1.3.4.2 Increasing Incomes and the Living Standard
An improvement in the living conditions of the rural population
can be achieved primarily by increasing production. Since
land management reform measures in particular work as an incentive
for production increases, these have a considerable effect
on income. But increasing legal security, or even just clarifying
the legal relationships, likewise has a positive effect. The
feeling of security and the resulting willingness to work
harder can increase production and, thus, income.
The effect on agricultural incomes from changing the distribution
of the outputs, as foreseen in the land ownership reform measures,
is comparatively smaller. Exaggerated hopes are often placed
in these measures. Naturally, measures such as placing a limit
on farmsize, rent or abolishing subleasing have positive effects.
Making tenants into landowners saves them from paying rent
but necessitates them taking over the services and obligations
that were previously carried out by the landlord. Furthermore,
distribution changes ,mean generally only the redistribution
of chances that cannot be taken advantage of until there has
really been an increase in production. Whether this is possible
depends also on the concomitant measures for improving land
management.
An income can also arise out of the secondary effects of
agrarian reforms. All developments raise the chances of earning
additional income from nonagricultural activities because
of the increased demand for services and present, in particular
for small farmers, an opportunity to improve their income.
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