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This chapter deals with two other sets of generic institutional issues: state capacity and property rights. Both have received a growing attention by economists. They are probed here in the light of our six case studies and, occasionally, other countries’ experiences. The discussion of state capacity is articulated around three major issues: bureaucratic failures, inadequate incentives and professional norms (e.g., in the education sector), and ineffectiveness of the judiciary. Beyond technical and organisational aspects, politics also plays a major role in the three areas. The money needed to maintain support to clientelist or crony regimes is often obtained in exchange of favours to big business, through embezzled state budgets and kickbacks implicitly allowed at all levels of the bureaucracy. They strongly diminish state capacity. The discussion of property rights distinguishes between rights over business assets and rights over land, the latter being especially important in countries where a large proportion of the population depends on agriculture. Special attention is brought to what we call the ‘maze’ of land laws, as observed in many developing countries.
Mozambique’s land law is notable for its intent to balance the recognition and protection of smallholder land use rights with attracting foreign and domestic investment to rural areas. However, the state’s legitimacy may be undermined through the process of recognition, as state actors and local elites circumvent the law for private gain. Walker focuses on two areas where the law has failed to protect smallholder rights: issues of women’s land rights, and the expansion of protected areas. These issues speak to the problem of recognition, revealing ways the state produces authority, but not necessarily legitimacy, in rural settings.
This article provides a critique of the final stages of Kenya’s land law reform process, which has resulted in the approval of the 2012 Land Act, Land Registration Act, and National Land Commission Act. It argues that in spite of the constitutional and political importance of the new legislation, the process was marked by haste, lack of engagement by legislators, and little participation by citizens. The new laws can be viewed as a deeply disappointing outcome of a decade’s struggle over land policy. The article explores the effects of the constitutional deadlines for new legislation; the contradictory role of civil society in relation to the new laws and the bureaucratic structures they create; and the redistributive intentions and potential of the new land legislation.
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