agricultural land in the eastern caribbean

16
Agricultural land in the Eastern Caribbean From resources for survival to resources for development Eduardo Rojas The main effects of existing socio- economic arrangements for agri- cultural land development in the Eastern Caribbean are discussed and changes aimed at improving both the efficiency and squity of the land development process are identified. The author argues that the existing ‘plantations-small holders’ structure is incapable of providing an efficient way of devel- oping the available land resources and of improving the standard of living for the vast rural population. A new set of export oriented agrl- cultural enterprises is pinpointed as a requirement in any viable solution aimed at taking land away from its present role as a resource for survival for the many and an economic benefit for the few and to reinstate agricultural lands as one of the key resources for more egali- tarian, environmentally sound and efficient sociosconomic devel- OpfWIlt. Keywords: Eastern Caribbean; agricuttunz; land development Eduardo Rojas is Assistant Professor at the lnstitute of Ufban Studies, The Catholic Universityof Chile. He can be contacted at Los Navegantes 2328, Providencia, Santiago, Chile. The socioeconomic development of the Eastern Caribbean islands of Antigua, Dominica, Grenada, Saint Lucia and Saint Vincent (see Figure 1) has been intrinsically linked to the land.’ Since their incorporation into the international economic system as British colonies, devoted to the production of tropical products, the exploitation of agricultural land in general, has been the main source of wealth and power in these societies. Wars, exclusive trade and slavery dominated the life of the colonies for more than two hundred years leaving many traces in the current socio- economic structures of the islands. Such a heritage is hampering the economic development of these small independent countries and consti- tutes a burden that has proven politically difficult to remove. This is especially the case in respect of the inherited social arrangements for exploiting agricultural land, which promote; underuse of resources, low productivity, inflexibility of production patterns, long-term ecological damage to the natural resource base, thus preventing the majority of the rural population from overpassing the subsistency line. Modification of this situation in an area where relatively a large popu- lation competes for relatively scarce land resources, is not easy nor is it a problem that lends itself to isolated solutions. However, the preservation of existing structures or only partial modification (as with the various land reforms implemented in many Latin American countries) may represent a serious threat to the advancement of these societies and the general stability of the environment. Within this perspective, land reform in the Eastern Caribbean is not only a prerequisite for any greater social equity, but also a precondition for preparing the agricultural sector for the challenges posed by the agricultural markets thus ensuring the preservation of the land resources and the ecological equilibrium of the territories. Agricultural land development constraints Three different types of constraints can be considered as directly affecting the development of agricultural lands in the Eastern Caribbean; they arise out of the resource endowment of the islands, the land distribution and tenure structures and the economics of agricultural development. 02668377/84/010039-16$03.00 0 1983 Butterworth 8 Co (Publishers) Ltd 39

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Agricultural land in the Eastern Caribbean

From resources for survival to resources for development

Eduardo Rojas

The main effects of existing socio- economic arrangements for agri- cultural land development in the Eastern Caribbean are discussed and changes aimed at improving both the efficiency and squity of the land development process are identified. The author argues that the existing ‘plantations-small holders’ structure is incapable of providing an efficient way of devel- oping the available land resources and of improving the standard of living for the vast rural population. A new set of export oriented agrl- cultural enterprises is pinpointed as a requirement in any viable solution aimed at taking land away from its present role as a resource for survival for the many and an economic benefit for the few and to reinstate agricultural lands as one of the key resources for more egali- tarian, environmentally sound and efficient sociosconomic devel- OpfWIlt.

Keywords: Eastern Caribbean; agricuttunz; land development

Eduardo Rojas is Assistant Professor at the lnstitute of Ufban Studies, The Catholic University of Chile. He can be contacted at Los Navegantes 2328, Providencia, Santiago, Chile.

The socioeconomic development of the Eastern Caribbean islands of Antigua, Dominica, Grenada, Saint Lucia and Saint Vincent (see Figure 1) has been intrinsically linked to the land.’ Since their incorporation into the international economic system as British colonies, devoted to the production of tropical products, the exploitation of agricultural land in general, has been the main source of wealth and power in these societies.

Wars, exclusive trade and slavery dominated the life of the colonies for more than two hundred years leaving many traces in the current socio- economic structures of the islands. Such a heritage is hampering the economic development of these small independent countries and consti- tutes a burden that has proven politically difficult to remove. This is especially the case in respect of the inherited social arrangements for exploiting agricultural land, which promote; underuse of resources, low productivity, inflexibility of production patterns, long-term ecological damage to the natural resource base, thus preventing the majority of the rural population from overpassing the subsistency line.

Modification of this situation in an area where relatively a large popu- lation competes for relatively scarce land resources, is not easy nor is it a problem that lends itself to isolated solutions. However, the preservation of existing structures or only partial modification (as with the various land reforms implemented in many Latin American countries) may represent a serious threat to the advancement of these societies and the general stability of the environment.

Within this perspective, land reform in the Eastern Caribbean is not only a prerequisite for any greater social equity, but also a precondition for preparing the agricultural sector for the challenges posed by the agricultural markets thus ensuring the preservation of the land resources and the ecological equilibrium of the territories.

Agricultural land development constraints

Three different types of constraints can be considered as directly affecting the development of agricultural lands in the Eastern Caribbean; they arise out of the resource endowment of the islands, the land distribution and tenure structures and the economics of agricultural development.

