The Land Market in Latin America and the Caribbean: Concentration And

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The land market in Latin America and the Caribbean: concentration and foreignization The land market in Latin America and the Caribbean: concentration and foreignization

Sergio Gómez Editor

This book has been adapted and translated from the publications:

Soto Baquero, F. Gómez, S. 2012. Dinámicas del mercado de la tierra en América Latina y el Caribe: concentración y extranjerización. Santiago, FAO. (available at http://www.fao.org/3/a-i2547s.pdf) and Soto Baquero, F. Gómez, S. 2014. Reflexiones sobre la concentración y extranjerizaciones de la tierra en América Latina y el Caribe. Santiago, FAO. (available at http://www.fao.org/3/a-i3075s.pdf)

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Photomontage: Omar Espinoza Photography credit: © FAO / Luca TOMMASIN, Mont-Organisé - Haiti Background photo (tractors): © P.Whitaker / Reuters / Corbis TABLE OFCONTENTS Preface international perspective Chapter II:Landgrabbing inLatin AmericaandtheCaribbean,viewed from abroader Bibliography...... Annex...... IV. III. II. Typology...... I. Background...... Chapter I:Landgrabbing inLatin AmericaandtheCaribbean:anoverview Bibliography...... V. IV. III. II. I. Presentation...... II. I. Chapter IV: Reflections, based ontheAndeancase studies Bibliography...... III. Conclusions...... II. I. Presentation...... Panama andtheDominicanRepublic: thecontext andcomparison...... Chapter III:Dynamics oflandmarkets inCosta Rica,Guatemala, Mexico, Nicaragua, Bibliography...... X. IX. VIII. VII. VI. V. IV. III. Final note...... Analysis ofsomerelevant topics...... Synthesis ofthecountry casestudies...... Concluding considerations...... The debate onland,rural development andland grabbing...... Factors facilitating concentration ofownership ...... Land grabbing orthemodernization ofagriculture inacapitalist system...... Does landgrabbing exist intheanalysed countries?...... Scope, assumptions andcontext Introduction andkey messages...... Cases studied...... Structural context ofthecasesunderconsideration...... Conclusion: towards a‘landsovereignty’ agenda...... Policy andpoliticalimplications andchallengesfor future research...... Land grabbing debates between state andsociety ...... Trajectories ofagrarian-environmental change...... Dynamics oflandchangesinproperty andlabourrelations...... Dynamics oflandusechange...... Key drivers andactors oftheregional landrush...... Condition andtrends inlandgrabbing inLatin AmericaandtheCaribbean...... 106 105 40 64 46 49 99 34 86 89 42 59 59 59 93 26 29 83 47 53 87 87 87 16 18 51 21 21 17 8 2 7 v 1 1 iii The land market in Latin America and the Caribbean: concentration and foreignization a criticalanalyticaloverview Chapter V: Landmarket dynamicsintheMercosur countries andChile: III. II. I. Chapter VIFinalReflexions Annex...... Bibliography...... VI. Conclusions...... V. IV. III. II. I. Introduction...... Summary......

Topics for future agendas...... Voluntary guidelines...... State ofthediscussion...... Some facts andadditionalcomments that arisefrom thecasestudies...... Some questions andanswers using information from thecasestudies...... Overview ofthetheoryeconomies ofscaleinagriculture...... Overview ofdevelopments...... 109 108 108 108 120 126 126 124 128 123 122 127 113 112 iv The land market in Latin America and the Caribbean: concentration and foreignization eradication ofhungerandpoverty inrural areas, theultimate aimofFAO’s actionsin theregion. achieve food securityfor allandto supporttheprogressive realization oftherightto adequate food and the by theCommittee onWorld Food SecurityinMay 2012. The mainobjectives oftheseGuidelinesare to of Tenure ofLand,FisheriesandForests intheContext ofNational Food Security”,whichwere approved particular, it can contribute to the implementation of the “Voluntary Guidelines on the Responsible Governance development ofcountries intheregion, andwhichwillserve to definepublicpoliciesonlandtenure. In Through thispublication, FAO isproviding inputsfor thecontinuing discussion onacrucialissue for the to landgrabbing. Chile. The book concludes with some reflexions on outstanding issues that needto be considered withregard phenomenon in Mexico and Central America, the Andean countries and, finally, in the Mercosur countries and a globalreflection onthephenomenon oflandgrabbing. The subsequentchapters analyse specificallythe first chapter isasummaryofthefindingsnational casestudies andthesecond chapter constitutes The first two chapters of the book present the overall situation inLatin America and the Caribbean. The concentration andforeignization, whichhadbeenidentifiedintheearliercasestudies. The current publication analyses themaintrends inlandmarket dynamicsaswell astheprocesses ofland seventeen countries ofLatin AmericaandtheCaribbean.The studies hadbeencommissioned by FAO. publication includednational casestudies onthedynamicsoflandconcentration over thepast five years in yel Caribe: concentración y extranjerización y concentración Caribe: yel Regional Representative ofFAO inLatin AmericaandtheCaribbean Assistant Director General Raúl O. Benitez The present publication isthesequelto thebook“ challenges related to climate change, theenergy crisis,food securityandtheproblems ofglobalfinance. its impact on rural productive structures. Pressing problems that are now emerging concern thedifferent One oftheprocesses that shouldbehighlighted istherapid technological modernization ofagriculture and Today theissue oflandtenure andlandmarkets relates to thestrong dynamicprocesses existing inagriculture. estate) asapre-requisite for themodernization ofagrarian structures. adjustments that needed to bemade to landownership and in particular to thetraditional “latifundio” (large In past decades,FAO addressed thisissue, intheregion, asapriorityconcern from thestandpoint ofthe of millionspeople. for Latin AmericaandtheCaribbean,given thekey role itplays infood production andinthefood security The issue oflandandnatural resources occupies afundamental place ontheagendaofFAO’s Regional Office Preface ”, publishedby theRegional Office ofFAO inJune2012. The Dinámicas del mercado de la tierra en América Latina Latina América en tierra la de mercado del Dinámicas v The land market in Latin America and the Caribbean: concentration and foreignization and landconcentration seenfrom abroader perspective. The first situation isreferred to as“ Latin AmericanandCaribbeanstudy was launched,thedistinction was madebetween thistypeofsituation as well asrelatively weak state institutions inthecountries where landisbeingsold.For this reason, whenthe of food. Itis necessary to add,to this framework, mechanismsofnegotiation that are notat alltransparent, foreign government oracompany linked to it,and what isbeingsoughtultimately islandfor theproduction and explain what was happeningthere, namelytheacquisition oflarge tracts oflandwhere thepurchaser isa the food price crisisofthat time. Consequently, thefirst conceptual effort was anattempt to tryto understand acquisitions of land that took place in Africa and Asia at the end of the last decade and which were linked to It must berecalled that therecent interest inthetopic of land grabbing originates from thefirst large landowners, aswell asconcentration processes inthevalue chain(withorwithoutlandownership). investment flows between thedifferent countries oftheregion, sometimesinvolving migration ofthenew (Argentina andBrazil), otherphenomenarelated to landgrabbing canbeobserved intheregion, suchas Although land grabbing, in its strictest sense, is in its early stages and is present in two countries of the region throughout theregion, inawidevariety ofways andforms, many ofwhichhave notbeenobserved before. The studies give anaccount oftheimportantprocess oflandconcentration andforeignization that isoccurring to specialists withrecognized experience inthefield,whoprovide insightsto thereality they are analysing. Dominican Republic, Panama, Paraguay, Peru, Trinidad andTobago andUruguay. Eachcasestudy was entrusted Argentina, Bolivia,Brazil, Chile, Colombia, Costa Rica,Ecuador, Guatemala, Guyana, Mexico, Nicaragua, studies onland concentration carriedout,over thepast five years, inseventeen countries of theregion: el Caribe: concentración y extranjerización y concentración Caribe: el cultivation butalsofor building,maintainingorexpanding large-scale extractive and agroindustries. needs to includethosewho are acquiring orhave declared theirintention to acquire large tracts oflandfor the oilandautomobile industries, mining andforestry sectors, food, chemicalandbioenergy sectors. Italso other economic actors, bothnational and transnational from a range ofsectors, linked, amongst others,to land transactions for theproduction andsaleoffood andotherproducts. Itneedsto bebroadened to include that require amore in-depthdiscussion have beenrevised. Itisnecessary to include, intheconcept, commercial Regarding “landgrabbing”, there haslately beenrenewed debate aboutitsextent, andother related themes and iscoordinator oftheProject onRegional LandDynamics|. American SchoolofSocialSciences) inChilefrom 1976-1996. DeputyDirector ofFOSIS ( Has worked inICIRA(Institute for Training andResearch inAgrarian Reform) from 1965to 1973 andinFLACSO (Latin * Chilean sociologist, Catholic University of Chile; M.A, University of Essex (UK) and Ph.D., University of Sao Paulo, Brazil. the work ofFAO andofwhichSergio Gómez isco-author. 1 corresponds to thefinalchapter ofthe book,entitled research, carried out by the FAO Regional Office for Latin America and the Caribbean since 2010.The first text The content ofthisbookisbasedontwo texts that contain thepublications oftheabove-mentioned Africa andAsia. situations whichmay beconsidered asevidence oflandgrabbing, similarto what hasbeenrecorded in land market, whichincertain casesisleadingto landconcentration andforeignization, andthusto identify in theregion. The objective oftheproject was to collect andanalyse information onthedynamicsof This chapter isasynthesis ofthemainfindingsresearch project onthedynamicsoflandmarkets an overview Land grabbing inLatin AmericaandtheCaribbean: Chapter I: The book the book“ in thestrictest meaningoftheterm, whilethesecond phenomenonisunderstood as“ Social foreignization of land of foreignization A significant part ofthe arguments is to befound in Borras (2012), published by the Journal of Peasant Studies, based on Background ) ofChilefrom 1996-1998. Heiscurrently consultant for FAO’s Regional Office for Latin AmericaandtheCaribbean Reflexiones sobre concentración y extranjerización en América Latina y el Caribe el y Latina América en extranjerización y concentración sobre Reflexiones Dinámicas del Mercado de la Tierra en América Latina y el Caribe el y Latina América en Tierra la de Mercado del Dinámicas ”. 1 , publishedby FAO’s Regional Office inJune2012. Andthesecond is Dinámicas del mercado de la tierra en América Latina y y Latina América en tierra la de mercado del Dinámicas comprises allthenational case Fondo de Solidaridad e Inversión Inversión e Solidaridad de Fondo , publishedin2013. concentration and and concentration Sergio Gómez E* land grabbing land ” 1 The land market in Latin America and the Caribbean: concentration and foreignization estates ranging from 3 500to 8 000 hectares. hundred; most oftheseare Brazilian andthere isapowerful core ofless thanahundred producers with 000 hectares undercultivation isnomore than threeThe numberoflarge companies with more than1 Brazilian MonicaGroup whichgrows soybean on50 000 hectares. suppose that each producer holds on average hectares. at least Another example 30 000 is the case of the they harvest tonnes of soybean, 180 000 which, if we take an average yield of 2 tonnes per hectare) would By way of example, itisworth notingthat thethree largest producers ofsoybean are foreign; between them forestry. These are mainlyconcentrated intheEastern Region, particularlyintheDepartmentofSantaCruz. soybean andotheroilseedswithrotation crops suchaswheat, maize, andrice; livestock production; and This country hasahighconcentration andforeignization oflandownership, basicallygrouped inthree categories: wood products. pampas, mainlysugarcanecultivation andproduction, tobacco growing andprocessing, andforestry and they concern vast international fortunes. There are otherforeign companies producing inareas outsidethe of thescaletheseacquisitions (often intherange of hundreds ofthousands hectares) andthefact that Cases where landhasbeen bought by foreigners for conservation purposesare worth highlightingbecause associated themselves with,orhave hadaninjectionof, foreign capital. and Paraguay. Also, thelargest companies, once they have reached acertain level, have, inrecent times, biggest ofthesecompanies have alsoexpanded into neighbouring countries, inparticularBrazil, Uruguay the traditional pampaarea, althoughthere hasbeenagricultural expansion to thewest andthenorth.The production ofcereals andoilseeds(commodities suchassoybean, wheat, andmaize, amongst others) in also lease-holdingcompanies, most ofwhichare Argentinian andwhichmainlywork infarming andinthe can becharacterized accordingly, there are alsofamily businesses that do notfitthedefinition.There are owned, rented, orsharecropped aswell asothertypes of landtenure andfinancing.While many ofthem The large companies known as“sowing pools”are contractual arrangements, whichinclude landthat is foreign states (SaudiArabia, SouthKorea, ChinaandQatar). using therestrictive definition,several negotiations have beendetected involving Argentinian provinces and are well-known casesoflandpurchases by large foreign companies. Regarding thecasesof“landgrabbing” This country hasexperienced asignificantexpansion inthesize ofagricultural andlivestock farms andthere noted below. This willbefollowed by atypologyto group andcategorize them. Some ofthesalientaspects of landconcentration andforeignization inthecountries understudy willbe local, regional andnational levels inthecountries where they are located. We willreturn to thispointlater on. with theirsurroundings. On thecontrary, they formally undertake activitiesto integrate themselves at the In addition,theseprocesses donottake theform ofenclaves asthey didinthepast, withlittleornointeraction reform intheregion was generally justified. currently observed have increased noticeably from those observed inthe1960swhenneedfor agrarian To start with,it hasto bestated that thelevels ofconcentration andforeignization oflandandresources and foreignization. Finally, some features specific to the region are presented, as well as the main types of land concentration foreignization of land, with the simple aim of establishing an order of magnitude of the presence of these phenomena. This isthenfollowed by atypologyofthedifferent countries according to thedegree ofconcentration and studied. The presentation starts withabriefsynthesis ofthesalientaspectsthat were found ineachofthecountries involving avariety ofactors andproducts. foreign government) andatypeofproduct (basic foodstuffs) hasbeenbroadened to includeothersituations In short, a concept that originally referred to a restricted reality, considering onlya few actors (at least one and theCaribbeanisgreater thanthat observed inotherregions oftheworld. Moreover, thecomparative analysis hasshown that thedynamicnature ofthelandmarket inLatin America 2. 1. I. Argentina Bolivia Synthesis ofthecountry casestudies 2 The land market in Latin America and the Caribbean: concentration and foreignization land asaway ofdiversifying theirinvestments andguaranteeing anadequate supplyofraw materials. Generally speakinginChile, traditional economic groups, whichare multi-sectoral andlong-standing, control hectares andthebiggest estate inChile, for US$80million. companies (Soprole) andthegroup 000 Manucahasacquired theÑubleRupanco Estate, anarea of47 commercial groups from New Zealand have astrong presence: Fonana controls oneofthemaindairy land concentration inothersectors, suchassalmonfarming, fruitandwineproduction. Inthedairysector, hectares).In porkandpoultryfarming, two family firmspredominate. Oneofthem,moreover, ispresent in Patagonia withtheparticipation offoreigners (for example, Tompkins 000 whocontrols more than300 As inthecaseofArgentina, landconcentration can alsobeobserved for theconservation ofresources in transnationals. area to hectares, of35 000 40 000 distributed amongmedium-sized farmers whocultivate seedsfor these In relation to seeds,intended mainlyfor theexternal market, importanttransnational companies have atotal and DelMonte; and,finallythere are mediumto large exporters, constituted by large fruitgrowers. hectares offruitfarms and1 800 hectares ofvines); there are transnational companies such asDole, Unifruitti hectares where they grow different kindsoffruitandthey have 500hectares ofvineyards; Corpora has1 000 Regarding thefruitexport sector, 153 there isconcentration ofafew bigfamily firms:(SOFRUCO has2 expanding into neighbouringArgentina. vineyards, although these are numerous, the bulk of production isconcentrated inthree companies, which are hectaresmore with complete than 1 000 000 value chains, a topic that we will return to later. In the case of large tracts ofland. for large-scale plantations, andby reforms to agrarian laws that remove therestrictions ontheacquisition of which have beenadvantaged by policiesoffering incentives to foreign investment, by stimulus and incentives land transactions are madeby large domestic commercial groups and,more recently, by foreign companies, and cassava. The same phenomenon is seen in the production of soybean, rice, maize and forestry. The main hectares) hectares), beet,sugarcane and11 000 (estatescompanies, eachwith 22 000 ofbetween 3 000 of raw materials for biofuels.This isespeciallythecaseofAfrican palm(concentrated inthehandsoffour In Colombia, what stands outare theprocesses ofconcentration andforeignization oflandfor theproduction inputs, andthey alsoreach theconsumer withthefinalproduct. ‘ expanded greatly in theregion. They are highlyintegrated, whichhasenabledthemto produce theirown The maincompanies withthehighest levels oflandconcentration are intheforestry sector andhave that of “ Some examples inthesoybean sector reflect current levels ofconcentration. Onecaseto bementionedis and fruit. observed in thecompanies involved in thesectors of soybean, sugarcane, white meats, forestry, livestock sense is evident in the land acquisitions by Saudi Arabia, China and South Korea. Concentration can be The process oflandconcentration andforeignization ishighinthecaseofBrazil. Land grabbing initsstrictest extent, Colombians are themainpurchasers oflandinBolivia. the SantaCruzregion andinthe1960sMennonite colonies. Currently, Brazilians, Argentinians, andto alesser Historically, Boliviahasalways hadforeign farmers: inthe1950s there were Japanesesettlerswhomoved into Japan, whichhas100 000hectares of soybean production. in theforestry sector; thepresence inthecountry oftraditional transnational companies suchasMitsuiof grown directly by theindustry itself;thepresence ofcapitalfrom othercountries oftheregion suchasChile relevant aspectsthat are worth highlightingwithregard to Brazil includethefact that 70% ofsugarcaneis In turn,Brazilian entrepreneurs are investing inlandBolivia,Colombia, Paraguay andUruguay. Finally, some Argentina andtheforestry companies ofChile, whichwillbeanalysed furtherbelow. sugar cane, etc. There isalsocapitalinvestment from withintheregion, suchasthe“sowing pools”of hectares insoybean100 000 oraGermancompany hectares for with42 000 theproduction ofmilk,meat, It isusualto findforeign capitalowning large extensions ofland, suchasaJapanesecompany whichhas more than390 000 hectares. which, whenaddedto thearea hectares of223 000 planted by hisbrother, reaches atotal area, for both,of 5. 4. 