HOW LAND REFORM CAN CONTRIBUTE TO ECONOMIC GROWTH AND POVERTY REDUCTION: EMPIRICAL EVIDENCE FROM INTERNATIONAL AND ZIMBABWEAN EXPERIENCE

1. International evidence on the relationship between asset ownership and growth Economic theory is very clear on the fact that a one-time redistribution of assets can, in an environment of imperfect markets, be associated with permanently higher levels of growth. Thus, in contrast to what has been predicted by earlier development models (Kaldor, Kuznets), redistribution can actually be good for growth (Aghion et al. 1999; Bardhan et al.; Piketty 1999). Cross-country regressions clearly demonstrate that inequality in the distribution of land ownership is associated with lower subsequent growth (Birdsall and Londono 1998; Deininger and Squire 1998; Deininger and Olinto forthcoming; World Bank, 2001 World Development Report). Figure 2 provides a graphical illustration. At the household level, asset ownership has a clear impact on subsequent economic success (Blanchflower and Oswald 1998; Hoff 1996). Equal distribution of land ownership is shown to have made a significant contribution to human development indicators, for example in China as compared to India (Burgess 1999). 2. International evidence on the impact of redistributive land refor