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Betting on Dispossesion

 

 

-- Vasuki Nesiah and Nanthikesan 

               

 

In a compelling critique of the Government’s ‘Land Ownership Bill’ Sarath Fernando makes the important point that if land grants to the rural poor were freehold titles, these lands would be soon transferred to investors and large commercial farmers[i].  In fact, this was part of the larger goal of the government and the world-bank – the World Bank recommended removing restrictions on title and enabling the right to place these lands on the market as early as 1996.  As Fernando indicates, the right to alienate or sell catalyzes a range of social ills, including widespread landlessness and unemployment, which augment socio-economic disparities and further disempowers the rural poor.  However, the government is promoting the Land Ownership Bill in the name of enhancing freedom and expanding choices – claiming that it is giving the poor a right to property for the first time.  Yet paradoxically possession under these conditions in the short term is likely to lead to dispossession in the long term.

 

However, this appears to be a paradox only if we equate the classical laissez faire understanding of property ownership with the use and control of property as such.  The laissez faire model trafficked by privatization gurus is predicated on property rights being understood as the absolute right to exclusive possession and alienation of land – i.e., the legal title conveying rights to exclude others from the land, and to be able to sell that land at will.  However,  the history of these small holdings in Sri Lanka indicates that the use and control of property doesn’t turn on individualized relationship to land, but on the relationship to resource struggles, ideological contestations, the distributive tilt of institutional arrangements regarding access to credit and such – we’ll revisit this with historical examples in the next few paragraphs.  Thus the ‘meaning’ of alienability (i.e., the right to sell) is mediated by this broader constellation of overlapping struggles and social structures – not by an abstract legalism regarding title. 

 

The absolute notion of property informing the laissez-faire model comes from a fetishized reading of legal rights – a reading that fails to see how ownership is mediated by struggles over resources and meanings that take place even within the legal terrain.[ii]   Even a cursory look at the legal landscape will suggest that property rights are best understood in relative terms – that is, where one person’s ability to ‘control’ her property is integrally conditioned and shaped by the extent of ‘control’ available to others.

 

 

Let us look concretely at how this is borne out by our past experience.  Those peasants who will be affected by this bill include those who became small holders through irrigation schemes that distributed land plots to settlers with restrictions on the right to sell[iii].  Even with restrictions on alienability, studies of these small holdings have shown that control of land use continued to concentrate in few hands.  For instance, field studies conducted between 1981-83 in the Kal Oya basin (H-area) settlement of the Mahaweli Development Programme [iv] showed considerable peasant differentiation.

 

These studies noted a tendency toward concentration of land holdings through mortgage and dispossession of holdings.  Indeed, there was increased incidence of sharecropping, leasing and mortgage arrangements.  There was marginalization of substantial section of population, through indebtedness and increasing cost of cultivation.  Rich peasants, public servants, and traders were able to obtain control of land through money lending and trading activities.[v]  Many factors contributed to this tendency, including difficulties in accessing institutional credit, absence of insurance against crop failures, difficulties in obtaining good water supply, etc.  It is likely that there also were a host of other issues that some of these studies didn’t address that may have been relevant in mediating the ‘shape’ of ownership – from the gendered distribution of labor in these households to the nationalist gloss that enveloped the irrigation schemes.

 

All this is not to say that legal title is irrelevant but that the meaning of legal title is mediated by how it interfaces with other axes of ownership.  The value of what we own and how we use it is more akin to a dynamic bundle of sticks – the composition of the bundle can shift and transform with changes in the background rules.  For instance, it is significant that notwithstanding these informal or extra-legal trends towards concentration of land, and the many injustices that accompanied the distributive inequities that resulted, the restrictions on the commodification of land were critical to limiting maldistribution. 

 

In fact, in that same article quoted above Sarath Fernando argues that the current framework of private ownership coupled with rules against alienation have been key to the survival of small-scale agricultural enterprises – in effect applying the brakes on an accelerated descent into deprivation and dispossession.  This model of property ownership (control without formal commodification) has enabled at least a minimal subsistence based livelihood for these rural communities that stand to be affected by the current Land Ownership Bill.  As noted above it is not entirely outside the commodity economy today but the rules against alienation have increased transactions costs and restricted greater fungibility of land and this has in turn deterred large agro-businesses and such from entering this terrain and crowding out small holders[vi].

