15
Limiting factors (limitations)
A wide range of limiting factors, physical, economic and social, can restrict suitability
of the land for different kinds of use. (The Framework referred to physical limiting
factors as limitations.) In the procedures set out in the Framework it was the physical
limiting factors –arising from climate, hydrology, landforms, soils and vegetation–
which were primarily employed. Diagnostic criteria based mainly on physical land
qualities or characteristics were taken as the basis for evaluation, and critical values of
these determined the boundaries of suitability classes. For example, calculated values
within one of the models employed to predict soil erosion could be taken as critical
values of suitability classes for land utilization types based on arable cultivation.
Since they are well established, it is not necessary to elaborate on physical limiting
factors here. However, the Framework was less explicit in its treatment of socio-
economic conditions as limiting factors, which could lead to these being assigned
a generalized or background role. The present view is to assign essentially equal
weights to physical and socio-economic limiting factors, and to integrate these more
closely during the evaluation. A more detailed discussion of the economic, social and
political factors that may affect land suitability for particular kinds of use is therefore
appropriate.
Institutions
Institutions include legal structures, customary rules, property rights, implicit or
explicit contracts, formal or informal groups or associations such as credit and savings
groups or purchasing or joint sales groups, and governance systems. These define
the framework in which factors of production are utilized and developed. A classic
example of inefficient persistence of institutions has been the land reforms in many
developing countries. Empirical evidence, however, always suggested that economies
of scale in farm production are insignificant (except in some plantation crops) and the
small family farm is often the most efficient unit of production (Bardhan 2001).
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