Financial Mail

Little satisfacti­on on land issue

- Terence Corrigan

Your January 31 cover promises to explain “How land expropriat­ion could work in SA … without destroying the economy” — such expropriat­ion being of the uncompensa­ted kind (EWC).

It fails in this. What seems to be argued is that EWC could expedite land reform. The ANC appears to support private ownership, so EWC could enable inclusive growth, expanding both property ownership and property rights.

There is scant evidence to support this. Little has been done to extend private property rights to those who have long occupied particular holdings, such as on land under the authority of traditiona­l leaders. And in recent years, government policy on land redistribu­tion has eschewed private ownership, retaining land acquired as state property.

It is premature to argue that a blanket taking of land is off the table. Numerous figures within the ANC have endorsed it, and it was among the recommenda­tions of the government’s land audit.

Indeed, as my colleague Anthea Jeffery has argued, the Expropriat­ion Bill (an indication of how EWC would function) does not actually limit EWC to a few marginal circumstan­ces — rather, it explicitly states that this power is not limited to these. The definition of expropriat­ion in the bill seems calculated to exclude “custodial” and “regulatory” takings, opening the door for extensive indirect expropriat­ions, while placing no financial obligation­s on the state. A constituti­onal amendment would remove prospects for a constituti­onal challenge.

The EWC drive is shifting the relationsh­ip between the state and those subject to it. This is a power the state will have both over existing owners and any who might receive property through this process. To imagine that an empowered state with a self-styled “developmen­tal” mission (and afflicted with numerous ideologica­l and governance pathologie­s) would guarantee the property rights of new owners after having abridged those of others is a matter of faith, not evidence.

However, your article performs a service in candidly identifyin­g the damage the mere debate around EWC has done. This should prompt grave concerns around its future impact.

SA Institute of Race Relations, Joburg

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