02668377/84/010039-16$03.00 0 1983 Butterworth 8 Co (Publishers) Ltd 39

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Agricultural land in the Eastern Caribbean

the author is grateful to the Department of Regional Development of the Organization

These constraints are at the root of the many inefficiencies of the agri-

of American States for the opportunity to cultural land development process, and are determinant of current

become acquainted with the problems of trends, acting as a deterrent to further development. land development in the Eastem Caribbean through consultancy assignments con- Land distribution and tenure tracted in the last foui years in various parts of the region. The opinions expressed in this article are the author’s and do not represent the views of the OAS. This article is based on the results of a research project of the Institute of Urban Studies, financed by a grant from the Research Directorate of the University of Chile. A preliminary version was presented to the Second World Congress on Land Policy held at the International Center for Land Policy Studies, Cambridge, MA.

‘The English-speaking Eastern Caribbean is a group of independent Caribbean islands, former colonies of Great Britain; Antigua, Dominica, Grenada, Saint Lucia and Saint Vincent. All these countries were members of the West Indies Federation and until recently associated states to the UK. Wiiin the Commonwealth Caribbean, they belong to the group known as the Less Developed Countries (LDCs) as opposed to the More Developed Countries of Jamaica, Barbados and Trinidad and Tobago. The five countries included in this analysis are linked by special economic and political ties; the East Caribbean Monetary Authority and The Organization of East Caribbean States. All are island states with similar geographical, cultural and ethnic features and a common econ- omic and social history. LParticularly in Antigua and Saint Lucia. Saint Vincent and Dominica, due to the relatively small availability of good agri- cultural land were not so greatly affected. Grenada grew nutmeg and cocoa, and has since early colonial times been relatively diversified in its agricultural production. ‘Figures on land distribution were quite drikina in 1973. In Antiaua farms under 10 ha accounted for 99.1 <of the holdings yet occupied only 38.7% of all the land. Similatiy in Saint Lucia, farmers with less than 2 ha accounted for 82.0% of all holdings using only 14.2% of the total farm land; at the other end of the scale, holdings with more than 80 ha represented only 0.6% of the total yet were in control of 52.7% of the acreage. The situation in Saint Vincent was not different, 77.9% of all farms were below 2 ha in 1972-73 and occupied only 22.3% of the total land while 5% was above 20 ha

The original land distribution pattern in all the islands of the Eastern Caribbean was heavily influenced by the military events of the seven- teenth and eighteenth centuries and the demands of international markets (see Figure 2). The supremacy wars between France and England created an insecure environment for economic development, resulting in the sequential development and abandonment of small plantations devoted mainly to the production of indigo and cotton. By the time the situation was finally settled (in the early nineteenth century) sugar was in high demand, so all suitable land was devoted to its production.2 The early structure of human settlements in all the islands was of two main types; a small number of plantations of moderate size located in the flat alluvial valleys containing the good agricultural lands (see Figure 3) and one urban settlement, also of moderate size, where governmental and export-import activities were concentrated. After emancipation (1833), groups of small farmers began to settle on marginal lands around the large estates and the resulting settlement structure has remained unchanged to this day. Its main characteristics are; large concentrations of small farmers devoted to mixed farming for subsistence in the marginal lands around the valleys; a small number of large estates devoted to the monocultivation of export crops and one relatively large urban concentration in the main port. (See Figure 4).

Successive crises in the production of different export crops led to the abandonment and reallocation of land. Periods of declining exports led to the active subdivision of large farms followed by rapid land reconsoli- dation during periods of rising exports. The last of such periods occurred after the second world war when the effects of declining sugar prices hit the large sugar plantations. Production shifted to small farmers working in association with the sugar factory, a process that favoured land sub- division. The expansion of banana exports in the late 1950s triggered off the reverse process, fostering the reconsolidation of land in the rich alluvial valleys. By the early 197Os, the land distribution pattern of the Eastern Caribbean countries was characterized by highly concentrated ownership of the best land resources and by the existence of a large number of extremely small holdings located on the marginal lands.3

Land tenure problems preventing private investment in land develop- ment represent a constraint for the advancement of the agriculture in certain countries. In the Eastern Caribbean, most of the land is normally owned by the farmer or is at least held in ownerlike possession. Neverthe- less localized prob!ems of insecure tenure do exist involving holdings held on a short-term basis and the existence of squatters and share troupers 1 I

andoccW~52% of*e~a~landinfam~ In Grenada, 98.5% of all farmers occupied

(two extremely insecure forms of gaining access to land for landless

holdings of less than 10 ha in size but farmers) aggravates the situation. In Saint Lucia and to a lesser extent in owned only 48.9% of total land under culti- Dominica and Saint Vincent, multiple ownership of land is commonly vation while farmers owning more than 20 ha accounted for 0.9% of the farm popu-

f ound as a type of tenure that reduces the negotiability of the land and

lation but had control over 45% of all the acts as a deterrent for investment in land development.4 land. Finally in Dominica, holdings of less than 2 ha comprised 69% of all holdings but Limited resource endowment controlled only 11% of all farm land while holdings of more than 40 ha comprised only

continued on p 43

Small territorial size is normally associated with limited natural resources, both in quantity and variety. This is the case in the Eastern Caribbean

LAND USE POLICY January 1984

Agricultural land in the Eastern Caribbean

Figure 2. Topography and land distribution in Grenada.

where the situation is further aggravated by a scarcity of good agricultural land.5 In most cases, less than 10% of the total land area is of high potential (land classes I, II and III), In all the countries, land considered marginal for agricultural purposes (classes IV, V, VI and VII) is being cultivated.

