Alma Economics was commissioned by Scottish Land Commission (SLC) to review the literature concerning the benefits of different models of ownership, tenure and control. As well as considering land models, including crofting and community ownership, the study also sought to understand the benefits that can flow from diversification of ownership, tenure and control in corporate governance, specifically looking into co-operatives, mutual organisations, and firms with employee codetermination.

Crofting and community ownership are two models which facilitate more diversified ownership, tenure and/or control of land in Scotland. Such models can promote a wide range of social, economic, and environmental benefits. Key benefits include fostering community pride and ownership; surplus generation for community benefit; local economic development; sustaining local culture, tradition, and social networks; improved stewardship of the local environment; and population retention.

In the context of corporate governance, greater employee ownership and/or control have been found to promote a range of “non-financial” benefits for members, who can include employees, customers, and suppliers. These benefits can include greater job security, improved flow of knowledge and ideas, and sharing of surpluses amongst members. Importantly, these benefits do not appear to come at the expense of reduced financial performance, with evidence even suggesting such models can increase business resilience and longevity. Overall, our review of the evidence suggests that policy reforms that seek to increase diversity of land ownership and control in Scotland are likely to generate significant and wide-ranging benefits.

➥ The report can be found here.