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  • on 07.08.2014
  • at 10:30 AM
  • by Kevin Hind

“Land grabs” and responsible agricultural investment in Africa 0

Can land grabs by foreign investors in developing countries feed the hungry? So says the press release for a recent, and unfortunate, economic study. It comes just as civil society and government delegates gather in Rome this week to negotiate guidelines for “responsible agricultural investment” (RAI), and as President Obama welcomes African leaders to Washington for a summit on economic development in the region.

At stake in both capitals is whether the recent surge in large-scale acquisition of land in Africa and other developing regions needs to be better regulated to ensure that agricultural investment contributes to food security rather than eroding it by displacing small-scale farmers.

The recent study paper will not advance those discussions. It is the kind of study that gives economists a bad name. Economists like the one in the oft-told joke who, shipwrecked on a deserted island, offers his expertise to his stranded shipmates: “Assume we have a boat.”

In this case, these seemingly well-intentioned Italian economists came up with the dramatic but useless estimate that global land grabs could feed 190-550 million people in developing countries. The heroic assumptions they needed to get there should have stranded them on a deserted island, because they make no sense in the real world.

• Assume land grabs produce staple food. (Mostly, they don’t.)
• Assume such assumed food is consumed domestically. (Overwhelmingly it’s exported.)
• Assume the calories they might produce go to hungry people. (They don’t, they go to people who can afford them.)
• Assume calories are all that’s needed to nourish someone. (They aren’t.)
• Assume productivity-enhancing investments on such land would be made for an assumed market of hungry consumers. (They wouldn’t, the hungry are no real market at all because they have no effective buying power.)
• Assume the grabbed land didn’t displace anyone from producing food. (According to the same data relied on by these economists, most projects have displaced farmers.)

continue reading on farmlandgrab.org

By Timothy A. Wise farmlandgrab.org

Photo credit: Polyp

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