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Land Reform in the United Arab Republic

Author(s): Kenneth H. Parsons


Source: Land Economics, Vol. 35, No. 4 (Nov., 1959), pp. 319-326
Published by: University of Wisconsin Press
Stable URL: http://www.jstor.org/stable/3144597
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Land Reformin the United Arab Republic
By KENNETH H. PARSONS*
THE land reform program in the Ministry of Agrarian Reform for that
United Arab Republic has centered region. There are also separate Minis-
upon limiting the land holdings of the tries of Agriculture for each of the two
relatively few persons who wielded great wings, or regions. All four of the
economic and political power in the Ministries are under the joint supervision
old regimes. But this program, especially of a Central Minister of State for Agri-
as it has developed in the Egyptian culture and Agrarian Reform.1
region, includes a reorganization of vil- I
lage agriculture along cooperative lines.
There are essentially two coordinated The basic concepts of the land reform
programs in the Republic: the one in programs have been derived from the
the Egyptian region has been operative experience in the Egyptian region. The
since 1952: the program in the Syrian extension of the program to the Syrian
region is now being initiated. The two region offers therefore a most interesting
programs show the similarities of their example of the adaptation of ideas to
kinship, for the more recent effort in the different conditions and circumstances.
Syrian region is largely an adaptation of Consequently, it is instructive to com-
parts of the program already in effect in pare in some detail the provisions of the
Egyptian territory before the formation laws and the operation of the programs
of the Republic. It is the purpose of this in the two regions.2
comment to sketch out some of the prin- The major item in the land reform
ciples underlying these programs. programs in each region is the acquisi-
The central land reform programs in tion and distribution of lands under
the Egyptian region are those which were cultivation but held in "excess" by large
launched in Egypt after the 1952 Revo- land holders. In Egyptian territory this
lution: (a) the acquisition of cultivated meant irrigated lands exclusively; in the
lands from large holdings for distribution Syrian region both irrigated and non-
to cultivators; and (b) the rent regula- irrigated lands are included-the latter
tion programs for tenanted lands. Simi- called Bali lands.
larly, the central feature of the land In Egypt at the time of the Revolution
reform program in the Syrian region is the Royal family-King Farouk and
that of acquiring and distributing to other descendants of Mohamed Ali-had
cultivators the "excess" areas of the extensive holdings of excellent lands.
large land holdings. In the latter, the These lands were confiscated, amounting
Land Reform Administration is also IThe present incumbent is the Hon. Sayed Marei who
charged with the administration and has been the chief director of the Egyptian land reform
programs since their inception in 1952. The chief adminis-
distribution of the state lands. These trative officer since 1952 also has been Mr. Ezzat, Abd El
are much more extensive and valuable Wahab. These men have gathered around them a small
core of dedicated and talented young men with previous
for agriculture than are the public experience in the government services of Egypt.
domain lands in Egyptian territories. 2The most recent texts available in English are: for the
The land reform program in each Egyptian region, AgrarianReformDecreeLaw .No. 178 of 1952
(with amendments), Cairo, Egypt: Agrarian Reform Organ-
region is under the jurisdiction of the ization, Public Relations Department, 1952; for the Syrian
region, Agrarian Reform Law No. 161, Cairo, Egypt: UAR
* Professor of
Agricultural Economics, University of Agrarian Reform General Organization, Public Relations
Wisconsin. Department, November 1958.
320 LAND ECONOMICS

