ERD 2011 / 2012 Chapter 5 Managing Scarcity: Investment in Land. AERC-ERD Consultation, Nairobi July 2011

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1 ERD 2011 / 2012 Chapter 5 Managing Scarcity: Investment in Land AERC-ERD Consultation, Nairobi July 2011

2 Land focus: Issue to address How to balance trade-offs in land use decisions in line with ISG in a context of increasing scarcity and climate change? In practice chapter should Increase understanding & raise awareness Evidence from examples, case studies Review different potential solutions Draw lessons for policy makers

3 Generic Chapter Outline 1. Setting the scene/context 2. Issues to addressed for this natural resource Allocation issues, access, productivity, 3. Role of different actors and interactions Public sector Private sector Other relevant actors 4. Lessons learnt, WEL Nexus & implementation

4 Key issues to cover in chapter 1. Pressures large scale land acquisitions 2. Productive use of land in terms of ISG 3. Land and the WEL Nexus 4. Tenure systems 5. Approaches to land governance 6. Stakeholders political economy of land 7. Land use decision taking

5 Pressures on land Pressures increasing due to rising scarcity Overview paper (Zoomers & Hilhorst) Not new issue, land is rarely empty, conflicts arise, different types of land being purchased Some data available, but reliability, tip of the iceberg, Pressure from competing uses Food production, pastoralism, industry, urbanisation, forests, biodiversity, conservation, biofuel, degradation, etc Drivers at global level Economic trends commodity trends Business incentives profit, rising value of land Public policies (EU, US) biofuels, REDD Food insecure countries For host countries both Challenges and Opportunities

6 Land acquisition Map from International Land Coalition (data )

7 Productive use of land & ISG Inclusivity how to interpret this for land? Inclusivity in access? Inclusivity in benefits from use of land? Inclusivity in decision making on land? Sustainability and land Agriculture is actually not a sustainable use of land Question of strong and weak levels Growth: In agriculture debate over: Does small scale low tech agriculture benefit ISG more than large scale capital intensive?

8 Land & the WEL Nexus Land not productive without water & energy Investment in infrastructure to make land more productive: irrigation, power Land purchases often because of available water Using land for producing energy Open cast mining, oil wells land degradation Biofuels, hydropower, solar arrays, Various examples imply needs for integrated decision making on land use Complex, require high information needs, not easy,

9 Land tenure regimes Overlap of Formal & Traditional systems Traditional: local, customary & collective rights Paper by IIED (Cotula & Polack) Systems of rights, rules, institutions & processes Tenure may be secure or insecure Formal systems may not necessarily be more secure Security Social safety nets, income generation, encourages investment in improvements, Cases of progressive regimes show they lack teeth in face of many foreign and national acquisitions Context changing fast need to strengthen systems

10 Security of land tenure

11 Approaches to land governance Voluntary approaches: Donor Guidelines (eg. EU 2004) Codes of conduct (eg FAO et al) Incentives for owners to manage land responsibly Regulatory frameworks at national level Tenure systems what characteristics: multiple systems, transparence, access, rule of law, recourse Land use decision making systems institutions but also compulsory purchase? compensation? Ensuring owners manage land sustainably International support: what can donors/eu do?

12 Stakeholders Political economy of land Main focus of report: Public sector & private sector Also key for land: Traditional authorities, CSOs, Vulnerable groups: women, indigenous people, Case studies (Ethiopia, Indonesia, Sthn Africa ) Motivations of foreign investors (van Westen) Their expectations (eg. investment security) Match these with local expectations (eg. benefits) How far can you can go with CSR & voluntary codes? How to embed foreign acquisitions in local contexts?

13 Land Use Decisions Question of balancing trade-offs Need adequate systems: good governance But can go far: (eg. compulsory purchase) What characterisitics of a manageable system? But also a subsidiarity issue: Land use decisions ideally at local level Attracting FDI often done at national level In context of increasing scarcity how to ensure land use decisions take account of local, national and even international level issues?