42 LAND USE POLICY January 1984

Agricultural land in the Eastern Caribbean

continlletl from p 41 1% of all holdings and controlled 56% of farm lands. See, Weir’s Agricultural Consulting Services Small Farming in the Less Developed Countries of the Commonwealth Caribbean, Caribbean Development Bank, Barbados, 1980. “In cases like Saint Lucia (and to a lesser extent in Dominica and Grenada) the complex problems of land development already outlined are further aggravated by complex and inefficient land tenure systems, an inheritance of the difficult history of the island. Given its military importance, Saint Lucia changed hands fourteen times between the French and the British, before it was finally handed to Great Britain in 1914. In the process the island was left with many social structures wtth astrong French tradition (the land tenure system, a population predominantly Roman Catholic) and political and economic structures of British origins. In Saint Lucia sometimes land is held as family land (ownership in common to all inheritors), a result of the antiquated laws of succession that give inheritance rights to all descend- ants of a deceased person but in different proportions. This type of land tenure affects long-term land development since it pre- vents individuals from farming under secure terms or the renting or disposal of the land. In Antigua, a great deal of the agricultural land (60%) is in the handsof the government and the absence of proper procedures for leasing this land has negatively affected its development. SFor instance, in Saint Lucia over 78% of the land available (over 111 Cl09 acres) is of very limited agricultural value (land classes

continued on p 45

Figure 3. Typical alluvial valley currently used for the monocultiiatiin of export crops.

A high population, limited land and the concentrated ownership of the best land have forced many small farmers to clear relatively poor agri- cultural land and put it into production, creating a conservation problem and considerable poverty due to low productivity (see Figure 5). Once permanent vegetal cover is removed, the land loses fertility due to he erosion caused by heavy rainfall over the steep slopes where the marginal land is normally located. A pattern of shifting cultivation is common in the small farming community, requiring the permanent clearing of new land for survival, a process that increases the area affected by erosion, threatening the ecological balance of whole watersheds. This is only one of the ill effects of shifting cultivation, it also diminishes the overall availability of water in streams and springs generating water shortages in critical watersheds during the dry season. Erosion on the head of the watersheds generates the sedimentation of rivers and river mouths, affecting marine ecosystems with the consequent toll on the overall environmental quality of the islands, the resource on which tourism depends.

Macroeconomic constraints

Since the early 1960s there has been a progressive deterioration of the terms of exchange and a decline in the agricultural sector of Eastern Caribbean countries. Stagnation in the value of export products, the fall in production, the abandonment of farms, the reduction in agricultural employment and population migration to urban areas are some of the signs of this decline. It can be argued that the natural resources and land distribution constraints, combined with the production systems, explain this decline and prevent the structural changes required to transform agriculture into a dynamic sector from taking place.

These constraints have various effects on the productivity of the economic units operating the land. Small farms, with a relative scarcity of land and large families working on it leads to the overuse of labour

LAND USE POLICY January 1984 43

Agricultural land in the Eastern Caribbean

Figure 4. Population distribution in Grenada.

resulting in low levels of productivity per worker. In larger farms, the relative abundance of land encourages its underuse while the abundance of labour at low wages (or labour partially remunerated in kind) reduces incentives for making the necessary investments to improve the pro- ductivity of the agricultural sector, within the context of increasingly

44 LAND USE POLICY January 1984

Agricultural land in the Eastern Caribbean

Figure 5. Typical ridge sefflement with small farmers exerting heavy pressure on scarce resources.

continued from p 43 competitive international markets. They also reduce the likelihood of the VII and VW in contrast with the very small quantity of good agricultural land that

capital and entrepreneurial factors looking towards agriculture.6

amounts to 7220 acres (less than 5% of all Most economic units operating in the Eastern Caribbean agricultural

the land). There are more than 41000 acres sector show very limited flexibility in adjusting production to changing USed for crops, thus Over 62% Of faming operations in Saint Lucia are performed on

circumstances in the markets. In the large farms this problem can be

land of very limited agricultural potential. explained by the combined effect of; a relatively small scale of production *The low capital formation capacity of all facilitating monopsonistic practices and making all productive units these countries makes them extremely dependent on external capital; this type of

heavily dependent on one marketing system;’ the ownership of some of

capital rarely goes into agriculture in the the large plantations by the marketing concerns making the system verti-

Eastern Caribbean due to the low pro- tally integrated; the extreme dependency of large private farms on ductivity of the sector. ‘Exports of banana producing islands

preferential policies for export crops. Specialized equipment, organiza-

(Grenada, Saint Vincent, Saint Lucia and tional set-up and know-how also contribute to the limited flexibility in the Dominica) are handled by one multinational large farming sector. As a result, large farms keep producing traditional corporation and are sold under preferential conditions in the UK market. A similar

export crops in spite of increasingly adverse market conditions. Small

situation tends to occur with Grenada’s producers are only slightly more flexible than large producers since they nutmeg production and St Vincent’s arrow- are also tied up by their dependence on preferential policies, existing root. BananaProducersineachcountryare marketing arrangements and commodity associations in relation to organized in producers associations that act as intermediaries with the multi- markets, sources of finance and supplies. These negative aspects are nationals, and handle packing, transpor- further aggravated by the traditional dependence of Eastern Caribbean tation Of ProcJu=, pesticides and technical farmers on outside centres of decision-making concerning prices, advice. These associations are organized in a subregional entity, WINBAN, dealing production quotas and investment policy. with marketing and price negotiations with The special characteristics of banana production meant medium and the mumnation& .under@king t=hniml and economic research.

small-sized farms were easily incorporated into the production of export

8Banana production lacks important crops.sThis has made export production even more competitive for land, economies of scale, if is labour intensive, labour and capital with general food production than it is normally in non-seasonal and can be P&O~ITI~~ on plantation economies. many types of lands, even on steep slopes.

