Land grabbing and land rights

Transcription

1 FACULTY OF GEOSCIENCES INTERNATIONAL DEVELOPMENT STUDIES Land grabbing and land rights Overview and Backgrounds 13 December 2016 Guus van Westen

2 1. The global rush for land In , cross-border land acquisitions in developing countries started to make the headlines: the land grab The issue: large-scale acquisition of arable land by investors from wealthy countries with natural resource limitations: Emerging economies (China, S Korea, India) Arab oil states Traditional developed countries in N. America and Europe Targeting: Especially Tropical Africa Also other countries in Global South Transition economies (e.g. Ukraine, Russia) Via Invoegen Koptekst en Voettekst invoegen Subafdeling<2spaties> <2spaties>Titel van de presentatie 13 december

3 The global land grab Source: Peter Giovannini, based on data GRAIN

4 Global local nexus: investments targeting hungry places

5 European Environment Agency 2015

6 Drivers Several factors contributed to the surge in cross-border land deals: The new scarcities of natural resources since ca. 2000: food, energy, raw materials prompted by the ITC-related economic growth wave of the 1990s and rise of emerging economies (Pacific Rim, BRICS, etc.) Specifically triggers: Food crisis (2007) Surge in demand for biofuels (EU directive, US subsidies) Financial crisis (2008, 2015; capital in search for a safe haven) Via Invoegen Koptekst en Voettekst invoegen Subafdeling<2spaties> <2spaties>Titel van de presentatie 13 december

7 Food prices, bio-fuels, trade restrictions Triggers of transnational land deals

8 The main land grab network Source: Proceedings of the National Academy of Sciences (USA),

9

10 2. Backgrounds: Globalization Globalization a convenient umbrella-concept: Declining friction of distance integration of distant entities in networks Economic globalization: production organized in Global Value Chains (GVCs) and by Transnational Corporations (TNCs) Corresponding institutional changes: deregulation, liberalization of markets for commodities, but also for production factors (land) Neo-liberalism: the ideology underpinning globalization, which advances free markets as unfettered instruments for allocation, to the point of becoming norm-setting agents

11 Neoliberalism and agro production Rural/agricultural development initiatives within the neoliberal approach: Governments withdraw from direct involvement and investment in agriculture (private sector role) Privatization of land: Land titling programmes (registration of property rights), usually on individual basis, as prerequisite for market-oriented development in the South (Hernan de Soto) Until roughly 1990s, many countries (in the South) did not allow foreign ownership (acquisition) of (agricultural) land

12 Historical perspective Rise of capitalism was accompanied by (realized through) a gradual disembedding of economic activity from its social setting This includes the separation of business rules, practices from other domains, e.g. social, religious norms, into a separate container Globalization can be seen as a further step in this process: separating the economy from the nation state Expansion of the resource base: not without precedents

13 Further factors International actors: Bretton Woods agencies, donors: Through SAPs etc. spread of market discipline (role of debt) attraction of FDI and exports seen as desirable, prestigious BITs Bilateral Investment Treaties: legal frameworks for specific (country-to-country) investment flows: Result in fragmentation and de-nationalisation of regulatory landscape

14

15 3. Backgrounds: Global Food Regime (Friedmann, McMichael) Global Food regimes: systems of rules, institutions that govern the production, distribution and consumption of food worldwide in a specific historical context Corporate (3 rd.) Global Food Regime (since 1980s): Key role of corporate business (finance, chain organization) International restructuring of food system in Global Value (supply) Chains, assigning activities to optimal localities Era of cheap, processed food Depends on neoliberal (free) trade regime (WTO framework) Fuel (transport) dependence

16

17 Alternative visions? Slow food Territorial Sustainable

18 Note: - Political dimension: Autonomy/control - Cultural dimension: Food production as way of life

19 4. Background: Financialization Another feature of contemporary globalization is the emergence of a virtual financial economy, only indirectly linked to the real economy of producing commodities (goods and services) for the market The rise of derivatives: originally instruments to hedge against price fluctuations and risk, thus a stabilizing factor in the economy but now mostly speculative investments: in some agricommodity markets, financial investors (not interested in taking delivery of goods) hold some 60% of the market (2011), as compared to 12% in 1996

20 Rise of financial economy; Global financial integration BIS: average daily turnover of foreign exchange trade amounted to US$ 5.1 trillion per day (April 2016) i.e., some $800 per person per day (including all Bangladeshi babies and Congolese grannies) World merchandise trade is dwarfed by the size of financial transactions: 3 days of currency trade equals the value of world merchandise trade of a full year

21 Financialization, value chains: The rise of complex networks of production and trade Source: Jennifer Clapp 2014

22 Financialization: Effects on land prices The result: commodity prices are not just the result of supply and demand of goods, but also (and perhaps more) reflect investor expectations This has an upward effect on commodity and land prices (Worthy 2011). Moreover, the partial collapse of the financial economy in 2008 has triggered a shift of investment from this virtual economy of financial products to tangible assets, such as land

23 5. The land grab debate in review Early on: inventory making and explaining - see Land Matrix for best data, even if incomplete Next: Search for solutions: how to combine international investment and trade with local livelihood security (food security) Inclusive business models (outgrowers, contract farming?) Multistakeholder initiatives New regulatory frameworks Via Invoegen Koptekst en Voettekst invoegen Subafdeling<2spaties> <2spaties>Titel van de presentatie 13 december

24 Required: Alternative Business models rce: National Geographic, based on data from JOINT RESEARCH CENTRE, EUROPEAN COMMISSION; GLOBAL LANDSCAPES INITIATIVE, UNIVERSITY OF MINNESOTA;. GREGORY, INTERNATIONAL FERTILIZER DEVELOPMENT CENTER; POPULATION REFERENCE BUREAU; FAOSTAT

25 Emerging elements? Governance initiatives: VGGT, PRAI Ruggie framework State: duty to protect Private sector: responsibility to respect Victim s access to redress Responsible business, sustainable business Shifting boundaries between state, market, civil society Results in more responsibilities for businesses, corporate citizenship FPIC Free, Prior and Informed Consent Legally enshrined in case indigenous peoples confronted with major projects, relocation. Consent, consult.

26 6. New threats The SDGs (Sustainable Development Goals)! Via Invoegen Koptekst en Voettekst invoegen Subafdeling<2spaties> <2spaties>Titel van de presentatie 13 december

27 New lofty goals will increase pressure on land

28 New pressures on land SDG 7 (renewable energy) has already increased investment in hydro-dams SDG 9 (industry, innovation and infrastructure): massive investment in infrastructure envisaged, in tandem with: SDG 11 (sustainable cities and communities): investment in New Urban Agenda in wake of Quito 2016 SDG 13 (climate action) requires lots of land for mitigation and adaptation policies: REDD+, water management, reservoirs, etc. Via Invoegen Koptekst en Voettekst invoegen Subafdeling<2spaties> <2spaties>Titel van de presentatie 13 december

29 More info? See LANDac Netherlands Academy on Land Governance for Equitable and Sustainable Development

30