to some 180,000 acres or about one third bearing three percent interest. Within
of all lands acquired for distribution. the past year approximately, the
All privately-owned lands held by one terms of the bonds in the Egyptian region
individual above 200 acres were subject have been changed to conform with the
to requisition (forced purchase), except provisions of the law for the Syrian
that as much as 100 acres of land above region.3
the 200-acre ceiling might be retained in In the Egyptian region the law stipu-
the family by assigning it to two or more lates that the agricultural land shall be
children. The landowner elected which redistributed or allotted to "small farm-
lands to keep (except that lands could ers, so that each of them shall have a
not be retained in a manner so as to small holding of not less than two feddans
destroy the functioning of irrigation facili- and not more than five feddans, accord-
ties); the requisitioned lands were ac- ing to the quality of the land" (Art. 9).
quired by the government, with payment In the northern region no minimum
principally in bonds, at a rate of 70 times allotment is prescribed, with the lands
the annual tax. being "redistributed among the farmers
In the Syrian region the ceiling on the so that each one of them shall have a
maximum acreage of irrigated lands small holding of not more than eight
which a private owner is permitted to hectares of irrigated land" .... or
retain is virtually identical in area with ... "30 hectares of Bali land."
that in the Egyptian region: 80 hectares The differing size of the individual
of irrigated land. Again the owner may allotments to cultivators in the two
assign approximately 100 acres of irri- regions reflects no doubt differences in
gated land to his children, except that quality and scarcity of land, type of
not more than 25 acres (10 ha.) may be farming, and the density of population.
assigned to each child. Since large The difference in size of the individual
areas of the Syrian region are not irri- allotments of redistributed lands, it is in-
gated, a different basic ceiling is provided teresting to note, does not have a parallel
for Bali land, namely 300 hectares, or in the size of retained holdings permitted;
approximately 750 acres. in both regions the basic ceiling for re-
In the Egyptian region the average tained irrigated lands is 200 acres.
price paid to former private land holders In both regions the requisitioned lands
for the requisitioned lands was approxi- are sold to the cultivators at cost, plus a
mately $500 to $600 per acre (with pay- service charge. In the original Egyp-
ment mostly in bonds). In the Syrian tian law the service charge was fifteen
area, for the relatively small amount of percent; in the more recent law for the
land already requisitioned, the price is Syrian region there is an overall charge
reported to be about $200 per acre for of ten percent "for the costs of requisi-
irrigated lands and about $90 per acre tioning, redistribution and other ex-
for Bali, or non-irrigated land. This 3 The bonds are of limited convertibility. They may be
payment is also in bonds. used by the recipient or his heirs to meet obligations to
government or to purchase "fallow" land for reclamation
Compensation to previous private own- and development. In terms of investment effect the land
ers in both regions is now in bonds reform program was evidently directed primarily to stopping
bearing one-and-one-half percent in-
the flow of funds into the speculative bidding up of already
developed agricultural lands. Since the inauguration of
terest, payable in 40 years. Originally the land reform program there has been a great upsurge in
urban construction. The industrialization program is just
the land purchase bonds of the Egyptian
getting underway in 1959 with a heavy emphasis in this
program were issued as thirty-year bonds, first five-year plan upon industrial expansion.
LAND REFORM IN UNITED ARAB REPUBLIC 321

