In a previous article in this series I highlighted a specific role for commercial farmers and other landowners to donate land by introducing nudges and incentives. It would, however, be unfair for farmers to have to take all the responsibility for the redistributive process. There should also be a role for those in the established nonfarm economy.

White farmers were not the only white people who benefited from the old regime — most of the beneficiaries of apartheid live in urban areas. The presidential advisory panel on land reform therefore came up with the idea to spread the burden by creating a land reform fund. This concept was central to the report of the panel and is discussed in detail on page 82 of the report. In this essay, I discuss the argument for, and the mechanics of, creating such a fund.

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