowledge the successes of some communal farmers in the 1980s, but this time the impact could be much wider, as there are more people involved, and they are geographically spread. In our book we argue for a form of local economic development that capitalises on this new agrarian dynamic, rooted in smallholder farming, but spinning out to new businesses and value chains. The new farmers are creating new local economies – currently small-scale, but with clear opportunities for generating further economic linkages.

Take the tomato farmers in Wondedzo resettlement areas near Masvingo – one of the case studies being documented by the PLAAS project on non-farm economies. Recognising the importance of the local market, they have invested in small-scale irrigation pumps, cleared land near the river areas, and have started to produce vegetables on a large scale. As their businesses have grown, they have employed more people, mostly women from nearby areas, and have worked with suppliers to get their crops to market. This has generated more employment along the value chain, with traders, transporters, retailers, supermarket chains and others becoming involved. Several have bought new one tonne trucks in the last year, to ensure prompt delivery to market. Again, this has brought new economic activity, with drivers, mechanics and others finding work. Input suppliers are attracted to the area, offering seeds, fertilisers, pesticides, piping, pump spare parts and more. And all of this is happening in the new land reform areas – without external support; yes on a small scale, but with significant cumulative impacts.

By area this sort of economic activity generates far more jobs and livelihoods than the large-scale commercial farms ever did. Being economically and socially integrated within rural settings, not set apart as was the case before, the multiplier effects are greater. Sales occur to supermarkets but also to small-scale traders – women who travel by bus to other towns and business centres to sell vegetables, sometimes processing them too to add value and to avoid losses.

But of course an agricultural economy cannot be just small-scale. The new agrarian structure of Zimbabwe is ‘tri-modal’, with a majority being small-scale (in the communal, A1 and old resettlement areas), but there are also medium scale commercial farms (A2) and the large-scale estates. Each can seek out their comparative advantages, and specialise production and marketing appropriately. But the important point is that there are now much greater opportunities for interaction – through contract farming, sharecropping, labour and market exchanges, and so on. This sort of integrated approach across farm scales to agricultural and rural development can have many spin-offs, and appropriately banishes the old dualism – a separation between ‘peasant’ agriculture and ‘modern’ commercial agriculture with its stark racial and economic divides – firmly to the past.

Hawkins and Cross seem to wish that this returns. They argue – on quite what basis it is not clear – that this is the only route to economic recovery for Zimbabwe. Yet they seem to reject the potentials of the dynamic entrepreneurialism and economic multipliers of the new agrarian system. With the potential of substantial state revenues from mining (as yet not fully captured of course), this is a moment when Zimbabwe could and should become southern Africa’s new developmental state, rebalancing the economy, and directing and supporting development in ways that allows for long-term, inclusive, poverty-reducing growth, initially rooted in smallholder production, but always transforming, as the economy rebuilds and restructures. Looking east, may well be the right thing to do, and the lessons from East Asia, as well as now SE Asia, may well provide important lessons.

At this critical moment, in advance of elections, political parties, media commentators, and academics alike need to engage with the realities on the ground, and avoid the posturing, the ideological grandstanding and the bitter, personal attacks and get to grips with the new realities. Harking on about the past, and failing to accept that there have been important successes of Zimbabwe’s land reform means that new thinking does not emerge. Hawkins and Cross need to engage with the facts of the present, not some idealised notion of the past.

This post was written by Ian Scoones and originally appeared on Zimbabweland

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Difficult lessons from Zimbabwe that some South Africans just don’t want to hear

Respected South African journalist Max du Preez put his head above the parapet a few weeks ago and commented on the new book, Zimbabwe Takes Back Its Land. His article opened as follows:

“It is something many South Africans do not want to hear and would probably find hard to believe: Zimbabwe’s radical land redistribution has worked and agricultural production is on levels comparable to the time before the process started. What is more meaningful is that the production levels were achieved by 245 000 black farmers on the land previously worked by some 6 000 white farmers”.

A huge storm of Facebook, Twitter and newspaper comments resulted (literally thousands!), mostly from angry South Africans outraged at the idea that redistributive land reform involving small farmers could possibly work in any form.

As du Preez comments in a follow up piece: “I was truly astonished at the blind anger and irrationality of many of the reactions, even from otherwise well-informed and balanced people.” There was, he said, “so much heart, so little reason” and in their anger people rushed to comment before even reading the piece. This is a familiar pattern. I wonder sometimes if people ever bother to read our book, before launching off into derogatory commentary.