9 Food production for the local markets is to date a

All these characteristics encourage small markedly residual activity in the Eastern Caribbean resulting in persist- farmers to produce bananas as this safe ent problems of food supply and the pronounced enclave character of export crop can be relied upon to provide them with regular cash income. A sort of

export production.

wage relationship is established between Finally, overall development policy in the countries of the Eastern continuedonpti Caribbean has recently concentrated on the promotion of tourism and

LAND USE POLICY January 1984

Agricultural land in the Eastern Caribbean

Most small farmers do not have sufficient land to use fully all available family labour and to obtain significant economic surplus. In fact, a great majority of small farmers in the Eastern Caribbean control less than half of one hectare (ha) of land (one acre), and it is generally of poor quality. Such an area of land only allows for the cultivation of food for self consumption; with present cultivation practices, this amount of land is not even capable of supplying a balanced diet for an average family of five.” Farmers are forced to search for other types of employment, generally as labourers in plantations or on a temporary basis in the service sector or tourism industry. Two factors militate against this multiple employment strategy from being a permanent solution for small farmers; the low wage levels in the plantation sector (normally associated with temporary employment) and the high unemployment rates prevaling in all the countries of the Eastern Caribbean. l2

continued from p 45 small growers and the intermediaries (growers associations and marketing firms) reducing the multiplier capacity of the trade. Wecent surveys in Antigua and Saint Lucia show that more than 75% of the food being served at the hotels is imported; unre- liability of supply and poor quality are the main reasons given by the hotels for not using local products to supply nearly 50% of their needs. loSee J. Crusol et al, ‘A programme for agriculture in island plantation economies’, World Development, Volf3, 1980, pp 1027- 1033. “In the early 197Os, over 45% of the hold- ings were of less than half a hectare in Saint Lucia, nearly 20% in Dominica, 40% in because of the underuse of labour but also due to the relatively poor Saint Vincent and Grenada, and 35% in Antigua. Out of a total of nearly 35000 agri- quality of the land resources it controls. As a result, the standards of

cultural holdings existing in the countries of living of the rural population in settlements where small farms predomi- the Eastern Caribbean, at least 14000 were below subsistency levels.

nate are very low, in many instances just over the subsistence line.

*ZEaslem Caribbean economies have been Crop sharing and the short-term rental of small plots of land are the

traditionally incapable of generating suf- most common ways for the landless population to gain access to the land. ficient employment for the growing labour force. In 1981 official unemploymentfigures

When the land being rented or share cropped is in an alluvial valley (some

were 20% in Antigua and 14.5% in Saint absentee estate owners use these systems to obtain rents from the land)

Lucia. and efficiently managed with export crops, farmers are able to make a

Small farmers controlling between half and two ha (1 to 5 acres) of land, are also normally forced to underuse available family labour. This group of farmers concentrates on multiple cropping with food for self- consumption and bananas for export. Productivity is low not only

industrial investment, making government policy on agriculture mainly concerned with maintaining employment. This has resulted in an over- emphasis in aid to export production by price support schemes, prefer- ential credits and production, and export subsidies to farmers engaged in export crops. Financial and technical assistance has been given to encourage agricultural diversification in the small farming sector, but these schemes have been unable to offset the advantages of export production brought about by the benefits generated by other govem- mental policies. lo

Structure of rural poverty

The end result of this set of macroeconomic constraints has been the sustained production (by all types of farmers) of crops that are no longer competitive in the international markets and a neglect of the opportuni- ties lying in the diversification of production.

The countries of the Eastern Caribbean have the potential for produc- ing fruits and vegetables that can be processed locally and exported to

other Caribbean islands (such as Barbados, Trinidad and Tobago, the Dutch and French islands), countries in South and North America and Europe. This potential is not exploited with the consequent loss of diversified rural employment and income. Full scale diversification of agricultural export production and processing can go a long way in improving the economic development of the islands, above all it represents the most viable way of expanding and diversifying rural employment. Nevertheless, the current structure of land development prevents agricultural expansion from taking place and forces the majority of the rural population to sustain very low standards of living.

46 LAND USE POLICY January 1984

Agriculhual land in the Eastern Caribbean

small profit. Otherwise this group of farmers suffers the same problems as small farmers with the additional burden of the rent they have to pay for the land. In general, share cropping and land rental do not allow for the generation of a significant economic surplus nor do they encourage rational land use patterns. The overuse of land, low productivity and the low returns of labour are the most common results of these forms of land tenure. Squatting, the informal scapegoat in a situation where there is a high population and scarce, ill-distributed land resources is by no means a more efficient or equitable system of gaining access to land. Squatting encourages resource depletion (since it normally involves very marginal lands) and results in very low standards of living for the participants.

In the agricultural sector of the Eastern Caribbean, it is only by controlling relatively large tracks of good agricultural land that a sub- stantial economic surplus can be generated. Only large and medium sized farms are in this position. Therefore, given the existing circumstances only a very small proportion of the economic units operating in the agricultural sector can be considered to be generating monetary returns of significance, the majority of the farmers can only hope to survive.

