By Erhard Berner
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Additional resources for Defending a Place in the City: Localities & the Struggle for Urban Land in Metro Manila
This correlation between growth and poverty reduction was examined in detail for the Chilean economy, relating the growth in labor income to growth in per capita GDP. 2 per cent per year throughout the period (World Bank, 1997). Among other effects, the rapid overall growth created a tight labor market with rising real wages, which in turn allowed the poorest small farmers to supplement their farm income with off-farm earnings and landless workers to increase their real wages. Chile’s high rate of growth during the last decade was unfortunately an exception.
A large redistribution of land could trigger an increase in land prices that could raise the cost of land redistribution even further. 1). Such a scheme by itself does not reduce the competitive edge of current big landowners over the small farm producers, partly because it is likely that the source of the competitive advantage of big landlords in the land and other markets is wealth rather than merely land holdings. 1 Impact of market-based land reform on land values Let Po represent the supply price of land owned by potential sellers (large farmers) prior to land reform, and po represent the demand price of potential beneficiaries of the land reform program.
Our database RPL1 6/27/00 2:29 PM Page 29 Fighting Rural Poverty in Latin America 29 does not allow us to extend this analysis to the other countries, and so this limited evidence on the important issue of the landless versus small-farm income comparison is not conclusive. Overall, our analysis suggests that to have a sizable impact on rural poverty, a massive land redistribution would be necessary. 6 hectares to surpass the poverty line. In Colombia, raising per capita income of the poorest 40 per cent of farm households up to the poverty line would require almost quadrupling their current land area.
Defending a Place in the City: Localities & the Struggle for Urban Land in Metro Manila by Erhard Berner