 

The government of course is quite aware that allowing land to be commodified is betting on the rural poor ‘voluntarily’ selling their land.  Undoubtedly the broader context of impoverishment such as restrictions on credit access and such stacks the odds in favor of the government winning its bet.   Yet the Bill is peddled on the notion that the poor are now being given an absolute right to property, and that it is this absolute right that is giving peasants full ownership for the first time.  In contrast we would argue that the any intervention affecting the production, regulation and distribution of the different sticks in the property rights bundle would impact a titleholder’s relative control over property.  For instance, the GOSL’s broader plans regarding weakening protections for wage laborers, or undoing environmental regulations, or reducing the corporate tax rate[vii] also impact what small holder property title comes to ‘signify’ – materially and ideologically.   In this case, the Land Ownership Bill is not giving the poor a right to “own” land for the first time, but changing what it means to “own” land - from a potential means of livelihood, land may now become a gambling chip.  Moreover, it’s a gambling economy that preys on the destitute and desperate to feed the profits of the casino owners.

 

 

Institutional Imagination: Pluralizing Property

 

Opposing privatization as per the GOSL bill does not translate into embracing state ownership[viii].  The polarities of state vs. private ownership may in fact prove particularly unhelpful in engendering more creative and transformative approaches to the property landscape.  In fact, communities the world over are looking at ways in which private property can be structured to incentivize property use while decentralizing property control.  We submit that packaged deals inherited from Washington should not crowd out radical democratic experimentalism even in the area of privatization.  To think out of the box and explore alternative conceptions of privatization also means interrogating the absolute property model by disaggregating the bundle of sticks naturalized by laissez-faire ideology to allow us to recombine and reconfigure these bundles.

 

Moreover, our day to day production and regulation of property has always reconfigured this bundle in different ways.  Consider the issue of housing and tenancy that we encounter in our daily lives.  Tenancy automatically disaggregates the property right in a residence and distributes it between landlord and tenant; In Sri Lanka it was the case[ix] that housing law did this in ways that stacked the odds in favor of habitation rights rather than investment rights (i.e. a tilt in favor of tenants’ rights rather than landlords’ rights) – just underscoring the point that rights are never absolute, they always compete.  That competition is, in effect, a terrain for social struggle - an opportunity to struggle against the injustices and repression inherent to how property is produced, regulated and distributed – materially and symbolically.

 

While the reach of the Washington model has produced many pre-packaged privatization deals as reflected in the Regaining Sri Lanka vision, some countries have also sought to experiment with alternative approaches that may not readily fit these established models.  For instance in response to a peasant uprising with demands for greater ‘control’ over the land they till, the Vietnamese government initiated a modest land reform in the mid eighties called the Doi Moi reform.  Before the reform, agricultural land was owned by the state, and farmers had to belong to cooperatives.  What could be produced by the cooperatives was determined by the State and which was the exclusive buyer.  Doi Moi allowed farmers a 30 year lease on land – not alienable- and allowed farmers set up non farm enterprises, and to produce what they wanted and sell their produce in open market.  While many justice concerns persist, these reforms did catalyze growth with equality and a decline in rural poverty (poverty was nearly halved over the last decade). 

 

Rather than taking the easy way out and giving the farmers an ‘absolute’ property rights to secure Washington funding, Vietnam decided to experiment with different institutional arrangements; they unbundled the property rights, and used the thirty year lease and the right to sell the  produce freely as a way to maximimize small holder control plus incentives for productivity – including several initiatives outside of the property law reform endeavor to enable the poor to access credit, seeds and such.

 

Similarly some alternative efforts to undo the centralization of state ownership in Eastern Europe and elsewhere have been accompanied by efforts to resist new forms of centralization in the private sector – so for instance public housing complexes have been privatized not by lumping ownership and control together (and introducing a new form of centralization in landlords) but by disaggregating or separating out the bundle of sticks that were tied together under the state and giving (often inalienable) rights to those most impacted by the property (the renters, the community etc.) that jostle against the rights of the title holder (be it a state or a corporate entity). 

 

The purpose of these examples is not to replace the Washington blue print with one from Vietnam or Czechoslovakia.  Certainly, we make no claims that these other paths were without faults or that the development initiatives addressed the needs and voices of all those affected.   Rather, what interests us about these experiments is that they speak to the space available for institutional experimentation - in the context of privatization debates in Sri Lanka, we too often slip into pro-and anti privatization positions while the important question of what type of privatization is elided.  The classical absolute model of property, and the Washington model of privatization have become so naturalized that they have not only wrought massive social injustice, they have also crippled our institutional imagination and curbed public dialogue about the issues at stake in alternative paths that may be more attentive to social justice, alternative pluralisms, and wider democratization.

