May 8th, 2021

The Spell of the Lake

LAND GRABS

In the late 2000s, the term "land grab" rose to prominence to describe large-scale acquisitions of farmland in Africa, Asia, and Latin America. Reports of "land grabs" also inspired debates around the specific functions of foreign investment, domestic policies in the global South, and commodity prices in development.

A 2012 article by LORENZO COTULA takes a critical approach towards "land grab" literature and distinguishes contemporary land acquisition patterns from their historical counterparts.

From the article:

"There is nothing new in the acquisition of land in the global South to produce crops for export to the global North, and some crops have a long history in tropical plantations (e.g. rubber). However, the biofuels boom has brought new actors (e.g. constellations of energy, agribusiness and biotech companies) and new crops (e.g. jatropha), or has reinvigorated interest in longstanding crops (e.g. sugar cane, palm oil). Carbon markets are changing the nature of the financial returns at stake and, more fundamentally, the very relationship between humankind and nature. The growing participation of financial players in the global land rush brings to the land arena a new set of players, motivations and investment models. In the words of Peluso and Lund, 'there is no one grand land grab, but a series of changing contexts, emergent processes and forces, and contestations that are producing new conditions and facilitating shifts in both de jure and de facto land control.'

However one looks at it, the land rush, if sustained over the next few years, will have profound implications for the future of world agriculture, including the roles of states and markets, of agribusiness and family farming, and of the global trading system. For example, as companies increase their degree of vertical integration and as governments acquire land overseas to import agricultural produce, a growing share of world agricultural trade will occur within the 'closed circuit' of corporate or country systems – deepening a trend that has emerged over the past few decades. In turn, this trend may have repercussions in multiple directions: to name a few, greater vertical integration of value chains can squeeze local operators; intra-firm transactions may increase opportunities for tax avoidance through transfer pricing; and mercantilist approaches to outsourcing agricultural production for national food security can ultimately undermine the multilateral trading system."

Link to the text.

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