Recent trends and perspectives

The structural problems of the Eastern Caribbean agricultural sector, discourage new capital inflow and encourage estate owners to dispose of land. Two main mechanisms of doing this are currently in use; large farms are sometimes subdivided in medium sized farms (lo-50 acres), acquired

mostly by urban-based local investors who seek to cultivate the land at a profit, under the umbrella of the existing preferential policies; this spon- taneous land redistribution process complements several government land redistribution projects seeking to subdivide large estates in a number of ‘viable’ small farms as part of a policy of expanding exports, diversi- fying agricultural production and redistributing the benefits of agri- cultural development. l3

Such land redistribution has two main drawbacks as a solution for the low economic returns obtained by the majority of the population from land. The first problem is that the viability of the new farms depend entirely on the continuation of present government policies on export agriculture (such as price support and preferential loans). These policies are the main reason why bananas, cocoa, nutmeg and other export crops still generate the levels of economic surplus that justify investment. This type of development makes economic sense in the short term for the private sector, but is less than convenient from the macro economic point of view and in the long term. The continuation of the preferential policies mean permanent government subsidies to a sector of the economy whose productivity is no longer competitive in international markets. As long as other sectors of the Eastern Caribbean economies do not generate suf- ficient surplus to pay for the subsidies, the preferential policies cannot be continued indefinitely without external aid. The second problem is the scarcity of land; there is simply not enough land to give each small farmer and landless agricultural labour a ‘viable’ segment. Considering that at least 5 acres (2.0 ha) of good agricultural land or 15 acres (5.5 ha) of marginal land is required to generate a significant economic surplus out of an agricultural enterprise in the present circumstances, anything from 35% to 65% of the farmers operating in 1973 in the Eastern Caribbean countries (with the sole exception of Antigua) would be left without land if all available land is to be distributed on an equal basis. l4

IsThe typical example of this type of project is the Saint Lucia Model Farm Project that aims at distributing over 2000 acres of land, formerly in the hands of a multinational corporation, in a number of small holdings of five acres in the flat good agricultural lands (land classes I or II) and of fifteen acres in hilly areas (land classes IV and VI). Farm sizes have been calculated to ensure the generation of sufficient surplus to allow repayment of the loans received by the farmers and to ensure an average income per family consistent with lower public servant wages. All these calculations assume the continuation of banana pro- duction for export and the intercropping of foodstuffs for local consumption. _ 14With the sole exceotion of Antiaua. all Eastern Caribbean countries h&e an absolute shortage of land to cater for the needs of all the rural population. For instance, in Saint Lucia all available good agricultural land (7220 acres, 2670 hectares) can accommodate onlv 1445 tarmers in 5 acre (2 ha) plots. Marginal land 139500 acres, 14660 ha) allows for the creation of another 2700 small farms of 15 acres (5.5 ha). This land redistribution may leave 60% of the landholders of 1973 without land.

LAND USE POLICY January 1984

Agricultural land in the Eastern Caribbean

%ee P. Selwyn, ed, Development Policy in Small Countries, Institute of Development Studies, Sussex, 1975; A.W. Lewis, ‘The industrialization of the British West Indies’, Caribbean economic Review, May 1950; W. Demas, The Economics of ~vefopment in Small Countries with Special Reference to the Caribbean, McGill University Press, 1965; N. Girvan and 0. Jefferson, Readings in the Political Economy of the Caribbean, New World, Mona, t971; E. Hodkinson, ed, Development Prospects and Options in the ~m~nweaff~ Caribbean, Overseas Development Institute, London, 1976; C. Real de Azita, ‘Las pequenas naciones y el estilo de desarrollo constrictive’, Rev&a de la CEPAL, Nr 4, 1977; R. Robinson, ed, Consecuencias Econdmicas de/ Tamano de /as #a&ones, Labor, Barcelona, 1971. 16Taken from T. Farrell, ‘Size and devel- opment revisited; micro states and devel- opment strategy’, paper submitted to the seminar on Development Problems of Small Island States, Saint George, Grenada, July 1961. ‘7Tourism and industry have played an important role in the economy of some of the countries of the Eastern Caribbean as in the case of Antigua, Saint Lucia and to a lesser extent Grenada and Saint Vincent. Future development of these sectors is not completely clear to date, due to the changing circumstances of the international markets, high transportation costs and social instability in Caribbean countries. Important changes in the enclave character adopted by these sectors are needed if they are to play a leading role in the socioeconomic development of the islands.

Furthermore, the land redistribution process alone does not ensure that labour and land productivity will increase; on the contrary, if agri- cultural development continues to be tied up with the traditional export crops, the best that can be expected is the maintenance of current productivity levels. Therefore the equitable solution of the problem of the agricultural sector in the Eastern Caribbean poses a complex challenge, requiring the removal of many interrelated constraints in order to increase productivity, ensure long-term stability, diversify the rural employment structure and promote the egalitarian distribution of the benefits. All these conditions are necessary to improve the standards of living of the rural population without taxing other sectors of the economy and for making agriculture a major factor in the national

development process.

