Banana Republics, Land Grabbers and Neocolonialism

I do not remember how I came across this topic, but I found it in a list of key terms I had made a few weeks ago, for further research. The term was “Outsourcing agriculture”. I refrained from doing further research into it simply because it sounded odd and I assumed I had made a mistake, after all, who would outsource agriculture? Then I decided to research it, and in doing so discovered a new, but old issue.Outsourcing agriculture is definitely not a new idea, take the the sugar and cotton plantations that fanned the slave trade, for example (and so-called Banana Republics). But never has it been done in such large scale. Countries are making deals with other countries for them to farm and grow crops in their land. The investing countries gain food crops and the land-rich countries gain newer and technologically-advanced agricultural practices.In doing my research, I realized that this is an issue I can hardly be objective about, so I have decided to lay out the details and allow you to come to your own conclusions before reading mine.Why would rich countries like China and Saudi Arabia invest in developing countries, often filled with unrest, for their food supplies? There are two hidden impulses: Water and Food prices.

Peter Brabeck-Letmathe, the chairman of Nestlé, claims: “The purchases weren’t about land, but water. For with the land comes the right to withdraw the water linked to it, in most countries essentially a freebie that increasingly could be the most valuable part of the deal.” He calls it “the great water grab”. (The Economist)

While oil rich countries like Saudi Arabia have the money and resources to grow crops within their boundaries, they lack one important resource: Water. Instead of wasting money funding programs to grow their own crops in arid desert landscapes, rich Middle-Eastern countries have decided to look for greener pastures.Also affecting another agricultural outsourcing giant like China are food price hikes. While China and Saudi Arabia can definitely afford the costs of buying food despite the price hikes, they are limited by trade bans imposed by food exporters to increase the exporters’ own food security (Farm Land Grab). Instead of limiting themselves to trying to grow their own food in unfriendly landscapes or following the trade limits, they have decided to find a new way to grow food unlimitedly.So why would these poor African countries agree to these land leasing measures? Well the given answers seem ‘obvious’.

Africa is rich in cultivable land and water. Raining capital will ensure new seeds, farm equipment, fertilizers, higher food production and ultimately food security. Investment brings agro-industrial production, new marketing, better jobs, schools, clinics and roads. (Farm Land Grab)

But where do the titles “Land Grabbers” and “Neocolonialism” come in for this business practice? The Sudan is one of the largest participants in these large scale land-lease programs.

Sudan is letting investors export 70% of the crop, even though it is the recipient of the largest food-aid operation in the world. (the Economist)

As a Nigerian and an African, I know enough to understand just how complex land-ownership and the recognition of governments and property are.

Host governments usually claim that the land they are offering for sale or lease is vacant or owned by the state. That is not always true. “Empty” land often supports herders who graze animals on it. Land may be formally owned by the state but contain people who have farmed it for generations. Their customary rights are recognized locally, but often not accepted in law, or in the terms of a foreign-investment deal. (The Economist)

These land lease deals have also proved even more controversy, as the people living in the host countries have little to no say in the deals. These plans are made government to government, and have resulted in a coup in Madagascar that overthrew the government planning the land deal. Even more alarming is that because of the secrecy that shrouds these deals, there are more opportunities for corrupt and inappropriate deals and actions that raise concerns for government interest over public welfare. (The ISN)

But Sudan and Ethiopia have famines now: should they be declining to sign land deals altogether? Many of the worst abuses are committed by the foreign investors’ local partners: will they be restrained by some international code? (The Economist)

So the benevolence of these foreign investors is beginning to seem even less like benevolence and more like advantageous investing.

• The Locals no longer have access to their land after the deals are made
  
• Because of these evictions, these countries have even worse food security-after all, all the produce of their land are being shipped abroad.
  
• The one good aspect of the deal is the money being paid to the governments. However, because of a lack of accountability, there is no way to ascertain that the money is being used for public good
  
• (Public Radio International)

_______________________________________________________________

I believe that these land-lease deals will almost certainly be extended and these countries will soon become dependent on these foreign investors. The deals are not solving problems, but creating even bigger ones. If there is so much land and opportunities for foreign investors in the Sudan and Ethiopia, why do they have famines? These deals could be an opportunity for the host countries to gain technological advancements and new resources, but it requires the right planning. And with the secrecy shrouding these deals, and the uncertainty of what exactly is planned, there is little doubt that the negative effects of these deals will far outweigh the positive. I hope that someone from these host countries recognize the innate contradictions in the deals they are making, and try to gain something from them to be able to live without the deals. But with the current economic and political climate around the world, I sadly and highly doubt the possibility

.-Onome U. Chicago IL, International Health Team, College Sophomore.

References

:Farm Land Grab: http://farmlandgrab.org/9833

The International Relations and Securities Network or the ISN: http://www.isn.ethz.ch/isn/Current-Affairs/Security-Watch/Detail/?lng=en&id=100731

The Economist: http://www.economist.com/node/13692889

Public Radio International: http://www.pri.org/business/global-development/underdeveloped-countries-outsourced-agriculture1513.html