Large Scale Land Investments In Least Developed Countries

This book analyses large-scale land investments for agricultural purposes in Africa’s least developed countries from a law and economics perspective. Focusing on the effects of foreign land investments on host countries’ local populations and the apparent failure of international law to create incentives to offset them, it also examines the legal and economic mechanisms to hold investors accountable in cases where their investment leads to human rights violations. Applying principal agent and contract theory, it elucidates the sources of opportunism and develops control mechanisms to ameliorate the negative effects. It shows that although judicial mechanisms fail to deliver justice, international law offers alternatives to safeguard against arbitrary and abusive state and investor conduct, and also to effectuate human rights and, thus, tackle opportunistic behaviour.

Large-scale land acquisitions, or ‘land grabbing’, has become a key research topic among scholars interested in agrarian change, development, and the environment. The term ‘land acquisitions’ refers to a highly contested process in terms of governance and impacts on livelihoods and human rights. This book focuses on South-East Asia. A series of thematic and in-depth case studies put ‘land grabbing’ into specific historical and institutional contexts. The volume also offers a human rights analysis of the phenomenon, examining the potential and limits of human rights mechanisms aimed at preventing and mitigating land grabs' negative consequences. Contributors include: Maria Lisa Alano, Ioana Cismas, Olivier De Schutter, Michael Dwyer, Christophe Gironde, Christophe Golay, Andreas Heinimann, Martin Keulertz, Marcel Mazoyer, Peter Messerli, Hafiz Mirza, Vong Nanhthavong, Gerben Nooteboom, Patricia Paramita, Amaury Peeters, Emily Polack, Laurence Roudart, Oliver Schoenweger, Gilda Senties, Sokbunthoeun So, Mohamad Shohibuddin, William Speller, Eckart Woertz, and James Zhan.

Several studies have investigated the impetus and implications behind large-scale land acquisitions/deals at the global level; however, intranational factors within communities and societies have not received much attention from researchers. The Handbook of Research on In-Country Determinants and Implications of Foreign Land Acquisitions examines the economic, sociological, and environmental issues surrounding land transactions and the impact these deals may have on local households and communities. Focusing on international issues as well as domestic concerns, this publication is a useful reference for policymakers, academics, researchers, and advanced-level students in various disciplines.

Over the last few years, agribusinesses, investment funds and government agencies have demonstrated a growing interest in acquiring large portions of land, mostly in developing countries and particularly in sub-Saharan Africa. In the host countries, investors and government see these acquisitions as opportunities to attract foreign investment that will enhance food and energy security and stimulate socio-economic development. Analysing a number of these deals in Africa suggests that these objectives are usually not attained and that their sustainability appears to be uncertain.

This paper is the first to provide both theoretical and empirical evidence of farmland globalization whereby international investors directly acquire large tracts of agricultural land in other countries. A theoretical framework explains the geography of farmland acquisitions as a function of cross-country differences in technology, endowments, trade costs, and land governance. An empirical test of the model using global data on transnational deals shows that international farmland investments are on the aggregate likely motivated by re-exports to investor countries rather than to world markets. This contrasts with traditional foreign direct investment patterns where horizontal as opposed to vertical FDI dominates.

The last two years have seen a huge amount of academic, policy-making and media interest in the increasingly contentious issue of land grabbing - the large-scale acquisition of land in the global South. It is a phenomenon against which locals seem defenceless, and one about which multilateral organizations, such as the World Bank, as well as civil-society organizations and action NGOs have become increasingly vocal. This in-depth and empirically diverse volume - taking in case studies from across Africa, Asia and Latin America - takes a step back from the hype to explore a number of key questions: Does the ‘global land grab’ actually exist? If so, what is new about it? And what, beyond the immediately visible dynamics and practices, are the real problems? A comprehensive and much-needed intervention on one of the most hotly contested but little-understood issues facing countries of the South today.