I have looked at some of the comments, and he is right: the irrational vitriol is plain to see. Joe Hanlon and I are attacked in extreme (although sometimes quite amusing) terms, accused of being communists from second-rate universities, bogus allies of Mugabe and more! It is all quite bizarre – and would be upsetting if it wasn’t so wild and weird. Having been involved in this debate for over a decade, I am quite immune to the insults and attacks these days, but in this concentrated form it is striking. Perhaps more so because it was from mostly white South Africans, showing beyond doubt that land remains an emotional subject on both sides of the Limpopo. Zimbabweans of course also joined in, including MDC MP Roy Bennett who weighed in with a similar line, tempered with some sensible points about the variation in agricultural production among crops.

As du Preez comments during the long Facebook exchanges following his articles, it is interesting to see how clearly educated people are immune to evidence and argument when they don’t want to hear it. The ‘evidence’ they use for their rebuttals is not further research, but usually some casual observations made while driving through some part of the country. They see it seems nothing but ‘destruction’ or ‘desolation’, but clearly don’t talk to the new farmers or leave the main road.  Alternatively, evidence is garnered from accumulated anecdotes from Zimbabweans living in South Africa or friends in Harare relayed by phone call; all offering it seems the same dismal narrative. And if the real research evidence is not to their liking they argue it must be biased, fixed or based on inappropriate research and sampling methods, and so is simply dismissed.

If white South Africans remain with their heads so firmly in the sand, the consequences of not dealing with gross, deep inequities will surely confront them at some point. As in Zimbabwe, doing nothing and hoping it will go away is not enough. Political dynamics will at some stage see to that, as discontent mounts. As du Preez notes in his article, South Africa is not the same as Zimbabwe, and only selected lessons can be learned. But if angry denial is the only way of dealing with the issue, there is a clear problem. As he correctly observes: “We urgently need to throw old, conventional thinking overboard and tackle our problem with more vigour.”

In summing up his second piece, du Preez argues:

“I think we should accept that, at the very least, the impression we in South Africa had that agriculture in Zimbabwe was still in a state of utter collapse after the land redistribution is wrong. We should accept that a substantial number of new Zimbabwean farmers, big and small, are actually commercially successful. That is significant, especially if one considers that a great historic wrong has been addressed and that hundreds of thousands of Zimbabweans are now settled on the land of their ancestors. It still doesn’t make the way the redistribution happened right. It still doesn’t make it a model for South Africa to copy. It does mean we should make a mind shift around land reform. We should stop seeing it as a threat and start seeing it as a priority to redress past wrongs and further stability. Land reform is about people, not merely about hectares and statistics”.

I agree. I hope Mr du Preez continues to report on Zimbabwe, as this sort of debate is going to be essential for the region as a whole. He will have to have a thick skin, but good journalists who unearth uncomfortable stories usually do.

This post was written by Ian Scoones and originally appeared on Zimbabweland

 

 

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Guest Blog: Land Reform in Zimbabwe Revisited: Reflections from a book launch in London

At the end of January, the influential London-based think tank, Chatham House, hosted the launch of a new book on Zimbabwe’s land reform – Zimbabwe Takes Back Its Land.  It generated some UK media coverage which in turn provoked an outcry from some activists based in London, the Zimbabwe Vigil. Outside Chatham House, they organised a small protest, and handed out leaflets with commentaries from Ben Freeth, Eddie Cross (MDC Policy Coordinator General) and Charles Taffs (President Zimbabwe Commercial Farmers Union).

Why is it that the debate about Zimbabwe’s land reform continues to generate such heat, perhaps especially in London? Why was it that a protest (admittedly in the end of only a few people) was organised about a book reporting empirical research? Why is it that those who oppose the land reform cannot engage with the empirical data? Why, after so long, can the debate not move on?

I was unable to attend the launch or interact with the protest and find out what they objected to, but I asked Dr Admos Chimhowu, a Zimbabwean scholar working at the University of Manchester, who was offering some comments at the event, to provide a report for this blog which he kindly did. Here are Admos’ reflections:

“Fast Track Land Reform is fast becoming an interesting area of intellectual and policy exchange as more empirical evidence of its outcomes emerges. The most recent event aptly titled Land Reform in Zimbabwe Revisited: A Qualified Success?  took place at Chatham House on the 31st of January 2013. The event focused on the evidence emerging from a recently published book, Zimbabwe Takes Back its Land (Kumarian Press) written by Joe Hanlon, Teresa Smart and Jeanette Manjengwa.

