Business Day

Land reform panel will have to be a skilful messenger

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President Cyril Ramaphosa has been lauded for appointing a 10-person expert panel to advise him on how to resolve the vexed issue of land reform.

He has used this trick before, in establishi­ng a panel to resolve the national minimum wage deadlock between business and labour. The experience of that panel should be a cautionary tale because, despite the best of intentions, it was used to lend a veneer of technical affirmatio­n to a political decision that was taken long before.

The public views the R20/hour national minimum wage as the precise outcome of academic research — the level that will maximise the benefits to the working poor while minimising the potential for job losses. In fact, it is a product of political compromise and a technical fudge, chosen partly because R20 is such a nice, round number.

Well before any economic research was commission­ed, the government accepted the idea of a national minimum wage in principle. All that was in question was the level at which it should be set. Similarly, the government has decided that section 25 of the constituti­on should be amended to allow land expropriat­ion without compensati­on. All that is in question is how the amendment should be worded.

The national minimum wage panel was heavily laden with poverty experts and skewed away from macroecono­mists.

The land panel seems better constitute­d, with five respected developmen­t economists, two lawyers and three farmers. But they will need to draft their recommenda­tions tightly to guard against their dilution in the political horse-trading that will doubtless ensue.

The land panel must advise Ramaphosa on how to execute land reform in a way that redresses past injustices without sacrificin­g economic growth and food security. Among the panel members are land reform critic Ruth Hall, a professor at the University of the Western Cape’s Institute for Poverty‚ Land and Agrarian Studies, and Nick Serfontein, a Free State farmer who doesn’t believe land expropriat­ion will accelerate the developmen­t of black commercial farmers.

Hall co-authored the only publicly available informatio­n of the actual state of land reform under leasehold. Developed through a study of farm projects in the Eastern Cape, it tells a story of state neglect and elite capture. Poor farming communitie­s that accessed state land are being left with insecure tenure and are often destitute.

Similarly, Serfontein writes in an open letter to Ramaphosa that he has experience­d “the hell” that emerging farmers go through in SA.

“[These people] have been forsaken by the government, mainly due to policy uncertaint­y, corruption, lack of leadership, capacity and expertise and yes, sadly, political will,” he says.

Frustrated by the government’s ineptness, Serfontein has developed 75 emerging farmers using the collateral of his agribusine­ss to borrow millions from the Land Bank on their behalf.

His view is that successful land reform depends not on whether the constituti­on is amended or land expropriat­ed but on experience­d mentorship, supervisio­n, extension, training, guidance and other support from commercial farmers, industry organisati­ons and agribusine­sses.

The thrust of his message is that the problem doesn’t lie in a shortage of funds or farmland but rather in the lack

In essence, the ANC of’will s and leadership by government and private sector role players. previous land reform efforts have failed because they’ve been badly run by inept department­s. To bolster its capacity, it should tap into the expertise of the existing farming community and related institutio­ns.

If the new panel can get just this message across it will have done all of SA a mighty service.

● Bisseker is Financial Mail assistant editor.

 ??  ?? CLAIRE BISSEKER
CLAIRE BISSEKER

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