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Assessment and appraisal of Foreign Direct Investments (FDI) in land in view of food security

Dear Sir or Madam,

on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), the GTZ Sector Projects “Land Management” and “Agricultural Policy and Food Security“ have published the new study

“Assessment and appraisal of Foreign Direct Investments (FDI) in land in view of food security”.

The study is a specific contribution to the study series on “Foreign Direct Investments (FDI) in land in developing countries”.

Study Background:
Land as a factor of production is an increasingly scarce resource in competition between various land use interests. Against the background of growing prices for food, state actors and private investors from industrialized and emerging countries are using long-term leases or purchase agreements to secure large areas of agricultural land in developing countries where they grow food or energy crops for export or in order to ensure their own food and energy security - a process referred to as “land grabbing” in international news headlines.

The social, economic, political and ecological impacts of FDI in land on the local populations, the regions and possibly countries as a whole strongly depend on the type of contracts and specific rules and regulations agreed upon by relevant stakeholders. This study assesses the risks and chances of FDI in land in view of food security as well as the coherence between FDI in land and international policies in the field of food security. There is a need for action of Development Cooperation to respond to political demands and come up with sound ideas on how FDI in land and corresponding policies should be shaped in order to trigger investments that lead to a sustainable and accessible supply of food in the years to come.

The study is available online:
http://www2.gtz.de/dokumente/bib/gtz2010-0478en-foreign-direct-investmen...

The print version can be ordered via i-punkt@gtz.de or landmanagement@gtz.de.

We hope that the study will attract your interest.

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26 November 2010

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