3. Colombia Chile Brazil O Rey da Soja da Rey O ”, a well-known soybean producer who, in 2010,hectares, managed to plant 168 000 Translatin ’ forestry companies manage 3 The land market in Latin America and the Caribbean: concentration and foreignization land concentration concerns thedevelopment ofAfrican palmfor biofuels,oilconcessions and concessions mainly for thedevelopment ofcrops for export andsugarcanefor ethanolproduction; inthejunglezone, In thedifferent zones ofthecountry, landconcentration hasspecificcharacteristics. Alongthecoast, itis concentration andforeignization processes canbe observed around investments inthe miningsector. These processes oflandconcentration are mainlyinthecoastal andjungleareas while, inthehighlands, significant than 10 000hectares (between 13 500and60 000hectares). hectares);Colombia with 9 100 African palm for the production ofethanol(five plantations each with more cane cooperatives; hectares andonefrom hectares and56 000 three 22 000 national groups with18 000. to animportanteconomic group with capital from different sources); sugar cane (purchase of former sugar of fruitandvegetables (six bigestates above 1 000 hectares, ranging from 1 240 to 8 458 hectares belonging Intense processes ofland concentration canbeobserved inPeru, mainlyinthesectors linked to: theexport to large agro-business chains,ledby transnational companies. here. The foreign companies that have, inrecent times,entered theagricultural sector inParaguay are linked greater than500hectares. Inaddition,the“sowing pool”phenomenonthat exists inArgentina isalsopresent Sixty-one percent of the area sown with wheat is in the hands of foreigners and half of the farms have areas integrated inthemarket, withfarms ranging from 60 000to 70 000 hectares intheChaco Region. of Brazilian andUruguayan entrepreneurs andofformer Mennonite settlers.These are modernandwell Land concentration andforeignization canalsobeseeninsheepfarming, withanimportantpresence Canindeyú Departmentwas probably oneofthereasons for theoverthrow of President Lugoin2012. consequences hasbeenconflicts around land.Itisnotacoincidence that oneoftheconflicts that occurred in –have beendispossessed oftheirland.Suchexpulsions have alsoaffected Paraguayan farmers. Oneofthe last few decadessmall-scalefarmers ofBrazilian origin –Brasiguayos –whomoved to Paraguay inthe1960s areas, mainlyonestates belongingto Brazilian companies. Asismentionedinsubsequentchapters, inthe borders withthesetwo countries. Soybean cultivation takes place mainlyintheAlto Paraná andCanindeyú wheat sectors, with a strong presence of companies from Argentina and Brazil in the areas close to the In thecaseofParaguay, landconcentration andforeignization processes exist inthesoybean, maize and relatively smallsize ofthecountry. that, inaddition,thecurrent constitution limitsforeign investment inthecountry. The second reason isthe The first may be the fact that currently there is a redistribution of land that the state had repossessed and Two factors may explain why the processes of concentration/foreignization are more moderate in Ecuador. economic importance oftheseactivitiesfor Ecuador. is relatively weak inflower growing, thecanningindustry, livestock anddairyfarming, despite therelative to 40 000 hectares, where theinvestment ofJapaneseandChileancapitalisprominent. Foreign investment ranging from 14 800 to 45 000 hectares; andintheforestry sector, there are estates controlling from 25 000 the smallest to hectares 68 250 for the biggest; in African palm cultivation, there are four groups with areas hectares inproduction; sixgroups control sugarcanecultivation withareas ranging from 25 000 hectares for the forestry sector. In effect, in the banana sector, there are three important national groups with 40 400 back concerned banana and sugar cane production; the second, more recent, concerns African palm and Land concentration inEcuador hastaken place at two different momentsintime:thefirst from alongtime people whowere displaced by violence. areas cannotbeincludedinthemarket orare still pendingthegovernment’s commitment to restore landto Existing situations ofpoliticalviolence are changingtheway inwhichthelandmarket functions,since large transnational companies to exploit mineral andhydrocarbon resources. The increase in the concentration of landownership and its use is also connected, as in Peru, with the push by present inagriculture. Inturn,Colombian capitalcanbeseento beinvesting inlandBoliviaandPeru. In thesameway, sometransnational companies from United States, Japan,Israel, ChileandSpainare now allows Nutresa to expand itspresence to 15countries, 13ofwhichare inLatin Americaandthe Caribbean. an importantChilean agro-industrial company, Tres Montes-Luchetti, from the Chileangroup Corpora; this which are extending theiractivitiesto othercountries oftheregion. Recently, theNutresa Group acquired In Colombia, onecanalsofindcompanies involved indifferent sectors andwithlinksbetween themselves, 8. 7. 6. Paraguay Ecuador Peru 4 The land market in Latin America and the Caribbean: concentration and foreignization the total area of533 000 hectares. total area of100 000 hectares ofAfrican palmandin theforestry sector there are four companies with50%of quarters ofthe220 000 hectares given over to thecultivation ofsugarcane;two companies have 65% ofthe Land concentration isrelatively highinGuatemala inthesugarcanesector where four companies have three 60% ofthecultivated area. and are very strong inthecommercialization aspect.Regarding African palm,foreigners predominate, owning stage. Chiquita,DoleandFresh delMonte control more than50%ofthebananaandpineapple plantations foreignization in the cultivation of bananas, pineapples and African palm, especially at the commercialization In thesugarcanesector, the level ofconcentration isalsolow. However, there ismore landconcentration and 90% oflandowners andnonetheless produce 41% oftotal coffee production. Costa Ricahasanaverage level ofland concentration. Inthecoffee sector, smallproducers account for over Current levels ofconcentration are muchhigherthanthoseexisting before theagrarian reform ofthe1960s. Chile, amongst others. Denmark, Spain,United KingdomandUnited States ofAmericatogether withsomeinitialinitiatives from The maininvestors are large domestic economic groups andsometransnational companies from Colombia, communities, isprincipallyfor thedevelopment ofminingresources. for conservation andeco-tourism; inthehighlands,landconcentration, mainlyinpeasantorlivestock-raising Mexican company inNicaragua withactive government participation duringtheincubation oftheventure. This alsohelpsto explain someofthelandgrabbing dynamicsobserved through thepresence ofanimportant United States ofAmericaandthrough Americancompanies were worth US$20thousandmillion. the dairysector (including Alpina andLALA).Itisestimated that, in2010, Mexico’s food importsfrom the and others), five incoffee (Nestlé and others); only two inbarley (includingModelo); and five companies in involved inthecommercialization ofmaize; inthefruitsector onlysixcompanies (Herdez, AndersonClayton companies participated increasingly inglobalization. Sixcompanies (includingCargill, ADM,Maseca)are years inMexico, consolidation andexpansion have happenedsince thestructural reforms of the1980swhen and companies from theUnited States ofAmerica andEurope. Even thoughtheagro-industry hasexisted for garden produce, coffee, barley, tequila, milk,mining,etc., where there isastrong presence ofinvestments in thevalue chainsofagricultural products. Examples ofthisare to beseeninmaize, sugarcane, fruitand This explains thelow level ofconcentration inlandownership andavery highconcentration andforeignization have resulted inrestrictive legislation onthefunctioningoflandmarket. well-known “agrarianism” andthelongtradition ofagrarian reform that continued for more than80years, country’s geographic location, and thescale of itsagricultural sector. However, thecultural weight ofMexico’s Mexico isaparadox, since onewould expect ahighlevel oflandconcentration andforeignization given the pools, andSwedish, Finnish,NorthAmericanandChileaninvestment fundsintheforestry sector. Among theforeign buyers ofland,companies are predominantly from Brazil andArgentina through farming the country. mainly inthehandsofforeigners, especiallyBrazilians. The latter are mostly to befound inthesoutheast of properties inadditionto thelarge Uruguayan ones.The rice industry andcold storage/refrigeration are manages more than35 000 hectares; with regard to rice cultivation andlivestock farming, there are Brazilian originally from New Zealand (butcurrently controlled by amulti-national agribusiness basedinSingapore), majority, most ofthemowning hectares; orrenting inthedairysector, around 130 000 abusiness venture, hectares inthehandsofEuropeans andChileans;insoybean production, Argentinians are seento beinthe Relatively high levels of concentration are to be found in: the forestry sector with estates of up to 230 000 Uruguay haschangedhands. foreignization. Inthelast decade, thevalue oflandhasincreased six-fold andathird ofthefarm landin During the1990s,institutional conditions were putinplace that later onfacilitated landconcentration and 12. 11. 10. 9. Guatemala Costa Rica Mexico Uruguay 5 The land market in Latin America and the Caribbean: concentration and foreignization There isapolicy ofincentives to selllandto foreigners (“mega and cacaoproduction butwhichhave diversified theirproduction to grain, tropical fruitsandaniseed. cacao. In the private sector, some large companies are to be found, which were originally dedicated to sugar Here alsothelarge plantations are inthe handsofthestate, dedicated mainlyto the production ofsugarand Some large estates are inforeign hands: from NorthAmerica (USA andCanada)from theregion (Brazil). as well aslivestock raising andforestry predominate. Land concentration isto befound inthecoastal zones where thecultivation ofsugarcane, rice andpineapple agricultural production, forestry andmining. lands are eitherconcessions orleasedfor 25-year periods,andare managedby government agenciesfor A very large partoftheland--approximately 80%ofland inthecountry –belongsto thestate. Most private mining concessions andfor growing sugarcane. Moreover, theDominicanRepublic hasahighconcentration oflandinprotected areas andnational parks,in from Brazil, Colombia, Guatemala andSweden have shown interest inleasing21 000hectares. citrus fruits,avocadoes, cacao, chilies) withplantations ofmore than10 000 hectares. Inaddition,companies Some non-traditional consortia have alsobeenestablished inthefruitandvegetable export market (mangoes, States ofAmerica with capitalfrom NorthAmerica, Spainandalsofrom Venezuelans andCubanswhohave settledintheUnited basically inthecultivation ofsugarcane andbananas.The plantations are hectares), large (around 80 000 Interesting processes oflandconcentration andforeignization by traditional consortia canbeobserved, tourism, whichisinthehandsofentrepreneurs from theUnited States. There are alsosignificantexamples offoreignization oflandownership for tourism, asfor example beach New landconcentrations canbeseenintheproduction ofrice andAfrican palm. Fe deVeraguas, where smallproducers predominate. concentration andforeignization ofthebest landcanalsobeobserved, except insomeregions suchasSanta hectares (44%of the total area of bananaplantations). Inthecaseofcoffee,which has 5 151 aprocess of With regard to bananas,there istheexample oftheBocasFruitcompany, asubsidiaryofChiquitaBrand High concentration oflandhasbeenhistorically aconstant feature inPanama inbananaandcoffee production. Costa Rica,Honduras andGuatemala, butalsowithCanadianandNorwegian interests. Land concentration andforeignization occur withcapitalinvestment from theregion, mainlyfrom Mexico, in greater detaillater oninthisbook. Nicaragua receives aninward flow ofcapitalfrom Mexico, for cattle fattening andslaughtering. This isanalysed hectares; andfor sugarcane, citrusfruitsandtourism, around 15 000hectares. and inlivestock production 13 000 hectares. For theproduction ofrice andAfrican palm,thefigure is14 000 The highest concentration isto befound intheforestry sector where thebiggest hectares, farm has10 000 15 000 hectares). namely Mexico, Costa Rica and Guatemala although not on a large scale (thehighest figures are around The process oflandconcentration andforeignization occurs mainlywithcapitalinvestments from theregion, national producers. for forestry andAfrican palm,andto amuchlesser extent for sugarcanewhere thebuyers are basically Land concentration occurs inthesouthern coastal areas andinareas to thenorthofcountry, particularly presentation. to highlightthetypesofsituations encountered ineachofthecountries; thisdoes not constitute adetailed It isworth reiterating what hasalready beenstated, namely that onlyafew examples have beenmentioned and 1 201 acres) for theproduction ofgrain, vegetables andlivestock 17. 16. 15. 14. 13. Dominican Republic Panama Nicaragua Trinidad andTobago Guyana farms ”) butinsmallerareas (of between 100 6 The land market in Latin America and the Caribbean: concentration and foreignization are: high–five sectors ormore; regular -two to four sectors; low –less thantwo sectors. II. I. III. II. I. countries other in investing firms/contractors domestic of not) (or existence analysed, being country the For investment foreign of presence the of Extent concentration of Level foreignization, we have madethefollowing approximation. To establish the relative positionofeachcountry from thehighest to lowest degree oflandconcentration and whereby thedifferent casesare ordered, according to thedegree to whichthedifferent phenomenaappear. Bearing inmindthelimitations oftheinformation inthenational studies analysed, we propose anapproximation chains. Infuture, information shouldbeobtainedonthispoint. involved, itwould beinteresting to verify thedegree ofdomination offoreign investment inthemainvalue would beto take therelative values infunctionofthesize ofeachandevery country. When foreign capitalis are the data available from the country studies. However, there is no doubt that a more sensitive indicator affected andthepresence offoreign capitalinvestment aswell asthe numberofinvesting countries. These the indicators especiallythoseusedto assess thelevels ofconcentration, whichusethenumberofsectors While appreciating a ranking of the existence of these phenomena, it is worth relativizing the validity of averagely opento interregional investments. the processes ofconcentration andforeignization are more traditional whileothersare more recent; they are the forestry and agricultural sectors. Those regrouped underType IVare smaller countries where some of with interesting concentration/foreignization processes andhighlypermeableto intraregional investment in fall between thetwo situations describedabove. The countries included inType IIare medium-sized countries In between are countries withintermediate situations --thoseincludedinType III,whichhave features that outside theirrespective countries. degree oflandconcentration andforeignization, andtheirdomestic companies/contractors are notpresent At theotherextreme, Guyana andTrinidad &Tobago (Type V)are relatively smallcountries withalimited countries. “investors”, and theirown domestic companies/contractors who alsohave astrong presence inneighbouring large countries withdistinct levels ofconcentration andforeignization withintheirborders, includingstate differentiate since they dealwiththeextremes. InthecaseofArgentina andBrazil (Type I),theseare very cases are those corresponding to Types I and V (see below) to the extent that they are relatively easy to Taking into account theseindicators andtheirlimitations asmentionedabove, itisclearthat theextreme are beingdeveloped. has notbeenfound firmlyestablished andeven less soconsolidated, even thoughsomepreliminary initiatives Existence ornotof“ reflects theneedfor expansion to neighbouringcountries. low –noforeign investors. the different categories are: high–investors from three ormore countries; regular –oneto two countries; and of the region the of II. Typology foreignization andbothphenomenaexist sideby side. Large countries: Argentina andBrazil (2). speaking Caribbeanandincludes countries suchasGuyana andTrinidad &Tobago (2). foreignization, thefunctioning ofthelandmarket is notfluid. This corresponds to the English- Panama (3). Low concentration and foreignization and concentration Low foreignization. and concentration Medium foreignization. and concentration Medium-high foreignization. and concentration High foreignization. and concentration high Very Nicaragua, DominicanRepublic andUruguay (6). foreignization andhalfofthemare investing in othercountries oftheregion: Mexico, Chile, Colombia, the region: Bolivia,Ecuador, Paraguay andPeru (4). foreignization, notmany sectors are affected andnoinvestments are recorded inother countries of . This variable reflects asortof“overflow” ofconcentration inthecountry beingstudied and land grabbing land : Considers thenumberofsectors where concentration isevident. The indicators used ” by state investors. Onthispoint,ithasto bestressed that thisphenomenon inthesectors withconcentration. The indicators usedto establish . Despite having sometimes highlevels ofconcentration and Countries ofCentral America– Costa Rica,Guatemala and They have highscores for levels of concentration and They have very highlevels ofbothconcentration and Despite having highscores for concentration and 7 The land market in Latin America and the Caribbean: concentration and foreignization owner’s family memberstaken together and that requires adivisionoflabour andadministrative hierarchy. permanent employment to agroup of workers (equivalent to at least 12or more) that is much more numerous than all the 3 Inallexamples, thedefinition of“large multi-family estate (or farm)”corresponds to those withsufficientlandto provide 2 These are thecountries includedintheCIDA reports asmentionedabove. In Argentina, basedonthe data from theCIDA Report, theaverage size ofthelarge multi-family property Brazil, Colombia, Chile, Ecuador, Guatemala andPeru. The claimthat thephenomenonisbiggertoday issupported by theinformation ofseveral countries: Argentina, is certain that theseprocesses are different andmore importantfrom what was reported at that time. When comparing thesituation inthe1960s concerning concentration andforeignization withthat oftoday, it seems themost appropriate, especiallybecausetheinformation available refers to thesamevariables. information isavailable for most countries ofLatin America,thentheperiodofbeginning1960s of apointinthepast seemsagoodoption.Moreover, ifitisworth takingamomentintimewhenreliable a comparison, takingoneparameter asareference. Inthissense, comparing thereality oftoday withthat As presented above, inorder to establish the scale of thisphenomenon,itwould seem useful to resort to different from what was observed inthepast. are considerably higher than what existed earlier. Moreover thenature ofconcentration andforeignization is From what hasbeenseenalready, itseemsthat thelevels ofconcentration andforeignization oflandownership and whichinacertain way pointto sometrends. For that, thefollowing themeswillbeaddressed: regional panorama canoffer asystematic view ofseveral themeswhichhave emerged from thecasestudies As already mentionedabove, andonthebasisoffacts we have already presented, thedescriptionof of landtenure (leasingorcontracts) andnotthrough ownership. scope oftheanalysis istheestablishment ofhugeagricultural operations, through temporary concentration production. Anotherexample of new phenomenawhichhelpsusto seewhether we shouldbroaden the However, onemay question whetheritisreally less worrying for food security to compromise onagricultural cultivation practices. Taken from theviewpoint ofnational landownership, thismightseemto beacceptable. experience inproduction that canmeettheirdemandswithouthaving to make substantial changesto but theproducts from theland.Onotherhand,they are seeking outdestinations where there isexisting involved inlandgrabbing inAfrica are seekingcontractual arrangements inwhichthey donotown theland Accordingly, this is what is emerging clearly in the case ofArgentina. For example, the leadingcountries themselves inorder to adaptto new contexts andtimes.Thus, any analysis hasto take abroader viewpoint. It is also interesting to highlight the new forms that these phenomena are taking as they appear to transform ordering ofthephenomenonispartcontext presented below. nature of land transactions and the main processes involved in theregion. The attempt to reach a quantitative To conclude, itisworth reiterating that theprincipalobjective ofthischapter isto capture thedynamic from afew examples that show thesize ofproperties today: from theCIDA studies haslittleincommon withthefigures found inthecurrent casestudies. This canbeseen Although there are large regional differences, thescaleoflandconcentration inthe1960s,using thefigures the average size was 896 hectares andfinallyinPeru 13 995 hectares. of farms greater hectares than 1 000 was hectares 7 313 andmulti-family farms1 977 hectares. In Guatemala, property was 10 908 hectares in1960, whileinChilethefigure was 2 178 hectares. InEcuador, theaverage size hectares andthisfigure increased to 16 695 hectares by 1960. InColombia, theaverage size ofamulti-family concentration in the average size hectares of estates or more. of 5 000 In 1950, the average size was 15 115 the Chaco Region, 9 102 inthePampas, to 32 388 inPatagonia. InBrazil, onecanobserve aprocess ofgreater 9 639 hectares for thecountry asawhole. Regional variations intheseaverages range from 3 269 hectares in 1. Scaleofthephenomenon III. • • • Analysis ofsomerelevant topics Mechanisms for the regional expansion ofvalue chains Concentration ofinvestors andproducts Scale ofconcentration/foreignization 2 3 was 8 The land market in Latin America and the Caribbean: concentration and foreignization These too have always existed butbefore they were essentially specialized and were known by different longer are theonlyforeign investors. (Nestlé and others), and to forest-related activities (Store-Enso, etc.). What is new is the fact that they no These have always existed intheregion and have linksto fruit(Dole, ChiquitaBrand, etc.), to dairyproducts within theregion; (iv)foreign governments; and,(v)investment funds. Five broad categories ofinvestors exist: (i)Transnational companies; (ii)domestic investors; (iii)investors traditionally existed intheregion. can besaidthat landconcentration andforeignization are substantially greater anddifferent from what In conclusion andbearing inmindthelimitations inherent incomparing data that are nothomogenous,it land concentration andforeignization mainlyrevolves around thecultivation ofoilseeds,especiallysoybean. needs to bestressed that, infive countries oftheregion (Brazil, Argentina, Paraguay, BoliviaandUruguay), productive activitiesofthemost dynamicsectors oftheeconomy, includingforestry andagriculture. Italso have amulti-sectoral base. Inotherwords, themaingroups inthedifferent countries have interests inall has to besaid,theirmaineconomic activity was agricultural production, at present large rural landowners today refers to thenature ofland-owning groups. While inthepast they hadastrong sectoral brand and,it Another aspect that marks an important difference in land concentration of the past and that observed they allhave aCSRprogramme. is alsotruethat theextent oftheoutreach ofsuchprogrammes varies from company to company; nonetheless corporate socialresponsibility programmes (CSR) whichare partoftheagendamost ofthesecompanies. It to integrate societyat thenational andregional levels, ascanbeseenthrough theestablishment offormal In addition,unlike theearlierenclaves, basicallytropical-zone plantations, thesenew forms tryincreasingly environmental issues. resources, even thoughthere are criticismswithregard to socialexclusion andthelackof attention to production in the rural economies of Latin America. It is clear that there is a more efficient use of productive Current levels ofconcentration/foreignization needto beseen inthecontext ofthemodernization of when compared withthesituation that prevailed inthe1960s. The above evidence shows that theconcentration oflandownership hasincreased noticeably intheregion 2) 1) 2. Concentration ofinvestors andproducts • • • • • • • • Transnational companies Domestic investors average of3 400hectares perowner. 