 

The Left Imagination

 

In the past we in the left have invariably defensively clung onto state ownership as the only alternative to privatization.  In some cases this is because the state has a legitimate role that we need to preserve to protect the most marginalized, pool resources and such.  Too often, however, it is because we abandoned our own responsibility to rethink the received orthodoxy - we just walked into a script that narrates our options in terms of the state vs. privatization alternatives.  However, if we are committed to economic democratization we need to open up questions that are foreclosed by the Washington model and peddled with religious fervor by the GOSL; economic democratization involves critically and meticulously engaging with the stakes of alternative trajectories to reclaim the space of institutional imagination from the GOSL – and its Washington cohorts.

 

For a good part of the last century, the inherited wisdom of dominant strands of the left was that democratizing of property relations depended on the ‘revolution’ – i.e., on the whole scale transformation of the distribution of property.  However, today, going beyond the revolution v. reform dichotomy, we are inclined towards setting store by what the Brazilian social theorist Roberto Unger has described as “incremental but radical” change.  Transformative impact on these kinds of issues depend on the trajectory of counter hegemonic social movements in addressing the material and symbolic habitus of property – but rather than the big bang this may depend on bold local experiments that corrode established relations of power and privilege, and enable alternative political imaginations.  In solidarity with such struggles even “reformist” legislative efforts can make some contributions.  However, rather than the “Land Ownership Bill”, if legislators want to address the land dilemmas of the rural poor, then the burden of the moment is to build on these alternative traditions of property, denaturalize the laissez faire model, and contribute to social movements that push for marginalized communities gaining more sustainable control over the land they live and work in. 

 

 



[i] See Articles of Note on the lines website

[ii] Of course the legal ‘habitus’ conditioning property should be understood as only one axes of ownership – equally, one may draw attention to the material and symbolic life of property in other (sometimes integrally related) realms – even the government’s Land Ownership Bill tries to individualize property claims in ways that directly takes on the joint family system.  There are other axes that could be relevant too: the dowry system, female wage labor outside the home, and shifts in the gendered meanings of property ties … notions of traditional homelands and contested nationalist claims to land… electoral gerrymandering (See article by Kader in this issue of lines) and so on.  In fact, the absolute notion of property is itself a historically contingent notion linked to the industrial revolution in England, the dispossession of native title in the Americas and so on.

 

[iii] Each family was allotted 2.5 acres of land that cannot be sold.

[iv] This was the first land settlement programmed under Mahaweli Project and work towards this project commenced in 1974.

[v] Piyasiri Wickramaseera “The Mahaweli Development Programme, Agrarian Changes and the Peasantry”, in Capital and Peasant Production, Eds Charles Abesekera, SSA, 1985

[vi] This is not a critique of commodification in all contexts but an interrogation of how the logic of commodification is naturalized into the notions of title and property rights that drive the GOSL’s land reform proposals.   Interrogating the language and logic of commodification and its mediation of social relations, Marx recorded the fetishistic importance that 'money' attains under capitalist commodifictaion: money not only "mediates my life for me, (it) also mediates the existence of other people for me." (See p. 102 of Marx in Tucker 1978).   Marx's exposition interrogates money as not merely the path or medium available for the representation of some other value, but as a category that is itself discursively produced by particular imaginative and institutional meanings of personhood and community.   For some this elaboration of the work of commodification has meant an orientation towards ‘community’ ownership, a valorization of the ‘social’ as an analytic lens on property value, and a resistance to commodification.  I would argue however that in fact Marx’s point regarding the work of commodity in mediating/structuring social relations suggests that the ‘community’ is not available as any more secure ground for retreat; the ‘social’ is as deeply fraught and contested as a ‘lens’ through which to criticize commodification.  Thus rather than traffic in transcendental notions of the social, or universalized theories of the implications of commodification, in each particular we need to critically interrogate and analyze the different ways in which the social is produced and contested, and the implications of how commodification interpolates struggles over resources and meanings.

[vii] These plans are articulated in Regaining Sri Lanka. The GOSL magnum opus regarding its economic vision.

[viii] While in areas such as education, health care, water and  such, state control may have expanded opportunities for the poor, the state has also worked to limit those opportunities; moreover, it invariably affected different communities differently – as the history of state owned plantations evidences, minorities also faced the most exploitative, intrusive and repressive face of government. 

[ix] At least this was the case in the past - We have to admit to being out of touch with the current legal status quo.


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August 2003

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