Guidelines for agricultural land development

In considering alternatives for solving the problems of the agricultural sector in the Eastern Caribbean, it is necessary to determine the role that agricultural land development is going to play in the overall development of the area. A full discussion of the development prospects of small

Caribbean countries clearly exceeds the scope of the present work and is the subject of much debate. Is The full analysis of the structural changes required to bring about a self sustained development process in this type of country, necessitates consideration of a vast array of very complex social, political and economic issues. The solution to the high levels of decisional dependency on the main variables of the economic develop- ment process; increases in the saving capacity of the economy and in the capacity of the countries to retain skilled manpower; diversification of the economy; income and power redistribution, are some of the key aspects to be considered in such a discussion. An answer to each one of them sustains the opinion that there is no impediment for the small countries of the English speaking Caribbean to develop if to be developed means that

a country is capable of:

0 providing for the basic needs of the population; 0 educating the people; 0 developing a range of technical capabilities to cope effectively with

their environment; 0 generating greater equity among the population with respect to

income, wealth and power; @ making full and proper use of available human and natural resources; 0 sensibly diversifying the economy; and 0 managing to eschew dependence. l6

Despite the important role that tourism and industrial activities may play in the future development of the Eastern Caribbean,17 agriculture must continue to play a major role in the economy. This sector has the poten- tial for becoming one of the important earners of foreign exchange and for satisfying the basic food needs of the population. Only the economic sector can increase output, diversify production and increase value added in the short term using mostly local resources. Finally, the agricultural sector has the greatest potential for spreading the benefits of develop- ment to large sections of the population. Considering all these factors, agricultural development may play an impo~ant role in achieving the development conditions listed above; in particular agriculture can:

LAND USE POLICY January 1984

Agricultural land in the Eastern Caribbean

0 increase total output of the economy and contribute to the satis- faction of the basic needs of the population

0 contribute to the diversification of the economy; 0 contribute to the equitable distribution of income wealth and power

in society; 0 contribute to the full use of available human resources; and l conserve the natural resource base.

For agriculture to be able to make such a substantial contribution to the advancement of Eastern Caribbean societies, both the efficiency and equity of agricultural development must be improved. This requires a structural modification of the existing man-land relationship. In terms of efficiency, this modification should aim at increasing the economic surplus generated by the exploitation of agricultural lands while at the same time protect the natural resource base of the countries. In terms of equity, there is a need to increase the number of social groups partici- pating in the benefits of agricultural development as one of the mechanisms for improving rural standards of living. Attainment of these goals will require the introduction of new types of agricultural enterprises in the rural sector of the Eastern Caribbean, replacing the inefficient and unequal plantations - small holders structure.

Efficient agricultural land development

A more efficient land development process must increase the economic surplus generated by the exploitation of agricultural land. This aim can only be achieved if land is devoted to the production of suitable crops in high demand in the international or the local markets. The proper adjust- ment of production to demand requires the efficient operation of both the economic units developing the land and the marketing mechanisms. Within the limitations imposed by the land capabilities, adaptative marketing arrangements and flexible agricultural productive units will allow the rural sector of the Eastern Caribbean to make full use of the ecological advantages within a context of changing demands and commodity prices.

Given the variety of land capabilities resulting from the complex topographic and climatic structure of Eastern Caribbean countries, agri- cultural production will have to be fairly diversified in order to achieve rational land use patterns. For instance, flat alluvial valleys (with irri- gation in the dry season) can produce a wide variety of crops in lands amenable to intensive cultivation. Horticulture and high value crops can be produced on a rotative basis, producing larger economic returns than the present monocultivation of bananas. Gentle sloping areas can be used for banana production and still be intercropped with ground provisions and other crops oriented to the local market, increasing yields and economic returns. Land on steeper slopes can be used for tree crops (coconut, cocoa, nutmeg, citrus fruits) and food forest (breadfruit, mangoes, avocado,) aiding diversification of production and exports. Finally, land requiring permanent vegetal cover for conservation can be used for energy forests and commercial timber production.

The Eastern Caribbean has the potential for satisfying most of the population’s food demands and at the same time beginning to export foodstuffs on the international market. Inter-island trade and joint agri- cultural development planning can be instrumental in taking further advantage of resource complementarities (Antigua specializing in dairy

LAND USE POLICY January 1984 49

Agricultural land in the Eastern Caribbean

and meat production, Grenada in tree crops, Saint Vincent in arrowroot and horticulture, Dominica in timber and wood products, Saint Lucia in fruits and vegetables).

Diversification of agricultural production will certainly require a diversified structure of land development and a variety of agricultural enterprises. This is so because the different types of crops and land have different production requirements. For instance, there are very few crops for which cultivation in small farms is efficient, unless monocultivation of these products is desired, the promotion of enterprises based solely on small farms is not advisable. There are also very few products whose production requires very large farms - these are mostly products which Eastern Caribbean countries are growing less of products which cannot be grown at all in the islands. Therefore achievement of a rational agricultural land use structure (one that uses each type of land to its most productive use) is fundamentally dependent on the type of enterprise farming the land and the efficient operation of the market mechanisms. l8

Another factor affecting the efficient development of the agricultural lands concerns the incorporation of value added locally to the agricultural produce. An efficient and diversified agricultural production structure makes a good foundation for the development of agroindustries that can be conveniently located in rural areas. These industries can increase the value added locally to exports and diversify employment opportunities in rural areas. Agroindustries also tend to generate a steady demand for agricultural products, helping to stabilize agricultural output and rural income.

Full consideration of the problems of natural resources conservation is an essential part of any development strategy for intensive agricultural land development over a relatively small resource base with a fragile ecological equilibrium. More efficient agricultural land development patterns can go a long way in rationalizing land uses, minimizing resource degradation. Nevertheless, intensive farming of the type required to cope with the development problems of the Eastern Caribbean can have negative impacts on the long-term fertility of the land and the general conservation of the soils. The use of fertilizers and, above all, the intro- duction of appropriate cultivation practices, needs to be incorporated into the land development process. Contour drainage, bench terracing and orchard terraces are some of the types of soil conservation measures that need to be considered as an integral part of the capital investment component of land development projects. Only efficient agricultural enterprises working on crops with high demand are able to face the long-term investments involved in soil conservation, but only if substan- tial encouragement and support is provided by the government.

