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A New Land Security Agenda to Enable Sustainable, Equitable Development
›The recent news that overseas investors have acquired over 10 percent of Australia’s farmland and 9 percent of water entitlements in its agriculture sector has struck a political chord in the country. Large grain-producing nations like Brazil and Argentina have passed laws to restrict the foreign ownership of land. In other global grain hubs, like Ukraine and Russia, compromised harvests due to droughts could result in export restrictions. In a globalized economy, the combination of scarcity, market and population pressures, and weather volatility will make fertile land an increasingly precious resource.
A shift is underway in global financial markets, where global investors perceive that owning what grows on the land – or better still, owning the land itself – may be a hedge against the risks of more volatile financial markets. A surge in farmland investments is expected to grow over the next decade is due to a number of combined pressures: a growing global demand for commodities, rising commodity prices, ecological limits, and the fact that farmland is a “real asset” that offers diversification to the portfolios of investors at a time of market volatility.
The need to increase food production against the backdrop of resource limits, social vulnerability, and population growth, puts the question of land at the center of a new security agenda.
In sub-Saharan Africa large-scale acquisitions of land that neglect local livelihoods and resource scarcity, commonly referred to as “land grabs,” put the region’s future in the balance. Not all land investments have negative consequences, but given the lower levels of land tenure by communities and the fragility of human security in sub-Saharan Africa, regulating land investments with foresight is an urgent issue. Population growth and climate change underpin this agenda. A worse-than-average drought, exacerbated by climate change, may be all that is needed in certain places to realize the political, humanitarian, and ecological risks that are slowly building momentum.
From Land Grabs to Land Stewardship
Progress now depends on moving from a land grabs debate to land stewardship solutions. This shift, which the Earth Security Initiative summarized in a report published this month, The Land Security Agenda: How Investor Risks in Farmland Create Opportunities for Sustainability, requires an improved understanding by investors and political leaders of three priorities: managing land degradation, protecting human rights by focusing on food security and land ownership, and keeping economies within ecological – especially water – limits.
The agenda we have developed discusses why these issues form part of a new risk management agenda for investors as well as for countries seeking to attract foreign capital, whose economic competitiveness and political stability may be compromised by these trends. But managing these risks, we argue, will require making human rights and ecological limits a central feature of a new investment paradigm.
A range of international investors is already searching for solutions to engage practically with this debate. Among those with whom we have engaged throughout the study are individual investment funds, people seeking change within the financial sector, and investor networks such as the UN-backed Principles of Responsible Investment. Recently, governments, international organizations and civil society groups have also agreed on a set of voluntary guidelines for land governance under the auspices of the Committee on World Food Security. These developments are positive steps, but their voluntary nature remains problematic. The focus must now be placed on operationalizing their recommendations to ensure real accountability and creating political incentives in host countries to regulate their land to ensure long-term and equitable prosperity.
A Call to Action
In The Land Security Agenda we call on investors to turn their attention to their land and commodities portfolios, as well as the investments currently under due diligence, and begin to ask how soil resilience, the prosperity of local people, and freshwater limits are being considered. We recommend beginning to assess the risks of countries according to how well their governments are managing these issues.
We similarly call on heads of state in countries seeking to attract large investments in land to become more aware that these risks may undermine their country’s wealth, their stability, and economic competitiveness. Political leadership is needed to champion and enforce regulations that will encourage investments and modernization while protecting a country’s social and natural capital.
Some of the recommendations we have developed, which would help set the tone for investors and governments to move from voluntary principles to action, include:- Define land security parameters: Establish a set of verifiable measures that allows stakeholders to distinguish those land investments that advance equitable and sustainable prosperity from those that do not. Based on these criteria, which we suggest must consider people, water, and soil, it is possible to advance their integration into three important areas of the investment cycle: the identification of investment opportunities that build positive value, the due diligence process, and the performance reviews of fund managers.
- Build better country risk profiles: If the population of a given country is dependent on agriculture for livelihoods, shouldn’t issues like soil erosion, water availability and lack of recognition for people’s land rights increase that country’s sovereign risk? We think so and now seek to develop a “land security index” to help investors and host country governments assimilate these trends into their decisions as well as increase the advocacy capacity of local civil society.
- Advance the formal recognition of land rights on a large scale: The universal call for the prior and informed consent of communities must be supported, but will be of little practical value if communities do not hold the legal rights to their land or are not well informed about their rights and the commercial opportunities available to them. Civil society groups working to advance good governance, land titling, and capacity building – many of whom we have spoken to during this study – are in a position to help create a “land security partnership” that builds technical and political momentum for the formal recognition of land rights on a large scale, as well as the resourcing and oversight that government agencies will require to implement them.
Alejandro Litovsky is the founder and director of the Earth Security Initiative and lead author of the report. The Land Security Agenda can be downloaded here.
Sources: DGC Asset Management, Land Commodities Asset Management, Telegraph.
