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Economic and ethical challenges of "land grabs" in sub-Saharan Africa

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  • Kleemann, Linda
  • Lay, Jann
  • Nolte, Kerstin
  • Ott, Konrad
  • Thiele, Rainer
  • Voget-Kleschin, Lieske

Abstract

For local people in sub-Saharan Africa, large land investment projects currently imply many risks and few benefits. Drawing on own ethical and economic research and using evidence from the authors' case studies in Kenya, Mali and Zambia and a new database of large-scale land acquisitions worldwide, this brief offers policy recommendations for host governments, investors and the international community so as to achieve a more favourable balance of risks and benefits in land investment projects. Our research suggests that the land governance systems of sub-Saharan African countries, comprising a multitude of sometimes contradictory laws derived from colonial and customary systems, privilege powerful actors and lead to violation of human rights. Legal uncertainty and an acquisition process that gives no voice to local land users can lead to displacements of farmers without compensation. Poorly enforced formal laws, neglect of built-in checks and balances, and power and information asymmetries between investors and local people can give rise to coalitions of investors and powerful rent-seekers. Displaced farmers and those unable to find jobs on the land investment projects migrate to other rural areas or the cities, and few and only low-skilled jobs are available to those who remain. We found limited evidence of positive spillovers from improved infrastructure and knowledge and technology transfer. Local food prices are likely to rise, as most of the production on investment farms is for export. Overall, when many farmers are displaced and investment projects are capital intensive the net welfare effect for the local population can be expected to be negative. Against this background, we propose a set of policy changes for promoting benefits for the local population and avoiding human rights violations. In contrast to proposals made by international guidelines and codes of conduct, we emphasize in particular the responsibilities of host country governments.

Suggested Citation

  • Kleemann, Linda & Lay, Jann & Nolte, Kerstin & Ott, Konrad & Thiele, Rainer & Voget-Kleschin, Lieske, 2013. "Economic and ethical challenges of "land grabs" in sub-Saharan Africa," Kiel Policy Brief 67, Kiel Institute for the World Economy (IfW Kiel).
  • Handle: RePEc:zbw:ifwkpb:67
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    References listed on IDEAS

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    1. Nolte, Kerstin & Voget-Kleschin, Lieske, 2014. "Consultation in Large-Scale Land Acquisitions: An Evaluation of Three Cases in Mali," World Development, Elsevier, vol. 64(C), pages 654-668.
    2. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808, Decembrie.
    3. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," The World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.
    4. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Post-Print hal-02875924, HAL.
    5. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
    6. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.
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    1. Nolte, Kerstin & Voget-Kleschin, Lieske, 2014. "Consultation in Large-Scale Land Acquisitions: An Evaluation of Three Cases in Mali," World Development, Elsevier, vol. 64(C), pages 654-668.
    2. Chamberlin, Jordan & Jayne, T. S., 2017. "Does Farm Structure Matter? The Effects of Farmland Distribution Patterns on Rural Household Incomes," Feed the Future Innovation Lab for Food Security Policy Research Papers 275685, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    3. Chamberlin, Jordan & Jayne, T.S., 2020. "Does farm structure affect rural household incomes? Evidence from Tanzania," Food Policy, Elsevier, vol. 90(C).

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