Question

how did the landlords increased their agricultural land

Answer 1

Abstract

This paper addresses the question of how farmers displaced by acquisition of agricultural land for the purpose of industrialization ought to be compensated. Prior to acquisition, the farmers are leasing in land from a private owner or local government with a legally mandated sharecropping contract. Compensation rules affect the decision of the landlord to sell the land ex post to an industrial developer, and ex ante incentives of tenants and landlord to make specific investments in agricultural productivity. Efficiency considerations are shown to require farmers be over-compensated in the event of conversion

Introduction

A major issue in contemporary development policy concerns compensation paid to those whose traditional livelihoods are uprooted by modern industrial projects. This involves both equity and efficiency considerations. In the absence of a welfare state those who are rendered unemployed by industrialization are left at the mercy of market forces. Inadequate compensation of such groups results in a political and social fallout, which can undermine the political sustainability of such programs.