Time to let go of CARP? Not so fast

Abstract

We review the data being used to argue that the Philippines’ comprehensive agrarian reform program (CARP) has failed in economic terms. We find that important statistics and econometric results from cited references have been either misinterpreted or used to make invalid comparisons. A more careful reading of the data shows that productivity for all four major crops under land reform rose more in agrarian reform communities than elsewhere, poverty incidence declined more in agrarian reform communities than in non-agrarian reform communities, and being an agrarian reform beneficiary or residing in an agrarian reform community has positive effects on per capita income. In short, the case that carp has failed or is redistributing poverty was not made.

JEL classification: Q150