 Welcome to the seventh video lecture on land reforms in developing countries. This is the second video lecture of the third module namely agriculture, land reforms and rural livelihoods in the 21st century. So the question is that whether land reform advances or retard economic growth, agricultural development and economic growth in developing countries today. Remember last time we discussed that land reform is a system whereby land is transferred from those who have too much of land to those who own no land at all. So what are some of the debates that we are going to discuss, whether land reform should be state led or market led, what are the characteristics of state led and market led land reforms, what makes a land reform successful, what are some of the preconditions around which land reforms may become successful. So basically a basic level of state capacity, you know you need a proper bureaucratic force, you need oftentimes you need coercion to make sure that rich landlords part with the part of their land and transfer it to the poor. You also need complementary technical assistance like fine poor people who earlier didn't own land now become land owners. But what do they do with that land, how do they use that land to undertake economic activity. So technical assistance in the form of credit, access to markets, fertilizers and infrastructure is extremely critical to making any land reform work. Finally incentives to investment, there should be proper incentives to make sure that people who have got new land are going to invest in that land. For instance there should be there should be higher transparency and there should be low information asymmetry and there should be lower transaction cost. Now all of these have been discussed in the previous presentation PowerPoint 7, so in case any of these terms aren't clear I'd urge you to go back to PowerPoint 7 and understand them once again. So what is the basic relationship between agricultural development and land reform. Now this is something which is increasingly common and increasingly influential this inverse farm size of land productivity theory which says that as the size of a farm gets reduced the land productivity of that parcel of land improves. So what it says is that the yield of land with respect to labor increases as the land size gets reduced. So smaller land parcels are more productive than the larger farms and the reasons for that are obviously like a large farm may require a lot of supervision, a small farm may be easy to manage plus workers working on a small farm may be owners of that farm and therefore they put everything they have to produce as much as possible because whatever they produce they get to keep it. The opponents of land reform Mushta Khan in particular argue that labor intensive nature of agriculture changes to capital intensive agriculture with farm in consolidation which is good and finally most land reforms have happened to a neglect of political economy arrangements that block agricultural growth. So like I said it is a contested terrain we don't have much consensus on this on the issue of land reform neither is there a lot of political will especially in the present time however there was a time from the 1950s to the 1970s 80s when most post-colonial societies tried to implement some version of land reform in their countries. Land reform and economic growth we can think of land reforms, growth enhancing effects of land reform for instance you know it makes sure there is greater political and economic peace in the countryside it makes sure that there increase in productivity in agriculture through greater investment in agriculture and then that surplus can be transferred to industry. On the other hand we can think of growth mitigating effects of land reform whereby small farmers small farms leads to subsistence level production and credit is not available for poor farmers most policies are designed keeping large farms in mind and therefore there is a landlord bias. So since policies are made for big landlords land reform is going to lead to reduction in production because everyone is going to produce only enough to sustain themselves. Now the evidence obviously on this is very controversial and I would really urge you to watch the rest of this to go through the rest of this presentation as we present evidence from some key studies to better highlight these growth enhancing and growth mitigating forms effects of land reforms. So with that I will end this video lecture but if you have any questions make sure you let me know.