FAO report urges caution on large-scale land acquisitions by Food & Agriculture Organization & agencies 12:56pm 27th Oct, 2012   Land investors targeting poorly governed countries to avoid red-tape, says Oxfam.    Investors are targeting the world’s weakest governed countries to buy land, according to an analysis published to mark international day of action on land grabs.    The analysis reveals that over three quarters of the 56 countries where land deals were agreed between 2000 and 2011 scored below average on four key governance indicators. The 23 least developed countries account for more than half of the recorded land deals over this period.    The analysis follows Oxfam’s call for the World Bank to lead the fight against land grabs.    Oxfam’s chief executive Barbara Stocking said: “Poor governance allows investors to secure land quickly and cheaply for profit. Investors seem to be cherry-picking countries with weak rules and regulations because they are easy targets. This can spell disaster for communities if these deals result in their homes and livelihoods being grabbed – sometimes even violently - without consent or compensation.”    The research cross referenced data from the Land Matrix – a database of reported agricultural land deals involving 200 hectares or more of land – with World Bank indicators that measure how well a country is governed. The indicators assess a range of factors including voice and accountability (e.g. whether citizens participate in selecting their government), rule of law, the quality of private sector regulation, and control of corruption.    The analysis found that the average score across four key governance indicators in countries with land deals was 30 per cent lower than those without deals.    In a number of cases the potential area of land available for investment does not appear to be a significant factor. For example Guatemala, which scores below average on all four governance indicators, has seen 87,000 hectares of land change hands in the last ten years despite high levels of hunger and malnutrition in rural areas. In contrast, Botswana, which has a similar area of land available per head of population but which scores well above the average on governance indicators, did not reportedly agree a single large-scale land deal.    Oxfam’s analysis is supported by the World Bank’s own research.    Oxfam is calling on the World Bank to temporarily freeze land investments in large-scale agriculture so that it can ensure its policies do not encourage land grabs. The Bank is in a unique position to act because it sets international standards for land investments, provides finance for land deals and advises developing countries on land investments.    Stocking said: “The Bank is in a unique position to help stop this unbridled rush for land, which sees an area the size of London sold off to foreign investors every six days.“    * Barbara Stocking is the Chief Executive, Oxfam, Great Britain.    International investments must give local farmers and active role and leave them in control of their land if they are to have a positive effect on the host country’s economy and advance development, according to a report released by the United Nations food agency.    Produced by the UN Food and Agriculture Organization (FAO), the report – Trends and Impacts of Foreign Investment in Developing Country Agriculture – emphasizes that investment projects that combine investors’ capital, technology and management with the knowledge, land and labour of local farmers are the most successful, while those that simply acquire land are less likely to have any benefits for the host country.    “While a number of studies document the negative impacts of large-scale land acquisition in developing countries, there is much less evidence of its benefits to the host country, especially in the short-term and at local level,” the report states. “For investments involving large-scale land acquisition in countries where land rights are unclear and insecure, the disadvantages often outweigh the few benefits to the local community.”    Although foreign direct investment has risen significantly over the past decade, especially in Asia and Latin America, only a small share goes to agriculture. According to FAO, this presents an opportunity for growth in developing regions in light of high international food prices.    The report recommends that the large-scale acquisition of land – also known as land-grabbing – “should be avoided and other forms of investment should be considered.”    “It is important that any international investment should bring development benefits to the receiving country… if those investments are to be ‘win-win’ rather than ‘neo-colonialism,’” FAO’s Director of Trade and Markets Division, David Hallam, notes in the report’s foreword. While one of the perceived advantages of large-scale land investments is the creation of jobs, the report looks at several case studies in Africa and Asia, where actual employment was lower than initially projected, and in many instances, was given to non-locals.    In addition, the report notes that the land purchased is often used to produce biofuels or crops for an export market, posing a threat to food security in the host country – particularly if the new projects are replacing food crops that were destined for local consumption.    Some of the adverse effects of land-grabbing without involvement from the local population include displacement of smallholders, a decrease in the incomes of rural people and the degradation of natural resources, the report states.    Instead, it recommends that foreign investments give farmers a share of the capital, establishing joint ventures between investment companies and farmer cooperatives, and ensuring that marginalized groups such as women, youth and migrant workers are included.    http://landportal.info/landmatrix    http://www.grain.org/ http://www.oaklandinstitute.org/    http://www.oxfam.org/en/grow/policy/land-and-power    http://www.oxfam.org/en/grow/reports    http://www.fian.org/what-we-do/issues/land-grabbing/    http://www.fian.org/what-we-do/issues/indigenous-peoples/    http://www.globalwitness.org http://www.business-humanrights.org/    http://www.landcoalition.org/global-initiatives/securing-commons
	Next (more recent) news item
	Next (older) news item