Land acquisitions : An explosive phenomenon

Nearly 60 million hectares or 148 million acres––the equivalent of France’s area––were bought or leased by investors in developing countries during 2009, thus showing that the land acquisition phenomenon is experiencing a significant boom.

Many factors can be put forward to explain the motives of an increasing range of players for purchasing or leasing land in developing countries. But all share the will to turn agriculture into one of the most strategic sectors for the future in geopolitical and geostrategic terms.

Confronted to this new and insufficiently controlled phenomenon, questions and even concerns are intensifying. While some global governance players are insisting on the “win-win” aspect of farmland acquisitions––including gains in terms of job creation or information and technology transfers for the “host” nations––many remain skeptical about the global long-term benefits from such initiatives. This is the case of The Oakland Institute1, an American think tank that points out the underlying food security risks, following the exclusion of small farmers, the replacement of livelihood farming by export crops and the lack of agrarian reforms which are nonetheless required.

The consequences of farmland acquisitions are nevertheless difficult to assess and vary according to contracts and situations. One thing is certain: the expansion of land acquisitions is questioning the rationale for assessing profits linked to agricultural trade liberalization, as it is considered by the WTO and based on the premise of land fixity. It is therefore imperative, before re-launching the Doha Round for an umpteenth time, to better evaluate such consequences with adequate tools.

1 http://media.oaklandinstitute.org/