Why is land reform of significant concern for developing countries and what restricts its implementation?
What will be an ideal response?
Land reform concerns the distribution of land within a country. In many developing countries, land is very unequally distributed among its population and a small majority of citizens may control vast amounts of a nation’s land. This distribution not only leads to a large inequality in income but also demoralizes those without land rights. Tenants in developing countries are forced to pay high rents for using land, use small plots of land, and receive low or unpredictable prices for their products. This leads to an environment where tenants have little incentive to produce or invest in capital improvements.
Land reform is difficult to implement, however, due to the political ties that most developing governments have to the country’s aristocracy. Thus, the politically influential may heavily lobby or coerce a developing country’s government to maintain the current land distribution or further skew land distribution.
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