Even on a cold winter evening in London the event had all the elements of intrigue that have come to be associated with the Fast Track Land Reform (FTLR) in Zimbabwe. There was a capacity audience, a highly polarised debate and even a small, spirited but peaceful protest mounted by Zim Vigil outside.

Sir Malcom Rifkind MP was the discussant.  Many may not know that Sir Malcom lived and worked in the Rhodesia in the late 1960s and wrote a very insightful MSc thesis on the Politics of Land in then Rhodesia in the 1960s. His views on the book were very carefully calibrated- recognising the rich historical analysis and the candidly presented empirical evidence. He focused on his own recollection of the polarised discourse in the Rhodesia parliament in the 1960s and also reflected on the post-independence dynamics.  Addressing directly the now infamous 5th November 1997 Clare Short letter (about the British Government not taking responsibility to fund land reforms), Sir Malcom maintained the official UK government line that this should not  be a British responsibility but one for Zimbabwe to prioritise.

Teresa Smart and Jeanette Manjengwa gave insights into the key findings of the book, arguing that notwithstanding all the criticisms of Fast Track, there is evidence that many smallholders who got land are using it to better themselves.  Much of the discussion on the new book focused on its findings and it was clear that the polarisation that has characterised the land reform discourse continues. Some of the early evidence soon after 2000 pointed to a decline in production and productivity but more recent findings are showing a need to relook at what is happening on the land.

The publication in 2010 of Zimbabwe’s Land Reform: Myths and Realities marked a turning point in what has become a highly polarised discourse on the FTLR in Zimbabwe. This book was not only a marker of a new counter-narrative, seeking to challenge a generally accepted view that Fast Track Land Reform had been an unmitigated disaster, but it also sought to introduce some academic rigour into what had become a politicised lay and professional media discourse.

Adding new evidence, Zimbabwe Takes Back its Land supports this new narrative. It argues that FTLR in Zimbabwe has worked well for some, but could work better for more people with additional support. There is evidence of beneficiaries investing in and using land to improve their lives.  This should not have been a surprise, because we know from past experiences of self resettlement that eventually people use the land to better themselves with or without state or other support.

At the Chatham House meeting there was a wide-ranging discussion, including on how the FTLR empowered women; lessons from Zimbabwe for South Africa; the need for support services for the beneficiaries; the need for more analysis of those who lost out; issues of employment and labour on the FTLR farms and patterns of emerging social differentiation on the farms. Others raised the contradictions between FTLR as being a success in tobacco production, while the country is still appealing for food aid. There were also challenges from the Commercial Farmers Union representatives who had flown in for the meeting on some of the figures used in the book. Even on a cold evening, Zimbabwe’s land reform still produces some heat.

As evidence accumulates that the FTLR was not an unmitigated disaster, there are, in my view, some new dilemmas to address. There are:

1         How can key actors begin to recognise and accept this growing body of evidence without being seen to endorse the methods used to achieve asset transfer? With South Africa facing similar challenges, any suggestion that massive dispossession undertaken at speed can produce good results in the long term would create problems for some interest groups. But then is dismissing FTL as an unmitigated disaster still tenable in the face of growing and credible evidence? We know that land reform can work to create the basis for long-term development (e.g. from Japan, South Korea, Taiwan and China), but what conditions need to be put in place now?

2         If it is accepted that the FTLR has worked to improve some (not all) people’s lives should it therefore not be accepted and supported (with all its history and faults)? This is particularly important for donors whose next question would be how to engage with the beneficiaries without being seen as endorsing the process through which these outcomes were achieved Indeed Sir Malcom Rifkind was very clear about his disdain for the methods of Fast Track Land Reform in Zimbabwe. It seems to me that this dilemma can be resolved if the legal issues that remain unresolved are addressed- especially the issue of compensation. This is for the GoZ to work through and can potentially unlock further support for the FTLR beneficiaries.

3         With elections looming in Zimbabwe the various political groups also have a crucial dilemma. Accepting that FTLR has worked for some and is beginning to yield results hands over political advantage to those who led or allowed this to happen. Rejecting the evidence though begins to sound insincere. It seems to me that this one will only be resolved after the elections!

The more I look at the evidence, the more I think we should actually not be surprised that asset transfer programmes will work in the medium to long term. This of course is a very separate question from the methods used to redistribute the land. How well asset transfers work of course will depend on a lot of factors and the book presents stories show cases of why institutional support, recapitalisation, skill and individual drive all matter.”

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