penses" (Art. 14). In both regions the price. In the Syrian territory the value
cultivator receiving an allotment of land of land is recognized to be ten times the
is now given forty years to pay, with an annual rent-reflecting the rule-of-thumb
annual interest charge of 1.5 percent. method of land valuation prevalent over
There are virtually identical provi- much of this general area. In the
sions in the two laws requiring "that Egyptian territory however the value of
Agricultural Cooperative Societies shall land is arrived at through an assessment
be constituted from among the farmers procedure-historically by first calculat-
who have acquired the requisitioned ing an annual use value with the annual
lands." In the Egyptian region par- land tax now being rated at one seventh
ticipation in such cooperative societies of the annual rental or use value; cur-
has been made a condition precedent to rently the annual tax of good agricultural
the acquisition of land by cultivators. land is around $8 per acre per year; the
II corresponding cash rent would be $56
per acre per year.
The recipient of land in the redistribu- An interesting corollary to this rent
tion programs is required, in both regions regulation program is that, with rents
of the United Arab Republic, to cultivate fixed at seven times the annual tax, any
the land himself. Thus on these lands change in the tax rates is reflected seven-
tenancies are forbidden. However there fold in the rental rates. This ratio can
is considerable difference in the programs of course be changed. But the "parity"
of the two regions regarding rental or issue remains as a part of the system of
tenancy policy for the land outside the administered prices.
requisitioned areas. The regulation of This regulatory effort has evidently
the rent of agricultural land is a major been more effective than the common run
feature of the agrarian reform law in the of rent regulation programs. Approxi-
Egyptian region (Articles 31-37). The mately two-thirds of the land in Egypt
maximum rate of rent for a full season is is now operated by tenants-mostly cash
seven times the basic tax. Where land tenants. To support the maximum rent
is rented for a single crop the maximum
provisions there has been a series of
permitted is some fraction of this total- decrees (which will expire during this
since most of the land in Egypt grows current crop season unless extended)
two or more crops per year.
giving tenants occupancy rights. Thus
There is no parallel provision in the when the tenant cannot be removed he
Agrarian Reform Law for the Syrian has protection from pressure for under-
region, but there is a parallel tenancy the-table supplementary payments which
law or decree, with rent-regulating would raise the rent above the legally
provisions. We have the impressionthat authorized maximum. Since 58 percent
this law is not yet operative. of the cultivated land in Egypt is owned
There is however a basic difference in in holdings of 10 feddans or less4 (with
the land reform laws for the two regions 49.3 percent in holdings of less than 5
regarding the relation of the land rental feddans) it is obvious, with two-thirds of
market to the land reform program. the land rented, that a substantial part
In the Syrian region the market rent of of the tenanted land is rented from small
land is accepted as a basis for the valua- owners. This has undoubtedly con-
tion of requisitioned land; in the Egyptian
Sayed Marei, Agrarian Reform in Egypt (Cairo, Egypt
region the rent of land is an administered 1957), p. 247.
322 LAND ECONOMICS

tributed to the effectiveness of rent 1,176,801 acres of land before distribu-


regulation. It is reported that the tion. After distribution these owners
fixation of rents reduced the rent of were estimated to have retained about
tenants by 40 million pounds annually, 350,000 acres.5 The estimated difference
or by something like one-third. represents the approximately 575,000
A program for reducing agricultural acres actually requisitioned for redistribu-
rents by publicly administered measures tion plus the private sales to small holders
under economic conditions characteristic permitted under the law. Thus in Egypt
of Egyptian agriculture is of course an the distribution of land embraced about
attempt at redistribution of the economic 9 percent of the area of Egypt. In
rent of land-from landlords to tenants. Syria, on the other hand, something like
A parallel measure in the original 20 or 30 percent of the cultivated area is
land reform law intended to establish reported to be subject to distribution.6
minimum wages for agricultural workers There is a relatively large area in
-redistributing income from farm opera- Syria which has recently come under
tors to laborers-has not succeeded. A cultivation by dry farming in the Jezira
parallel program of price ceilings on district. This is an area of large-scale
agricultural products consumed as food machine operations. Title to the land in
is evidently operating effectively, divert- this area has been actively disputed in
ing income from land ownership and recent years. Much of it was claimed by
operation to consumers. large operators either under old and
III vague Turkish deeds, or by the pre-
emptive right of nine years of cultivations
Although the land reform program is under a law of French mandate days.
just being initiated in the Syrian region, Furthermore, much of the land was
some interesting comparisons are already claimed by sheikhs under traditional
possible, due to the different conditions tribal grazing rates. Virtually the whole
in the two regions. For example, under area however was also claimed by
the Egyptian law it was possible to treat Syria as public domain lands reserved for
all land as being alike for purposes of the occupancy by settler-cultivators. Much
ceiling on holdings. This may reflect, in of this is available for distribution by the
part, the judgment that the largest hold- land reformorganization. Public domain
ings were characteristically on very good lands may be either sold or leased.
land. In the Syrian region however soil,
Something like two-thirds of the area
geography and land use practices are of the Syrian Region has not yet been
more varied. As a minimum it was covered by field surveys precisely es-
necessary to take account of the tablishing property lines. In the areas
difference in the productivity of irri- where the title to land is in dispute be-
gated and non-irrigated land, evaluated tween private claimants and the state,
at a ratio of 1 to 3.75.
compensation will be paid to private
Furthermore, the arithmetic of land parties only for that portion of the land
distribution in the two regions is very which is adjudged upon investigation to
different. In Egypt before the 1952
Revolution approximately 20 percent of ' Sayed Marei, ibid., p. 247.
' One reliable estimate places the area available for
the land was held in ownerships of 200 distribution at 3.3 million acres. The IRBD Report on
acres or more. It is reported that 1,768 Syria, EconomicDevelopmentof Syria (p. 4) gives an esti-
mate of about 9 million acres of cultivated land in Syria
owners (6 percent of all owners) held in 1953.
LAND REFORM IN UNITED ARAB REPUBLIC 323

