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(i) Promotion of Equality in Rural Population:

Because of land reforms the economic power of the land lords in the rural areas comes down. But this depends upon how effective the land reforms are. This is the reason that land reforms got success either in socialistic countries, or in the strict ideological countries like Israel and India. In case of Pakistan where feudalism dominates everywhere the land reforms have been found least successful. They have neither created equality nor equity. Moreover, the land lords whose lands have been taken-over get the advantage from Green Revolution and make the intensive cultivation, as it happened in Pakistan. Their economic power will not come down, and land reforms will be least fruitful. Moreover, if the landowners get handsome amount of compensation against the lands confiscated, or they get the bonds their economic and political power will not diminish.

However, those land reforms which provide opportunity to small growers to avail the advantages of Green Revolution the benefits of land reforms will spread over to common peasants. Such situation may have the effect on social and economic life of rural areas. Thus through land reforms govt’s. role in agri. sector will increase, perhaps for the betterment of poor peasants.

(ii) Increasing Incomes and Living Standards:

Because of land reforms the extra lands whether they were used or remained unused would be taken over by the govt. Consequently, such lands will be redistributed amongst the peasants. They will work more to raise their output and production. Again the tenants will feel well secured, they will also work hard to get more produce and income. But after land reforms when the small growers become the owner they will have to face the expenses in respect of ‘Inputs’ and they will have to face risks. In such state of affairs the land reforms may not yield better results.

(iii) Increase in Employment:

The results of Green Revolution show that it encourages the small farmers, the farms are better utilized, the number of crops increase, the poultry and dairy farming becomes possible, – leading to increase income and employment in agri. sector. This will have the effect of increasing the purchasing power of the people. Consequently, the other sectors of the economy will also get stimulated. Such all may also be attached with land reforms. But it may also happen that because of land reforms the owners as a reaction could eject the tenants. Before land reforms the farmers had ample of time to enjoy leisure. There were very lower opportunity cost of remaining idle. But after land reforms when they become owner they will have to work hard. Their leisure will come to an end, their women will also have to contribute. Such all may give rise to certain other sets of problems.

(iv) Effects on Production:

To what extent production increases as a result of land reforms depends upon that change which would rise due to incentives and investment. Two types of effects will occur in respect of production: (a) Short-run effects, (b) Long run effects.

It is said that in short run the land reforms will not yield some reasonable rise in production. It is because of the followings:

(a) In so many countries the land reforms are implemented with non-seriousness.

(b) The new farmers are inexperienced, lack funds and resources, and are unable to use modern technology and fertilizers.

However, the land reforms yield better results in long run. As, the new farmers have a time to work hard. While the big land lords will follow intensive farming leading to increase the output.

The biggest objection which is levied against land reforms is this that from the big lands it is possible to attain greater produce by applying big machines, harvesters, threshers, sprays, artificial rains, superior seeds, superior management, crop rotation and land analysis etc. In this way, on the basis of greater farm products not only the self-sufficiency in agri. will be attained, but the agri. exports can also be enhanced. But such all is possible in case of DCs. But as far as UDCs are concerned the land-owners are not found of commercialized farming, they do not have any national targets, and they are keeping the lands just as a symbol of power and prestige.

(v) Changes in Capital and Investment:

Because of land reforms there occur changes regarding capital formation in agri. sector. The small farmers are not taxed, hence their incomes are not affected. Such savings and more labor will help in augmenting the capital accumulation. Moreover, it has been observed that the consumption standards of the farmers remain alike before and after land reforms. Therefore, after land reforms when incomes of the farmers increase their savings will increase, rather their consumption. In this way, such surplus could be reploughed in agri. sector.

Before land reforms the feudals and big land lords get loans from the cooperative banks, agri. banks and commercial banks on the basis of their political links. Such loans are wasted on elections, political influence and litigation etc., rather using them to improve the conditions of land. But after land reforms the small farmers will be in a position to get the loans which will be used by them for investment and capital formation, as the small farmers are more desirous to improve their lives, rather socio-economic prestige and influence.