Before the Bolivian National Revolution of 1952, land in Bolivia was unequally distributed — 92% of the cultivable land was held by estates of 1,000 hectares or more. On August 2, 1953, the MNR government led by president Víctor Paz Estenssoro decreed the (Law Decree 3464). The law abolished forced peasantry labor, and established a program of expropriation and distribution of the rural property of the traditional landlords to the Indian peasants. Only estates with low productivity were completely distributed. More productive small and medium-sized farms were allowed to keep part of their land and were encouraged to invest new capital to increase agricultural production. The Agrarian Reform Law also provided for compensation for landlords to be paid in the form of twenty-five-year governm