Large-scale land investments Current trends and pathways to inclusive and sustainable development Thea Hilhorst, Annelies Zoomers
Outline presentation • Land: Where, how much • Drivers globally and in-country • Actors • Concerns • Policy responses
Recent Large Scale Land Acquisitions (post 2005) • Lack of information ; Most (still) via media – reliability ? ( no information => what policy response is possible ..) • One initiative by ILC, GIZ, CIRAD, OXFAM/Novib, Univ of Bern • Database via “ crowd-surfing ” & Verification ; geo-referenced
information in database • 1233 announced deals, 96 countries; Effective; +/- 400 cases; • 80 million reported (50 million in africa) Effective: 17 million ha (7m Africa, 7m Asia; 3m lat am) Brasil, Cambodia, Madagascar • Mostly planted with biofuel and food crops
No. of deals selected countries
Area and hotspots
Top of the iceberg? • Ethiopia: – MOARD 3.589.678 ha - (2009-10): – Map: 2.226.270 – diff.: 60%... • Mali Office du Niger: – leases- 50.000 ha; conventions: 293.000 ; intentions; 527.000.. – Map: 180.105 ha - diff.: 60% • Also many unknown/Invisible deals (signed but not yet operational)
Domestic investors (below the radar screen) • Mali OdN • Ethiopia same (gambella +/ 5% FDI; 50% area – largest companies • (diversity companies)
What type of land is acquired • Narrative of empty land ….(national & international Africa is a sleeping giant – No land without users having (informal) rights • Agric Frontier: low pop. density; often indigenous people; high biodiversity value; primary forests; Wetlands; protected areas • Common lands: pastoral lands (forest reserves of communities) • Farm land already in use =>Dams; urban expansion, economic zones; some farms Displacements • ( investment companies prefer to buy existing commercial farms)
Some drivers of LSLA - global level • Economic trends ( commodity prices ; Finance looking for profitable investment until credit crisis) • Business incentives: – expectations profit in agriculture – expectations rising land values – investments perceived as lower risk
Global drivers cont. • Policies Public sector : => opportunities/ incentives for business • EU/US .. – policies biofuel subsidy => incentives – REDD and other CC; etc.=> incentives for speculation (governance & rights issues) – Private sector promotion/ business climate => deregulation; investment treaties; internat investment law; subsidies; insurance • Governments food insecure/ rich countries : Gulf states; East Asia (following food crisis 2008 ) • Encourage investments host countries (diplomacy; funds) political deals with host countries • Seek international acceptance ( United Nations ) lead by Japan, Gulf states ( reputation )
Drivers at country-level / in-country forces Active support host government ( public sector ) to attract FDI and facilitate access to land (for international investors); competition between countries High Expectations/ “ belief ” in FDI for development (infrastructure; employment generation, social services, revenues? (tax holidays…) ; believe in large-scale farming ; And political economy How: • Changes Legal framework (investment policy; biofuel promotion policy); “ land policy ” • “ land bank ” – – De-gazetting Protected areas/ forests /wetlands; environmental impact assessment (EIA) => become token exercises – changing attitude to stewardship role public/state land ; expropriation.. • support by government officials; (formal/ informal; trade fairs etc.)
Summary: Key Actors FDI at country level (identification/ negotiation phase) Host governments Private sector (& advisors – legal; technical) • FDI from different countries, including EU and US, B(R)IC, Asia; south-south; regional – Investment companies (core business is finance) (different time frames & goals) – International Agrobusiness /increasingly complex consortia with finance, input supply, managers (India, South Africa, Brazil model) – Speculators Development partners • Helped to pave the way: deregulation; investment climate (IFC) • embassies – advise to private sector? • promoting studies/ regulation (international; in-country… Sensitive)
Some concerns in context ERD inclusive / sustainable growth /WEL nexus/ governance NR management concerns: • Valuation of land and resources => very low in selecting areas ; in contracts (scarcity not perceived) • conversion forests and wetlands; degradation watersheds • Key ecosystems services are not protected; – No application envtl regulation ( EIA; protected area regulation ) • (low value; no monitoring) => no Efficient resource use by investors (water; soil; etc.). Maximizing returns to capital; not to land (or labour) • Sustainable growth concerns (economic, ecological, social) • Inclusiveness concerns (displacement) • Risk of Conflict
Governance challenges • accountability : Lack of transparency around land deals; why, who is involved, and what is in the contract, what are the revenues, what control; No consultation of parliament; • Assessment of business plan? Cost-benefits? limited consultation of sector ministries; Many agencies signed deals- contradictions; what will countries really gain, let alone local people • Quality of contracts; very fast; where information on contracts became available; questions on valuation: sold/ leased at very low fee, conditions seem generous (taxes); weak control mechanisms; • Undermining environmental/forestry legislation Local rights “ denied ” ; including rights of indigenous people/culture • (international regulations); No information, consultation, participation at local level; Central government undermines local rights- make use of law vesting ownership over land in the state (crown lands, formally farmers have user rights only) • no level playing field for smallholders (land tenure –support)
Policies initiatives to regulate LSLA/ (halt… • Host government: moratorium (Mozambique; Tanzania); centralisation of decision making; …. • Business & finance sector: roundtables; CSR; UN level initiatives (RAI) • CSO mobilisation / awareness => domestic accountability ; intern. Pressure on business; finance & development partners • Media
Dev partners & others Principles • Land governance related policy principles: international (RAI, VG) • Food security principles (food security commission; right to food) “ responsible business ” principles (Multinationals..; subsidies • schemes); • Rights & governance issues in climate change related policies Capacities/ alternatives • Capacity building host countries to select and monitor; accountability • Promote Business models involving smallholders ; no loss of land Securing rights smallholders • Use Experiences from parallel sectors: (Public sector negotiation • & monitoring contracts and revenue (timber; mining; petrol..); Community rights (free & prior informed consent) ; treaties to protect rights of indigenous people; ILO=> labour rights
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