000hectares or51.6%ofallprivate property withan 932 landowners andthey possessed 36 there private hectares were or above, landowners 10 870 withestates or0.8% of1 000 oftotal Agricultural andLivestock Census, whichwas carriedoutwiththeaimofredistributing land, In thecaseofMexico (whichwas notincludedintheCIDA report) in1990according to the groups ofthiscountry. scale irrigation projects inPeru, andthesize ofagricultural property owned by themaineconomic Concentration boosted by theprivatization ofstate-owned landandby thedevelopment oflarge- as well asthoseusedfor forestry production inGuatemala. The size of plantations dedicated to the production of sugarcane, African palm, soybean, livestock cane andAfrican palmplantations inEcuador. The crops traditionally grown on large properties, as is thecasefor example withbanana,sugar size ofthelarge vineyards and,generally speaking,landconcentration inChile. The numberofhectares andthesize oftheindustrial plantsof“Translatin” forestry companies, the Colombia. The landsetasidefor thecultivation ofAfrican palmandsugarcanefor biofuelproduction in investment inlandBrazil. The size oftheplantations ofsugarcane, soybean andothergrains andthemagnitudeofforeign The five biggest “sowing pools”inArgentina managehundreds ofthousandshectares. 9 The land market in Latin America and the Caribbean: concentration and foreignization located inChile, Argentina andBrazil, asgiven inthefollowing table: Through its subsidiary, Forestal Mininco, it guarantees the supply of raw materials from its own plantations, derived products. ago andisstill underfamily control. The company’s salesin2010 amounted to millions, for US$4 219 wood- The otherChileanforestry group, CMPC,isfor its partatraditional family firm established some90years Source: CELCO Report, 2012. Table 1.1: Area oflandandplantations belongingto CELCO CELCO’s landassets amount to 1.6millionhectares distributed geographically asfollows: add the138 000hectares that Store Ensahas brought to Montes delPlata. from theSpanishgroup ENCE.Thus, to the126 786hectares that CELCO owns inUruguay, itisnecessary to company is a Uruguayan domestic company which originated with the land that the Chilean company bought Montes DelPlata, whichwas setupby itsown company Arauco withtheFinnishcompany Store Ensa.This necessary to addto thearea oflanditcontrols directly, some138 000 hectares whichitowns inthecompany is necessary to make anin-depth analysis oftheinformation. Inthecaseofthiscompany inUruguay, itis However, in order to have a more exact idea of the extent of the land controlled by these companies, it Stora Ensamfor theacquisition of land inUruguay. Brazil for theproduction ofwood boards andthecreation ofajointventure withtheScandinavian company, its investments amounted to US$670 million,ofwhichthemost prominent were theacquisition ofTAFISA in In 2010, the sales of Forestal Arauco amounted to million and profits US$ 3 788 to US$694 million. In 2009, country. Itisapublic limited company withnational investors andiscontrolled by thesameeconomic group. as abranch ofCOPEC (Petrol Company ofChile), whichisoneofthethree largest economic groups inthe the endof1960s,withmore than 40years ofexistence andpurchased by theentrepreneur Anacleto Angelini in the region. On the one hand, there is Forestal Arauco (CELCO), a company set up by theChileanState at such asthecaseofChile where thelarge forestry companies are extremely concentrated andare expanding This typeofcompany isalsopresent intheforestry andagricultural sector. Let usanalyse someexamples markets, opportunitiesinneighbouringcountries andtheneedto spread risk. since the1990s.This hasbeenprompted by different factors suchaseconomic reforms, saturated local According to ECLAC, thelarge companies ofLatin Americahave become increasingly international, especially In allcases,itmobilizes theaccumulated experience inthecountry, whichhasreached itslimits,via“ Intraregional expansion hastaken three different tracks, according to theresources that have beenmobilized. “porosity” oftheexpansion oflandtenure amongcountries oftheregion. which isspecificto Latin America andtheCaribbean,isthat inthedifferent trajectories onecanobserve the An interesting feature, worth highlightingwithregard to theprocess oflandconcentration/foreignization and names: “latifundistas” (large-scale farmers), “ other sectors corresponds to market opportunitieswhichnormallyare varying. portfolio, whichincludesfinance, commerce, industry, services andagricultural investments. The shiftinto entrepreneurs. What is originalnow aboutthiscategory istheirinterest inhaving abroader more diversified in Argentina); and,through migration (thecaseofBrazilians inBoliviaandParaguay). companies to mobilize resources; through amixoflandownership andleasing(such astheagricultural “pools” Total Uruguay Brazil Argentina Chile a) Route 1: Translatin 1: Route a) 3) Country Investors withintheregion Land area 1 115 237 1 658 751 135 011 145 109 263 394 hacendados Planted area 1 019 639 130 101 736 637 78 234 74 667 ” (ranchers), agrarian bourgeoisie andagricultural Translatin ” 10 The land market in Latin America and the Caribbean: concentration and foreignization 900 000 hectares inArgentina, Brazil (Brasil Agro), Paraguay andBolivia. soybean, and sunflower) aswell ascattle andmilkproducts. Itbuys andsellsland,controlling more than Commercial Stock Exchanges of BuenosAires andNew York. Itproduces cereals andoilseeds(wheat, maize, George Soros was oneofthemainshareholders buthewithdrew in2000. CRESUD’s shares are listed onthe CRESUD: This company was formed in1936 asasubsidiaryof aBelgianfinancialcompany. Duringthe1990s, in Argentina andUruguay. The company’s income comes inequalpartsfrom Argentina andfrom abroad. rice andsunflower inArgentina, Bolivia,Brazil, Paraguay, Uruguay andrecently inColombia. Itraises livestock 1.1 millionhectares splitbetween owned andleasedlands.ElTejar cultivates soybean, wheat, maize, barley, EL TEJAR: emerged in1987 asanassociation oflivestock producers intheCuencadelSalado. Currently ithas with soybean, thento Paraguay andmore recently to Brazil. but alsoprovides inputs,seedsmanagement,andoffers logistical services. They first expanded into Uruguay hectares55 000 in Brazil. The firm not only manages agricultural production (basicallywheat andsoybean) and cultivated 250 000 hectares: 90 000 hectares inArgentina, 16 000 inParaguay, 89 000 inUruguay and GROBO: Afamily firmwithalongtradition inagriculture. Inthe1990sthey pioneered thesowing poolmodel 1 000 contractors andastable technical staff ofsome260persons. leased), Paraguay hectares leased)andBrazil (where (10 000 they started with5000hectares). They have leasing land andsowing inArgentina hectares (20 000 owned, hectares 140 000 leased);Uruguay (25 000 headsoflivestock.6 500 Until1985,itwas organized asasowing pool.Since then,ithasdedicated itselfto MSU: afamily firm with rural activities since 1860. Ithasmanagedto have 15 000 hectares ofitsown andhas CRESUD andADECOAGRO, withtheaimofshowing thesize, whichsuchcompanies have reached. either developed usingthe“sowing pool”mechanismorare large leasingcompanies: MSU, Grobo, ElTejar, Table 1.2:Area oflandandplantations belongingto MININCO They have notbeenverified andare provided here inorder to give anideaof themagnitudeofphenomenon. 4 The figures provided are thosethat are available ininformation given by thecompanies themselves ontheirweb sites. Some information Brazil, Paraguay, BoliviaandUruguay. commercial integration, together with the purchase and leasing of land in neighbouring countries such as operations of networks of producers, have been broadened with domestic andinternational financial and From thegrowth ofthistype investment, itispossible to seehow the rules,designedto govern the completed, theprofits are distributed amongthepoolincharge ofthesowing andtheowner oftheland. to generate economies ofscaleandhighreturns. Once theharvest isterminated andtheendproducts countries andby contracting teams for sowing, fumigating, harvesting andtransporting. The objective is production isacquired by leasinglarge extensions oflandinboththecountry itselfandinneighbouring the fundamentalrole played by investment fundsandby abusiness modelwhereby control ofagricultural In Argentina, theso-called“Sowing pools”are agricultural production systems that are characterized by later stage, therole oflandownership willbeanalysed withregard to thecurrent concentration ofland. This sectionwillfocus solelyontheexpansion ofcompanies that operate underthisnovel mechanism.At a mill inorder to doubleitsprocessing capacity. (RS) with212 000 hectares ofland.In2012, withaninvestment ofUS$2 000 million,itstarted to expand the and Brazil andEcuador in2009. InBrazil, itacquired, from theBrazilian group, Aracruz thepulpmillinGuaiba Argentina, openingthree new plants,anditexpanded to Peru in1996,to Mexico in2006,to Colombia in2007 and continued withthesameinUruguay in1994.Between 1994and1996, itextended itsoperations in time, itplanted 27 000 hectares. From 1991,CMPCinitiated industrial investments andpurchases inArgentina Mininco hectares harvested ofplanted forest 17 800 in2009bothChileandArgentina and,at the same Source: CMPCReport, 2012. Country Chile Brazil Argentina Total b) Route 2: combination of landownership and leasing (the case of the farming “pools” in in “pools” farming the of case (the leasing and landownership of combination 2: Route b) Argentina) 4 is presented below about the expansion of some of the main companies, which have 1 037 722 Land area 730 335 213 104 94 283 Planted area 504 406 112 689 679 916 62 821 11 The land market in Latin America and the Caribbean: concentration and foreignization businessmen lasted untilthemid-1980s. purchase twice asmuch oreven more inParaguay. This first stage ofintensive assimilation offarmers and in theprice ofland,many Brazilian farmers took advantage ofthis opportunityto sell theirlandinBrazil and production ofsoybean for themainpartandwheat andmaize to alesser proportion. Given thedifference A highproportion oftheseearlymigrants were ableto setupsmall-andmedium-sized farms for the Catarina andMato Grosso doSul. Canindeyú, Amambay andCaaguazú,whichshare landborders withtheBrazilian states ofParaná, Santa 1960s and their descendants are mainly located in the Eastern Region in the departments of Alto Paraná, The “ Paraguay countries ofParaguay andBolivia. as highlighted through theexample ofBrazil where farm contractors have migrated to theneighbouring The third route to expansion isthrough thedevelopment ofbusiness activitiesinneighbouringcountries, acquisitions as well asexpanding, eitherthrough leasingorpurchasing arrangements, inneighbouringcountries. than purchasing landand,as they have grown, they have concentrated theircapitalandincreased domestic These firms,dedicated to cereal, grain andsometimeslivestock production, have expanded by leasingrather of production. capacity isadistinctive feature oftheircompetitiveness, beyond theirtechnical andtechnological capacities lower costs ingeneral and lower transaction costs inparticular;management,coordination andnegotiation which, through vertical integration and/or stable contracts, they are ableto achieve economies ofscalewith This mechanismcorresponds to aform ofagriculture by contract. The producers are partofnetworks in technological production capabilities. coordinate andnegotiate beingadistinctive feature oftheircompetitiveness, more than their technical and general andparticularly lower transaction costs aswell asimproved market power, thecapacityto manage, established between partsofoneorseveral value chains,benefitfrom economies ofscale–lower costs in than land contracting or leasing. These contract farmers belong to networks, which, through associations are, in part, comparable to those of the “pools”. One can talk about contract agriculture which is more arrangements described above. Even though, the grand majority of them operate with arrangements that also merged withthebiggest market producers butdonotalways operate usingthesystem andfinancial as there are family firms,aswell ascommercialization companies andcompanies supplyinginputs that have favour thegrowth oflarge agricultural companies. Inthissense, notalllarge companies are “pools”,inasmuch financing andthecapacityto spread climate risk,have been,andwillcontinue to be, someofthefactors that which are capital-intensive, aswell asthecost benefitsintheacquisition ofinputs,incommercialization and Being onalarge scaleisnotapre-requisite of“sowing pools”.However thenew technological packages “rentiers”. system hasenabledsomeofthesmallandmedium-sized owners to maintainownership oftheirproperty as been viable given the new per hectare investment demands. At the same time, faced with dispossession, this it hasbeenpossible to useplotsofland,which,ifthey hadnotbeencombined withothers,would nothave technological package, especiallythrough theleasingoflandorothercontractual arrangements. Inthisway, With thesecombinations, ithasbeenpossible to reach thedimensionsneededto optimize thenew management andcommercialization. inputs; and,(iii)acomplex information system andstaff specialized intheselectionoffields,production, (i) a technological package using modern machinery; (ii) extensive use of biotechnology and agrochemical (or other contractual arrangements to access land)and/or landprovided intrust where onecan observe: The “sowing pools”are novel relationships that combine land,capitalandhumanresources; leasingofland factors that explain theirexpansion beyond theirdomestic borders. sowing directly –transgenic soybean –inArgentina together withgrowing demandin Asiaare alsoimportant countries withastrategy that hadalready beentested. The strong growth inthe technological package of companies started withaccumulated experience intheirown country before expanding into neighbouring As canbeappreciated, theseare majorcompanies. Family firmspredominate, thoughnotexclusively. These area ofmore than307 500 hectares, ofwhichitowns 260 000hectares, theremaining landbeingleased. production ofcereals, oilseeds,dairyproduce, sugar, ethanol,coffee andcotton, aswell asbeefover atotal energy inSouthAmerica.Itispresent inArgentina, Brazil andUruguay, anditscore activitiesincludethe ADECOAGRO: This Company, established in2002, isdedicated to theproduction offoodstuffs andrenewable c) Route 3: Expansion in neighbouring countries: Brazil in Paraguay and Bolivia and Paraguay in Brazil countries: neighbouring in Expansion 3: Route c) Brasiguayos ”, thenamegiven inParaguay to Brazilian farmers whoemigrated there at theendof 12 The land market in Latin America and the Caribbean: concentration and foreignization in acontext ofstrong capitalist agricultural modernization. Becauseofthisprocess, these belonging to othersmallBrazilian farmers, whowere increasingly limited inreproducing theirproductive units worth recalling themore orthodox definition which is:transactions oflarge areas ofland;participation ofa This phenomenonisto befound at anincipientstage andisrestricted to thebigcountries oftheregion. Itis chapter, thefollowing are someofthequestions whichneedto beanswered through furtherin-depthstudies. Up untilnow, themaintrends emerging from thecasestudies have beenanalysed. Before concluding this growing middleclass ofSantaCruz,notonlyinto corporate organizations butalsointo SantaCruzsocialcircles. be paid,andthe50%subsidyonprice ofdiesel.Moreover, Brazilian businessmen were integrated into the the favourable dollarrate asthefreely convertible currency oftransactions, the almost non-existent taxes to Bolivia significantlyhigherprofit margins thanthey could obtaininBrazil because of thelower cost ofland, who boughtlandinSantaCruzandbrought withthem,resources, knowledge and technology. They found in levels ifithadnotbeenfor thepresence ofinvestors inagriculture from Brazil andotherforeign countries, for landfor livestock farming. The cultivation ofsoybean inBoliviawould nothave developed to thecurrent The third stage started in2005,withanew wave ofBrazilian investors. However, thistimethey were looking the landusedfor soybean trade. who arrived sometimelater gradually acquired thebest lands,to thepointthat they control the majorityof capital took advantage ofthissituation. Successful Brazilians whohadsettledinSantaCruzaswell asthose businesses sold their land at a very low price in order to service their debt and foreign investors with available climatic conditions whichobligedmany national andforeign investors to abandonthebusiness. Many Bolivian Cruz. However, afew years after thisimmigration started, there were several consecutive years of adverse The second stage ofBrazilian immigration lasted from 1993 until1999intheregion to theeast ofSanta them hadalready triedoutthese crops withsatisfactory results andthey continue thiscultivation untilnow. oilseeds eitheronlandthey hadleasedorinassociation withBolivianproducers; indeed,theMennonites before with later developments. From that pointon,they started to experiment withthecultivation ofsoybean orother The first stage of Brazilian immigration occurred in the 1980s and was quite limited, especially when compared There are three stages intheexpansion ofBrazilian farmers inBolivia. Brazil andBoliviashare atwo thousandkilometre-long border, halfofwhichisintheSantaCruzdepartment. Bolivia “ cattle production. Financingoflarger-sized farms took place intwo ways. The first was that someofthefirst and large-scale agribusinesses. In addition to agricultural crops, farmers started simultaneously to turn to From thenuntiltheendof1990s,asecond phaseoccurred whichconsisted ofthespread ofmedium- managing theproduction they have chosen,beitrelated