be rightfully held by them. No compen- completely integrated in village opera-


sation will be paid for the state domain tions.
portion. The distribution programs need IV
not be affected. As the above remarksmay suggest, it is
The larger ceiling on allotments to
appropriate to speak of an Egyptian
cultivators in Syria implies that the
approach to land reform. Not only is
recipients of land will get a better the program in the Syrian region essen-
"break" than in Egypt, conformable
tially an adaptation of Egyptian ideas
with the much lower density of popula- and procedures but at least the first
tion. Of more importance, this differ- versions of the Iraqi land reform pro-
ence of policy suggests that the distribu-
gram formulated after the July 14th
tion of land in the Syrian region is a Revolution also drew heavily upon the
policy of "Syrian lands for Syrians." Egyptian experience. It may be useful
Essentially this idea of treating Syria therefore to attempt an interpretation of
as an independent entity runs through the basic ideas in the Egyptian approach.
the whole program. The programs in (1) The land reform program in
the Syrian region are administered by Egypt is, to date, a relatively conserva-
Syrians and the whole approach seems to tive one in terms of ownership. It is
imply the realistic view that the program based upon the preservation of private
must be suited to Syrian conditions. property in land with an upper limit on
The provisions for the establishment of holdings and on rents to limit the
cooperative farming among the recipients economic and political power of indi-
of land are virtually identical in the laws vidual landholders. Furthermore, the
for the two regions. However, the great land distribution program is limited to
and historic differences in the nature of the distribution of the excess acres,
administration and the role of irrigation basically above 200 acres per owner.
in the two regions may be expected to Only nine percent of the cultivated area
lead to different outcomes. Egyptian of Egypt is thus subject to requisition and
agriculture is very intensive and is distribution. On these distributed lands
geared precisely to the flow of Nile tenancy is forbidden. However, it is
waters. For decades and even centuries quite clear that the direction of the land
the allocation of water in Cairo has reform program in Egypt is dedicated to
shaped the agriculture of Egypt. The the maintenance of private investment in
result is not only a closely integrated agricultural land. The maintenance of
cropping and irrigation system but, in the 200-acre ceiling is evidence to this
effect, an agriculture of concerted effort point. Should the ceiling be broken to a
with little leeway for individual variation maximum of 100, or 50 acres, as was
in cropping patterns. The whole system actively proposed before the Revolution,7
of land allotments in the land reform the whole prospect for private ownership
program for the Egyptian region honor- of agricultural land would be changed.
ing the requirements of good rotational (2) The major achievement of the
practice (as discussed below), is based land reform program in Egypt is in the
upon this experience with a directed reconstruction and development of the
agriculture. Syrian farmers lack this requisitioned villages. This area of
experience. Consequently, if cooperative 7 Sec, Gabriel Baer, "Egyptian Attitudes toward Land
farming is to flourish in the Syrian Reform 1922-1955," in Middle East in Transition (Luqueur,
region, one would expect it to be less 1958).
324 LAND ECONOMICS

