Land Grabbing

Land Grabbing
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Land Grabbing
Land grabbing has been one of the most debatable issues in the recent past. It is the issue regarding economically significant transactions of buying or leasing of significantly large areas of land in countries with relatively weak economies. Such transactions are mostly carried out by multinational entities. The land bought through such transactions is then used by the companies to produce food products for the purpose of export and the production of biofuels.
Land grabbing is a contentious issue because economically strong countries are exploiting underdeveloped countries in order to meet the demand for food products in their local markets. Economically developed countries mostly depend upon their industrial infrastructure for the running of their economy; however most of such countries are poor at food production. On the other hand, most of the underdeveloped countries depend upon their agricultural system and they have fertile land that is good for food production. Underdeveloped countries in Asia and Africa have fertile land which is highly feasible for agricultural production and such countries have become the target for land grabbing by economically strong but agriculturally poor countries. In this scenario; countries with strong economy but poor agricultural system are buying huge areas of land in underdeveloped countries with fertile land in order to produce food and biofuels in a cost effective manner and to fulfill the requirement in local markets.
The reason behind the increase in land grabbing in the recent past is the increasing food insecurity in a number of nations. Food crises have occurred in the recent past and in order save themselves from any such crisis, food-insecure nations are heavily investing in land grabbing to ensure uninterrupted supply of food in all circumstances. This can be regarded as a clear exploitation of the rights of the people living in the countries where the land is bought.
Origin of Land Grabbing
Land grabbing is a relatively new issue and a large proportion of people are still unaware about it. There were certain events that happened in the recent past that brought the issue of land grabbing to light. One example of such issues is that of Madagascar. A deal was in the process of negotiation but it was called off due to the violent protest done by the people of Madagascar. The deal was to sell half of all the agricultural land in Madagascar that is 1.3 million hectares to the South Korean Daewoo. The buyer wanted the land in order to produce palm oil and corn which can be regarded as the sources of biofuels. The protests done in order to stop this deal from closing brought the issue of land grabbing to the light and a number of experts presented their views regarding the issue. The protests were successful and the deal was called off and along with that, the government of Madagascar also collapsed as a result of the protests (Global Research, 2011).
Apart from that, there are a number of other examples of land grabbing in the recent years. According to World Bank, 45 million hectares of land was purchased all around the world in the year 2009. World Bank has regarded this as a positive economic activity and according to its review, the people in the countries where the land is bought would benefit from international investment. The investment by foreign countries for food production would introduce new employment opportunities for the people in the countries where the land is bought by international investors. However, the positive sentiment for land grabbing is very rare and there has been significant criticism against land grabbing all around the globe (McDonald, 2011).
According to organizations that endorse international human rights, land grabbing is the formation of colonies in economically weak countries. Economically strong countries can exploit the weak countries in a number of ways. Due to their claim on a significant area of land, they can easily monopolize the agricultural system and this scenario can lead to a crisis worse than terrorism (SAPA, 2011). Privatization of food is one of the most threatening consequences of the increasing land grabbing all around the globe. Countries investing in lands can easily ensure the safety of their food availability but it would be done at the expense of a severe food crisis in the country in which the land is bought (The Guardian, 2008). Critics also regard land grabbing as a completely immoral act veiled under the provisions of international law. Millions of hectares of land along with the water resources are being grabbed from indigenous people and peasants. Underdeveloped countries generally have poor laws regarding human rights therefore people who are thrown off the lands that are sold to rich countries are not provided any alternate dwellings. Land grabbing is causing the exploitation of the rights of a large number of people in underdeveloped countries.
Food supplies that are produced from the lands bought in foreign countries are produced exclusively for international markets. This scenario can easily create food crisis in the local markets of the underdeveloped countries. Land grabbing can also create international food crisis if the sole purpose of land grabbing is the production of bio fuels. Where on one hand economically strong countries and private investors reap huge profits from land grabbing, on the other hand, indigenous people in the underdeveloped countries are being thrown off their already shattered livelihoods.
Origin of land grabbing can be traced back to the occurrences of food crises around the globe but the increase in land grabbing can be linked with the globalization and increase in international trade. Globalization has opened doors of opportunities to enter into significant business transactions internationally therefore it has become easier for private investors and international entities to buy large areas of land in foreign countries. International laws have loosened the embargoes upon international trade as well.
Reasons behind Land Grabbing
There are a number of reasons that have caused increase in land grabbing in the recent past. Some of the reasons have already been mentioned such as; food insecurity of economically strong countries and the fulfillment of demand for food products by such countries in their local markets. Following is the comprehensive detail regarding the reasons behind land grabbing.
Food Supply for Food-Insecure Countries
Food insecurity is the vulnerability of a nation to be effected by increasing food riots all around the globe. Food insecure countries are those countries that mainly depend upon imported food and they do not have enough food production to cater their own population. Gulf States are mainly oil producing countries and they do not have enough local food production, therefore they depend upon imported food. Similarly; other food insecure countries are those that are going through economic growth, or those countries that have social instability, or increasing population. Examples of such countries may be Japan, South Korea and China. These countries are going through a rapid economic growth and the accelerating economic activity in these countries is making them food insecure.
Therefore in order to ensure that these countries remain safe from any food crisis in the future, such countries are continuously entering into land grabbing deals with countries with fertile land. The target countries are underdeveloped countries in Asia and Africa. In the past few years, a huge area of land has been bought by other countries in Africa and land grabbing has reached an alarming level.
Agribusiness Corporations
One of the reasons behind the increasing trend of land grabbing all over the globe is the heavy investment being made in the agribusiness. Production of food has become one of the primary objectives of some multinational entities and significant investments are being made in this business as the profit returns in this business are very high. Agribusiness corporations reap very high profits by producing food products in countries where the cost of production is very low and then the food products are sold in international markets where the market value of food products is very high.
This scenario can be linked with the increasing food price volatility. Food prices in international markets are not stable and they keep fluctuating. This fluctuation is due to the lack of planning in the production of food products. Agribusiness corporations are planning to produce food in a controlled manner in accordance with the demand for food in international markets. Critics also regard this scenario as privatization of food and this would give such corporations a chance to monopolize food products. Such corporations would earn very high profits while ...