{"id":3059,"date":"2009-06-06T23:30:52","date_gmt":"2009-06-07T07:30:52","guid":{"rendered":"http:\/\/www.horace.org\/blog\/?p=3059"},"modified":"2009-06-06T23:30:52","modified_gmt":"2009-06-07T07:30:52","slug":"land-deals-in-africa-and-asia","status":"publish","type":"post","link":"https:\/\/www.horace.org\/blog\/2009\/06\/06\/land-deals-in-africa-and-asia\/","title":{"rendered":"Land deals in Africa and Asia"},"content":{"rendered":"

Land grabbing on forth world countries sounds like a good solution to the food supply problem in third world countries. If land grabber can put the lands for better use, they are more entitle to the lands than the locals. It is not neo-colonialist, it’s the survival of the fitness.<\/p><\/blockquote>\n

<\/p>\n

Cornering foreign fields
\nMay 21st 2009
\nFrom The Economist print edition
\nThe Chinese and Arabs are buying poor countries\u2019 farms on a colossal scale. Be wary of the results<\/p>\n

OVER the past two years, as much as 20m hectares of farmland\u2014an area as big as France\u2019s sprawling farmland and worth $20 billion-30 billion\u2014has been quietly handed over to capital-exporting countries such as Saudi Arabia, Kuwait and China. They buy or lease millions of acres, grow staple crops or biofuels on it, and ship them home. The countries doing the selling are some of the world\u2019s poorest and least stable ones: Sudan, Ethiopia, Congo, Pakistan. Usually, when foreigners show up in these places, it is with aid, pity and lectures (or, in one instance, arrest warrants for war crimes). It must make a nice change to find their farms, so often sources of failure and famine, objects of commercial interest instead.<\/p>\n

Yet while governments celebrate these investments, the rest of the world might reasonably ask why, if the deals are so good, one of the biggest of them helped cause the overthrow of the government that signed it\u2014the one in Madagascar. Will this new scramble for Africa and Asia really reduce malnutrition, as its supporters say? Or are critics right that these are \u201cland grabs\u201d, \u201cneocolonialist\u201d rip-offs, different from 19th-century colonialism only because they involve different land-grabbers and enrich different local elites?<\/p>\n

Protectionism or efficiency?<\/p>\n

It would be graceless to write off in advance foreign investment in some of the most miserable places on earth. The potential benefits of new seeds, drip-feed irrigation and farm credit are vast. Most other things seem to have failed African agriculture\u2014domestic investment, foreign aid, international loans\u2014so it is worth trying something new. Bear in mind, too, that worldwide economic efficiency will rise if (as is happening) Saudi Arabia abandons mind-bogglingly expensive wheat farms in the desert and buys up land in east Africa.<\/p>\n

Yet these advantages cannot quell a nagging unease. For a start, most deals are shrouded in mystery\u2014rarely a good sign, especially in countries riddled with corruption. One politician in Cambodia complains that a contract to lease thousands of acres of rice contains fewer details than you would find in a house-rental agreement. Secrecy makes it impossible to know whether farms are really getting more efficient or whether the deals are done mainly to line politicians\u2019 pockets.<\/p>\n

Next, most of these deals are government-to-government. This raises awkward questions. Foreign investment helps countries not only by applying new technology but also by reorganising the way people work and by keeping an eye on costs. Few governments do this well, corrupt ones least of all. One of the biggest problems of large-scale commercial farming in poor countries is that well-connected farmers find it more profitable to seek special favours than to farm. These deals may exacerbate that problem. Worse, the impetus for many of them has not been profit-seeking by those who want to turn around failing farms. Rather, it has been alarm at rising food prices and export bans. Protectionism, not efficiency, has been the driving force. It would be better to liberalise food markets and boost trade than encourage further land grabs.<\/p>\n

Third, there are serious doubts about whether countries acquiring land are paying the true cost of it. Host governments usually claim the farmland they offer is vacant, state-owned property. That is often untrue. It may well support smallholders who have farmed it for generations. They have no title, only customary rights. Deals that push them off their land or override customary rights cannot be justified. International bodies, such as the African Union, are drawing up codes of conduct to limit such abuses. They are sorely needed.<\/p>\n

Even then, land deals will never help the poor as much as freer trade and stronger property rights. But if the deals eventually raised yields, spread technology and created jobs, that would at least be some cause for celebration. At the moment too many seem designed to benefit local elites more than local farmers; they use foreign labour and export most of their production, harming local food markets. Until they show otherwise, a dose of scepticism should be mixed with the premature hopes the land deals have engendered.<\/p>\n","protected":false},"excerpt":{"rendered":"

Land grabbing on forth world countries sounds like a good solution to the food supply problem in third world countries. If land grabber can put the lands for better use, they are more entitle to the lands than the locals. It is not neo-colonialist, it’s the survival of the fitness.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"lc_iscn_info":[],"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[15],"tags":[41,460],"class_list":["post-3059","post","type-post","status-publish","format-standard","hentry","category-_newsclips","tag-economist","tag-colonize"],"yoast_head":"\nLand deals in Africa and Asia - \u54f2\u5b50\u6232 Philosophist\u2019s Camp<\/title>\n<meta name=\"description\" content=\"Land grabbing on forth world countries sounds like a good solution to the food supply problem in third world countries. 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