to agriculture orlivestock. cases, thelease of landhasbeenfinalized, Brazilian publicbodiesprovide technical advice to farmers on mechanisms to monitor investment inagricultural businesses. Besides,once thelandpurchase or, insome processes by foreign states, isthat oftheGovernment ofBrazil. The Brazilian embassy inParaguay has The most active andstrategic intervention, from amongallrural landconcentration andforeignization from Argentina, Uruguay, Europe andsomeAsiancountries. regions inwhichthey have invested. Following theBrazilians, andinsmallerproportions, are entrepreneurs place amongforeign landowners inParaguay, bothfor theamountoflandthey own andfor therange of Given theabove-mentioned processes, itisunderstandable that rural Brazilian businessmen occupy thetop encouraged investments intheseareas was thelow price ofland. border withBoliviaandBrazil, whichwas usedexclusively for livestock production. Oneofthefactors that purchase oflarge areas oflandintheWestern Region (Chaco), thedepartmentofAlto Paraguay onthe the otherhand,new mechanismfor large-scale Brazilian contractors to gainaccess to landthrough the as well asinareas furtherinsidetheEastern Region (inthedepartmentsofSanPedro andCaazapa).On presence ofthelarge agricultural “companies, bothinthedepartmentsalongborder mentionedabove Finally, athird phasestarted to take place inthefirst few years ofthe2000swhereby there was anincreased In quite afew cases,thisgenerated tension andconflict around landtenure. large estate-holders (“latifundistas”) andalsoto Paraguayan peasants, inareas withhighlandconcentration. land purchases from impoverished operation offarms, withoutsettlinginParaguay. These entrepreneurs notonlycontinued to have recourse to Brazilian contractors, who, inanincreasing proportion hadstarted to manage, from Brazil, theinstallation and had beenexcluded returned to theircountry oforigin.The othermethodoccurred withtheintegration ofnew brasiguayos 4) Presence of“investor states” ” were ableto increase theirresources, astrategy whichfound expression inthepurchase ofland brasiguayos, brasiguayos, but they were also able to acquire land which belonged to brasiguayos who 13 The land market in Latin America and the Caribbean: concentration and foreignization percentage oftotal fuels. degree onpublicpoliciessince somecountries have decreed that suchsubstitutes must reach aspecified 6. consequently ontheir agricultural land. economies hasincreased thepressure onthoseregions andcountries that possess mineral oroilwealth and that thedeclared objective isconservation ofresources butthisdoesnotmean that itcanautomatically Some landinvestments are madewiththedeclared objective of“conservation”. Itisworth pointingout 4. The development of and 2008.We willreturn to thistopic at theend. narrative that linksthecurrent dynamicnature oflandmarkets to theincrease infood prices between 2007 forest production andlarge-scale conservation. Thus, thisnegates thegeneral andoften predominant land concentration and foreignization. The same has happened in non-food sectors, specifically in industrial 2013).This typeofcrop, whichincludessugarcane, soybean, African palm,hasdeveloped rapidly alongside and/or flexible usesinthetriangle:food-feedstuffs-fuel, whichare referred to as“flex crops” (see Borras etal., Before continuing, itisnecessary to lookat “multi-purposecrops”, inotherwords those that have multiple Emissions from Deforestation andForest Degradation). which until now have been voluntary and are based on promises not to fell trees (REDD mechanism – Reducing credits whichhave madeitpossible to obtainresources inexchange for plantingtrees through mechanisms grown; and(2)environmental services withtheestablishment ofmarkets for pollutionrightsandcarbon (1) timberandnon-timberforestry products, for whichdemandhasincreased asemerging countries have 5. main examples are located inCentral AmericaandtheCaribbean. tourism islinked to tropical regions, to beachtourism; itis frequently inthehandsof foreign investors. The possibility of recreational activities, for which there is a high demand. Concentration of landownership for areas ofspecialinterest becauseofthebeautytheirlandscape, thewealth of flora andfauna and/or the 7. 7. hemisphere. products typicallyoftemperate climate zones whichhave anout-of-seasondemand inthenorthern basically tropical ones(banana,pineappleandsugar),there are what isknown as“non-traditional products”, 3. Forestry resources. Forestry 3. foodstuffs. consumer Basic 2. Biofuels. 1. products Regarding landuse, thegoodsproduced from suchconcentrationsand oflandare usuallyintended for: activities of Concentration funds ormore genericpensionfunds(Sweden). funds, bethey private savings fundsorinstitutional savings fundssuchasUSandCanadateachers’ pension invest inthepurchase oflandintheRegion. Amongthebuyers oflarge-scale areas oflandare theInvestment The highprofit margins of somecrops, especially“flex” crops have persuadedsomeinvestment fundsto well asaSouthKorean company. Brazil, there is information about three transactions which involved bodies from Saudi Arabia andChinaas negotiations that fitthedefinitionwithinterventions from SaudiArabia, SouthKorea, ChinaandQatar. In for thisreason they would notfitstrictly within the definitionofthisphenomenon.There are four on-going Several dealshave beenidentifiedthat involved contractual arrangements that were notlandpurchases, and In Argentina, someplanshave beendetected butthere isnoactualconcrete example ofthisphenomenon. countries ofLatin America,namely Argentina andBrazil. phenomenon whichfindsitsexpression indifferent levels offormalization andispresent intwo ofthebiggest From the strict definition of this phenomenon as outlined, it is clear that this is an important though incipient the production offood for mass consumption. Government from outsidethecountry where thetransaction isoccurring; andtheuseoftransaction for and anincrease indemandsome emerging countries. different reasons, including the increase of biofuels, climatic problems in earlier years, reduction in inventories Fruit, vegetables and wine. wine. and vegetables Fruit, Conservation. Mineral and energy resources. resources. energy and Mineral 5) Investment funds Mainly crops that serve asasubstitute for fossil fuels.The demand andtheprice dependto alarge We willtalklongerabouttheconsequence oftheparticularnature of thisphenomenon. Itisnecessary to distinguish between two typesofgoodswithdistinct characteristics: tourism In additionto thetraditional products exported by thecountries oftheRegion, The mainbasicfoodstuffs have increased drastically inprice since 2007 for hasnaturally generated anincreased interest incoastal zones andother This isnotanew phenomenon,butthestrong demandfrom emerging 14 The land market in Latin America and the Caribbean: concentration and foreignization Assets andfrom private interests, with anextension hectares for of275 000 lengabeech logginginTierra Trillium, aforestry company withNorthAmericancapital,purchased in1993 from theMinistry ofNational research centre witheducation objectives. The area inquestion issome118 000hectares. found there. The Foundation isplanningasustainable tourism project and thecreation ofanecological Future Foundation (of Sebastian Piñera) withtheaimor preserving itseco-systems andthespeciesto be The Tantauco Park intheextreme west oftheIslandChiloe(Lake Region) was acquired in2005by the is proposing to create, inthefuture, theNational Park ofPatagonia. also withlinksto Douglas Tompkins. This organization hectares has186 000 across ChileandArgentina and 2004 whenitwas boughtby Conservation Patagonia, anorganization withitsheadquarters inCalifornia and Another project istheChacabuco Valley Estate intheAysen Region, whichwas devoted to sheeprearing until for whichthere are cabins,guides,trekking trails andotherfacilities inlinewithitsconservation purpose. for itsadministration anddevelopment, asaNational Park underprivate management.Itisopen for ecotourism, The agreement between Tompkins andtheGovernment ofChileisthat theparkwillbedonated, inthefuture, settlers andfarmers, creating thebiggest known private parkwith300 000hectares. temperate-zone natural rainforest. To thiswere addedseveral purchases oflandacquired from neighbouring which started hectares) with the purchase of Fundo Reñihue (17 000 in 1991 with the aim of protecting the landowner inPatagonia inArgentina. isaprivate Pumalin parkinPalena Province intheLake Region ofChile, The first and the biggest which belongs to is Pumalin, Douglas Tompkins who was mentioned above as of theirsheersize. part asaway to self-finance theupkeep oftheseprotected territories. Four suchprojects stand outbecause native forest andothernational resources, althoughtheuseoflandalsoincludesecotourism, basedin Several large private projects are also to befound inChile, withthedeclared objective ofpreserving the “productive aim”. for huntingand fly-fishing. With theexception ofBenetton, thesepurchases show noevidence ofhaving a 000 hectares in Rancho Alicia, between the provinces of Neuquén and Río Negro,80 to build a reserve in 1945andsonofHermanLay, whoestablished thesnackfoods company, partofthePepsiCo group, bought and Ted Turner, founder of CNN,who have 55 000 hectares in Neuquén andTierra del Fuego;Ward Lay, born To thosementionedabove, we shouldaddJosephLewis hectares inRioNegro; whohas 14 000 JoeTurner though notexclusively, located inAndeanzones. visitors, what they have in common is that they are foreigners, rich and famous and their estates are generally, of theland.Even thoughanumberofthemare developing tourism activitiesoropeninguptheirestates to Unlike thesetwo cases,itisnotclear, intheremaining casesmentionedbelow, asto what use they willmake Cruz, NeuquénandTierra delFuego, andboughtfor nature conservation. brands suchasEsprit,NorthFace, etc. Hecontrols hectares, distributed some350 000 inCorrientes, Santa It isalsoworth mentioningDouglasTompkins, anentrepreneur intheclothingindustry whoformerly owned integration, even thoughtheprimaryproduction itselfdoesnotseemto beanimportantblockofthebusiness. wool isexported, butallwool isdestined for theirown clothingbusiness. This, then,isanexample ofvertical in thefirst stage ofthevalue chain,namelywashing wool for partoftheirproduction, whileotherunwashed of wool, afirst-level operation ininternational terms. The processing doneinArgentina isminimalandoccurs already mentioned,theland purchase by Benetton has astrong productive objective, mainly the production provinces (RíoNegro, ChubutandSantaCruz),where they produce wool for theirclothingbusiness. As among thelargest landowners ofthecountry, hectares possessing inthethree atotal southern of930 000 business iscasualclothing,soldunderthe“United Colours ofBenetton” brand. The Benetton brothers are The first concerns Benetton Group S.A.,anItalianclothingbrand, founded inPonzano, Veneto in1955.Its core We mentionhere several ofthemore iconic cases: estates; thefact that they are inthehandsofforeigners, whohave fortunes ofworldwide renown. mountains in Patagonia where the phenomenon has the following characteristics: the huge extent of these In recent years, foreigners have acquired large properties inArgentina, mainlyintheborder areas nearthe South America. ownership oflandwhichisnotusedfor agricultural production andwhichisto befound inPatagonia in Additional information isprovided below aboutthisspecific“landuse”.Itdealswiththeconcentration of example, shortageoffresh water worldwide). connection withcurrent environmental businesses(for example carboncredit trading) andinthefuture (for be assimilated withaphilanthropic activity. Someresearch would needto bemaderegarding i 15 The land market in Latin America and the Caribbean: concentration and foreignization now thanwhat itwas earlierinthe20 has beenobserved inthepast andithasadifferent significance. Regarding thescale, thisismuchbigger 5. Sustainability and the voluntary guidelines on tenure on guidelines voluntary the and Sustainability 5. evaluations. impact for Need 4. security. food and crops” “flex of Presence 3. 2. Aspects specific to Latin America and the Caribbean. Caribbean. the and America Latin to specific Aspects 2. concentration of Degree 1. From theabove analysis, itisinteresting to highlightthefollowing facts: financial markets. that will always appreciate. In addition, the value of the investment is protected at times of high volatility on one may consider the possibility that these are speculative investments, whereby investing in landis an asset in sofar asthosewhopractise thistype of activity come from high-income socio-economic categories. Also, On theotherhand,ecotourism activitiesonsuchatypeofproperty mobilize importanteconomic resources, market incarboncredits) now andinthefuture (for example the topic oftheglobalshortagesfresh water). would have to beaninvestigation into possible connections withenvironmental businesses (for example the resources. However, thiscannotbesimplyassimilated to aphilanthropic activity. Ontheonehand,there to note istheformal andspecificdeclaration onthematter. The declared objective istheconservation of In terms ofinvestments inlandwithaconservation objective, itshouldbestressed that theinteresting point bought 75 000 hectares for thesamepurposeinArgentina. del Fuego and Magallanes. In parallel to this, the same company under the name ofLenga Patagónica S.A., and 2008. land rush, above all but not exclusively, to the increase in theprices of foodstuffs registered between 2007 scale conservation. This conclusion is far from the generally held, predominant opinion that links the global et.al.2010, 2013).They alsoexist innon-food sectors especiallyinindustrial forestry production andlarge- have multipleand/or flexible usesinthe3-in-1 triangle:“food-feedstuffs-fuel”, are called“flex crops”(Borras worth highlighting because oftheimportance these crops have reached intheregion. Those crops, which evaluate thesignificance ofthephenomenonbeinganalysed. before andafter concentration. Onlyonce there isevidence aboutthedifferent impactswillitbepossible to concentration; and,finally, acomparison oftheemployment situation, bothquantitatively and qualitatively, supply ofnutritiousfood; what istheenvironmental impactonnatural resources oftheselarge projects of sectors that existed before andafter theselandswere concentrated andto know what was thebalance inthe farmers andto know what happenedto thesesmallfarmers; to establish acomparison between production be able:to measure better how muchlandthat isnow concentrated was previously landoccupied by peasant family farming, theproduction offoodstuffs, theenvironment andonemployment. Ineffect, itisnecessary to transnational enclaves located in thetropics. large unproductive estates, whichresisted modernization, withtheexception oftheplantations that were reforms. With regard to theimportance oflarge concentrations, thesewere associated to theexistence of among thecountries oftheregion. in otherregions; (ii) an intraregional “porosity” of capital, technologies, entrepreneurs, business modelsexists may behighlighted:(i) theLatin AmericanandtheCaribbeanmarket ismore dynamicthanwhat isobserved the region withthoseoccurring inotherregions, suchasAfrica, Asiaandpost-Soviet Eurasia, thefollowing characteristics they face intheirdistricts andregions andtheunique national conditions. for dialogueinevery country inorder to tacklethethemeoftenure ofresources according to thespecific situation. While the guidelinesare “voluntary”, they give legitimacy to thethemesthey cover andaframework with civilsociety, theprivate sector andacademia,provides areference framework to address thiscomplex security. This document, approved by allMemberStates ofFAO in2012 andinvolving abroad consultation dynamics that shows thelandmarket asaforce to promote sustainable development andcontribute to food land, fisheriesandforests inthecontext ofnational food security”,canbeaneffective tool for channellingthe document prepared by theFAO initiative on“Voluntary guidelines ontheresponsible governance oftenure of way that food securityisaffected. Itcanbeargued that there are seriousdoubts in thisregard. Therefore, the situation asdescribedwithregard to thefunctioningoflandmarket anddevelopment, particularlyinthe IV. Finalnote . The concentration presently observed inLatin Americaismuchhigherfrom what Itisurgent to gainfurtherknowledge oftheimpacttheseprocesses on th Century whenitwas considered necessary to undertake agrarian While thisphenomenon isnotexclusive to Latin America,itis . Finally, it is worth reflecting on the sustainability of the When comparing theprocesses ofconcentration in 16 The land market in Latin America and the Caribbean: concentration and foreignization Piñeiro, Diego2011. Robles, Héctor Manuel,2011. Martínez, LucianoValle, 2011. Donoso, SantanderTristán, 2011b. Williams, Patrick, 2011. Urioste, Miguel,2011. Echenique, Jorge, 2011. Carrera, JaimeArturo andJaimeLuisCarrera Campos,2011. Salinas, Yamile Abdala,2011. Murmis, MiguelandMaríaRosa Murmis,2011. Remy, MaríaIsabelandCarlosdelosRíos,2011. Lavandier, Ingrid,2011. Galeano, Luis,2011. Wilkinson, John,Bastian Reydon andAlberto DiSabbato, 2011. Williams, Allan,2011. FAO, 2011. Latin AmericaandtheCaribbean;first titleisthesummarypaper. The following isthe complete list oftheseventeen FAO-commissioned country studies onlandgrabbing in Annex Donoso, SantanderTristán, 2011a. Baumeister, Eduardo, 2011. and Tobago. and México. México. Panamá. de Ecuador. Ecuador. Rica. Costa de República Dominicana. Dominicana. República Nicaragua Santiago: FAO. Santiago: FAO. Santiago: FAO. Santiago: FAO. Santiago: FAO. América Latina y el Caribe: El caso de Brasil. de caso El Caribe: el y Latina América Caribe: El caso de Perú. Perú. de caso El Caribe: Latina y el Caribe: El caso de Guatemala. de caso El Caribe: el y Latina Caribe: El caso de Argentina. Argentina. de caso El Caribe: Colombia. Dinámica del mercado de la tierra en América Latina y el Caribe. el y Latina América en tierra la de mercado del Dinámica Santiago: FAO. Santiago: FAO. Santiago:FAO. . Santiago:FAO. Santiago:FAO. Santiago:FAO. Santiago:FAO. Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de Paraguay. Paraguay. de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de Uruguay. Uruguay. de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de Trinidad Trinidad de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de Bolivia. Bolivia. de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de Guyana. Guyana. de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de Chile. Chile. de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Santiago: FAO Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Santiago: FAO. Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América Latina y el Caribe: El caso de de caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Santiago: FAO. Dinámica del mercado de la tierra en América Latina y el Caribe: El caso caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América Latina y el Caribe: El caso caso El Caribe: el y Latina América en tierra la de mercado del Dinámica Santiago:FAO. Dinámica del mercado de la tierra en America Latina y el el y Latina America en tierra la de mercado del Dinámica Santiago:FAO. Dinámica del mercado de la tierra en América Latina y el el y Latina América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en América América en tierra la de mercado del Dinámica Dinámica del mercado de la tierra en en tierra la de mercado del Dinámica Santiago:FAO. 17 The land market in Latin America and the Caribbean: concentration and foreignization Castaneda, P.J. 2010. Deininger, K.2009. Borras Jr., S.M.,Franco, J.C., Kay, C.&Spoor, M.2013. Elacaparamiento detierras enAméricaLatina yel Borras Jr., S.M.&Franco, J. 2010. Committee onWorld Food Security. 2010. Borras Jr., S.M.,Franco J.C., Gomez, S.,Kay, C.,&Spoor, M.2012. Landgrabbing inLatin Americaandthe Cotula, L.Vermeulen, S.,Leonard, R.&Keeley, J. 2009. Ballvé, T. 2011. Cardenas G.,R.2011. Barraclough S.&Collarte, J.C. 1973. Alonso-Fradejas, A.2011. Bibliography Diouf, J. 2009. ¿Pacto neocolonial contra lacrisisalimentaria? In: Borras Jr., S.M.,McMichael,P. &Scoones, I.2010. The politicsofbiofuels,landandagrarian change:editors’ CEPES. 2009. Lagran propiedad vuelve alcampo. Castillo C.,P. 2009. conference-papers?limit=10&order=date&dir=DESC&start=20) at http://www.future-agricultures.org/papers-and-presentations/cat_view/1551-global-land-grab/1552- Consortium at theInstitute ofDevelopment Studies, University ofSussex, 6-8April2011. (Alsoavailable (LDPI) incollaboration withtheJournalofPeasant Studies andhosted by theFuture Agricultures the International Conference onGlobalLandGrabbing organized by the LandDealsPolitics Initiative territories in Guatemala: Fuelling a new cycle of agrarian accumulation, territorial dominance and social social and dominance territorial accumulation, agrarian of cycle new a Fuelling Guatemala: in territories issues, reframing resistance reframing issues, http://www.iied.org/pubs/display.php?o=12561IIED). reference to five African countries (Ethiopia,Ghana,Madagascar, MaliandSudan).(Also available at Development (IIED), FAO andtheInternational Fundfor Agriculture andDevelopment (IFAD) with Bank: landcoalition.org/.Reference isalsomade to theelectronic publication ofanearlierseminarat theWorld of experts oftheDevelopment Policy Review Network (DPRN),8July2009inUtrecht, http://www. Caribe visto desdeunaperspectiva internacional másamplia.In:Soto-Baquero, F. and Gomez, S.(Eds). 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MERCOSUR. el e tierra la de Propiedad International investments in agricultural production. agricultural in investments International La tierra en Sudamérica en tierra La ”.Analytic documents.(Alsoavailable at http://www.grain.org/briefings/?id=214.) Commercial pressures on land worldwide: issues and conceptual framework. conceptual and issues worldwide: land on pressures Commercial . Discourse 015. Berlin:(alsoavailable at http://www.bmz.de/en/publications/type_ Paper presented at theInternational Conference onGlobalLand Grabbing Paper presented at theInternational Conference onGlobalLandGrabbing Rome: FAO. 37: 4,793-819. . Exploraciones Desarrollo Rural N°8.Instituto para eldesarrollo Biofuels and land appropriation in Colombia: Do Biofuels National National Biofuels Do Colombia: in appropriation land and Biofuels Land grab? The race for the world’s farmland, farmland, world’s the for race The grab? Land (Alsoavailable at http://www.fao.org/economic/es- Exploraciones Desarrollo Rural N°7. Instituto para Work presented at theExpertMeeting A report by theHighLevel Panel Santiago, ECLAC. Journal of Peasant Peasant of Journal Woodrow Development Development

