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Article

24 Feb 2012

Author:
Lorenzo Cotula, Intl. Institute for Environment & Development

Land grab or development opportunity?

…[C]ompanies and foreign governments have been leasing large areas of land in some of Africa’s poorest countries…Media attention has focused on investments by Middle Eastern and Asian government-backed operators but Western companies have also been heavily involved…[R]eports…found that many investments failed due to insufficient soil fertility, financing difficulties or over-ambitious business plans…Even where investments are profitable…[t]he jobs created are few, short-lived and low-paid – and public revenues are limited by tax exemptions…There are huge power imbalances among international companies, government and local landholders. Many deals are being negotiated without transparency and local consultation…[W]hile international law provides…effective protection for foreign investment, international human rights law remains inaccessible and ineffective so people losing land…Promoting agricultural development in Africa and addressing the world's food security challenges requires investing in farmers - not in farmland.