ECONOMY
SA 'must be flexible on land reform'
Posted Thu, 20 Apr 2006
South Africa needs greater flexibility in its land acquisition options for land reform and more decentralised community-driven decision-making, the Organisation for Economic Co-operation and Development (OECD) said on Wednesday.
Releasing its first study of agricultural policies in South Africa, the Paris-based OECD — consisting of the world's 30 most industrialised countries — warned that land reform was one of the country's most important challenges.
According to the report, assistance is required to ensure land reform results in the emergence of viable farms.
"Development of the necessary technical and social infrastructure as well as an effective service sector are critical measures."
OECD food and agriculture director Stefan Tangerman released the study in Pretoria.
It
took the form of a comparative study of the developing countries China, Brazil, India and South Africa — and OECD countries.
In the study, South Africa was praised for holding the correct position on agriculture in the Doha round of negotiations at the World Trade organisations negations. South Africa had to continue asking the rest of the world to lower its subsidies for farmers and farming products.
"South Africa's level of subsidisation and support is rather low at five percent of revenue compared to that of 30 percent for countries in the OECD areas," Tangerman said.
South African farmers were much more market-orientated than OECD countries including the United States, France, Japan and the United Kingdom, he said.
He hoped the report would make it "even clearer" to OECD countries that they need to move forward on the WTO trade talks.
Earlier in the day, Agriculture and Land Affairs Minister Thoko Didiza said South Africa would stick to its
position. "We are keen to open markets for our products and are willing to make tariff cuts, but not in cases where products are subsidised," she said.
Sapa
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