approximately 500,000 acres operates as major innovation in public administra-


a virtual enclave in the agricultural tion but the idea has been followed
economy. The efficient way in which the voluntarily for years in a few of the most
acquisition and distribution of land has progressive agricultural villages. Such
been achieved is a tribute to administra- an arrangement permits a common rota-
tive capacities of the directors and leaders tional pattern of 5 crops in three years.
of this program. The Egyptians are It concentrates the cotton to permit the
astute managers: in no other way could use of poison-dust treatment for cotton
a nation with only one-quarter of an parasites without contaminating food
acre of land per person survive with and feed crops and protects the cotton
limited imports and yet export roughly crop from seepage from rice irrigation by
one-half-billion dollars worth of agri- similarly concentrating the rice crops to
cultural products each year. large contiguous areas.
(3) The most striking innovation in For certain purposes such as deep
the organization of the economy is the tillage, fertilizer applications, irrigation,
reconstruction of the acquired villages as insect control, etc., the village in the
cooperative enterprises. The person re- land reform program is treated by the
ceiving lands under the program is re- management as a single firm; the work is
quired, as a condition of acceptance, to done and each landholder is charged for
join the village cooperatives. Each co- the cost. However, the responsibility for
operative is run by a manager-so far producing the crop-seeding, cultivating
appointed by the government-with a and harvesting-falls to the individual
policy-making council of elected culti- landholder; also, the crop belongs to the
vator-members. There are considerable family who owns the land upon which it
numbers of fragments of land pared off is grown.
from the retained (200-acre) private
holdings which do not lend themselves to The cotton is marketed cooperatively;
cooperative farming and are being culti- credit is extended by the Cooperative
vated by individuals. These non-con- Bank through the village cooperative.
tiguous areas are reported to amount to The sales proceeds of the marketed crops
some 20 percent of the total area requi- are credited to the account of the indi-
sitioned. vidual landholder. All charges are
But the typical arrangement is that debited to the individual accounts: for
the land reform villages are operated as cultivation and other services performed,
cooperatives, of which there are about for fertilizer and seed bought, for repay-
200. In this arrangement each recipient ment of the cooperative loans, and for
of land characteristically has 3 plots of the annual payment due on the land
land of equal size (as one acre). Each of allotment. The cultivator receives only
these plots is an integral part of a larger the net. However, in the more successful
field where 50 to 100 similar plots lay projects at least, the net income of the
side-by-side. The whole village is thus cultivators, according to official esti-
cropped in a three-field pattern within mates, has approximately doubled as a
which each landholder has a share in
each field. consequence of the changes introduced
by land reform. The goal of the land
This adaptation of the ownership allotment is that the per capita income
pattern to good agronomic practice is a of the participants should reach 16.5
LAND REFORM IN UNITED ARABREPUBLIC 325

Egyptian pounds, or $41.25 at the cur- dependence. However, the agriculture


rent official rates of exchange.8 of Egypt has been highly integrated as
The net gain in annual income which an irrigation economy for centuries so
a cultivator receives, when compared to that the cultivators in these same villages
the pre-reform era, is compounded of the have never experienced wide latitude for
following: (a) the cultivator has the es- independent action as compared to
sential incentives of individual ownership; farmersin rain-fed agriculture.
(b) the annual charge for the land is less In 1959, the first move has been made
than the previous rent-the annual to release village cooperatives from cen-
charge is figured at cost to the land tralized management. One or two of the
reform agency plus 15 percent (i.e., about earliest cooperatives in the land reform
$600 per acre) now amortized at 1 h program have been put on their own,
percent interest over a period of 40 years; with the privilege of the general services
(c) the technical management of pro- of credit, purchase and perquisites, etc.
duction has remained high; (d) the land (4) The very success of the coopera-
reform organization is able through its tive efforts in the land reform enclave
supervisory and management functions raises questions about the possibility of
to secure loans, machinery, fertilizer, extending the village cooperative ap-
etc., at lower cost than the same requisites proach to other villages. This has been
of production are available to cultivators tried since 1955 in an experimental way
outside the land reform enclave; and in the village of Nawag in Gharbia
(e) cooperative marketing of crops has province. Here in this representative
brought substantially higher returns. village of 1562 acres with 1585 owners
Through this type of organization the there were 1181 holdings (operating
Egyptians have worked out a manage- units) cultivating land in 3500 plots. Of
ment system which makes it possible to these 1585 owners, 1346 had one acre or
adopt any method of machinery use or less, and only 11 owners had more than
other innovation which careful calcula- 10 acres. The two largest holdings were
tion warrants without depriving the indi- about 40 acres each.
vidual cultivator of the incentives for The village land owners were per-
good individual husbandry or the sense suaded by the director of the Coopera-
of independence. 9 tive Department of the Land Reform
Although the individual cultivators Organization to pool their lands for
have relatively small room for inde- cultivation in a manner similar to that
pendent decisions they do own the crop followed by the cooperatives in the land
and thus retain the basic element of in-
combined center has a physician, small hospital (15 bed),
I Ezzat, Abd EI-Wahab, Land Reform in Egypt, Paper some 3 nurses, an elementary school program, an agricul-
presented to FAO Center on Land Problems in the Near tural agent with demonstration plots, a community center,
East, Iraq, October 1955 (mimeo). etc. By 1959, 250 combined centers were in operation out of
Although the village cooperative programs of the Land a projected total of 900. Each center is intended to serve
Reform organization are quite inclusive, the major emphasis 3 to 5 villages with approximately 15,000 persons being
has been upon the production and business aspects of the within walking distance of the center. These combined
village economy: management, marketing, increasing pro- centers offer the approximate equivalent of the community
duction, etc.-with marked success. If one were to place development program of India, Pakistan and elsewhere.
this approach in full perspective he would need to compare The combined centers and the Land Reform village
this type of village program with other approaches, which organizations are essentially complementary, but have so far
have relied upon education, cooperation, etc., without the not been integrated in field operations. These parallel move-
sanctions that have accrued to the land reform organization ments, including the more limited antecedents of the com-
through the control over land use. A series of village pro- bined centers constitute a major laboratory of social and
grams has culminated in the present program of"combined economic development, and deserve much more careful
centers" sponsored since 1955 by an inter-ministerial evaluation and comparative analysis than they have so far
Permanent Council for Public Welfare Services. Each received.
326 LAND ECONOMICS