19 The land market in Latin America and the Caribbean: concentration and foreignization Soto-Baquero, F. &Gomez, S.(Eds). White, B.,&Dasgupta,A.2010. Agrofuels capitalism:aview from politicaleconomy, Von Braun, J. &Meinzen-Dick, R.S.2009. World Bank,2010. United Nations Conference onTrade andDevelopment. 2009. Van Noorloos,F. Zoomers, A.2010. Globalisation andtheforeignisation ofspace: seven processes drivingthecurrent global Williams, A.N.(Ed.). 2003. Soto-Baquero, F.& Gomez, S.(Eds). Sauer, S., &Pereira L.,S.2011. Zander M.&Dürr, J., 2011. concentración y extranjerización, y concentración América Latina y el Caribe. el y Latina América Sergio_Sauer_and_Sergio_Pereira_Leite_-_ENGLISH.pdf (Also available at http://www.iss.nl/fileadmin/ASSETS/iss/Documents/Conference_papers/LDPI/14_ Agriculture Consortium at theInstitute ofDevelopment Studies, University ofSussex, 6-8April2011. Politics Initiative (LDPI)incollaboration withtheJournalofPeasant Studies andhosted by theFuture presented at theInternational Conference onGlobalLandGrabbing organized by theLandDeals Guatemala. amauta.org/2013/08/turismo-residencial-y-acaparamiento-de-tierra-el-caso-de-guanacaste/ (Also available at http://unctad.org/en/pages/PublicationArchive.aspx?publicationid=743). socio – espacial, desplazamiento y exclusión. y desplazamiento espacial, – socio carib_workshop/pdf/landbook.pdf copy at theLandTenure Centre, University ofWisconsin-Madison, USA.http://www.terrainstitute.org/ (Also available at http://www.ifpri.org/sites/default/files/publications/bp013all.pdf). land grab. LDPI/15_Markus_Zander_and_Jochen_Durr.pdf). April 2011. (Alsoavailable at http://www.iss.nl/fileadmin/ASSETS/iss/Documents/Conference_papers/ the Future Agricultures Consortium at theInstitute ofDevelopment Studies, University ofSussex, 6-8 Land DealsPolitics Initiative (LDPI)incollaboration withtheJournalofPeasant Studies andhosted by and opportunities. and Studies (Also available at http://siteresources.worldbank.org/INTARD/Resources/ESW_Sept7_final_final.pdf). Washington. publications/dinamicas-mercado-tierra/). corporations, agricultural production and development. development. and production agricultural corporations, English-speaking Caribbean English-speaking , 37: 4,593 —607. Journal of Peasant Studies Peasant of Journal Paper presented at theInternational Conference onGlobalLandGrabbing Organised by the El turismo residencial: ¿acaparamiento de tierras?: Un proceso fragmentado de cambio cambio de fragmentado proceso Un tierras?: de ¿acaparamiento residencial: turismo El Rising global interest in farmland. Can it yield sustainable and equitable benefits? equitable and sustainable yield it Can farmland. in interest global Rising IFPRIPolicy Brief13.International Food Policy Research Institute, Washington DC. Dynamics in land tenure, local power and the peasant economy: the case of Petén, Petén, of case the economy: peasant the and power local tenure, land in Dynamics Land in the Caribbean: issues of policy, administration and management in the the in management and administration policy, of issues Caribbean: the in Land Agrarian structure, foreign landownership, and land value in Brazil . Brazil in value land and landownership, foreign structure, Agrarian Santiago, 2013 . CaribbeanLandPolicy Network. Manuscriptwas prepared from digitised Reflexiones sobre la concentración y extranjerización de la tierra en en tierra la de extranjerización y concentración la sobre Reflexiones FAO, Dinámicas del Mercado de la Tierra en América Latina y el Caribe: Caribe: el y Latina América en Tierra la de Mercado del Dinámicas , Vol. 37, No. 2,April2010, pp. 429–447. Santiago, 2012. (Also available at http://www.rlc.fao.org/en/ at available (Also 2012. Santiago, “Land grabbing” by foreign investors in developing countries: risks risks countries: developing in investors foreign by grabbing” “Land (ElcasodeGuanacaste enCosta Rica).http://revista- United Nations, New York andGeneva. World investment report 2009: transnational transnational 2009: report investment World Journal of Peasant Peasant of Journal Paper

20 The land market in Latin America and the Caribbean: concentration and foreignization **** *** ** officials andacademics. aim to make thischapter relevant for avariety ofreaders: civilsocietyactivists, policy-makers, government insights from thisregion canalsohelpunderstand better theglobalphenomenonoflandgrabbing. Itisour and trends of land grabbing in Latin America and the Caribbean. Inturn, it is hoped that the knowledge and be made to identify points of convergence and divergence between this report and the current conditions Committee onFood Security(CFS) HighLevel Panel ofExpertsorHLPE(Toulmin etal.2011). Anattempt will studies in the context of the key outcomes and recommendations of the land grab report released by the UN to this international literature, thecurrent chapter will also consider theinsightsfrom theseventeen country reach some tentative conclusions and identify some possible policy recourse and future research. In addition on thedebates andliterature that are emerging internationally withregard to landgrabbing. Basedonthis,we The objective ofthischapter isto (re)interpret theempiricalmaterial intheseventeen country studies, based between too narrow andtoo wideparameters. multiple crisesoffood, energy, climate changeandfinance. This strategy enablesoneto navigate somewhere more generally, as well as the different initiatives to tackle the challenges posed by the convergence of the rush, we willcertainly bedealingwithboththerecent changesinandtheimperatives ofglobalcapitalism the sametimeitisnottoo open-ended.By analysing thepurposes,(andthuscauses) ofthecurrent land transnational landdeals,butitgoesbeyond thisfocus. Itisbroad inthat itincludesnational landdeals,butat (Bernstein 2010). questions: Who owns what? Who doeswhat? Who getswhat? What dothey dowith theproduce/wealth that iscreated? 5 We employ, inaloosemanner, abroad agrarian politicaleconomy perspective, addressing four distinct butinterlinked * economy perspective This chapter examines indepththecountry studies andthesynthesis paper, from abroad agrarian political conclusion was reached that ‘landgrabbing’ exists onlyintwo countries ofthe region: Argentina andBrazil. of theiranalysis andconclusions was basedonthenarrow definitionanddimensionoflandgrabbing, the significant quantity of empirical material related to land dynamics in the region. However, given that the focus It islargely becauseofthiskindframing that most ofthestudies have beenableto unravel andcompile a and iii)thenegative impactoftheserecent landinvestments onthefood securityoftherecipient country. extent of recent large-scale land acquisitions; ii) the involvement of foreign governments in these land deals; into thephenomenonof‘landgrabbing’ ,basedstrictly onthree specificdimensions,namely:i)thesignificant concentration inthecontext ofneoliberal globalization, and,ontheotherhand,itisnarrow becauseitlooks wide andnarrow. Ontheonehand,itiswidebecauselooksinto thebroad processes ofrural landandcapital The seventeen studies were completed inmid-2011. The common analyticalframework ofthestudies isboth (FAO) onthestate andtrends in‘landgrabbing’ inseventeen countries inLatin Americaand theCaribbean. This chapter isbasedonanempiricalresearch commissioned by theUNFood andAgriculture Organization viewed from abroader international perspective Land grabbing inLatin AmericaandtheCaribbean, Chapter II: I. Studies (IBEI) [email protected]. Professor ofDevelopment Studies at ISS, and Visiting Professor at theBarcelona Institute ofInternational Studies Emeritus Professor at ISS andEditor of theJournalofAgrarian Change. [email protected]. Research Associate at theTransnational Institute (TNI)[email protected]. based Transnational Institute (TNI)andoftheCalifornia-based Food First, andEditor ofthe Professor at theInternational Institute ofSocialStudies (ISS), The Hague, Netherlands,Fellow oftheAmsterdam- Introduction andkey messages . [email protected] 5 . This approach includesinevitably ananalysis ofthenation-states involved in Saturnino M.Borras Jr.*, Jennifer C.Franco**, Cristobal Kay*** andMaxSpoor**** Journal of Peasant Peasant of Journal 21 The land market in Latin America and the Caribbean: concentration and foreignization (3) (2) (1) July 2011. The latter’s insights into the dynamics of land grabbing will help deepen and strengthen the report. by theHighLevel Panel onFood SecurityoftheUNCommittee onFood Security(CFS) that was released in dynamics oflandgrabbing intheregion generally reflect theoverall key findingsfrom thereport onthetopic climate changepolicy responses suchascarbontrading andothermegaconservation projects. Finally, the and theMICS(middle-income countries) for meat, dairyproducts, timberandminerals; andthevarious development especially in thecontext oftheriseBRICS(Brazil, Russia, India,ChinaandSouthAfrica) inspired by: recent changes in the global food, feed and fuel triangle; the growing needs of global capitalist different extents. Moreover, there are agrarian processes and transformations across regions that have been into theprocess ofneoliberal globalization over thepast two to three decades, albeitindifferent ways andto processes that are takingplace inotherregions oftheworld, mainlybecauseallregions have beenintegrated the otherhand.Nevertheless, generally speaking,landgrabbing inthisregion hasmany similaritieswiththe conditions of Brazil and Argentina on the one hand, and the Democratic Republic of Congo and Sudan on as isthecaseofseveral countries inSub-Saharan Africa. Onecanquicklyseethedifference inthepolitical usual profile of‘fragile’ or‘weak’ states, which,intheview ofsomeobservers, facilitates suchlandgrabs, regions of the world, and (v) the fact that land grabbing in this region occurs in countries that do not fit the or public) withtheGulfStates, China,SouthKorea andIndia,whichare amongthemajorinvestors inother (TLCs) alongsideconventional transnational companies (TNCs), (iv)theminimalscope oflanddeals(private role played by domestic elites askey investors, (iii)thesignificance ofintra-regional (Trans)Latina companies the Caribbean has distinct features, including: (i) the significance ofprivate landstransacted, (ii)thecritical point towards furtherexpansion andat afaster pace inthenearfuture. Landgrabbing inLatin Americaand between andwithincountries inLatin AmericaandtheCaribbean.Current conditions andtrends inlanddeals The mainfindingofthischapter isthat, generally speaking,landgrabbing istakingplace, albeitunevenly, is similarto what canbeobserved inallotherregions oftheworld: Africa, Asiaandpost-Soviet Eurasia. being. However, thecriticalrole played by domestic/national elites inLatin Americaandthe Caribbean substantial, probably more importantthan thoseby investors from outsidetheregion, at least for thetime of Southeast Asia.Inthelatter, intra-regional landinvestments by (trans) Southeast Asiancompanies are and are commonplace. However, the Latin America and the Caribbean circumstances are closer to those Caribbean differ from thoseobserved in Africa where transnational (trans-regional) dealspredominate the region. When compared withotherregions oftheworld, theprocesses inLatin Americaandthe varying degrees, to international capital) are quite important, even predominant in many countries of trend. Finally, therole andparticipation ofdomestic ornational elites (many ofwhomare linked, to represent the bulk of land deals in the region, or certainly, at least, are currently the most noticeable intra-regional (transnational) land transactions involving (trans) Latin American corporations probably preliminary andadhocstages, except for somedealsestablished inBrazil andArgentina). Meanwhile the not directly involved (there are somescattered government-brokered negotiations buttheseare at very The transnational dimensioninlanddealsissubstantial, although,ingeneral, foreign governments are not clear, andmany ofthemare basedintaxhavens intheregion (namelyPanama andtheCayman Islands). ‘undetermined’. The last category consists ofcompanies inwhichthedominantnationality ofinvestors is There are four typesoflandgrabbers inthiscontext: international; (Trans) Latina; domestic/national; and, The formal nationality of‘landgrabbers’ isdiverse and,at times,notalways clearandeasy to establish. Caribbean as compared to other regions of the world where transactions are much more concentrat in theoverall trend. Inthiscontext, private landtransactions are probably highest inLatin Americaandthe (i.e. landtransacted was eitherprivate orstate land),butrather itisamatter ofdegree for eachcategory contract farming, value chaincapture). Interms ofinternational comparison, itisnotan‘either/or’ issue from peri-urbanareas to remote rural land),usingavariety ofacquisition mechanisms(purchase, lease, ecological conditions aswell asspatial locations (from cultivated primeagricultural landto borderland, Land grabbing occurs across different regimes oflandproperty rights(private, state, communal) agro- in thechapter. economic character andorientation oflanddeals.We willdiscuss ouralternative take on‘definition’ later from the‘nation-states centric’ transnational perspective to onethat focuses onthebroad political Soviet Eurasia) once thedefinitionoflandgrabbing anditsanalyticalframework have beenadjusted The sameconclusion canalsobereached whenanalyzing otherregional cases(Africa, Asiaandformer acquisition involving foreign governments andthesubsequentfood insecurityinthehost country). and narrow definitionused by FAO intheseventeen country cases(whichisbasedonlarge-scale land affected. This conclusion is arrived at by using an analytical approach that is broader than the strict point, to come upwithclearquantitative data abouthow many hectares andhouseholdsare actually involved andarea covered isgreater than previously assumed. However, itisnotpossible, at least at this The extent ofland grabbing inLatin AmericaandtheCaribbeaninterms ofthenumbercountries 1. privatized suchasfrontier lands(often belonging to indigenouspeoples) andclaimedby thecentral state. involved, transactions are certainly concentrated inlandproperty regimes that are notfullyandformally on the broad category of state (or land. Overall, ‘public’) however, especially in terms of the land area Highlights ofthefindings e d 22 The land market in Latin America and the Caribbean: concentration and foreignization (9) (8) (7) (6) (5) (4) point to arebuttal oftheassumption that landgrabs would notbeaproblem ifonlythey were transparent. more generally, andtheempiricalinsightsfrom thecurrent regional study offer evidence which would policy optionfor thiskindofbasicassumption abouttheproblem. This assumption isbeingchallenged The general policy prescription to make landdealsmore ‘transparent’ and‘responsible’ isthelogical erroneously, that problematic landdealsoccur incountries with‘weak’ or‘fragile’ governance structures. 2010). This situation isdifferent from thedominantnarrative onland grabs whichassumes, arguably other countries inAfrica, post-Soviet Eurasia orSoutheast Asia(see, for example, Vermilion andCotula, studied about manipulative, non-transparent, shadyandcorrupt landdeals,unlike what canbeseenin be observed generally, at least from theFAO studies, isthat there isnomajorconcern inthecountries most, are markedly different. The sameistrueofother countries suchasChileandUruguay. What can states. The politicalconditions ofBrazil andArgentina, the two countries where landgrabbing occur the Land grabbing intheregion occurs incountries that donotfittheusualprofile of‘fragile’ or ‘weak’ insecurity inLatin AmericaandtheCaribbean,at least notanimmediate impact. these examples, it is, overall, difficult to establish a direct link between large-scale land deals and food are displaced orrelocated, livelihoods disrupted, andsubsistence food production destroyed. Despite this may besignificantly different from what wewitness insomepartsof Africawhere local communities parts ofSoutheast Asiaandpost-Soviet Eurasia (inthelatter, fertile landhadbeenabandoned).However, in frontier lands,whichgenerally are sparselypopulated. This may besimilarto general trends observed in reason isthat massive commercial farms andplantations aswell asconservation sites have beenopenedup occurred more generally outsidethestaple food sector whichremains inthehandsofsmallholders.Another and access to food, as was in the caseof Colombia. One reason for this is that large-scale land dealshave where there were cleardisplacements ofcommunities that resulted inthedisruptionofproduction, supply security inthehost countries. We can,however, assume that exceptions exist, probably at thelocallevel In most cases,landdealsintheregion have nothadany immediate large-scale negative impactonfood problematic. the 2007-08 food crisis provoked land grabs. This narrative that focuses on the food crisis- is indeed based onemerging empiricalevidence, whichcontradicts theofficialandmainstream explanation that than for food production. This findinginthe region issimilar to that observed inotherpartsofthe world, to the broader international processes of the political economy, in which land is used for purposes other solely, to the2007-08 food price spike. The latter isahistorical. Ourconclusion directly linksouranalysis different from thedominant,mainstream narrative that linksthecurrent globallandrushmainly, ifnot sectors, specificallyindustrial tree plantation andlarge-scale conservation. This conclusion issignificantly words, crops that have multiple and/or flexible uses in the ‘3-in-1’ triangle, as well as within non-food It occurs withintheemerging food-feed-fuel triangleinvolving what we callhere ‘flex crops’, inother Land grabbing occurs notonly with theaimofgreater food production, especiallylivestock production. of incorporation are similarto what can beseenintheemerging land-oriented ventures in AsiaandAfrica. or otherwise) into the emerging commercial farm enclaves and plantations The mixed outcomes in terms occasions, landdealshave ledto theincorporation ofsmallholdersandfarmworkers (to their detriment some hotspots where people have been evicted from their lands, most especially in Colombia. On many not onthescaleobserved inmany places inAfrica andsomepartsofAsia. Again, ofcourse we see by displacement oftherural poor. Butmore generally, ithasnotresulted inmass dispossession –at least In someinstances, large-scale landsdealsinLatin Americaandthe Caribbeanhave resulted indispossession diversity inlanduseisalsoobserved elsewhere inAfrica, Asiaandpost-Soviet Eurasia. food, feed andfuelfor export; natural forests have beentransformed into industrial tree