Limitation of State Activities as Entrepreneur
Here, the target of agrarian reform is the state and his
activities as a landlord/entrepreneur. Especially - not only
- in Africa the state or parastatal organizations have engaged
themselves in the management of plantations, state farms or
ranches, usually at a large scale. Invariably, these enterprises
are well equipped with input and machinery. The state or its
organizations also control the overall means of production
and thus regulate the conditions of peasant production (what
to produce, what input to use, grading systems etc.). The
state induces the peasants to engage in commercial production
and even in export crop production not for the peasants' benefit,
but for its own interest. Through monopolistic marketing authorities,
it completely determines peasants' share of the proceeds.
In this context, it is important to note that mostly an urban
elite is in control of the state whose interests are very
different from those of the rural masses.
Certainly, the state, especially at early stages of development,
has certain economic tasks. It must organize a quick increase
of production, and it needs to raise taxes for various investment
purposes. The administratively easiest way to higher production
may be via state farms and export taxes can be levied through
marketing boards. But easily the state follows the path of
private capitalists and thus does not act as a promotor but
rather as an exploiter of the peasantry. The state has several
goals. Development of the powerless peasantry is not the only
one and invariably not the most important one. In some countries,
the state with its activities in agriculture is badly hindering
peasant agricultural development. Even more so, as there are
no institutions to represent peasants' interests against the
state.
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