This discussion paper points out how land reform was the principal component in the Alliance for Progress aimed at easing rural poverty. Major sections question: (1) the influence of land reform on agricultural productivity, (2) urbanization as a viable alternative to land reform, and (3) colonization as an economic alternative to land reform. Concluding remarks emphasize ways and means in which AID agencies might stimulate or assist land reform, which is held to be essential for Latin American countries. (RL)