plantations. This food now produces feed orfuel;previous non-agricultural ornon-forestry landisnow usedto produce Land usechangehasbeenmultidirectional: withinthefood sector, for example, landthat usedto produce deals. and society. These are manifest in,andpartlyinfluence thenature of state-society politicsaround land others) are thehallmarks of existing agrarian structures andinstitutional spaces between andwithinstate all, inpost-Soviet Eurasia. Potential andactualsocialdivides(class, gender, ethnicity, ideology, among generally sparse, weak anduneven. This issimilarto thesituations found outsidetheregion, but,above grassroots resistance, whetherorganized/structured orotherwise, ispresent inmany countries, butis land grabs isthesameasthat observed inotherregions ofAsia,Africa andpost-Soviet Eurasia. Meanwhile, by thenational government inexchange for new large-scale land-basedinvestments. The state’s role in appropriation; and(v)re-allocation anddisposingoflandto transform scarce resources legallycontrolled (i) creation/justification; (ii) definition, reclassification, quantification; (iii) identification; (iv) acquisition/ engaged insystematic policy andadministrative initiatives around thenotionof‘available marginal’ lands: five broadly distinct butinterlinked tasks to facilitate landdealsthat onlya state cando. All states are The role of the state in facilitating land deals is, for the most part, central to the process. This is seen in the context ofstate-society interaction, includingtheenvironmental context, andby indigenouspeoples. There isnoconsensus withinthestate andinsocietyabouttheselanddeals;they are contested within 23 The land market in Latin America and the Caribbean: concentration and foreignization expected rapid recovery andhigh growth levels intheagricultural sector didnotmaterialize. tments madeearlier. Finally, following thewidespread structural adjustments, implemented withvarying timings,the far astheagricultural sector was concerned. Ineffect, thesector actuallybenefited from thesubstantial public inves - robust thanintheneoliberal 1980sand1990s.There was alsono evidence ofthesupposed “lost decade”ofthe1980s,as of Latin AmericaandtheCaribbeanduringperiodof state intervention ofthe1960sand1970s was higherandmore demonstrates that thegrowth oftheagricultural sector inten ofthemost importantagricultural countries oftheregion has beenwidelyargued inrecent years. Amongtheregion-wide relevant studies istheoneby Spoor(2002) inwhichhe 6 Table 2.1: Landinvestments, landgrabbing, andfood security inselected countries predicted, sector to some extent and (agrarian) societies more generally, although not always as intended and as that hasswept across Latin AmericaandtheCaribbean.This movement hastransformed theagricultural land grabbing and land concentration in the region are taking place against the backdrop of neoliberalism studies based ontheoriginalframework employed by FAO for theresearch. Ithasto benoted that thecurrent It isusefulto provide ashortsummary, highlightingthekey findingsandconclusions oftheseventeen country (11) (10) weakened by theincrease inlandandagricultural investments. Brazil. Third, inallseventeen countries studied, there isnosinglecountry casewhere food securityhasbeen involves foreign governments, there are only two countries to which this applies, namelyArgentina and to alarge extent, aregion-wide phenomenon.Second, takingthedefinition oflandgrab assomethingthat Indeed, despite thedisparitiesbetween andwithincountries, vibrant investment inlandandagriculture is, Rica, Guatemala and Panama), while only one country is in the‘low to none’ category (Trinidad andTobago). investments ishighinalmost alloftheseventeen countries, withonlyaboutthree at themediumlevel (Costa significant increase in (foreign) investments in land and agriculture during the past decade. The level of these Some conclusions canbedrawn from Table 2.1. First, across Latin AmericaandtheCaribbeanthere hasbeen a is to examine thequestion for landgrabbing. For thispurpose, two key tablesare useful(tables2.1 and2.2). synthesis (see Chapter 1)hasalsounderscored importantelementsofthistransformation. The taskat hand the region’s agricultural sector. To someextent, theseventeen country casestudies have covered thisandthe Argentina Bolivia Chile Brazil The argument “tobringthestate backin”inthecontext ofagrarian transformation in Latin AmericaandtheCaribbean Presence ofrecent large (foreign) investments observation alsoappliesto otherregions ofAsia, Africa andpost-Soviet Eurasia. associations for environmental and agrarian justice, at thelocal,national andtransnational levels. This state-society interactive intervention, whichincludeswell-organized civilsocietymovements aswell as and on it as a resource and a territory. This requires not a purely market-based intervention, but a strong class andindigenouspeoplesto have effective access to, control over anduseofland, to live from it is appropriate for thechangedcontemporary context. The bottom lineisto secure therightofworking urgent inthecurrent context –butare inherently limited. There isaneedfor anoverarching concept that the environment. Conventional landpolicies,suchasreform, have become even more relevant and distributive landpoliciescombined withlandinvestments that provide for food securityandprotect new andalsosometested typesofpublicactioniftheidealscenario isto beachieved, namely(re) The contexts, actors, conditions, and consequences of the renewed land rush in the region require some Caribbean stands between thesetwo polesisanempiricalquestion. is happeninginAfrica, Asia andpost-Soviet Eurasia. Exactly where thetrend inLatin Americaandthe exception than the rule in the Latin American and Caribbeancontext, quite similarin many ways to what that provide food securityand protect theenvironment. However, suchanidealset-upismore the desirable, they have to bebuiltonorresult in(re)distributive landpoliciesandmodelsofproduction food securitynorprotects theenvironment. For landinvestments to besociallyandenvironmentally that lead to the (re)concentration of land combined with a model of production that neither guarantees The landgrabs that have resulted inprotests are typicallycharacterized by non-redistributive landpolicies 2. High Synthesis oftheFAO landgrab studies inLatin AmericaandtheCaribbean 6 (Gwynne andKay, 2010). We willnotembarkhere onadiscussion ofneoliberal globalization and Costa Rica Guatemala Panama in land Medium Trinidad & Tobago Low tonone Argentina Brazil Presence offoreign ‘landgrabbing’ Yes Bolivia Ecuador Chile Colombia No Yes Negative impactonfood security of investment of security recipient country Argentina Chile Bolivia Brazil No 24 The land market in Latin America and the Caribbean: concentration and foreignization summary (see chapter 1). perspective. The reports willnotbeexamined ingreat detail asthishasalready been doneintheexcellent from thecountry studies willbe evaluated andre-examined from abroader analyticalandinternational as astarting pointfor thesubsequentdiscussion intheremainder ofthischapter where theempiricalmaterial These insightsare among themany pointshighlighted intheseventeen country casestudies. They willserve projects. alongside landacquisitions related to theexpansion ofindustrial tree plantations andmegaconservation and biofuels, the useof which canbe changed quite flexibly, particularly soya, oil palmandsugar cane), surge in particular sectors linked to the rise of ‘flex crops’ (crops whichhave multiple uses - food, animalfeed 2012). Second, thisconcentration occurs invarious food andnon-food sectors, but there isaremarkable value chain),to ‘green grabs’ (landgrabs inthenameof theenvironment; seeFairhead, Leach andScoones, tends to occur in a variety of ways: from land grabs, to ‘commodity grabs’ (capture of goods and profits in the Meanwhile, the following conclusions can be drawn from Table 2.2 First, concentration of land and/or capital Source: 17FAO country studies (see chapter 1). Table 2.2:Landandcapitalconcentration, by country andsector Source: 17FAO country studies (see Annex inchapter 1),plusthesynthesis paper(Chapter 1). Trinidad &Tobago Guyana Dominican Republic Panama Nicaragua Guatemala Costa Rica Mexico Uruguay Peru Paraguay Ecuador Colombia Chile Brazil Bolivia Argentina Country Guyana Dominican Rep. Nicaragua Mexico Uruguay Peru Paraguay Ecuador Colombia Sugar cane, cacao, fruits Sugar cane, livestock, rice, pineapple, forestry Sugar cane, banana,fruit,vegetables Banana, coffee, rice, oilpalm Livestock, rice, oilpalm,sugarcane, citrus,tourism,forestry Sugar cane, oilpalm,forestry Banana, pineapple, oilpalm Value chainof maize, sugarcane, fruit,flowers, coffee, barley, tequila Soya, dairy, wheat,rice, livestock, forestry Fruits, vegetables, sugarcane, oilpalm Soya, corn, wheat,livestock Banana, sugarcane, oilpalm,forestry Oil palm,sugarbeet,cane, soya, rice, corn, forestry Fruit, dairy, wine, seeds,poultry, conservation Soya, sugarcane, poultry, livestock, fruit, forestry Soya, livestock, forestry Soya, wheat,livestock, sugarcane, tobacco, fruit,conservation Sectors where recent significant(land&capital) concentration hasoccurred Trinidad &Tobago Guyana Dominican Rep. Panama Nicaragua Guatemala Costa Rica Mexico, ‘but’ Uruguay Peru Paraguay Trinidad &Tobago Guyana Dominican Rep. Panama Nicaragua Guatemala Costa Rica Mexico Uruguay Peru Paraguay Ecuador Colombia 25 The land market in Latin America and the Caribbean: concentration and foreignization the last four columns from theright;Deininger, 2011). consideration, thegloballand reserve isestimated, at aminimum,to be445millionhectares (see Table 2.3, generate livelihoods and employment in local communities. Depending on the combination of factors under positive sumoutcomes for societiessince marginal landsare converted into productive resources, andwill empty, spaces; (b) will be easy to acquire since most oftheselandsare state-owned; and(c) willresult in (a) willnotdisplace any significantnumberofpeoplesince these are sparselypopulated, ifnotcompletely 2010b). Itisassumed that takingtheselandsto solve themultiplecrisesandpromote capitalaccumulation: reserves ofagricultural land:‘marginal, empty, under-utilized andavailable’ (Borras andFranco, 2010a, crises offood, energy, climate, and finance have asolution,andthe solutionliesintheexistence ofglobal One ofthemost fundamentalassumptions underlyingthegloballandgrab narrative isthat theconverging on landgrabs, there are two broad frameworks that are commonly andrather casuallyemployed. ‘nation-states centric’ analysis that is often focused on the Gulf States, China and South Korea. In the literature ‘food crisis-centric’ analysis that isoften over-fixated, partlyerroneously, onthe2007-08 food crisis, orthe recent periodandthecontext beingexamined here. Itwillalsofree usfrom thetoo narrow andproblematic setting theboundary, especiallywithregard to regular landmarket transactions that occurred priorto the This setofqualifiersisnoguarantee against fuzzyclassifications oflanddeals,butitishelpfulinterms of on thepast decade orso. global food-energy regime; and(x)finally, andinterms oftimeline, lookingat recent developments, focusing China andSouthAfrica), andto someextent ofsomeMICs(middleincome countries) onamore polycentric such landtransactions to thebroader (direct andindirect) impact oftheriseBRICS(Brazil, Russia, India, companies started to view landinvestment asanalternative, safer investment; (ix)geopolitically, linking such astheuseofbiofuelsandlarge conservation initiatives, andthe recent financialcrisiswhere financial general, to therecently changingfood-feed-fuel triangle, to climate change-related globalpolicy changes be more or less traceable to recent changes in the nature and dynamics ofglobal capitalist development in the landandotherassociated resources suchaswater; (viii)butsuchlarge commercial transactions should who live inthevicinity, andindestruction oftheenvironment; thebottom-line istheshiftofcontrol over in theincorporation (adversely orotherwise) oftheprevious occupants oftheacquired landsand/or those national food security, indisplacement anddispossession oftheearlieroccupants oftheacquired territories, investment groups ofbothdomestic andinternational origin(vii)resulting or notinanundermining of local- (vi) involving avariety ofinvestors: natural personsorcorporations, public,private ormixed public-private export; (v)beingeitherlegalorillegal, carriedouttransparently orotherwise, involving corruption ornot, value chain)through theproduction offood andnon-food goods for domestic trade andconsumption orfor resources suchaswater andforest, directly orindirectly (i.e. capturingproduce andprofits through the ownership; (iv)having theobjective and/or theresult of“extraction” from thelandanditsotherintrinsic locations (from remote rural areas to peri-urbancorridors); (iii)involving landsinprivate, communal orstate wide range ofagro-ecological conditions (from productive plainsto forested rural areas) andindifferent farming andcontracts withsupermarkets to forest conservation, amongothers;(ii)involving landsina through purchase orlease, aswell asthrough avariety ofinstitutional arrangements ranging from contract grabs’. Inouropinion,theten definingfeatures are: (i)implying relatively large landacquisitions either every day, regular landmarket transactions from what isbeingreferred to more broadly andlooselyas‘land For current purposes, it is more useful to outline a set of defining features of land deals in order to differentiate the term ‘landdeals’. these terms willbeusedoccasionally whenreferring to genericlandtransactions. At otherstimes,we willuse it with de-politicized terms such as ‘large-scale land acquisitions’ or ‘large-scale landinvestments’, although worldwide. We willcontinue to usetheterm ‘landgrab’ –for lackofabetter term. We willavoid substituting powerful butcontroversial term. Itgives apoliticalandhistorical context to thecurrent scramble for land reason for continuing to useithere, isbecauseitimpliespower andpower relations –whichmakes itauseful, problematic andwillalways becontested. Butonethingthat makes theterm quite powerful, anditisthe This chapter doesnotintend to offer astandard definitionoflandgrabbing. The term ‘landgrab’ isinherently towards agrarian change. significa II. Defining features rather thana strict definition Scope, assumptions andcontext 26 The land market in Latin America and the Caribbean: concentration and foreignization forested ornon-forested suitable area for areas withpopulation density<25/km2. Suitablehapercultivated haarea based here (wheat, oilpalm,sugarcane, soybean, maize). Countries are includedifthey have atotal ofat least 3 millionhaof Note: ‘Suitable’meansthat at least 60percent ofpossible yieldcanbeattained for any ofthe5rainfed crops considered SOURCE: Deininger, 2011; originalsource: Fischerand Shah, 2010. by region andselected countries Table 2.3:Total forested, cultivated, andnon-forested, non-protected agriculturally suitableareas Belarus Eastern Europe &Central Asia Venezuela Uruguay Suriname Peru Paraguay Mexico Guyana Zambia Tanzania Burkina Faso Angola Sub-Saharan Africa Ukraine Russian Fed. French Guyana Ecuador Colombia Brazil Bolivia Argentina Latin America&Carib. Sudan South Africa Mozambique Mali Madagascar Kenya Gabon Ethiopia D.R. Congo Congo Chad Central Afric. Rep. Cameroon World total United States Papua New Guinea Canada Australia Rest ofworld Middle East&NorthAfrica Malaysia Indonesia China East &SouthAsia Total Area 13 333053 1 684767 1 932941 2 469520 2 408224 2 032437 3 318962 1 166118 128 972 194 218 124 294 113 112 847 097 108 532 277 400 249 872 121 204 125 254 112 829 232 810 127 057 930 303 969 331 765 074 183 897 935 611 20 784 90 531 17 772 14 460 39 904 20 845 75 143 93 786 27 342 25 152 78 373 58 749 58 511 26 269 34 068 62 021 46 468 44 926 32 243 59,608 8 034 Forest Area 3 706457 807 895 485 406 147 864 298 723 308 065 167 202 493 762 885 527 509 386 933 990 863 221 48 345 13 847 68 312 19 112 64 447 17 737 30 708 29 388 57 941 11 631 64 543 54 325 33 626 24 447 12 657 21 563 23 132 23 496 23 581 29 387 88 086 21 171 95 700 18 339 7 784 1 323 2 072 7 809 9 909 8 840 3 312 8 039 2 280 3 284 9,265 Cultivated 1 503354 119 985 174 515 136 945 445 048 251 811 210 149 162 289 358 876 25 845 16 311 15 178 13 906 62 293 28 154 14 739 50 272 45 688 32 920 74 189 32,988 Area 6 019 3 912 2 030 3 799 5 419 4 598 9 244 4 817 2 930 8 338 7 707 3 384 7 339 2 850 5 714 3 511 4 658 1 879 6 832 7 184 464 438 512 636 86 6 <25/km2 Forest 140,026 128 966 130 848 163 377 290 631 775 211 134 700 39 951 10 269 13 311 11 502 16 228 75 760 31 313 21 051 12 351 74 350 10 514 46 250 30 100 17 045 24 778 Non-cropped, non-protected suitable 7 206 4 853 6 167 8 501 4 010 5 318 3 554 3 881 3 663 8 247 2 380 6 469 4 358 8 973 9 746 4 597 2,594 731 918 534 452 582 680 655 209 Non-forest withpopulationdensityof <25/km2 201 540 123 342 445 858 52,387 13 020 46 025 38 434 14 816 45 472 29 500 22 498 16 256 16 244 14 341 26 167 10 486 50 971 4 360 3 691 8 966 9 269 7 269 8 659 3 555 4 726 3 713 9 684 3 908 4 971 8 317 4 615 3 476 7 940 4 655 8 756 2 176 8 684 3 771 3 043 3,442 496 210 638 954 186 27 6 <10/km2 127 927 305 711 29,965 36 400 24 923 10 531 27 654 23 835 14 757 11 265 25 894 91 576 45 687 2 857 7 725 8 681 6 035 4 600 1 754 1 385 1 040 6 625 8 367 3 776 7 761 2 041 3 185 6 890 3 205 9 160 6 818 1 383 8 289 9 496 3 193 7 291 476 189 868 776 415 927 394 843 119 27 5 <5/km2 198 064 18,210 18 547 15 358 15 247 16 856 25 593 68 118 64 320 41 102 1 719 5 891 7 340 5 133 1 234 4 561 3 083 7 061 2 838 6 985 8 412 2 661 5 573 1 166 4 428 6 572 5 058 7 598 5 933 1 917 4 666 438 156 204 649 376 256 313 839 935 236 843 27 28 74 50 5 27 The land market in Latin America and the Caribbean: concentration and foreignization grows and the agro-ecological resource base is depleted. Increases in production and productivity would people to access andbuyfood. At least for now, thisisthecase, thoughitislikely to changeasthepopulation hand, thefact that onebillionpeopleare hungryisnotdueto lackoffood, butdue to theinabilityofthese ‘distribution’, taken here in its socio-economic and political sensebut also in its technical sense. On the one There are two problems inter-linked withthisassumption andprediction, andbothconcern theissue offood the globalrushfor new landsthat canbeusedto produce more food. of hungerintheworld: 1billionby 2011. The solution:more food to endhunger. Hence, there isaneed,andso production-consumption levels andtrends inpopulation growth. Inserted into thisnarrative isthepersistence argument claimsthat, by 2050, we would needto have doubledfood production basedoncurrent aggregate levels anddietarypreferences (more meat anddairyproduce, astheworld’s middleclass expands). This food crisisthat ispopularlyassumed to belargely dueto population increases, increasing consumption The ‘available marginal land’narrative isproblematic whenpaired withthenarrative aboutthe2007-08 Monsalve, 2011, Woodhouse andGanho, 2011). been assured by the government that itwillreceive asteady and sufficientsupplyof water (Borras, Figand plantation ofProcana inMozambique whichiscloseto theMassingir dam,from whichtheinvestor has hectare sugar-cane usually haslocalcommunities livingonitandfarming it.Acaseinpointisthe30 000 usually withexisting orpotential irrigation systems, andclose to existing road networks. This type ofland ‘marginal, unused/underutilized, empty’profile. Instead, they prefer to acquire landsthat are productive, from various regions oftheworld show that landinvestors tend to beinterested inlandsthat donotfitthe use that donotlookat thesocial,cultural, andpoliticaldimensionsofland. mainstream economic ideasaboutfactors ofproduction andeconomic efficiency in resource allocation and peoples andby pastoralists tend, for themost part,to fall underthisdefinition,whichisoften basedon is marginal, under-utilized, emptyorsparsely populated are problematic. Territories occupied by indigenous There are at least three contentious aspectsofthisassumption. First, theassumption anddefinitionofwhat column from theright),andidentifiesquantifiesitas follows: Deininger (2011) is particularly looking for a specific type of available marginal land (see Table 2.3, third Source: Deininger(2011; withoriginalsource: FischerandShah2010). on non-protected non-forest suitable area where the population density of the grid cell is <25/km2 <10/km2 or <5/km2. (2008, 2).” llion hectares consist ofnon-marginal landswhichcould bebrought into production withoutmajorecological constraints 1990s, representing thelargest reduction worldwide inrecent history (FAO/EBRD 2008).Ofthisarea at least 11to 13mi- Russia together withUkraine andKazakhstan