Down to Earth on Land Grabs

This is a very important article if you would like to understand the global phenomenon of land grabbing. The researchers spent months in seven African countries, talking with representatives from every sector - international financial institutions to governments to individual investors to affected community members. A summary, and a few of the more arresting quotes:

By referring to surging influx of capital into primarily African land markets as ‘foreign direct investment’, players in the international policy arena including Food and Agriculture Organization (FAO), World Bank, International Fund for Agricultural Development (IFAD), and UN Conference on Trade and Development (UNCTAD) have affirmed that responsible land investment is possible and imply that African nations are beneficiaries in these deals. Their hope is that land investments will presumably create what has been hailed a ‘win-win situation’ in which food-insecure nations increase their access to food resources and investors profit from exports, while ‘host’ nations benefit from improved agricultural infrastructure and increased employment opportunities....reports reveal that these largely unregulated land acquisitions are resulting in virtually none of the promised benefits for local populations, but instead are forcing millions of small farmers off ancestral lands and food-producing farms in order to make room for export commodities...

According to Susan Payne of Emergent Asset Management ‘in South Africa the cost of agri-land, arable good agri-land that we are buying is one-seventh of the price of similar land in Argentina, Brazil and America. That alone is an arbitrage opportunity. We could be moronic and not grow anything over the next decade and we would still be making money,’ reflects true intentions of vultures sweeping into Africa, taking over land and other resources to profiteer from it....

I was in Zambia in February where the government is launching a farm block scheme that is being touted as a scheme to end poverty and bring economic development. In a meeting with a very high official in the ministry of agriculture, I asked what the purpose of the scheme was and he said, ‘Economic upliftment and poverty alleviation.’ And I asked, ‘How do you plan to do that? Are you asking investors for a lot of money for the land?’ And he said, ‘No, you have to put in $5,000 for putting in your tender; the land is really cheap.’ So I asked him, ‘Are you asking to put in infrastructure?’ ‘Oh, no, the government is putting in the necessary infrastructure.’ ‘OK, are you asking for a specific number of jobs that need to be created by these investors so we know that livelihood expansion happens?’ And he said, ‘No you can put in some general language around employment creation. We don’t ask for hard numbers’. So I asked him, ‘Will you help me understand how you will meet this objective of poverty alleviation and economic upliftment of the country when you are not asking investors for anything.’ And he comes close to me, smiles and says, ‘You and I both know that there is no such thing as a good foreign investor.’

And lest you despair and fall into apathy, there is encouraging news at the end of the article...