Image Credit: Cover of the The Land Security Agenda. -
Natural Resource Management, Climate Change, and Conflict
›In Climate Change and Conflict: Lessons From Natural Resource Management, a new report from the Danish Institute for International Studies, authors Mikke Funder, Signe Marie Cold-Ravnkilde, Ida Peters Ginsborg, and Nanna Callisen Bang, review literature on how natural resource management, climate change, and conflict interact on the local, national, and transboundary levels, from which they offer lessons for development policymakers and programmers. Since natural resource management is “strongly related” to how climate change and conflict interact, they write, a better understanding of how natural resource management has taken conflict prevention and resolution into account would benefit development work aimed at mitigating climate change’s “multiplier effect” on conflict. Recommendations include working on as local a level as possible; working with and strengthening existing customary and legal conflict resolution frameworks; and coordinating development efforts across sectors so that policymakers and programmers can minimize the risk of unintentionally causing or aggravating conflict.
In his March 2012 Transatlantic Academy paper, “The Geostrategic Implications of the Competition for Natural Resources: The Transatlantic Dimension,” François Heisbourg analyzes the strategic implications of emerging trends affecting the global energy marketplace, including climate change and scarcity. Whereas Europe and the United States shaped energy markets in the 19th and 20th centuries, respectively, there is no comparable leader in the 21st century marketplace, writes Heisbourg, nor is it clear that one will emerge. Instead, there will be a growing number of influential countries, like Brazil, India, and China, that will have an impact as both consumers and producers. That said, the Persian Gulf will remain geopolitically important given its dominance of the oil market, giving reason for the United States, Europe, India, and China to actively pursue cooperation in the Gulf in order to minimize the risk of future energy crises, Heisbourg concludes. -
Responses to JPR Climate and Conflict Special Issue: Steve Lonergan (University of Victoria)
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The relationship between climate change and conflict has been discussed for over two decades but most of the evidence of the link between the two has been anecdotal, drawing on extreme climate scenarios. The authors featured in the January special issue of the Journal of Peace Research devoted to climate change and conflict are therefore to be commended for their detailed investigations into a possible causal relationship between the two.
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Responses to JPR Climate and Conflict Special Issue: François Gemenne (Sciences Po)
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If you want a government to address something, make it a defense issue. No need to hold a PhD in political science to know that governments tend to give the highest priority to issues that involve national security interests – one can complain and whine about it, but that’s the way it is.
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Responses to JPR Climate and Conflict Special Issue: Solomon Hsiang (Princeton University) and Todd G. Smith (University of Texas, Austin)
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A January special issue of the Journal of Peace Research brings together a new collection of evidence on a subject that has been a mainstay of the environmental security agenda: the links between climate and conflict.
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Much Ado About Conflict? Climate’s Links to Violence Reexamined
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Violence is on the wane in human affairs, even if slowly and irregularly. Could climate change reverse this trend? Pundits and politicians have raised the specter of havoc caused by rising temperature, erratic patterns of rainfall, and rising sea levels. In this way, so the story goes, climate change will produce famine and mass migration that threatens political stability and provokes violence. However, to date there is little evidence that the meteorological or agricultural conditions associated with climate change are actually a major source of violence.
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Global Water Security Calls for U.S. Leadership, Says Intelligence Assessment
›March 26, 2012 // By Schuyler Null
Alongside and in support of Secretary Clinton’s announcement of a new State Department-led water security initiative last week was the release of a global water security assessment by the National Intelligence Council and Director of National Intelligence. The aim of the report? Answer the question: “How will water problems (shortages, poor water quality, or floods) impact U.S. national security interests over the next 30 years?”
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Fourth World Water Development Report Released by UN
›The beginning of last week’s World Water Forum in Marseille also marked the release of UNESCO’s fourth edition of the World Water Development Report. Chief amongst the challenges outlined in the new report are meeting demand from growing population and consumption. Agriculture accounts for 70 percent of water usage, according to the report, and globally we will require 70 percent more food over the next 40 years, introducing the possibility of overtaxing already-stressed water resources – all while adapting to climate change. There are substantial gains to be had in increasing farm-to-table efficiency, especially in developing countries, the authors sagely point out, but the supply challenge remains a huge one.
This year’s edition also adds several new sections, including on women and water. “The crisis of scarcity, deteriorating water quality, the linkages between water and food security, and the need for improved governance are the most significant in the context of gender differences in access to and control over water resources,” write the authors. “These challenges are expected to become more intense in the future.”
The integrated nature of today’s water issues is a highlight throughout the report. “Accelerated change” will create new threats and “interconnected forces” create uncertainty and risk, but UNESCO emphasizes that if policymakers are made aware of these issues, ultimately “these forces can be managed effectively and can even generate vital opportunities and benefits through innovative approaches to allocation, use, and management of water.”
Image Credit: Water Management Institute, via figure 15.5 from UNESCO World Water Development Report.
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