took almost 23millionhectares ofarable landoutofproduction inthe precipitation thanacountry like Sudan,thusrepresenting amuchlarger potential increase inproduction. Furthermore, forested, non-cultivated landsuitable for rain fed production. Ofcourse, Russia hasmuchmore fertile farmland withmore Bank’s calculations, onlyBrazil andSudanas individual countries have more potential landavailable interms ofnon- doned, taken outofproduction, but are notuninhabited. Visser andSpoor(2011: p. 300) argue: “According to theWorld marginal, butare infact fertile. These canbefound, for example, inpost-Soviet Central Eurasia. These have beenaban- 8 7 Finally, even ifassuming suchmarginal landsexist andthey are available for taking Nalepa, 2012). of landconsiders landandproperty devoid as‘things’, ofany socialdimension(Borras andFranco, 2010c, occur inthesespaces. Thus, thismannerofidentifyingandquantifying future acquisition andreallocation is usuallydonethrough satellite imagingthat captures thephysical features butnotthesocialrelations that Second, mappingofthesemarginal landsinorder to identifyandquantifythemfor eventual appropriation standard ratio ofonehectare oflandfor onecow inArgentina versus ten hectares for onegoat inNamibia. Ethiopia that produces onlyatonne ofcorn usingconventional subsistence farming methods,orindeeda fossil-based farming intheUSMidwest istaken asabenchmarkagainst whichto judgeahectare oflandin hectare ofaparticularcrop orherd: hypothetically, five tonnes ofmaize perhectare inindustrial, mechanized, similarly anchored ininternational (usuallywestern, capitalist) concepts aboutwhat shouldbetheyieldper applies to thenotionof‘yieldgap’whichisbeingusedto justify corporate take-overs of‘marginal lands’.Itis idea aboutlandanditsuse, compared to anomadiclivestock herder inMozambique, for example. This critique peoples have different conceptions aboutlandanditsuse:a corn farmer intheUSMidwest hasadifferent international standard to measure the‘efficiency oflanduse’isinherently problematical becausedifferent SeeAkram Lodhi, Borras andKay (2007) for adetaileddiscussion onthemulti-dimensionalcharacter ofland. Ofcourse there are places where there are indeedavailable marginal lands–that are notactuallyagro-ecologically Asia, andfive inthe rest ofthe world.” available land.Ofthese, 16are inAfrica, eightinLatin America,three inEastern Europe andCentral two countries withmore thanthree millionhaoflandeachaccount for more than 90percent of of theCongo, inthat order) account for 224 million ha,ormore thanhalfofglobalavailability. Thirty- uncultivated land(Sudan,Brazil, Australia, Russia, Argentina, Mozambique, andDemocratic Republic “Using the25personsperkm2cut-off, theseven countries withthelargest amount ofsuitablebut 7 The ideathat there exists an 8 , preliminary evidence 28 The land market in Latin America and the Caribbean: concentration and foreignization the former isperhapsthemost common feed for cattle, goats orsheep. but feed to animals.Ofcourse, later peopleendupeating theanimals.Butwe donotconsider grass asfood even when 9 and domestic capital–isunderway in far more countries ofLatin AmericaandtheCaribbeanthanpreviously Land grabbing –broadly cast (according to theten defining features oflandgrabbing) to include foreign Large-scale land investments in the region have surged in the past decade in most countries in the region. now follows. and theCaribbean.This context isimportant for thein-depth analysis oflandgrabbing intheregion which hectares (see Table 2.3,third column from theright),28percent (or 123millionhectares) are inLatin America and inLatin AmericaandtheCaribbean.Ofminimumestimated ‘available marginal’ landsof445million recent land investments are large-scale, industrial, monocrop commercial farms and plantations –worldwide two-pronged strategy: agricultural ‘extensification’ andintensification (seealsoHecht,2005), asmany ofthe increases inproductivity. Andtheseproduction andproductivity increases are allneedednow, resulting ina always to seethisexpansion asinsufficient.More lands forcultivation are needed,as wellassignificant America andtheCaribbeanwent from 103 millionto 168millionhectares. Mainstream thinkingtends almost 1961 to 1.55 billion hectares in 2007 in the world. For the same period, expansion of agricultural land in Latin During thepast fifty years, agricultural land expansion hasbeensignificant, from 1.36billion hectares in Notes: Cultivated area isarable landorwithpermanentcrops. Landdemand2009refers to intended oractualland Source: Adapted from Deininger, 2011. Table 2.4:Historical landexpansion andrecent demandfor land feed it impossible to pindown how many food stuffs (or, indeed feed stocks) endupbeingusedas food, asanimal of ‘flex crops’ many ofwhichare endingupor could endupasbiofuels. The very nature offlex crops makes crops are nolongeralways andautomatically usedfor food, asthey become partoftheemerging complex conservation, carbonoffset arrangements (e.g. REDD+),andindustrial forest plantations. Conventional food aspect oflanddealsisquite significant,and comes ina variety of forms suchasthe vast tracts oflands for Moreover, initialevidence demonstrates that landdealsare notalways aboutproducing food. The non-food mean more food for everyone. 30 percent oftotal food production (Toulmin etal.,2011). Hence, producing more food doesnotnecessarily United Nations Committee onFood Security(UNCFS)estimated thequantityoffood wasted to bearound place ofproduction andthediningtable. The 2011 Report by theHighLevel Panel ofExperts(HLPE)the certainly beneeded.Ontheotherhand,aseriousproblem isthemassive food waste that occurs between the has expanded (see Table 2.4). technology andinfrastructure) andthearea ofcultivated landincreased. Historically, agricultural landarea of agricultural production certainly needto beimproved, food waste minimized (partlythrough improved Hence, afood crisis-centric analysis ofcurrent landgrabs ismisleading.Nevertheless, theproductivity levels high inLatin AmericaandtheCaribbean,asinotherparts oftheworld, andthistrend issetto continue. food production. However, onethingiscertain: thepercentage oflanddealsfor non-food production isvery World total North America Western Europe Eastern Europe &Central Asia Middle-East &NorthAfrica Oceania South Asia East Asia&Pacific Latin America Sub-Saharan Africa Region Inthischapter, animalfeed isconsidered asnon-food becauseitsimmediate useisnotfood for human consumption III. 9 , orbiofuels,makingitdifficult to track down what percentage of recent landdeals are for foodornon- acquisitions basedonmediareports Condition andtrends inlandgrabbing inLatin AmericaandtheCaribbean Cultivated landarea (millionsofha) 1961 1357.1 235.3 291.5 197.9 183.9 102.6 134.6 99.4 77.9 34.0 1997 1518.6 232.5 263.6 212.9 235.7 160.9 192.2 86.8 91.3 42.8 2007 1549.0 225.3 241.7 213.5 262.8 168.0 218.5 83.5 89.0 46.7 1961-1997 -0.08 -0.35 -0.77 4.49 0.37 0.25 0.41 1.44 1.62 1.60 Annual change (%) 1997-2007 -0.72 -0.32 -2.19 -0.23 3.04 0.38 0.06 2.72 0.71 2.63 29 The land market in Latin America and the Caribbean: concentration and foreignization global food-energy regime has ledto themassive expansion ofcommercial farms andplantations for these The popularization ofsoybean, sugar cane andoilpalm,allflex crops, inthe context of recent changesinthe columns 4,5and6). except for Guatemala), whilethemedium-level countries are Panama, Mexico andNicaragua (see Table 2.5, Bolivia, Brazil, Chile, Colombia, Ecuador, Guatemala, Paraguay, Peru andUruguay (i.e., allinSouthAmerica, another three amediumlevel. The ten countries where there issignificantlandgrabbing are: Argentina, it canbeargued that ten countries are currently experiencing arelatively highlevel oflandgrabbing and The extent oflandgrabbing isfar greater thanpreviously assumed. Taking abroader analyticalapproach, effect, there isa renewed interest inagricultural investment across the region. framework oftheFAO study interms ofanalysing landmarket dynamics andagricultural transformation. In three columns from theleftofTable 2.5).This iswhat we have mentionedearlierabouttherelatively broad medium andlow definetheamount oflarge-scale landinvestments, notnecessarily landgrabbing (see first definition, we differentiate between ‘large-scale land investments’ and‘land grabbing’. The categories ofhigh, in thecategory ofmediumorhigh,withthelatter category having thebiggershare. Following theFAO and Tobago qualifiesinthecategory of‘low to no’investment, whilethe remaining countries are either large-scale landacquisitions are, generally speaking,present inmany more countries. Infact, onlyTrinidad scale landacquisitions. However, empiricaldata from theseventeen country studies by FAO demonstrate that Brazil, Argentina andParaguay are thecountries usuallycited ascountries where there have beenrecent large- The extent of recent large investments in land is wider in terms of geographic scope than previously assumed. * Basedonanin-depthanalysis oftheseventeen country studies andthesummarypaper, basedontheten defining Table 2.5:Presence oflandgrabbing inselected Latin AmericanandtheCaribbean* speculations of a massive biofuel market, particularly in Europe, and have further exacerbated land grabbing. to blend bio-fuels with other fuels. (Gillon, 2010, Hollander, 2010, Franco et al., 2010). These have triggered 2009, Gwynne andKay, 2004),aswell askey policy contexts suchastheNorth’s mandatory publicpolicies with other regions oftheworld one common context, namely neoliberal globalization (Akram Lodhi andKay, display amore polycentric configuration, withmulti-directional flows of food products. Yet,the regionshares 2008, and van der Ploeg, 2008). This is different from the current global food-energy regime which seems to classic formulation by FriedmannandMcMichael(1989), (see alsoMcMichael,2009, Pechlaner andOtero, second globalfood regimes, anchored by theempires onbothsidesoftheNorthAtlantic according to the one, inearlieroccurrences oflandgrabbing, theregion andindividualcountries were inserted inthefirst and and range ofkey players incontemporary landgrabs are significantlydifferent from earlierepisodes. For among others.While landgrabbing isnotsomethingnew to thisregion, thecontext, condition, orientation industrial forestry, large-scale conservation, carbonoffsetarrangements suchasREDD+,mineral extraction, complex whichischaracterized by ‘flex crops’ andlivestock, as well asinthebroad non-food sector, namely Land grabbing occurs intwo broad sectors: withinthefood sector whichbroadly includesthefood-feed-fuel assumed (see Table 2.5, and compare with Table 2.1). This phenomenon occurs not only in the food sector. features oflandgrabbing, discussed earlier. Guyana Dominican Rep Nicaragua Mexico Uruguay Peru Paraguay Ecuador Colombia Chile Brazil Bolivia Argentina High Presence of recent large investments Panama Guatemala Costa Rica Medium in land Tobago Trinidad & Low tonone Uruguay Peru Paraguay Guatemala Ecuador Colombia Chile Brazil Bolivia Argentina High (domestic &foreign capital) Presence of landgrabbing Nicaragua Mexico Panama Medium Tobago Trinidad & Guyana Dominican Rep Costa Rica Low tonone Costa Rica Mexico Panama Colombia Chile Brazil Argentina other countries investors into Country with in theregion major land 30 The land market in Latin America and the Caribbean: concentration and foreignization land acquisitions inArgentina andChile. (SeeTable 2.6). Guatemala, andGuyana. Moreover, large-scale conservation projects are thehallmarksofrecent large-scale while theexpansion ofindustrial tree plantations isseeninBolivia,Brazil, Chile, Colombia, Ecuador, Uruguay, The search for minerals andfossil fuelshave ledto large-scale miningconcessions inPeru andEcuador, for orchards andvineyards inArgentina, Bolivia,Chile, Uruguay andNicaragua. tic changesinthe globaldemandfor animal feed andanimal products. getables). Itdramatically changedover thepast two decadesto itscurrent 4:3:3ratio, contributing inturnto thedrama- especially China.InChina,Philip Huang(2011) explains that historically, China’s dietwas ona8:1:1ratio (cereals: meat: ve - 10 Oneofthemajorfactors istheincreased consumption oflivestock anddairyproducts inmiddleincome countries, Wilkinson andHerrera, 2010, Novo etal.,2010, in thecaseofBrazil). million in1995 to 45.6millionin2009. Cattle require muchmore landthanany combination of flex crops (see 2009, compared with293 millionin1995; whileinCentral Americathenumberofcattle increased from 41.5 food sectors remain important,especiallylivestock raising. In SouthAmerica,there were 347 millioncattle in This partlyexplains thepreference for thesecrops inseveral countries oftheregion. Nevertheless, other markets for eachandalloftheusesthese flex crops are likely to have rendered investments inthemsafer. precisely becauseofthecharacter ofthepreferred primarycrops. The actual,potential, orspeculated example, to determine precisely the extent and the amount of land converted to the production of biofuels the current context to make aclear-cutdifferentiation abouttheactualuseofthesecrops. Itisdifficult, for it isworth notingtheerratic increase insoya production inCentral America.Itisdifficult,ifnotimpossible, in South AmericaandCentral America).Inthis table, onecanobserve anincrease over thepast decade, though The rise of flex crops, namelysugar cane, soya andoilpalm,has been substantial (see Table 2.7 –data for (conservation projects, includingREDD+). timber), as well as a reaction to policies linked to the strategies to limittheeffects of climate change (especially livestock), thesharpincrease indemandfor minerals andotherprimarycommodities (especially response across theregion to thechangingnature anddemandsofbothflex crops andother food sectors But ingeneral, what we witness in Latin AmericaandtheCaribbeanisalarge-scale, almost simultaneous with various governments indifferent partsofthe world for possible landleasesor contracts for food exports. storyline, especiallywhenwe seesomeChineseandGulfState governments and/or companies negotiating are oriented to food production for export to food insecure countries. There iscertainly sometruthto this the casualdominantnarrative that landgrabs occur becauseofthe2007-2008 food crisisandthat they the food sector that includesflex crops andother foods andthebroad non-food sector. This is contrary to Land grabbing aswell aslandandcapital(re)concentration occurs intwo broad mega-sectors, namely, Source: Country case studies andsynthesis paper Table 2.6:Landgrabbing by country andby (broad) sector 2010) example, Hecht,2005).The phenomenalincrease inthedemandfor meat andotheranimalproducts (Weis, crops inArgentina, Bolivia,Brazil, Colombia, Ecuador, Paraguay, Peru, Uruguay andGuatemala (see, for Trinidad &Tobago Guyana Dominican Republic Panama Nicaragua Guatemala Costa Rica Mexico Uruguay Peru Paraguay Ecuador Colombia Chile Brazil Bolivia Argentina Country 10 , aswell asfor fruitandwine, have inturnledto theexpansion oflandsfor livestock production and Sugar cane, cacao, fruit Sugar cane, livestock, rice, pineapple Sugar cane, bananas,fruit,vegetables Banana, coffee, rice, oilpalm Livestock, rice, oilpalm,sugarcane, citrusfruit Sugar cane, oilpalm Banana, pineapple, oilpalm Maize valuechain,sugarcane, fruit,coffee Soya, dairy, wheat,rice, livestock Fruits, vegetables, sugarcane, oilpalm Soya, corn, wheat,livestock Banana, sugarcane, oilpalm Oil palm,sugarbeets,cane, soya, rice, maize Fruit, dairy, wine, seeds,poultry Soya, sugarcane, poultry, livestock, fruit Soya, livestock Soya, wheat,livestock, sugarcane, fruit Flex crops andotherfood sectors Forestry Tourism, forestry Forestry Flowers, barley, tequila Forestry Minerals Forestry, minerals Forestry Conservation, forestry Forestry Forestry Tobacco, conservation Non-Food 31 The land market in Latin America and the Caribbean: concentration and foreignization (although itwas notcalledthat way) andtheimportance ofthenon-food dimensioninlandgrabs. CFS HLPEreport onlandgrabbing (Toulmin etal.,2011) hasalsounderscored thephenomenon offlex crops up intheFAO casestudies are alsobecoming aparticulartypeof‘landgrab’, asmentionedearlier. The UN comparable to what we see in ChileandArgentina. Some REDD+related enclosures, which were notpicked 2.8 for regional comparisons), whilelarge-scale conservation inAfrica (see, e.g., Kelly, 2011, Corson, 2011) are palm andsugarcane. Meanwhile, industrial tree plantations are equallymassive inAsiaandAfrica (see Table Africa, there is the accelerating phenomenon of flex crops, above all thoseusedas food andfuel,especially oil other regions of the world (Teubal, 2006). However, behind many of the land investment hotspots of Asia and fact that the animal feed (soya) component of the Latin American region remains unmatched elsewhere in hand andthenon-food sector cluster ontheother--that we seeinAfrica and Asia, withtheexception ofthe It isthesametwo categories oflandgrabs –thefood-feed-fuel triangleandotherfood sectors ontheone Source: FAOSTAT, compiled by theauthors. Table 2.7: The riseof‘flex crops’ inSouthAmericaand Central America,area harvested (inha), together by Fairhead, Leach andScoones (2012). grabbing covered inthecriticallandgrab literature; itwas first highlighted inanacademic collection put grabs inthenameofenvironment. Itisbecoming more andmore common to seethistypeofland commercial farms andplantations, amongothers,are beingreferred to collectively as‘green grabs’ –land and Schroeder, 2011). Large-scale conservation, industrial tree plantations, policies suchasREDD+, biofuel local communities across thecountry (see, e.g. Osborne, 2011 inthecaseofMexico; seealsoCorbera i.e. REDD+.Suchpolicieshave animportantimpactinterms oflandcontrol andonthelivelihoods of the seventeen country studies istheemerging trend ofplacingforests underthecarbon-offsetprograms, deal inArgentina) andtheaggregate total are significant.Moreover, not covered inthischapter norin conservation occurs mainly in two countries, Argentina and Chile, the scale of individual cases (e.g. UCB industrial tree plantations intheregion inrecent years hasbeendramatic (see Table 2.8).While large-scale actual andpotential needfor landare industrial tree plantations andconservation. The expansion of Meanwhile, theshare ofnon-food landgrabs issignificant. The two most importantsectors in terms of 2009 2005 2000 1995 1990 1985 1980 1975 1970 1965 1961 2009 2005 2000 1995 1990 1985 1980 1975 1970 1965 1961 1961-2009 42 792 479 40 234 628 24 156 087 18 912 325 17 725 284 14 306 828 11 467 985 6 467 817 1 443 590 115 315 163 048 309 996 488 311 155 287 345 230 111 844 491 639 259 534 83 444 85 992 27 446 Central America South America 9 943 Soya Soya Sugar cane Sugar cane 1 231025 1 219806 1 071684 9 878 744 7 025 810 5 995 162 5 692 331 5 290 929 4 975 021 3 623 922 2 904 841 2 485 528 2 582 414 2 124 775 643 413 946 158 875 047 796 627 882 750 787 752 761 258 500 207 239 204 179 701 109 430 448 313 404 372 341 709 275 364 210 906 123 794 Oil Palm Oil Palm 26 080 76 266 57 197 41 913 35 447 24 708 21 986 22 910 83 088 50 643 57 081 56 500 38 700 32 The land market in Latin America and the Caribbean: concentration and foreignization Tamil Nadu converted to jatropha production (Ariza et al., 2010) or indeed some very productive vegetable converted to new uses inthecontext ofthe renewed landrush;thisisthecase of somevery fertile landin Fig andMonsalve, 2011). At theotherextreme, are landsthat are extremely productive, andwere simplybeing environment (adjacent to adam)then,itcertainly doesnotfall underthe‘marginal lands’category (Borras, taken inisolation, this tract of landmay fitthemarginal landprofile, butwhentaken in relation toitsimmediate do notfitthemarginal landprofile. Atoneendofthespectrumiscase Procana in Mozambique where, similar to thetrend inLatin AmericaandtheCaribbean,sites offlex crops tend to belocated inareas that Kelly 2011, Corson 2011). Butitdoesnotmeanthat theseare always absolutely emptyandavailable. However, that is sparselypopulated andnotfarmed very much,orthemany large conservation areas inAfrica (see eucalyptus industrial tree plantation inPursat, Cambodia (Borras andFranco, 2011) onalarge tract ofland are hectare more Pheapimex orless close to theprofile ofmarginal lands.Onecanthinkofthe300 000 sector suchasindustrial tree plantations andlarge-scale conservation tends to belocated inplaces that investments doesnotalways produce apicture ofwhat hasbeenpromised officially. Indeed,thenon-food countries –butamatching exercise between available zoned marginal landsandemerging enclaves ofland In Africa andAsia,there isasimilarpattern oflandinvestments, whichishighlyuneven between and within expect that landinvestors willfollow (see Nalepa,2012). short, andoverall, itisnaïve