Solidarity: utility considerations in agricultural land lease in the Republic of Moldova

Abstract

A solidarity nuanced economy has the potential to be an antagonist to inequality and poverty. Solidaric features in an economy can serve development initiatives in that solidarity fosters cooperation and promotes self-help. Exchange is one of the most ubiquitous of all human behaviors. A principle of exchange is that both parties, either individuals or groups, must derive greater benefit than sacrifice for the exchange to occur. Exchange enhances an economic agent’s utility. Solidarity informs utility; thus, solidarity impacts exchange. Solidarity can be tersely defined as “social cooperation.” Utility maximization unwrought is based on the premise of self-regarding behavior. Solidarity, on the other hand, is other-regarding behavior. These two elements in exchange need not be in discord; quite the opposite, they act in concord. Solidarity is articulated as being distinct from large group collective action. Collective action can incorporate features of revenge and punishment. Solidarity, as a specialized form of collective action, is strictly associated with cooperation and charity. Solidarity is a process of other-regarding mutual exchange. The inescapability of living out solidarity is described and the case is presented that solidarity is of individual initiative. Because incentives (dis-incentives) are felt at the individual level, it is here that other-regarding behavior (i.e., solidarity) is incubated. The Inequality Predicament suggests that economic inequality is the most pressing issue hindering development (United Nations, 2005). The inequality phenomenon calls for more attention to the role of economic solidarity. The inequality predicament may not be so much a matter of wealth inequality as it is inequality of access to resources and markets. Solidarity is an implement of engagement in gaining access to markets. Few studies in collective action literature are addressing how rural households are affected by changes in property rights and how land policies impact incentives to engage in solidarity. Land rights can only be properly understood in the context of their development. The uniqueness of land rights is informed by past and present culture. This dissertation presents a conceptual framework for examining the relationship between solidarity (i.e., cooperation) and access to land markets. The focus of this study is on the interplay between property rights and solidaric utility decisions of individuals or small groups. The arena of research is land fragmentation and agricultural development in the Republic of Moldova.