Land Rights and the Global Land Rush
Land Rights and The Global Land Rush
May 2012 Introduction
A global land rush—sparked initially by a dramatic rise in global food prices and now driven by a variety of factors including increased demand for food and biofuels, carbon markets and speculation—is remaking the face of agriculture and land use in the developing world. These investments, whether by purchase, lease, or concession of land, typically shift the land from traditional uses, such as smallholder farms or communal grazing, to commercial uses, often on a large-scale. These transactions are frequently negotiated between governments and potential investors behind closed doors, without consultation with—or adequate compensation to—the residents and farmers whose land is at stake. Because investors and speculators consider land, particularly agricultural land, to be increasingly valuable, the competition for land is intensifying. The underlying economic fundamentals indicate that this rush for land may well continue for decades to come. But this need not necessarily signify an unwelcome trend. Increased investment has the potential to generate micro and macro benefits. Connecting capital, technology, knowledge, and market access with poor farmers’ land and labor can lead to improved rural livelihoods and increased agricultural productivity. At the macro level, largescale investments can increase government revenues and GDP growth. Moreover, increased agricultural investment is needed in order to reduce poverty and hunger in the developing world. The Food and Agriculture Organization estimates that in order to feed the world’s population by 2050, food production must increase by 70%.1 This would require an average annual net investment in developing country agriculture of USD 83 billion, or average gross investment (including the cost of renewing depreciating investments) of USD 209 billion.2 Importantly, in light of current estimates that threequarters of the world’s poorest people depend on
May 2012 Introduction
A global land rush—sparked initially by a dramatic rise in global food prices and now driven by a variety of factors including increased demand for food and biofuels, carbon markets and speculation—is remaking the face of agriculture and land use in the developing world. These investments, whether by purchase, lease, or concession of land, typically shift the land from traditional uses, such as smallholder farms or communal grazing, to commercial uses, often on a large-scale. These transactions are frequently negotiated between governments and potential investors behind closed doors, without consultation with—or adequate compensation to—the residents and farmers whose land is at stake. Because investors and speculators consider land, particularly agricultural land, to be increasingly valuable, the competition for land is intensifying. The underlying economic fundamentals indicate that this rush for land may well continue for decades to come. But this need not necessarily signify an unwelcome trend. Increased investment has the potential to generate micro and macro benefits. Connecting capital, technology, knowledge, and market access with poor farmers’ land and labor can lead to improved rural livelihoods and increased agricultural productivity. At the macro level, largescale investments can increase government revenues and GDP growth. Moreover, increased agricultural investment is needed in order to reduce poverty and hunger in the developing world. The Food and Agriculture Organization estimates that in order to feed the world’s population by 2050, food production must increase by 70%.1 This would require an average annual net investment in developing country agriculture of USD 83 billion, or average gross investment (including the cost of renewing depreciating investments) of USD 209 billion.2 Importantly, in light of current estimates that threequarters of the world’s poorest people depend on