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Land grabbing

Land grabbing is the large-scale acquisition of land through buying or leasing of large pieces of land by domestic and transnational companies, governments, and individuals.

Definition
The term "land grabbing" is defined as very large-scale land acquisitions, either buying or leasing. The size of the land deal is multiples of Orders of magnitude (area)#108 to 1014 sqm| or and thus much larger than in the past. In Portuguese, Land Grabbing is translated as "grilagem": The term grilagem applies to irregular procedures and illegal private landholding with violence in the countryside, exploitation of wealth, environmental damage and the threat to sovereignty, given their gigantic proportions. == Situation in the 21st century ==
Situation in the 21st century
Land area The Overseas Development Institute reported in January 2013 that with limited data available in general and existing data associated with NGOs interested in generating media attention in particular, the scale of global land trade may have been exaggerated. They found the figures below provide a variety of estimates, all in the tens of millions of hectares. • The International Food Policy Research Institute (IFPRI) estimated in 2009 between 15 and 20 million hectares of farmland in developing countries had changed hands since 2006. • the Land Matrix Initiative's data totalled 49 million hectares of deals globally, although only 26 million hectares of these are transnational. • A 2011 World Bank report by Klaus Deininger reported 56 million hectares worldwide. • Friis & Reenberg (2012) reported in 2012 between 51 and 63 million hectares in Africa alone. • The GRAIN database published in January 2012, quantified 35 million hectares, although when stripping out more developed economies such as Australia, New Zealand, Poland, Russia, Ukraine and Romania, the amount in the GRAIN database reduces to 25 million hectares. In 2016, as a part of a permanent process 300 acres of land were added. Most seem to arrive at a ballpark of 20–60 million hectares. Given that total global farmland takes up just over 4 billion hectares, these acquisitions could equate to around 1 per cent of global farmland. However, in practice, land acquired may not have previously been used as farmland, it may be covered by forests, which also equate to about 4 billion hectares worldwide, so transnational land acquisitions may have a significant role in ongoing deforestation. In 2011, a farm consultancy HighQuest told Reuters “Private capital investment in farming in expected to more than double to around $5 billion-$7 billion in the next couple of years from an estimated $2.5 billion-$3 billion invested in the last couple of years”. There is significant uncertainty around the value of transnational land acquisitions, particularly given leasing arrangements. Given the quantity of land and the size of investment funds operating in the area, it is likely that the value will be in the tens of billions of dollars. Of the World Bank's 464 examined acquisitions, only 203 included land area in their reports, implying that the actual total land covered could more than double the World Bank's reported 46 million ha. The most recent estimate of the scale, based on evidence presented in April 2011 at an international conference convened by the Land Deal Politics Initiative, estimated the area of land deals at over 80 million ha. Of these deals, the median size is Orders of magnitude (area)#100 to 107 sqm|, with one-quarter over 200,000 ha and one-quarter under 10,000 ha. Purchases are much less common than leases due to a number of countries’ constitutional bans on outright sales of land to foreigners. The methods surrounding the negotiation, approval, and follow-up of contracts between investors and governments have attracted significant criticism for their opacity and complexity. The negotiation and approval processes have been closed in most cases, with little public disclosure both during and after the finalization of a deal. The approval process, in particular, can be cumbersome: It varies from approval by a simple district-level office to approval by multiple national-level government offices and is very subjective and discretionary. In Tanzania, even though the Tanzania Investment Centre facilitates investments, an investor must obtain approval from the TIC, the Ministry of Agriculture, the Ministry of Lands and Housing Development, and the Ministry of Environment, among which communication is oftentimes intermittent. == Target countries ==
Target countries
One common thread among governments has been the theme of development: Target governments tout the benefits of agricultural development, job creation, cash crop production, and infrastructure provision as drivers towards economic development and eventually modernization. Many companies have promised to build irrigation, roads, and in some cases hospitals and schools to carry out their investment projects. In return for a below-market-rate $10/ha annual payment for land, Saudi Star promised "to bring clinics, schools, better roads and electricity supplies to Gambella." Governments also count new job creation as a significant feature of land acquisitions. The issue of agricultural development is a significant driving factor, within the larger umbrella of development, in target governments' agreement to investment by outsiders. The Ethiopian government's acceptance of cash crop-based land acquisitions reflects its belief that switching to cash crop production would be even more beneficial for food security than having local farmers produce crops by themselves. Implicit in the characterization of African agriculture as "underdeveloped" is the rejection of local communities' traditional methods of harvesting as an inadequate form of food production. On a smaller scale, some deals can be traced to a personal stake in the project or possibly due to corruption or rent-seeking. Given the ad hoc, decentralized, and unorganized approval processes across countries for such transactions, the potential for lapses in governance and openings for corruption are extremely high. In many countries, the World Bank has noted that investors are often better off learning how to navigate the bureaucracies and potentially pay off corrupt officers of governments rather than developing viable, sustainable business plans. In Argentina, as of September 2011, a projected law is discussed in parliament that would restrict the size of land foreign entities can acquire to 1000 hectare. == Types of land investment ==
