GLOBAL INVESTMENT AND LARGE SCALE LAND ACQUISITION Governments

GLOBAL INVESTMENT AND LARGE SCALE LAND ACQUISITION Governments, investors & smallholder farmers - Risks and opportunities Presentation at CTA Briefing (Brussels, 25 Febr. 2009) Credit and thanks : H. Liversage- IFAD Land Tenure and Management Unit FAO contact: paul. mathieu@fao. org

FAO’s Role Advise and support Governments v v to assess situations & analyze the options to make well-informed responsible decisions : > to minimize risks and maximize opportunities > food security , rural poverty alleviation Stakes: rural poverty, rural people and land in SSA v v v ± 73% of people in SSA live in rural areas, 90% of agricultural production is done by small-scale producers who have access to, on average, ± 2 ha of cultivated land. De jure the state owns most land but + 80% of rural land is untitled and de facto owned under diverse tenure systems • Women tend to have weaker land rights but are the main producers. Pastoralists use 40% of all land in SSA. Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

THE CONTEXT: Trends, drivers, facts Trends v v v K looking for L For : “outsourced food production” or “imported FS” also for biofuels, carbon markets, & financial gains. Long term structural global change. . . in development processes and in international relations; . . . in scarcity, value and price of land. Increasing demands and pressures for land in developing countries with abundant land. Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

THE CONTEXT: drivers, facts Drivers: v v v Demand for alternative fuels Strategies to secure food imports through outsourced and secured food production Search for profitable investment opportunities, partly speculative (anticipation of growing land values). Context: v v Increasing flows of FDI worldwide, In many countries, moves to make FDI easier and more secure through adhoc legislations and treaties. Facts: not totally new process. . . but differences: v v current trends => rapid increases in land scarcity and land values. . with missing or weak institutions and regulatory frameworks. Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

QUESTIONS - CONCERNS v Who decides? v Is this beneficial for development? - for poverty alleviation? v Winners and losers: beneficial to all actors involved ? v Risks and opportunities? - particularly for rural people and small producers currently using the lands? v How to minimize the risks and maximize the opportunities and benefits for all. . . but primarily for the rural poor? Paul MATHIEU - who benefits? FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

MINIMIZING THE RISKS – Maximizing the benefits Risks and possible losses: v v v Loss of land (i. e. loss of long term control over land, for countries and for communities) More food insecurity and landless people Land social conflicts, social instability Loss of local labour and income opportunities Corruption, bad governance: private gains at the expense of collective LT interest Unbalanced negotiations between unequal actors Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

MINIMIZING THE RISKS – Maximizing the benefits Opportunities and possible benefits: Agricultural sector modernization, stimulating rural economies: v v v Development of non-farm/processing activities Livelihood diversification and employment generation Increased agricultural productivity, from improved seed varieties, know-how and new technologies Infrastructure building > access to markets Social infrastructure, social services > create greater capabilities and enhance human capital More public investment in general, from increased public income (taxes or land rentals/ concessions). Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

MINIMIZING THE RISKS – Maximizing the benefits States : opportunities/ responsibilities >negotiation of contracts, public policies v well- informed and well negotiated contracts v v v flexibility in contractual terms guarantees that food exports will not be at the expense of local and national food security good negotiation of benefits and compensations to promote LT development no excessive rush to contract: land value is increasing in the long term financial benefits invested (partly) in social investments external investment : means, not ends ; one element in strategic vision and rural development policies Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

MINIMIZING THE RISKS – Maximizing the benefits For communities: v v v Minimize: long term unconditional transfer of land rights; forced displacements. Balancing: large scale and mechanized farming, BUT: also local development and support to sustainable intensification of existing agricultural systems in other areas. Gaining or keeping control over land assets: secured land rights with land leases, contract farming, outgrowers schemes. In medium and LTerm: diversification of rural economies, new jobs and income opportunities. If displaced from the land: fair and real compensations. Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

Minimize risks – Maximize benefits : HOW ? Secure land rights for small producers: v v v v Improved land governance Massive and affordable legalization of existing land rights Support to effective, accessible, transparent land administration systems Community land delimitation Require local community approval in the granting of land rights to outsiders Legal empowerment to secure land rights: > education, awareness, capacities to document and assert land rights ; > affirmative action, legal support to vulnerable groups: poorest, marginal, pastoralists, illiterate populations Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

WHAT DOES FAO DO? Guidelines and manuals/ best practices : v v Land leasing Good governance in land tenure and land administration Compulsory acquisition of land compensation* State and public sector land management** Best practices and manuals/ methods for: v v Community land delimitation Legal empowerment to secure the land rights of the rural poor Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing

WHAT DOES FAO DO (2)? Information and decision tools v v Data bases on land-use and soil degradation : Decisions Support Tools on biofuels investments (in collaboration with UN-Energy), including land tenure aspects and implications for local communities. Studies (with IFAD, World Bank, IIED): v v v Impacts of international investments in agriculture Land tenure implications of international investments “Large scale land acquisition for agricultural production” Paul MATHIEU FOOD AND AGRICULTURE ORGANIZATION CTA Briefing