Since the advent of colonisation, black South Africans have been subjected to discriminatory laws that dispossessed them of their property – without compensation – solely because of the colour of their skin. The intent was clear: landownership by the black population did not serve the economic interests of the ruling powers.
The South Africa that was inherited by the democratically elected government of Nelson Mandela in 1994 had become a nation of deep economic inequality borne from decades of systemic discrimination. A nationally representative survey in 1993/1994 showed that some 40% of South Africa’s black populations were desperately poor by any measure. The equivalent figure for the white population, which on average enjoyed a standard of living equivalent to a developed European country, hovered near zero.
Land reform and redistribution, once upon a time the poster-child rural intervention in developing countries, is a complex business. Land rights are complex, especially in a country in which traditional rights under communal tenure intersect with those of private property. But international evidence shows that redistribution can be a powerful force for change when done right.
Not surprisingly, this kind of programme has much more bang for the buck than money invested in programs that transfer only cash. Per-government dollar spent, land reform generated six times more long-term poverty reduction than welfare programmes. While it is not an adequate instrument to address all facets of South Africa’s poverty and inequality, this shows that land reform can be smart public policy.
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