Types of land investment
Investors can be generally broken down into three types: agribusinesses, governments, and speculative investors. Governments and companies in Gulf States have been very prominent along with East Asian companies. Many European- and American-owned investment vehicles and agricultural producers have initiated investments as well. These actors have been motivated by a number of factors, including cheap land, potential for improving agricultural production, and rising food and biofuel prices. Building on these motivations, investments can be broken down into three main categories: food, biofuel, and speculative investment. Forestry also contributes to a significant amount of large-scale land acquisition, as do several other processes: Zoomers mentions drivers such as the creation of protected areas and nature reserves, residential migration, large-scale tourist complexes and the creation of Special Economic Zones, particularly in Asian countries. Food Food-driven investments, which comprise roughly 37% of land investments worldwide, are undertaken primarily by two sets of actors: agribusinesses trying to expand their holdings and react to market incentives, and government-backed investments, especially from the Gulf states, as a result of fears surrounding national food security. When the food price crisis hit, risk was transferred from primary production to the price-sensitive processing and distribution fields, and returns became concentrated in primary production. This has incentivized agribusinesses to vertically integrate to reduce supplier risk that has been heightened by the ongoing food price volatility. Additionally, sovereign wealth funds acting as the investments arms of governments have initiated a number of agreements in Sub-Saharan Africa. Since the population of the Gulf states is set to double from 30 million in 2000 to 60 million in 2030, their reliance on food imports is set to increase from the current level of 60% of consumption. The director general of the Arab Organisation for Agricultural Development echoed the sentiment of many Gulf leaders in proclaiming, "the whole Arab World needs of cereal, sugar, fodder and other essential foodstuffs could be met by Sudan alone." This rise in popularity culminated in EU Directive 2009/28/EC in April 2009, which set 10% mandatory targets for renewable energy use, primarily biofuels, out of the total consumption of fuel for transport, by 2020. Taken as a whole, the rise in biofuels popularity, while perhaps beneficial for the environment, sparked a chain reaction by making biofuels production a more attractive option than food production and drawing land away from food to biofuel production. The effect of the rise in popularity in biofuels was two-fold: first, demand for land for biofuel production became a primary driver of land sales in Sub-Saharan Africa; second, demand for biofuels production crowded out supply of traditional food crops worldwide. By crowding out food crops and forcing conversion of existing food-producing land to biofuels, biofuels production had a direct impact on the food supply/demand balance and consequently the food price crisis. One researcher from the IFPRI estimated that biofuels had accounted for 30 percent of the increase in weighted average grain prices. ==Criticism==
Criticism
Large-scale investments in land since 2007 have been scrutinized by civil society organizations, researchers, and other organizations because of issues such as land insecurity, local consultation and compensation for land, displacement of local peoples, employment of local people, the process of negotiations between investors and governments, and the environmental consequences of large-scale agriculture. These issues have contributed to critics' characterization of much large-scale investment since 2007 as "land grabbing", irrespective of differences in the types of investments and the ultimate impact that investments have on local populations. Consultations have been found extremely problematic due to the fact that they often reach just village chiefs but neglect common villagers and disenfranchised groups. World Bank researchers noted that "a key finding from case studies is that communities were rarely aware of their rights and, even in cases where they were, lacked the ability to interact with investors or to explore ways to use their land more productively." This holds true when women are the primary workers on the land that is to be leased out to companies. Meanwhile, pastoralists and internally displaced people were oftentimes intentionally excluded from negotiations, as investors tried to delegitimize their claims on land. resulting in loss of livelihoods especially in the case of pastoralists, gender-specific erosion of social networks. Villagers were most often compensated as according to national guidelines for loss of land, loss of improvements over time on the land, and sometimes