Land Grabbing or Land to investors?
â??Over the next 40 years the worldâ??s population is expected to grow by 34%. This implies the necessity for an increase in agricultural production of 70%.â??
After the crisis generated by the 2007 Subprime, international investors, researching new markets, started investing in food commodities. This led to price increases that provoked the partial block of export from producing countries. The governments of the most vulnerable countries were therefore obliged to engage in a difficult quest for alternative supply sources in order to guarantee their needs. Investment in land overseas was pinpointed as a possible solution, thus marking the beginning of the Land Grabbing phenomenon.
For the Arab Peninsula states it seemed natural to take advantage of the geographical proximity and the consolidated political connections with Ethiopia. With the additional benefits guaranteed by Prime Minister Meles Zenawiâ??s government and by various development funding programmes promoted by the World Bank and the IMF, they launched into agribusiness with the Ethiopian government and a small group of local and overseas investors. Monocultures for food and bio-fuel production thus arose, in addition to the thousands of greenhouses yielding fruit and vegetables which are exported daily to the elegant hotels and restaurants of the Arab Emirates.
â??This land is virgin and emptyâ?? asserts the government; â??It was cultivated or used as pastureâ?? is the affirmation of those who have lived there for generations, who also complain about indifference of government officials towards the impact that these projects have on the environment and the water resources.
Leased mainly through private negotiations, the latifundia are intended to meet the growing demand for food and bio-fuel of the developed countries, but with more than 6 million people in the regions of Afar and Somaliland surviving thanks to food aid programs, and the average area of no more than 0,6 hectares per family for the traditional farming plots, they also attribute controversial connotations to Land Leasing.
Whoever disagrees with this policy, though, is an enemy of progress and Ethiopia, and as such is seen as a traitor, a decidedly unenviable condition since the opposition obtained just one seat out of 547 in the last elections.
â??I wouldnâ??t define it as Land Grabbing. We exploit the economic opportunities which came about after the food price shock of 2007. The land is offered by the government, who is its legitimate owner. We donâ??t pay much rent (less than $ 2 per hectare) but in exchange we create infrastructures and jobsâ??.
*Birinder Singh: general manager of Karuturi Agro Products, licensee of a 100.000- hectare compound expandable to a total area of 300.000 hectares in the Gambella area.
Ethiopiaâ??s annual agricultural export figures are close to those of the food aid the country receives from the World Food Program!