While Africa starves, its leaders change the subject


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The idea of having a plot of land may be compelling for a variety of reasons – including the satisfaction of seeing an act of ancient injustice rectified – but land redistribution does not solve a number of practical problems.

First, most Africans desire to live in the cities, where they want to become accountants, managers and traders.

Like people elsewhere, they abhor the drudgery and monotony of agricultural life.

Second, reversion from large-scale to small-scale and subsistence farming can undermine farm efficiency and, consequently, food production.

Third, experience shows that newly-landed small-scale and subsistence farmers are often in need of state subsidies, which puts further pressure on the exchequer.

Finally, assaults on land rights can have catastrophic knock-on effects on the overall economy.

Take the example of Zimbabwe. In 2000, Robert Mugabe, the 93-year-old dictator who has run Zimbabwe as his private fiefdom since 1980, gave the green light to his supporters to invade commercial farms, many of them held by white Zimbabweans.

The private property rights of commercial farmers were revoked and the state resettled the confiscated lands with small-scale and subsistence producers – many with no previous farming experience.

Agricultural production plummeted.

The farm invasions had ripple effects throughout the rest of the economy.

The banking sector, which used farm land as collateral, was hit by bad debt and curtailed the issuing of new loans.

The manufacturing sector, which relied heavily on processing agricultural goods, went into a tailspin.

Declining domestic production deprived Zimbabwe of the ability to earn foreign currency and buy food overseas.

Famine and hyperinflation, which peaked at 89 sextillion percent in 2008, ensued and communicable diseases spread.

That year, Zimbabwe’s GDP per capita collapsed to a level last seen in 1952.

By Marian L. Tupy. This article was first published by CapX

Ed: Do you agree with this skewed view of Africa and Zimbabwe in particular? Have your say.

(148 VIEWS)

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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