future harvests. A specific instance of how land grabbing has displaced people is what happened to the Garifuna people of the Caribbean. Author K.V. Brondo has published a book on the relation between land grab and the Garifuna resistance. A specific excerpt from the book Land Grab starts by mentioning how indigenous rights are so important to the Garifuna and their dispute over territory. One of the main points Brondo makes in this excerpt is the relationship between being indigenous and the right to territory. Traditionally, indigenous peoples are usually those who have been on the land since the beginning, before colonization. Brondo, quoting an article written by José Martínez Cobo, states that indigenous peoples are those who have been on territories before the invasion and are considered different from other societies that have existed there. This was then taken up by numerous international organizations looking to advocate rights for indigenous peoples. They concluded that indigenous people need the land they came from and use of the resources found there in order to survive. The United Nations then drafted a declaration of rights for indigenous peoples, and many organizations for the rights of indigenous peoples were subsequently formed. In addition, it was declared that the taking away of one's territory and control of resources was considered to be cultural ethnocide and a violation of human rights. Cultural ethnocide was likened to genocide, as wiping out the culture of an area is the same as killing people of a certain type. A turning point in the way of thinking of the indigenous was the revision of ILO 107, which was considered quite racist, according to Brondo. In 1989, it was made into ILO 169, which acknowledged the fact that indigenous societies were permanent parts of society and deserved to have the same rights as every other part of society. By 2007, the United Nations had evolved to create universal standards for indigenous people and they decided to leave the term indigenous up for interpretation. There was no longer a concrete definition for what is an indigenous group, and it could be any group with ties to pre-colonial land. Employment When not displaced, the conversion of local farmers into laborers holds numerous negative consequences for local populations. Most deals are based on the eventual formation of plantation-style farming, whereupon the investing company will own the land and employ locals as laborers in large-scale agricultural plots. The number of jobs created varies greatly dependent on commodity type and style of farming planned. Government negotiations In addition to the lack of coordination between ministries, there is a wide knowledge gap between government-level offices and investors, leading to a rushed and superficial investment review. Many government agencies initially overwhelmed by the deluge of investment proposals failed to properly screen out non-viable proposals. As foreign investors begin to develop the land, they will, for the most part, start a shift towards large-scale agriculture to improve upon existing "unproductive" agricultural methods. The threat of the conversion of much of Africa's land to such large-scale agriculture has provoked a severe pushback from many civil society organizations such as GRAIN, La Via Campesina, and other lobbyists for small-scale agriculture. Foreign investors, through large-scale agriculture, increase the effectiveness of underused resources of land, labor, and water, while further providing additional market connections, large-scale infrastructure development, and provision of seeds, fertilizers, and technology. Proposed increases in production quantity, as touted by investors and hosts, are exemplified by Ethiopia's Abera Deressa, who claims that "foreign investors should help boost agricultural output by as much as 40%" throughout Ethiopia. Over time, such intensive farming threatens to degrade the quality of topsoil and damage local waterways and ecosystems. As such, civil society actors have widely accused land investors for promoting "not agricultural development, much less rural development, but simply agribusiness development." It is argued that land grabbing has a geomorphological impact as well. Farmland in general generates a global average sediment flux of c. 75 Gt/y. For comparison, the world's rivers, for example, produce c. 54 Gt/y. Proportionally, by area, agriculture-related land grabbing could account for c. 0.6 Gt/y. Intertwined Human and Environmental Dimension The effects of land grabbing on the environment also involve extensive implications for the communities inhabiting those environments. When land grabs are intertwined with the flow of capital to transnational corporations that often benefit Western countries and powerful individuals without displacing local communities, the local communities are often impacted by the environmental implications of these land grab projects. In instances where land is taken up by powerful multinational corporations with industrial influences vulnerable groups of people are often subject to instances of environmental racism, such as the Maquilapolis near the US-Mexico borders. The Maquilapolis demonstrates of multinational corporations can obtain land where they create harmful environments, in this case factories, which impact the health of the environment and take advantage of young Mexican women for their own economic gain. The factories within Maquilapolis are major pollutants for their surrounding environment in which the employees and their families reside causing workers and their families to live with health complications around skin rashes, breathing problems, and more. Furthermore, the location of creation of this environment in itself is