by GENEVIEVE LAVOIE-MATHIEU
Global food prices soared dramatically between 2006 and 2008 and again in 2010, which signals a new era of uncertainty and rivalry in the field of global arable land.
Lack of arable land and fresh water, which result in agricultural change, are exacerbated by climate change and population growth. This is likely to have a snowball effect on food security worldwide. The recent price hikes resulted in widespread riots. The global panic was worsened by restrictions put in place by grain exporting countries such as Russia, Argentina and Vietnam to limit agricultural exports in an attempt to keep domestic prices low. The urge by rich nations to secure arable land abroad is on the rise to safeguard domestic food supplies. Where does this leave rights to land and fresh water in developing areas? Unfortunately, the relationship between foreign investors and developing country citizens is not one of equal opportunity.
According to the World Bank, more than thirty-five million acres of land were bought or leased in Africa, Asia and Latin America, where approximately eighty percent of vacant farmland is located. This land acquisition has sparked controversy as its sole purpose is to serve needs of investors, many of whom come from oil and gas-rich states, such as Bahrain, Qatar, Kuwait and Saudi Arabia, where water and food security are at “extreme risk.”
The route to this controversy is twofold. Firstly, the cost of leases or purchases is shockingly low, which appeals to investors seeking high rates of return. Secondly, most of the countries where land is bought rely heavily on food aid. Overall, thirty-five African countries are net importers of food. Agricultural investment could lead to important development towards ensuring food security in these countries. However, the focus of investment on export-led agriculture has made them vulnerable to price shocks on the international market and to currency exchange volatility, as reported by Olivier de Schutter, the UN special reporter for the right to food. As well, the risk of widespread hunger is heightened in regions where food resources are exported rather than consumed domestically. Emerging economies, such as China, India and South Korea also aim to secure the resources necessary to fuel their rapid growth. To do so, they have looked into investing in countries with the most potential for irrigation to grow grain. Today, more grain is produced worldwide, but surpluses are much smaller. Such is the case in the US, where fertile land is diminishing and the nation is unable to keep up with its demand for grain.
AI for more
(Thanks to Feroz Mehdi)