Kathmandu, Nepal – July 22, 2024
Despite the progressive mandate of Nepal’s 2015 constitution, particularly Article 51(i) which prioritizes scientific land reforms to benefit peasants, land-related issues continue to plague the nation. The 1964 Lands Act, initially intended to quell peasant uprisings, remains partially implemented. Many landlords exploit informal agreements to lease out land, thereby evading redistribution programs. As a result, approximately 1.3 million Nepali households remain landless, with fertile land in the hills and mountains lying barren due to absentee ownership and inadequate land management.
In response to these persistent issues, the proposal to establish Land Banks has resurfaced. Originally introduced in the late 1990s and supported by the World Bank, this market-led land reform program faced significant resistance from peasant and landless communities. Critics argue that it benefits large landowners rather than addressing the core issues of tenancy rights, land fragmentation, and land above the ceiling.
The Land Bank concept treats land as a commercial commodity, conflicting with the views of peasant and indigenous communities who see land as integral to their identity, culture, heritage, and sovereignty. By dividing large plots into small parcels, the Land Bank approach reinforces land fragmentation and commodification, which critics argue undermines social change and perpetuates feudal land ownership.
The Land Bank program aims to incorporate land into the banking system, facilitating land savings and allowing leasing and selling of land similar to taking loans. This approach has been criticized for promoting neoliberal policies rather than genuine land reform. Despite resistance, the former government of K.P. Oli reintroduced the proposal, claiming it would end absentee land ownership and prevent fallow land. However, smallholder farmers worry that this could lead to increased land prices and further marginalization.
The All Nepal Peasants’ Federation (ANPFA) has been vocal in its opposition to the Land Bank proposal. According to Pramesh Pokharel, General Secretary of ANPFA, these programs threaten Nepal’s agricultural self-sufficiency and food sovereignty by potentially diverting agricultural land for non-agricultural use. Pokharel emphasizes that the Land Bank does not enhance tenure security, improve land access, or provide economic benefits for the landless. Instead, it risks deepening poverty and injustice by concentrating land tenure among wealthy landowners and corporations.
What Nepal truly needs is comprehensive land reform based on land use policies that ensure proper utilization. This should be non-discriminatory and recognize the equal rights of all individuals, including women. Effective land reform requires clear policies on land use, mapping, digitalization, and administration, tied to broader political, economic, and socio-cultural transformation. This includes treating land, water, seeds, and knowledge as commons belonging to all humanity, and supporting a solidarity economy that prioritizes dignity and equity for all.
Peasant organizations in Nepal continue to demand action, including the implementation of the right to food sovereignty law and the Land Use Act. Comprehensive land reform is essential to end feudal remnants, increase agricultural production and productivity, establish rights over productive resources for farmers, prevent land fragmentation, and address tenant farmer issues. Political parties in Nepal agree on the necessity of scientific land reform to transform production relations and establish a self-reliant economy.
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This article was prepared with inputs from Pramesh Pokharel, General Secretary of All Nepal Peasants’ Federation (ANPFA), reflecting the ongoing struggle for comprehensive land reform in Nepal.