Land Use

Who will profit from 'land grabbing'?

Many African countries, like Madagascar pictured here, are increasingly leasing land to foreign firms, but critics argue the deals are exploitative. Photo: <a href="http://www.flickr.com/photos/goukely/1372969345/">goukley (flickr)</a>
Many African countries, like Madagascar pictured here, are increasingly leasing land to foreign firms, but critics argue the deals are exploitative. Photo: goukley (flickr)

A million hectares in Uganda. Some 690,000 hectares in Sudan. And 500,000 hectares in Tanzania. These are just a few of the numbers that have appeared on the bargaining table in the past year as foreign firms scramble for land leases in Africa.

The Independent takes a look at the phenomenon known as "land grabbing," or the recent trend of foreign governments and corporations leasing or purchasing large swaths of land in poorer countries to grow food or other crops for export back to their home country. The phenomenon is most prevalent in Africa, but leases have been sought elsewhere, including the Philippines and Pakistan.

[The sudden increase in "land grabbing"] has its roots in the food crisis of 2007/8, when prices of rice, wheat and other cereals skyrocketed across the world, triggering riots from Haiti to Senegal. The price spike also led food-growing countries to slap export tariffs on staple crops to minimize the amounts that left their countries. That tightened the supply still further, meaning food prices were driven up more by a situation of policy-created scarcity than by supply and demand.

This situation also made many rich countries that are reliant on massive food imports question one of the fundamentals of the global economy: the idea that every country should concentrate on its best products and then trade. Suddenly having unimaginable quantities of cash from oil was not enough to guarantee you all the food you needed. The oil sheikhs of the Gulf states found that food imports had doubled in cost over less than five years. In the future it might get even worse. You could no longer rely on regional and global markets, they concluded. The rush to grab land began.

Investors say they will bring needed infrastructure, technology and employment, but in some cases, these investments have been met with resistance. Riots erupted earlier this year in Madagascar, where almost half the children under age five don't get enough to eat. The riots were driven in part by the news that the government had given South Korean firm Daewoo a 99 year lease over 1.3 million hectares of land. On an area amounting to half the island's arable land, Daewoo planned to grow maize and palm oil solely for export to South Korea. The deal fell through when the riots forced the president, Marc Ravalomanana, out of office, BBC News reports.

Nevertheless, land grabbing is poised to continue at a rapid pace, according to The Independent:

The government of President Ravalomanana became the first in the world to be toppled because of what the United Nations' Food and Agriculture Organization recently described as "land grabbing." The Daewoo deal is only one of more than 100 land deals which have, over the past 12 months, seen massive tracts of cultivable farmland across the globe bought up by wealthy countries and international corporations. The phenomenon is accelerating at an alarming rate, with an area half the size of Europe's farmland targeted in just the past six months.

Critics question the truthfulness of the investors' promises. The head of the UN Food and Agriculture Organization, Jacques Diouf, warned that land grabbing is simply neo-colonialism, and Africa will again be exploited for its resources while seeing little direct revenue.

The Independent offers an analogy from international development policy consultant Mark Weston for understanding the current nature of the leases and what makes them magnets for controversy:

Imagine if China, following a brief negotiation with a British government desperate for foreign cash after the collapse of the economy, bought up the whole of Wales, replaced most of its inhabitants with Chinese workers, turned the entire country into an enormous rice field, and sent all the rice produced there for the next 99 years back to China.

Imagine that neither the evicted Welsh nor the rest of the British public knew what they were getting in return for this, having to content themselves with vague promises that the new landlords would upgrade a few ports and roads and create jobs for local people.

Land grabbing is just one aspect of the current discussion about agricultural development in Africa. When U.S. Secretary of State Hillary Clinton visited Kenya earlier this month she voiced interest in Africa's agricultural potential: "More and more, the world will look to Africa to be its breadbasket, and I hope that when the world looks ... it is Africans and African farmers who will profit from becoming the world's breadbasket."

From the Archives

Mystery of the Vanishing Bees

Previously filed under: North America, Environment
Bee populations are declining, which could cause the near extinction of the many fruits, vegetables and flowers that are dependent on bees.

Stories We're Watching

For India’s Newly Rich Farmers, Limos Won’t Do

International Herald Tribune - Fri, 03/19/2010 - 00:48
Land acquisition for expanding cities and industry has created pockets of instant wealth, creating a new economic caste in India: nouveau riche farmers.

Africa Could Join High-Speed Science Network

All Africa - Thu, 03/18/2010 - 12:45
African science ministers are hoping to extend a high-speed fiber optic network — currently linking Egypt to the northern hemisphere — to other countries in Africa.

Vision for Africa

Daily Nation - Thu, 03/18/2010 - 12:30
Africa’s economic future and the challenge of uniting people and nations drew eminent politicians and scholars into a historic public debate in Nairobi on Thursday.

'Quiet Corruption' Hurting Africa's Poor

San Francisco Chronicle - Mon, 03/15/2010 - 09:22
A World Bank report says teachers and other public servants who don't show up for work are fueling "quiet corruption" throughout Africa that is disproportionately hurting the continent's poor.

Industrial Output Up; Hopes For Factories Grow

NPR - Mon, 03/15/2010 - 08:45
Industrial production edged up 0.1 percent in February, beating expectations and marking the eighth straight monthly increase.

Recent comments

  • "Esther, Wow! Thank you for commenting. One of the best things (among many) about applying these controlled random..."
    by Jill Scantlan
    on A 'Rising Star' in Economics
  • "Thanks for this article. One small correction though. What the post refers to as "my best known work" (the work on..."
    by Esther Duflo
    on A 'Rising Star' in Economics
  • "This is so sad, and at the same time so true. We talk so much about terrrorism on news that we forget about poverty and..."
  • "Microfinance is amazing. Allowing millions to send their children to university in order to "break the chain" and give..."
  • "UPDATE: Following an investigative report on BBC NewsNight, British Parliament has now passed a bill that will..."

Countries

An initiative of Mercy Corps
“You must be the change
you wish to see in the world”
Mahatma Gandhi
Learn more about Mercy Corps >

Efficiency

Over the last five years, more than 89% of Mercy Corps' resources have been allocated directly to programs

Excellence

America's premier charity evaluator gives Mercy Corps four stars in organizational efficiency. Click here to learn more.

High Value

Every dollar you donate to Mercy Corps helps us secure $11.16 in donated food and other critical supplies.

Mercy Corps — Dept. W — 45 SW Ankeny — Portland, OR 97204
All original content Copyright © 2009 Mercy Corps. Quoted and linked content is property of the creator(s). Mercy Corps will not sell, rent or trade your personal information.