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DocumentImpacts of foreign agricultural investment on developing countries: evidence from case studies 2014
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There is growing evidence that investing in developing countries’ agricultural sector is among the most efficient ways to reduce poverty and hunger. Agricultural investments can generate a wide range of developmental benefits, but these benefits cannot be expected to arise automatically and some forms of large-scale investment carry risks for host countries. Although there has been much debate about the potential benefits and risks of international investment, there is a lack of systematic evide nce on the actual impacts on the host country and their determinants. This paper summarizes the results of FAO’s case studies on the impacts of foreign agricultural investment on host communities and countries. The studies suggest that the disadvantages of large-scale land acquisitions often outweigh the few benefits to the local community. In countries where local land rights are not clearly defined and governance is weak, large scale land acquisition raises particularly high risks for the loca l community. These include reduced access to natural resources and the loss of livelihoods, which are likely to generate local opposition to the investment. Even from the perspective of the investor, land acquisition is unlikely to be the most profitable business model due to the high potential for conflict and damage to reputation. Conversely, the studies suggest that investments that involve local farmers as equal business partners, giving them an active role and leaving them in control of the ir land, have the most positive and sustainable effects on local economies and social development. These inclusive business models need strong external support for supporting farmers and facilitating the investor-farmers relationship in order to succeed. They also require ‘patient capital’, as financial returns to investment are unlikely to materialize in the first years. Beside the business model, other important factors include the legal and institutional framework in the host country, the ter ms and conditions of the investment contract and the social and economic conditions in the investment area. Strengthening the governance and capacity of institutions in host developing countries is essential to enhancing the developmental impacts of foreign agricultural investment. -
Book (series)Analysis of alternative routes of public investment in agriculture and their impact on economic growth and rural poverty reduction in Nicaragua 2020
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In the face of the economic downturn that Nicaragua experienced in 2018 and the need for a recovery, the study provides a comparative analysis of how investments in productive infrastructure in different agri-food sectors would impact growth and poverty. The analysis is based on scenarios generated through an economy-wide model representing the Nicaraguan economy and its sectors. The model includes financing constraints and the study explores different financing options for the new investments. -
Book (stand-alone)Climate-Smart Agriculture: A Synthesis of Empirical Evidence of Food Security and Mitigation Benefits from Improved Cropland Management 2011
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No results found.Meeting the food demand of a global population expected to reach 9.1 billion in 2050 and over 10 billion by the end of the century will require major changes in agricultural production systems. Improving cropland management is key to increasing crop productivity without further degrading soil and water resources. At the same time, sustainable agriculture has the potential to deliver co-benefits in the form of reduced GHG emissions and increased carbon sequestration, therefore contributing to c limate change mitigation. This paper synthesizes the results of a literature review reporting the evidence base of different sustainable land management practices aimed at increasing and stabilizing crop productivity in developing countries. It is shown that soil and climate characteristics are key to interpreting the impact on crop yields and mitigation of different agricultural practices and that technology options most promising for enhancing food security at smallholder level are also ef fective for increasing system resilience in dry areas and mitigating climate change in humid areas.
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