strategic as by placing itself at the border it pries on vulnerable migrants in need of work who are susceptible to accepting low wages and inhumane working conditions (such as extensive hours, harmful environment, work with danger chemicals without proper protections, and more) Implications of land grabs on the environment also intersect with the human dimension when it comes to Indigenous communities as the exploitation of the environment (whether it be through logging, farming, factory emissions, etc.) often takes place on Indigenous lands severing Indigenous communities abilities to care for the land, as is embedded in their cultural practices, and leaving spaces of biodiversity to the detriment of harmful multinational corporations Neocolonialism Foreign investment in land has been criticized by many civil society actors and individuals as a new realization of neocolonialism, signifying a renewed economic imperialism of developed over developing nations. Critics have pointed to the acquisitions of large tracts of land for economic profit, with little perceived benefit for local populations or target nations as a whole, as a renewal of the economically exploitative practices of the colonial period. ==Laws and regulations concerning reporting of foreign investment in land==
Laws and regulations concerning reporting of foreign investment in land
A 2013 report found no available literature giving recommendations for how the British government could change its laws and regulations to require UK companies investing in land in developing countries to report relevant data. The researcher looked at a literature review by Global Witness, the Oakland Institute, and the International Land Coalition from 2012 which states that there is little sustained focus on the extraterritorial obligations of states over overseas business enterprises. The researcher found most available literature and policy on transparency in land investment focused on: • Facilitating community engagement in planning decisions and enhancing community rights • Upgrading obligations/capacities of host governments to improve regulation of foreign-funded land deals. • Developing international frameworks to improve transparency in land deals. and Smaller and Mann. A report by the International Institute for Sustainable Development stated a significant lack of concrete and verifiable empirically based policy and legal work on the issue of foreign investment in agricultural land. which address the extraterritorial obligations of states over overseas business enterprises and finds the principles do not provide any detailed discussion of the UK case, or of timeframes and costs. He found Global Witness et al. However they do not, provide any specific recommendations on land. The researcher's examination of the Global Witness et al. report also finds that 'a number of instruments offer companies the opportunity to associate themselves with a set of principles or goals that demonstrate corporate social responsibility' but most of these are largely 'declarative'. Overall, he summaries that the report notes that although these various instruments 'recognise secrecy and lack of access to information to be a problem, they give almost no detail as to how it should be tackled in practice, nor do any mandatory provisions yet exist to ensure such an implicit aspiration is met'. == Information issues ==
Information issues
In a joint research project between the FAO, IIED, and IFAD, Cotula et al. found that the majority of host countries lacked basic data on the size, nature, and location of land acquisitions through land registries or other public sources, and that "researchers needed to make multiple contacts...to access even superficial and incomplete information." == Notable cases ==
Notable cases
In Madagascar, the anger among the population about land sales led to violent protests. The South Korean corporation Daewoo was negotiating with the Malagasy government to purchase 1.3 million hectares, half of all agricultural land, to produce corn and palm oil. This investment, while one of many pursued in Madagascar, attracted considerable attention there and led to protests against the government. In Sudan, numerous large-scale land acquisitions have occurred despite the country's unresolved political and security situation. One of the most prominent involves a former GRAPE partner named Phil Heilberg, who garnered attention by playing in Rolling Stone. Heilberg, who is planning to invest in 800,000 ha of land in partnership with many of Sudan's top civilian officials, attracted criticism with his remarks (regarding Africa and land grabbing) that "the whole place is like one big sewer — and I'm like a plumber." In Myanmar, a 2018 amendment to the 2012 Vacant, Fallow, and Virgin Lands Management Law has affected millions of rural peoples, requiring registration of land and private land ownership. Failure to register land can result in criminal punishments for remaining on that land. The new amendment heavily affects ethnic areas and internally displaced peoples. Unregistered land has been claimed by or sold to private agribusiness ventures. == List of land grabbings of EU countries ==
List of land grabbings of EU countries
List of land grabbings in hectares of involved EU countries in non-EU countries according to Land Matrix data of 2016. • 1. United Kingdom (1 972 010) • 2. France (629 953) • 3. Italy (615 674) • 4. Finland (566 559) • 5. Portugal (503 953) • 6. Netherlands (414 974) • 7. Germany (309 566) • 8. Belgium (251 808) • 9. Luxembourg (157 914) • 10. Spain (136 504) • 11. Romania (130 000) • 12. Sweden (77 329) • 13. Denmark (31 460) • 14. Austria (21 000) • 15. Estonia (18 800) == See also ==
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