Land grab wake-up call

Published December 16, 2011

POPULATION growth, the increasing consumption of a global elite and an international legal system skewed in favour of investors are fuelling a worldwide rush for land that is unfolding faster than previously thought, according to the largest study of international land deals to date.

Researchers estimate that more than 200 million hectares (approximately 495 million acres) of land have been sold or leased between 2000 and 2010. But although the food price crisis of 2007-08 may have triggered a boom in international land deals, the study argues that a much broader set of factors is raising the prospect of “a new era in the struggle for, and control over, land in many areas of the global south”.

Forty civil society and research groups fed into the global commercial pressures on land research project, coordinated by the International Land Coalition (ILC), which draws on a decade of data to identify and analyse trends in large land acquisitions and highlights the role of governments in brokering deals that may marginalise rural communities and jeopardise the future of family farming in favour of big industrial projects.

According to a study published by the ILC on Wednesday, rich national investors play a much larger role than previously thought. Data shows that around 40 per cent of land acquired over the last decade is intended for biofuel production. In comparison, 25 per cent is for food crops and another 27 per cent for mining, tourism, industry and forestry. But the focus of land deals also varies by region.

The report also notes that regional dealings may be on the rise: in Southeast Asia, for example, 75 per cent of reported land deals have been struck by regional players, and South African investors have acquired an estimated 40.7 million hectares of African land since 2009.

Many developing countries, under pressure from the IMF, the World Bank and a number of government aid agencies, are going to great lengths to attract and legally protect foreign investment in agriculture and extractive industries, setting up sophisticated specialised agencies to promote investment opportunities and offering benefits such as tax breaks and low prices, said the ILC.

This week USAid hosted an international conference to promote foreign investment in South Sudan. Research by the US-based Oakland Institute suggests that almost nine per cent of South Sudan’s land had already been leased or bought by investors prior to the country’s independence in July this year.

The study argues that international trade regimes are overwhelmingly skewed in favour of international investors, while fewer and less effective international mechanisms exist to safeguard the rights of the rural poor. Meanwhile, the common lack of formal, legal titles to land is heightening the vulnerability of rural communities.

Last year, the G20 summit in Seoul encouraged all countries and companies to uphold a set of principles for responsible agricultural investment, developed by the UN and the World Bank. But critics argue that voluntary international agreements can amount to little more than window-dressing.

Resistance to large land deals is growing. In August, residents of Mukaya Payam, in South Sudan’s Central Equatoria state, launched a campaign against what would have been the country’s largest land deal — a 49-year lease of 600,000 hectares by an American company. Last month, hundreds of smallholder farmers and civil society activists converged on Selingue, in southern Mali, for the first international farmers’ conference to tackle the global rush for land.

The ILC says: “Optimistically, it may even be hoped that rural communities in many parts of the world are able to finally achieve secure access to and control over their land through struggles catalysed by the increasing demand for it. It is to be hoped that the rush for land will act as a wake-up call, provoking a reconsideration of the path we are on.” — The Guardian, London