Large-scale land investments

Transcription

1 Large-scale land investments Current trends and pathways to inclusive and sustainable development Thea Hilhorst, Annelies Zoomers

2 Outline presentation Land: Where, how much Drivers globally and in-country Actors Concerns Policy responses

3 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

4 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

5 No. of deals selected countries

6 Area and hotspots

7 Top of the iceberg? Ethiopia: MOARD ha - ( ): Map: diff.: 60%... Mali Office du Niger: leases ha; conventions: ; intentions; Map: ha - diff.: 60% Also many unknown/invisible deals (signed but not yet operational)

8 Domestic investors (below the Mali OdN radar screen) Ethiopia same (gambella +/ 5% FDI; 50% area largest companies (diversity companies)

9 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)

10 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

11 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)

12 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.)

13 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)

14 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

15 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 dealscontradictions; 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)

16 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

17 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