Reform of rural land markets in Latin America and the Caribbean : research, theory, and policy implications

This paper summarizes recent research on rural land markets in the region and the relationship between this research and broader land tenure issues. Case studies examine rural land market conditions in four Central American countries (Guatemala, Honduras, El Salvador, and Costa Rica), two Caribbean (St. Lucia and the Dominican Republic), and in Ecuador and the Andean region. The studies highlight the barriers facing land-poor campesinos in gaining access to land through the market and shed some light on their strategies to manipulate the market. There is some evidence from Ecuador, El Salvador, and Costa Rica that land has moved from the large-farm to the small-farm sector as a result of pressure from organized campesinos and the threat of both land expropriation and direct government action. The report then evaluates reforms to increase market efficiency and make land markets more accessible to the landless and rural poor in the region. These reforms have included elimination of subsidies to scale, land taxation, modernization of land registration systems, land titling, and land banks and mortgage banks. Policy options are presented in conclusion.