The general theme of the preceeding discussion concerning efficient agricultural land development has been the need to introduce a new type of agricultural enterprise. Consideration of the land capability structure of the Eastern Caribbean countries and the requirements of modem agricultural production leads to an appreciation of the importance of

Yt is commonly agreed that the successful introducing modifications to the existing ‘plantation-small holders’ introductionofbananasasanexportcropto replace sugar in the Eastern Caribbean

structure of agricultural enterprises dominated by multinational market-

was facilitated by the development of an ing concerns. Such a structure has proven incapable of diversifying efficient and retitie marketing system. production, increasing output, conserving natural resources and Farmers ContWiua oJttivaWl bananas partly because of government support and

improving the standard of living of the rural population. It can be argued

partly because it is almost the only crop with that from the point of view of efficiency, what is required is a more

a reliable marketing system. diversified structure of medium- and small-sized farms participating in

LAND USE POLICY January 1984

Agricultural land in the Eostem Coribbeon

producer controlled marketing arrangements and capable of supporting various export-oriented small agroindutries. The equity aspects of agri- cultural land development are also improved by this type of approach.

Equitable agricultural land development

The transformation of the agricultural enterprises necessary to increase the efficiency of the agricultural sector would have important impacts over the distribution of the benefits generated by the exploitation of the land resources, since it would allow a more equitable distribution of the social and economic benefits brought about by the exploitation of land. Therefore the traditional ‘equity versus efficiency’ dilemma, does not apply in the case of agricultural land development in the Eastern Caribbean; both need to be faced as an integrated whole in order to improve the contribution of the agricultural sector to the economy and to improve the standard of living of the rural po@ilation. Access to the land for a majority of the rural population, is the key element in a solution that should also be able to combine efficiency and equity within the general constraints of the scarcity of land and the need for efficient agricultural enterprises. The first constraint, land scarcity, poses a problem relating to the systems of land tenure likely to increase the proportion of the popu- lation with actual access to the land. The second constraint poses a question relating to the efficiency and flexibility of production organiz- ation. Finally, the goal of a more egalitarian distribution of the benefits of agricultural development poses the problem of creating more efficient and equitable mechanisms to avoid excessive income differentials between different agricultural activities (such as tree crop farming).

No simple solution exists for introducing these major changes into a traditionally concentrated structure of income and power distribution, particularly under the type of severe constraints encountered in the Eastern Caribbean. The redistribution of economic surplus implies the redistribution of the ownership, or at least the control of the land, in turn the source of power and social prestige within the traditional West Indies society.

In ensuring a more equitable distribution of the economic surplus generated by the type of agricultural land development outlined in the preceeding section, the problem of how to make available land resources for the high population arises. Solution to this problem involves the setting up of a fairly complex pattern of land ownership in association with a complex mixture of agricultural enterprises.

At least three different types of land ownership management structures may arise. First, efficient exploitation of the lands in the fertile alluvial valleys may require medium-sized farms capable of generating the econ- omies of scale needed for intensive cultivation and of making sizeable enterprises with the capacity to afford experimentation and innovation. Cooperative ownership and operation of the lands may be a solution that can accommodate the objectives of incorporating the largest possible number of farmers and at the same time maintaining high levels of productivity to maximize income levels. Second, land on gentle slopes may be subdivided in individual holdings but exploitation of certain crops may be carried out on a cooperative basis (as with banana production), benefiting all producers from the economies of scale brought about by handling large quantities of produce in the selection, packing and market- ing processes. Third, tree crops can be managed as part of a community enterprise (land ownership and operation in common) to maximize the

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Agricultural land in the Eastern Caribbean

soil conservation capacity of this type of land use and at the same time minimize the negative effects of the seasonal character of this type of production. Energy forests are also amenable to such management, a convenient system for a type of production that is land consuming and takes long periods of time to reach maturity.

Other linked enterprises are amenable to alternative management structures. The joint ownership of agroindustries as a means of making agricultural producers and industrial workers participate in the benefits of this highly productive form of investment is a feasible alternative. The experience gained in the Eastern Caribbean in the operation of commodity associations can be used to handle marketing and the supply of inputs for both agricultural and agroindustrial production. Development of these two types of enterprise can be considered as a viable alternative for improving the Eastern Caribbean agricultural sector, at the same time achieving a more egalitarian distribution of the benefits.

As many linkages as possible among this variety of enterprises. are necessary for the maximization of the redistribution of the economic benefits. Lack of integration in the development of these enterprises may lead to a return to the existing situation in which the benefits of agri- culture reach only a small proportion of the population.

Land redistribution is only one element in a complex set of changes that need to be introduced to the existing production systems, therefore any solution to the problems of agricultural land development is bound to have far reaching impacts in the overall development structure of the countries. This leads to a questioning of the viability of the changes required within the existing power structure.

Viable agricultural land development The introduction of significant changes into the existing structure of the Eastern Caribbean rural sector is not easy nor is it a process that yields results in the short term. There are many technical and political problems to overcome within the context of limited resources and manpower for implementing long-term policies and projects. The available evidence indicates that changes of the type outlined in the preceding sections are feasible if properly implemented.

