It’s land, stupid...Larger/Smaller
Centre for Policy Research
Pratap Bhanu Mehta / August 19, 2010

The issue of land acquisition is not just a technical issue about compensation to farmers. It has now become a poison that is sapping the very foundations of our republic in both economic and political terms.

Power projects, roads, universities, businesses and even schools cannot get off the ground because of land issues. The distortions in the land markets are producing asset prices that probably have a direct bearing on high inflation. But even more importantly, the political economy of land is destroying politics in this country beyond redemption. The discretionary power the state has with respect to land is the single biggest source of corruption in this country. Vast fortunes have been amassed by a nexus of politicians and developers. Several astonishing companies have arisen, on seemingly nothing but their ability to manipulate the political process. The three areas which are the least liberalised and the least transparent are land, liquor and learning. It is no accident that the stamp of political patronage is most widespread in these areas. The revolt against land acquisition is as much a revolt against a corrupt state as anything else.