Large-scale land investments Current trends and pathways to - - PowerPoint PPT Presentation

Current trends and pathways to inclusive and sustainable development

Thea Hilhorst, Annelies Zoomers

Large-scale land investments

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

• f 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