Development Through People and Not Things

I recently attended the Association of Private Enterprise Education (APEE) conference in Las Vegas. I had the luck of stumbling into a session with Karol Boudreaux, of George Mason University, presenting a paper titled “Land Reform as Social Justice: The Case of South Africa”. I was interested in the title as social justice is not a theme you encounter much at APEE events unless it is demonstrate how us egg headed idealist tend to mess things up in our attempts to realize a more just world.
While her paper focused on examining South African land reform policies in the context of Hayek’s arguments about social justice, she mentioned private land reform policies that offer a comparative sample for evaluating land reform programs.

Her research found that state directed land reform policies were a disaster. The numbers demonstrated that transferring functioning agricultural holdings to poor farmers only decreased output with the majority of farmers abandoning the lands within a decade. While not providing very much analysis on why they failed, it appears that the primary issues were the lack of technical and business capacity to manage competitive commercial enterprises.

An exception to the failed attempts at justice through government intervention was the land distribution program of the sugar growers association. While their motives were self-serving, they wanted to lessen the demands for redistributing white sugar growing lands to blacks by increasing the number of black growers, their results where much better. The primary difference I was able to observe in the presentation concerned the focus of the private sector programs to assure success by not only distributing land but also providing capital, technical assistance and guaranteeing a market while the new farmers got their feet on the ground.

After her presentation, we talked about different land reform models and she commented on how the most successful agricultural programs in South Africa were not based on land or capital. It was working with women living in the slums to understand local markets. They were able to identify an urban market for the housewives in Johansburg looking for organic gourmet produce. With knowledge, these women were able to start producing and growing their business.

The South African land distribution program demonstrates that capital and land are not the critical elements of successful transformational development programming. People have to be empowered to use these tools. These resources are transformed into wealth by ingenuity and hard work. Programs that do not stimulate these attributes while at the same time undermining them create worse results then the injustices they seek to remedy.

HSP’s methodology to focus on the empowerment of people is demonstrated to be the critical factor in successful development programming. While this is obvious to development people, community organizing and empowerment programs are the least funded off all charitable, justice and anti-poverty pursuits. The reason is that these transformational programs are more expensive.

The challenge is to educate funding sources, be they the World Bank or Aunt Jane Doe, about the benefits of investing in real transformation.