Next Article in Journal
Satellite Monitoring of Vegetation Response to Precipitation and Dust Storm Outbreaks in Gobi Desert Regions
Previous Article in Journal
Mapping Urban Green Infrastructure: A Novel Landscape-Based Approach to Incorporating Land Use and Land Cover in the Mapping of Human-Dominated Systems
Article Menu
Issue 1 (March) cover image

Export Article

Open AccessFeature PaperArticle

Inclusive Businesses and Land Reform: Corporatization or Transformation?

1
Agricultural Economics, Extension and Rural Development, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa
2
Centre de coopération internationale en recherche agronomique pour le développement CIRAD, 75116 Paris, France
This paper is based on an unpublished conference paper “Inclusive business and land reform: Corporatisation or transformation?” presented at the 55th AEASA Conference, 19–21 September 2017, Durban, South Africa.
*
Author to whom correspondence should be addressed.
Received: 23 November 2017 / Revised: 20 January 2018 / Accepted: 24 January 2018 / Published: 26 January 2018
View Full-Text   |   Download PDF [1115 KB, uploaded 26 January 2018]   |  

Abstract

Inclusive businesses (IBs), embodying partnerships between commercial agribusinesses and smallholder farmers/low-income communities, are considered to contribute towards rural development and agricultural sector transformation. Structured as complex organizational set-ups consisting of, and overcoming the limitations of, standard inclusive instruments (collective organization, mentorship, supply contract, lease/management contract and equity), they allow for the inclusion of smallholders and low-income communities into commercial agricultural value chains. IBs are a way for governments to engage private agribusinesses in agricultural and rural policies. However, will the commercial sector, through IB partnerships, contribute towards the government’s transformation and developmental objectives? Based on case studies in South Africa—a country engaged in land and agrarian reforms—the effects of IBs at the project level appear positive, illustrated by an increase in production and growth in agricultural assets. However, individual beneficiaries experience only a marginal change in income and livelihoods. Whereas land reform, project development and market integration are generally achieved, the transformation and beneficiary development objectives are compromised. Although commercial agribusinesses contribute to investment needs in the sector and smallholder exposure to commercial markets, IB partnerships allow commercial entities control over the smallholders’ assets. Ownership and secure rights, especially of land, and support of external parties to capacitate beneficiaries and adjust power asymmetries, are essential starting points. Without these aspects, IBs will not lead to effective transformation and development. View Full-Text
Keywords: inclusive business; land reform; rural development; agriculture; South Africa inclusive business; land reform; rural development; agriculture; South Africa
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Chamberlain, W.O.; Anseeuw, W. Inclusive Businesses and Land Reform: Corporatization or Transformation? Land 2018, 7, 18.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Land EISSN 2073-445X Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top