By Wim Pelupessy, Reurd Ruben
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Extra info for Agrarian Policies in Central America
The tenants of the land-to-the-tiller program in El Salvador were left to the mercy of landowners and death-squads in the struggle to register as potential beneﬁciaries and there was nothing comparable to the tens of thousands of trained promoters and their assistants in Taiwan. Apparently, state autonomy was not strong enough in El Salvador to redistribute income and power from landowning and related classes to beneﬁciaries of the reform and the landless. A third point refers to the design of the reform, where programs were planned in isolation and not articulated to each other.
Although part of the resources went to stockholding in industrial enterprises, the majority of the ex-landlords have not become members of the entrepreneur class in Taiwan. In the Salvadoran reform, no explicit consideration was given to a productive role of landlords in or outside agriculture, nor did it lead to the disappearance of the landholding class. Landowners and the Wim Pelupessy 37 related oligarchy became powerful opposition leaders to the reform and retained much of the control over agriculture and especially agroindustrial activities.
The ﬁrst phase affected the property of landlords with more than 500 hectares as cooperatives of at least 25 permanent workers were formed. In principle, 476 haciendas were to be expropriated, while the original owner could retain 150 hectares plus 20 per cent if improvements were made to the property. On the basis of their tax declarations, the owners were to be compensated with 20-to 30-year bonds, to be repaid by the cooperative over 30 years. The Institute for Agrarian Transformation (ISTA) had to execute Phase I and support the cooperatives with credit, inputs, technical assistance and supervision.
Agrarian Policies in Central America by Wim Pelupessy, Reurd Ruben