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Trends and impacts of foreign investment in developing country agriculture

Evidence from case studies












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    Current research on the impacts of investment and the Principles for Responsible Agricultural Investment on developing country agriculture
    A Side Event organized by the Inter-Agency Working Group (IAWG) during the 39th Session of the Committee on World Food Security (CFS) 18 October 2012, FAO Headquarters
    2012
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    The Inter-Agency Working Group on the Principles of Responsible Agricultural Investment that Respects Rights, Livelihoods and Resources (PRAI), composed of FAO, IFAD, UNCTAD and the World Bank, held a Side Event entitled on Thursday, 18 October, during the 39th Session of the Committee on World Food Security (CFS) at FAO Headquarters in Rome. The objectives of the Side Event were: To present empirical evidence from several streams of ongoing research on responsible agricultural investment in d eveloping countries; to discuss the implications for policy formulation and possible recommendations for foreign and domestic investors, governments, donors and international agencies; to provide inputs into the inclusive CFS consultation process to ensure broad ownership of principles for responsible agricultural investment that enhance food security and nutrition.
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    Home Country Measures that Promote Responsible Foreign Agricultural Investment 2016
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    This paper summarizes the good practices by nine selected OECD countries that seek to promote responsible foreign investment in developing country agriculture, primarily by investors in their territory or jurisdiction. The study provides examples of the increasing trend of home countries in establishing binding legal norms and other mechanisms as safeguards that are relevant for agricultural investment. It finds that States apply some specific provisions to hold private corporate actors investin g in agriculture abroad accountable, for example in regard to bribery of foreign public officials. Investment home countries are also increasingly using safeguards relevant for agricultural investment for companies that are controlled by the State or seek its support. Furthermore, Public-Private Partnerships are increasingly used in development assistance projects as a means to promote responsible agricultural investment. In these cases, the safeguards usually imply the use of negotiated and app roved instruments such as the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (VGGT). The Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI), endorsed in 2014 by the Committee on World Food Security (CFS), will possibly become a major guidance instrument, given recent declarations by the G7 and G20.
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    Impacts 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.

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    Perennial Crops for Food Security
    Proceedings of the FAO Expert Workshop, 28-30 August, 2013, Rome, Italy
    2014
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    This publication presents the latest research in perennial crop breeding and programmes, and provides direction on where the field of perennial crop is heading. Many production systems and agricultural practices are no longer sustainable today as their effects on soils, water, biodiversity, and livelihood are significant. Mainstreaming the use of perennial crops into current practices can contribute to stabilize fragile soils and maintain natural processes essential to obtain stable and high yie lds. To face the challenges and risks of the twenty-first century, increasing the perenniality of crops and agricultural systems should become a larger research, development and policy focus.
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    The status of women in agrifood systems 2023
    The status of women in agrifood systems report uses extensive new data and analyses to provide a comprehensive picture of women’s participation, benefits, and challenges they face working in agrifood systems globally. The report shows how increasing women’s empowerment and gender equality in agrifood systems enhances women’s well-being and the well-being of their households, creating opportunities for economic growth, greater incomes, productivity and resilience.The report comes more than a decade after the publication of the State of food and agriculture (SOFA) 2010–11: Women in agriculture – Closing the gender gap for development. SOFA 2010–11 documented the tremendous costs of gender inequality not only for women but also for agriculture and the broader economy and society, making the business case for closing existing gender gaps in accessing agricultural assets, inputs and services. Moving beyond agriculture, The status of women in agrifood systems reflects not only on how gender equality and women’s empowerment are central to the transition towards sustainable and resilient agrifood systems but also on how the transformation of agrifood systems can contribute to gender equality and women’s empowerment. It provides a comprehensive analysis of the available evidence on gender equality and women’s empowerment in agrifood systems that has been produced over the last decade. The report also provides policymakers and development actors with an extensive review of what has worked, highlighting the promise of moving from closing specific gender gaps towards the adoption of gender-transformative approaches that explicitly address the formal and informal structural constraints to equality. It concludes with specific recommendations on the way forward. Last update 03/08/2023
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    Wildcheck – Assessing the risks and opportunities of trade in wild plant ingredients 2022
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    Thousands of consumer products around the world contain ingredients obtained from wild plants. Wild harvest accounts for some or all the harvest of the great majority of plant species in trade (between 60-90 percent). Wild-harvested plants often come from the most biodiverse ecosystems on earth and many have been used traditionally or by local communities for generations. While these products have global markets and provide critical sources of income, they can also have deep ties to particular cultures and places. Demand for wild plant ingredients is growing rapidly, having grown by over 75 percent in value over the past two decades. Thousands of harvested species are at risk mainly from a combination of overharvest and habitat loss: of the 21 percent of medicinal and aromatic plant species whose threat status has been assessed, 9 percent are considered threatened with extinction. Despite their ubiquity, importance, and the threats facing them, wild plant ingredients are often obscured from consumers and escape companies’ due diligence due to a lack of awareness and traceability. Best practice standards exist but have yet to capture a significant portion of the market. This report aims to address these challenges by making information on a selection of ‘flagship’ wild plant ingredients, the Wild Dozen, readily available and easy to understand. By offering this information without obligation to a specific prescription for follow-up action (e.g. through certification or policy change), it is hoped that a wide range of users will access the report as a first step towards responsible sourcing. Along with a broader update on the state of wild plants trade, the report provides a ‘profile’ on each of the Wild Dozen species, summarising key facts on production and trade. Each profile contains a traffic-light risk rating on biological and social factors, along with an overview of opportunities for responsible sourcing. The information is aimed at industry, consumers, policy-makers, investors, and practitioners, concluding with a summary of what these various stakeholders can do to contribute to a sectoral shift towards responsible sourcing of wild plant ingredients.