reform villages. The consolidation of reform areas with the rest of the agricul-
the separate tracts into large fields for tural economy. On the other hand,
single crops was achieved by exchanging there are the major limitations upon high
the use of individual tracts so that no quality farming and productivity in-
one was excluded from cotton growing herent in the thousands of small parcels
for example, by having all of his lands of irrigated land characteristic of Egyp-
outside the areas planted to cotton. The tian villages-as reported from the vil-
pooling and exchanging of land use was age of Gharbia which has been recon-
achieved by the advice and persuasion structed on cooperative lines-particu-
of a man trusted and respected by the larly where cotton and rice are major
villagers, who could also assure them of crops. The key to the effective organiza-
better seeds, cheaper fertilizers, etc., if tion of the land reform villages is the
they joined the cooperative. This ex- control which the Land Reform Organ-
perience has been profitable and gener- ization has retained by having the owner-
ally satisfactory to the individual par- ship of land pass through a public agency.
ticipants. The experiment is considered There is no comparable public control
to demonstrate the basic feasibility of the over the areas outside the land reform
cooperative reorganization of village villages. To achieve such control it
economies. However, it is recognized would be necessary either to acquire
that the cost in terms of educational and the land or by some device reduce the
persuasion efforts is quite high. In ownership of land to a pure investment
short, as a pilot project the experiment function with effective control over land
was immensely successful; how to gen- use passing to some kind of govern-
eralize the experience in a feasible mental agency such as the Land Reform
manner is not at all clear. Organization.
V Underlying this dilemma are: (1) the
stark facts of pressure of population upon
The Egyptian experience with the the land; and (2) the implicit question
cooperative approach to the reorganiza- of whether it is actually feasible to
tion of village economies in the land re- organize such small scale agriculture
form program thus seems to point to a around the market principle-of factor
basic dilemma, illustrated by the differ- and product markets. The alternative to
ences between the operation and manage- individual ownership and independent
ment of the villages within the land planning of farm operations is some kind
reform program and the representative of directed and concerted action such
villages of the other 90 percent of as has been devised in the cooperatives
Egyptian agriculture. On the one hand, of the land reform villages. Under
there is a problem of how and whether Egyptian conditions the necessity for
to release the centralizeddirection, super- survival presses hard upon the range of
vision and servicing of the distributed individual freedom and discretion in
villages-essentially of reuniting the land agriculture.

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