The new production structures can be introduced gradually as oppor- tunities arise in specific projects. The opportunity provided by the sale of a large estate can be used to organize cooperatives capable of taking over the land under the new production structures. Existing governmental marketing boards or commodity associations can be used to handle the diversified production arising out of the rational use of this land and can set up the basis of community based marketing enterprises.

Government policies can be instrumental in accelerating the process of transformation. Existing land taxation levels, generally low and rarely fully applied, can be modified to induce large land owners to dispose of the land they cannot farm efficiently. The resources gathered by the new taxation system can be used to finance land purchases by cooperatives or individuals. These financial resources can be managed by a land bank, an

19See Doener et al, ‘Lesser interventions in institution that also can be instrumental in regulating-land prices and

the land market to help the rural poor’, providing technical assistance. Government land can be used for the

Universitv of Wisconsin, Madison, 1981. setting up of food and energy forests under community management and Document submitted to the Conference on Land Tenure Issues and Agricuttural

governmental technical supervision. There are many other mechanisms

Development in the East Caribbean, Saint that can be used to trigger off processes capable of gradually implement-

Lucia, 26-29 May 1981. ing the desired changes.19

LAND USE POLICY January 1984

Agricultural land in the Eastern Caribbean

There are nevertheless, obstacles of significance. First, the redistri- bution of land that is instrumental to the modification of the man-land

relationship will affect one of the bases of the traditional power structure of the Eastern Caribbean. In the 197Os, many expatriate estate owners and multinational corporations attempted to pull away from the plan- tations, so opposition to the redistribution of land arising from these groups may not be strong, provided that they obtain a compensation for the land. This controversial issue in itself, can be negotiated by the government with resources obtained from land taxation. A different attitude may be adopted by local estate owners not willing to dispose of the land even with compensation. In the West Indies the ownership of land is not only an economic problem but also a symbol of social status.20 The spontaneous redistribution of some of the land may occur once the process gathers momentum and the new structures evolve into more advanced stages, by this time cooperatives and other community enter- prises will be able to invest part of the surplus generated in the land. In the meantime, there seem to be few problems in the way of a mixed structure of agricultural enterprises. Such a mixed structure can give the govem- ment the political room for manoeuvre to deal with opposing local interest groups, at least during the time when the process is being

consolidated. The land redistribution process poses another critical question regard-

ing the resources required to trigger off this type of structural transform- ation. Government land and externally aided land subdivision projects certainly made a good foundation for the process, but they are insufficient to cope with the whole problem. Two main problem areas can be identi- fied; first the resources required to organize the new agricultural enterprises and second, the resources needed to cope with the short term drops in production that invariably occur with the introduction of signifi- cant transformations in the existing production structures. Unless other sectors of the economy and improvements in the taxation systems can supply the required resources, external aid and soft loanswill be required. The resource component of the transformation process needs more exploration, not only in terms of sources of finance but also in connection with administrative systems and performance evaluation procedures.

Farmers in the West Indies are fairly individualistic in their approach to farming, an attitude that may represent a cultural barrier to the introduc- tion of community based enterprises. Nevertheless, the traditional institutions of communal cooperation in certain farming or building operations (the coup de main) lay a foundation for the development of the cooperative effort as basis for agricultural enterprises. Manpower development is one of the most important dimensions of the new production structure.

The lack of trained manpower can be a serious problem for implement- ing a fairly complex development programme and the lack of resources prevents Eastern Caribbean governments from hiring the required man- power in the international market. International technical cooperation can help in the short term and the development of agriculture will certainly make the sector attractive in the long term; to fill the gap in the

2mis is one of the factors explaining both meantime, strong commitment from selected groups of Caribbean pro- the interest shown bv the utban middle fessionals and technicians will be required. Such level of individual classes in acquiring fakns arising out of the subdivision of large farms and the preset-

involvement in a project of national interest requires a high level of long

vation of the ‘family land’ tradition in some term commitment from the political parties in power, a commodity

Eastern Caribbean countries. normally lacking everywhere.

LAND USE POLICY January 1984

Agricultural land in the Eastern Caribbean

Conclusion

These arguments indicate that the return of agriculture to its former role as one of the leading economic sectors in countries of the Eastern Caribbean requires changes in the existing relationship between the population and the land and the development of a new set of agricultural enterprises. Land reform is then a key component of more egalitarian socioeconomic development, a central factor for the modernization of these societies.

There are further implications to this traditional land reform objective when discussed within the context of the Eastern Caribbean. Given the socioeconomic and ecological conditions on which the development of these countries take place, more equitable accesses to land resources is also an essential condition for a more efficient agricultural sector. In the case of the advancement of the agricultural sector of Antigua, Dominica, Grenada, St Lucia and St Vincent, equity and efficiency go hand by hand. An efficient agricultural sector is necessary for the preservation of both the land resources and the ecological equilibrium of the most important watersheds. This demonstrates the environmental and economic dimensions involved in the discussion of the problems of land develop- ment in the Eastern Caribbean. These dimensions are added on top of the traditional social dimension of land reform.

The existing power structure and the scarce manpower and financial resources available, are probably the most important deterrents prevent- ing the required changes in the man-land relationship from taking place. The solution to the first problem requires political arguments and measures. The multidimensional nature of the land reform problem may help in gaining political support for the long-term commitment needed to face the structural changes required. Strong political support normally facilitates the pooling of financial resources and is instrumental in attract- ing the human resources required for the task.

LAND USE POLICY January 1984