to thinkthat itissufficient toindicate available marginal landsonamapand to cannot besaidthat thisisstrictly thecasefor REDD+areas (see, e.g. Osborne, 2011 inthecaseofMexico). In projects are carriedoutinplaces that more orless fittheprofile of ‘available marginal lands’,althoughit non-food-related landdeals,i.e. industrial tree plantations, miningconcessions, andlarge-scale conservation crops’ andotherfood sectors occur (see Cotula etal.,2009for Africa). Itseems,however, that several ofthe and socio-politically and legally available lands – are not where most of the land investments around ‘flex marginal lands’–i.e. marginal, under-utilized orunused,emptysparselypopulated, geographically remote, places –andnotalways andautomatically about‘available marginal lands’.Evidence shows that ‘available well asfavourable socio-politicalandlegalconditions explain theattraction ofsomeparticulargeographic A combination of agro-ecological factors, well developed infrastructure and proximity to water sources, as political andnational securityimplications ofsuchforeign investments. foreign investments within50kilometres from theborders asthey are worried aboutthepotential geo- Argentina. This has in fact prompted national governments in the region to pass laws and policies prohibiting suggesting cross border capitalinvestments, for example, inParaguay alongitsborders withBrazil and plantation corridors alongtheborders where there isthe existing infrastructure neededfor suchinvestments, or nearby smallplots(many ofthemsettlementsfrom thelandreform). There isalsoanemergence of regions). The significant expansion ofsugarcaneplantations in São Paulo occurs at the expense ofadjacent (Echenique and Romero, 2009;Kay, 2002), andthesameistrueinArgentina (inSanJuanandMendoza market gardens andvineyards inChileare concentrated in a few suitablegeographic spotsinthecountry go where there are existing productive landswithwater supplyaswell asproximity to aroad network. The Moreover, studies show that landinvestments donotalways goto such isolated lands.Instead, they tend to Eurasia (Visser andSpoor, 2011). Butthere ishardly any frontier landnow that isempty. empty or at most extremely sparsely populated, or even inabandonedfertile landssuch as those inCentral to some extent, the argument based on this assumption may hold, especially in clearing forest lands that are the arguments around ‘yieldgaps’,amongothers.Inland-abundantcountries, itistheoretically possible that, of globalagricultural landreserves (Deininger, 2011, butseeBorras andFranco, 2010a). This isthereason for crises offood, energy, climate changeandfinance capitalhave asolution,andthesolutionlies in the existence located in‘marginal lands’.The narrative onlanddealsworldwide isbasedonasimpleassumption: that the The scaleandpace oflandgrabbing isuneven between andwithincountries, andinvestments are notalways Source: UNEP(forthcoming, Chapter onLand)basedcasestudies andsynthesis report. Table 2.8: crease (%) In- Annual ha) crease (000 In- Annual (000 ha) 2010 Area, Plantation thousands ofhectares) Plantation area, by region, andincrease in(tree) plantation area from 2000to 2010 (in Africa 15 409 1.75 245 Asia 115 783 2 855 2.87 Oceania 4 101 2.12 78 Europe 69 318 0.60 401 Caribbean 3.34 547 15 America Central 3.14 584 16 America North 37 529 2.46 809 America South 13 821 3.23 376 World 264 084 4 925 2.09 33 The land market in Latin America and the Caribbean: concentration and foreignization within andoutside region andfrom theBRICS have resulted intheexpansion ofextractive industries that Secondly, sharpincreases inthedemandfor minerals andforestry products from middle-income countries Franco etal.,2010, Wilkinson andHerrera, 2010). been theprincipalreason for theconsolidation andexpansion ofsugarcaneand oil palmintheregion (see, main producer ofsoya. Biofuelproduction hasbeenakey driver within thefood-feed-fuel triangle, and has expansion oflandsfor livestock production across theregion, andhastransformed theregion into theworld’s largely accounted for theconsolidation ofthefruitandwinesectors inChile, haspushedfor thecontinuing the region, for meat, animalproducts (dairy), fruitandwine(Weis, 2010). This changed(external) context has and changingpreferences, especiallyfrom middle-income andrapidly urbanizing countries withinandoutside region. Inaddition,thisisalsoseeninthechangingpatterns ofconsumption, i.e. sharpincreases inquantity as well astheexpansion offlex crops, particularlysoya, sugarcaneandoilpalminseveral countries ofthe al., 2010). This canbeseen partlyfrom thecontinuing expansion ofthelivestock (especially cattle) sector, demand from theglobalfood-feed-fuel triangleare key drivers inthecurrent landrush(Graziano daSilva et and diverse butcanbeclustered into four broad categories. First, thechangingcharacter andincreasing As discussed earlier, thekey drivers ofthecurrent landrushinLatin AmericaandtheCaribbeanare multiple control oflandasadirect reaction to thesurge oflarge-scale landinvestments, aswitnessed inSouthAmerica. However, there are no known majorinitiatives or trends elsewhere that seek to curtail foreign ownership or current initiative in the national parliamentto amendtheConstitution isprincipallyaimedat doingjust this. of landordirect production operations incountries where thiswas notyet thecase. InthePhilippines, and theformer Soviet Eurasia. Intheseplaces, initiatives have beentaken to furtherliberalize foreign ownership In someways, andby mere comparison, thetrend inSouthAmericaisdifferent from landgrabs inAsia, Africa investors, explain why somelandinvestors acquire landsinonecountry andnotinanother. political andlegalconditions, aswell astheextent to whichnational governments market theirlandsto large-scale landinvestments by foreigners. Itseemsthat acombination ofagro-ecological, economic, socio- are thefriendliest towards foreigners –andyet, ithasbeen oneoftheleast successful countries inattracting Nicaragua isperhapsoneofthecountries intheregion withliberal laws andpoliciesfor landinvestment that massive landinvestments, foreign anddomestic, have beenopenedupduringthepast decade. Incontrast, of laws andpoliciesprohibiting or regulating foreign landownership ofland, it isinthese countries where reflecting the controversial andsensitive nature oftheissue of foreignization ofland. Yet despite the existence where there isnolegislation except inGuatemala. InSouthAmerica,thisissue issuchahottopic at present, underway andinfullswing intheregion). The difference isglaringwith Central AmericaandtheCaribbean Peru. (This soundscontradictory becauseliberalization andforeignization ofcapitalandenterprises have been policies andlaws prohibiting, controlling, orregulating foreign ownership oflands.The most recent to date is all governments inSouthAmerica(andalsoMexico) have existing laws and/or have recently passed new deals, evidence suggests that suchpoliciesdonotautomatically translate into theexpected outcomes. Nearly In addition,andinterms ofnational policiesinfavour oflimiting,ortryingto limit,large-scale (foreign) land in Brazil askey sites for landinvestments, theChaco region inParaguay andBolivia,soon. land usechangeisquite radical. By comparison, we canthinkoftheallocation intheAmazon andtheCerrado to mappingandallocating ‘special economic zones’ (see, e.g. Levien, 2011) –onlythescalehere ismassive and Makki, 2012), orthepre-mapped areas for the‘Economic LandConcessions’ (ELCs) inCambodia.This issimilar the lowlands, inthesparselypopulated areas Benishangul-GumuzandSouthOmo(Lavers, ofGambella, 2012, for large-scale landconcessions. This isthecaseofEthiopiawhere large-scale foreign landinvestments were in within countries. Inseveral countries, national governments carved outbigchunksoflandsandassigned these Furthermore, there are similarbroad patterns interms ofgeographic spread oflandinvestments between and Nadu (Arizaetal.,2010), thereby directly competing for water use, thusaffecting the food sector. Nadu, India(Ariza et al.,2010). For this crop to be viable, farmers had to useirrigation as in thecase of Tamil province, Philippines(Borras andFranco, 2011), Kenya (Hunsberger, 2010), andindeedinmany places inTamil did notprove to becommercially viable, asfor example inthecaseofaSouthKorean investment inSaranggani grown inmarginal condition IV. Key drivers andactors oftheregional landrush 34 The land market in Latin America and the Caribbean: concentration and foreignization ‘carbon arrangements offset’ through REDD+. sugar canefrom Guatemala. Othersare linked through specialclimate change mitigation strategies suchas Chinese buyers ofsoya to Paraguay, Argentina andBrazil, orfruitandwinefrom Chile, ethanolfrom Brazil, a variety ofways to theregion’s agricultural sector, suchasthrough trade that linksEuropean, Americanand going capture ofvalue andprofit throughout thechain.Otherinternational investors are of course linked in Berdegué, 2002). ‘Commodity grabs’ or‘value chaincapture’ mightbeausefulconcept to describethison- States that are deeply entrenched withinthe Mexican andCentral American food sector (Reardon and through supermarket companies that control value chains suchasanumberofcompanies from theUnited involved in banana cultivation in several countries, and so on.On the otherhand,they are engagedindirectly also recently announced aninvestment hectares billionto farm inPatagonia), 330 000 theTNCs ofUS$ 1.5 in Patagonia, alsoinArgentina (theChinaHeilongjiangBeidahuangState Farms Business Trade Group has million hectares of land in Argentina for conservation and for sheep farming, or thelarge-scale conservation directly in land acquisition as is the case of United Colours of Benetton (UCB) that has acquired nearlya in otherfood sectors aswell asinnon-food land-oriented ventures. Ontheonehand,they are engaged land investments itself. More generally intheregion, theseinternational investors are engagedinflex crops, while itisbecoming increasingly involved inlandinvestments outsideBrazil, itisalsohost to many foreign others (see Table 2.9).For amore detailedcountry case, Brazil isinteresting (see Tables 2.10 and2.11) because investments. They originate from countries suchastheUnited States, Canada,Spain,Portugal, Italyand Conventional TNCsare currently entrenched intheregion, andto asignificant extent engagedinland these governments’ involvement that we seeinAfrica, Asiaandformer Soviet Eurasia (see Table 2.9). of arrangements, butnothingconcrete hasbeen agreed uponinthisregard, orat least notonthescaleof the governments of the GulfStates, China, South Korea, andJapanfor possible landacquisitions via a variety investors inthiscategory are notsosignificantinthe region. There have been recent negotiations between and theCaribbean.They may begovernments orprivate transnational corporations (TNCs). Governmental The ‘international investors’ category covers thoseinvestors whoare mainlyfrom outsideLatin America the central state (see Table 2.9). namely, international investors, (Trans)Latina investors, domestic ornational capital,finance companies, and In addition, and for our purposes, the key actors active in the region can be usefully categorized into five, (Toulmin etal.,2011). This ismore orless thesamesetofkey drivers identifiedand examined intheUN FCS HLPElandgrab report Caribbean are thesameasthosethat have causedthelandrushinAfrica, Asiaandtheformer Soviet Eurasia. actual production (Deininger, 2011; Cotula, 2012). Yet, thefour clusters ofkey drivers inLatin Americaandthe the landrecently acquired andallocated through large-scale landinvestments hasnotseenany increase in in Africa, aswell aspartsofAsiaandtheformer Soviet Eurasia. Inthebeginningof2011, upto 70 percent of especially livestock, orindustrial tree plantations) seemto besignificantlydifferent from land investments From a comparative perspective, land investments in Latin America (in flex crops, other food sectors Whether ornotandto what extent thishasled to orwillleadto speculative landinvestments remain to beseen. where headquarters are located inknown taxhavens, suchasPanama andCayman Islands(see Table 2.5). crops. This canbeseenpartlyinthenumberofcompanies whoseoriginsandsectors are notthat clear, and Fourthly andfinally, the recent financialcrisishasperhapspartlymadeland investments safer, especially flex any significant way intheseventeen country studies. emerging asanimportantdriver oflandgrabs, butasmentionedearlier, thishasnotreally beenexamined in scale conservation projects have beencarriedout.Across theregion, REDD+,undercertain conditions, is led to theenclosure of vast tracts of lands in the region. Argentina and Chile are two countries where large- Thirdly, policiesbroadly linked to thedifferent responses to theenvironmental crisisandclimate changehave expansion ofindustrial tree plantations. extractive industry (Bebbington etal.,2009),whileseveral countries have witnessed rapid andmassive require thecapture orcontrol oflands.Peru andEcuador stand outaskey areas ofexpansion ofthemineral 1. International investors 35 The land market in Latin America and the Caribbean: concentration and foreignization MININCO, has38percent ofitsindustrial tree plantation operations inArgentina and Brazil. tree plantation operations outsideChile(inArgentina, Brazil andUruguay), while anotherChileancompany, companies operating elsewhere in the region. The Chilean company CELCO has 26 percent of its industrial of total soya production inBoliviaisunder thehandsofnon-Bolivians.Tables 2.13 and2.14 refer to Chilean directly linked to thechangingglobalcontext (Mackey, 2011). SeeTable 2.12 where itisshown that 43percent much earlier, butgainedmomentum inrecent years andtheemerging orientation ofproduction hasbeen ones. Also, many Brazilians have ended up owning significantquantityoflandsinBolivia–a trend that started soya orengageinlivestock raising, creating recurring tensions between thelocalfarmers and theBrazilian individual oralegalentity. For example, many Brazilian farmers buyuporleaselandsinParaguay to produce Latina). Eithertypemay have somelinkwithinternational finance. Eithertypecanbeinthe form ofeither an single origininterms ofnationality (Latina) oranalliance oftwo ormore Latin Americancompanies (Trans- companies (TNCs), but the (Trans-)Latina Corporations (TLCs). The latter are oftwo types: a company witha situation where perhapsthemost importantland investors intheregion are nottheconventional transnational Equally importantistheriseofseveral middleincome countries (MICs) intheseregions. This hasresulted ina phase ofcapitalist development today istheriseofpowerful regional economic players, above alltheBRICS. Following the discussion above, one of the most palpable changes in the global food-energy system and the where palmoilexpansion issignificant. to theanticipation ofanincreasing market inEurope; thesame ishappeninginColombia andGuatemala investment through avariety ofindirect ways: e.g., massive expansion oftheIndonesianoilpalmispartlydue the common denominator inalltheregions mentionedisthat landgrabs are very muchlinked to international from outsidetheregion isprobably muchlarger inLatin AmericaandtheCaribbean.However, itislikely that is marked by significantintra-regional transnational investments, the role played by international investors former Soviet Eurasia thanin Latin AmericaandtheCaribbean.Butcompared to Southeast/East Asia,which of international investors interms ofdirect involvement inlandgrabs isfar more widespread inAfrica andthe of theseactors asdiscussed above, isbroadly similarto what we witness inAfrica. However, theoverall role In comparison, the significance of international investors from outside the region, and thechangedcharacter food-feed-fuel triangle, otherfood sectors, andnon-food sectors that have beenanalysed. reaching for theformal andinformal rulesthat govern production, distribution andconsumption within the the Caribbean.Itisnotdifficult tosurmisethat theimplications ofthischangedglobal configuration are far- originating from theBRICSandseveral middleincome countries –bothwithinandoutsideLatin Americaand witnessing not onlyNorthAtlantic-based TNCsandempires, butafar more diverse range ofactors, namely biofuel companies, andsoon,reflecting thechangedglobal food-energy regime. Geopolitically, we are TNCs involved intheregion today includeunconventional actors suchasoilcorporations, auto conglomerates, witness is not only the conventional food-feed TNCs involved in agricultural input-output markets (Teubal, 1995). the governance structure ofthefood-energy complex, bothsectorally andgeopolitically. Sectorally, what we current trend suggests of multiple centres of power, a more diverse range of key international actors within by empires oneithersideoftheNorthAtlantic (FriedmannandMcMichael,1989; McMichael2009). The context ofanemerging polycentric food-energy regime –incontrast to previous food regimes anchored It isimportantto examine theconstellation ofinternational investors involved intheregion today withinthe Source: FAO seventeen country studies, plusthesummarypaper Table 2.9:Selected landinvestors inLatin America andtheCaribbean(partial) Colombia Chile Brazil Argentina (Trans) Latina Japan South Korea European countries United States China Gulf States International vestors Countries of origin of foreign in- 2. (Trans)Latina investors Bolivia, Peru Argentina, Brazil, Uruguay, Colombia, Ecuador, Peru Bolivia, Colombia, Paraguay, Uruguay, Chile Brazil, Uruguay, Paraguay Brazil, Colombia, Ecuador Argentina, Brazil Colombia, Peru, Uruguay, Mexico Colombia, Peru, Mexico Argentina, Brazil Argentina, Brazil Countries active ininvestment 36 The land market in Latin America and the Caribbean: concentration and foreignization Source: SauerandLeite (2012) basedonINCRA,May 2010. Re-worked by theauthors. Table 2.11: Originofthecapitalinvested inBrazil, 2010 Source: SauerandLeite (2012) basedonINCRA,May 2010. Re-worked by theauthors. Table 2.10: Numberandarea ofrural estates owned by foreigners inBrazil, asofMay 2010 Total Invalid data Inexistent data Others Sub-total Netherlands Germany Spain Lebanon Italy Japan Portugal State Brazil Total Distrito Federal Goiás Mato Grosso Mato Grosso Sul Rio GdeSul Santa Catarina Paraná São Paulo Rio deJaneiro Espírito Santo Minas Gerais Bahia Sergipe Alagoas Pernambuco Paraíba Rio GdeNorte Ceará Piauí Maranhão Tocantins Amapá Pará Roraima Amazonas Acre Rondônia Country Area (hectares Number of 4349002 34 371 12 291 1 208 690 2 787 713 1 030 119 estates 1 229 1 895 1 290 5 130 2 110 2 639 2 192 1 143 352 598 530 927 114 189 123 667 127 499 172 696 256 145 432 469 217 843 781 304 101 368 248 128 401 184 181 307 119 81 82 15 66 26 100.00 35.76 14.93 0.63 2.45 3.58 2.27 5.51 3.75 6.14 0.88 7.68 6.38 0.24 0.29 1.07 0.72 0.37 1.17 0.24 0.54 0.53 0.04 3.33 0.19 0.89 0.08 0.35 % % oftotal 100 00 12.21 27.79 23.68 8.11 2.62 2.84 2.93 3.97 5.89 9.94 4 349 074 491 437 230 629 844 279 473 325 113 801 299 061 491 548 368 888 109 517 235 628 232 021 Area (ha) 54 605 85 284 19 770 13 577 20 806 34 734 58 770 70 135 27 729 13 799 29 242 4 314 3 439 9 667 6 828 6 228 15.51 36.95 4.10 4.44 4.57 6.19 9.19 % 100.00 11.30 19.41 10.88 11.30 0.10 0.08 0.22 0.16 0.14 1.26 1.96 0.45 0.31 0.48 0.80 1.35 1.61 0.64 0.32 0.67 5.30 2.62 6.88 8.48 2.52 5.42 5.33 % 37 The land market in Latin America and the Caribbean: concentration and foreignization Table2.14: Area oflandandplantations by theChileancompany MININCO Source: CELCO Report, 2012. Table 2.13: Area oflandandplantations by theChileancompany CELCO Source: Mackey, 2011. Note: (a)data may nottotal dueto rounding errors insource data (1994,1999, 2004, 2009summerseasons) Table 2.12: Bolivia–Changeinlandarea (ha)undersoybean production by originofproducer empirical research. future trajectories ofagrarian transformation andgovernance remains to beseenandwillrequire further going to Paraguay, Chileansto Argentina, Costa Ricansto Nicaragua, andsoon.Again, what thisimpliesfor or Malaysian companies inthePhilippines (Borras andFranco, 2011) have someresonance withBrazilians borders to forge landdealsinCambodiaandLaos(Kenney, 2012), orThai companies inCambodiaandBurma, Argentina) andSoutheast Asia(Malaysia, Indonesia,Vietnam, andThailand). Vietnamese companies crossing the region are very comparable between Latin America (Chile, Uruguay, Mexico, Costa Rica, in addition to investments between andwithinregions. The extent and character ofkey landinvestors from MICSwithin Africa, asinLatin AmericaandSoutheast Asia. This partlydifferentiates theintra-regional trajectories inland Moreover, thepreponderance ofMICS withinaregion alsodoes seem to matter. MICSare not ascommon in empirical research. production, trade andconsumption –aswell asgovernance –remains to beseenandwillrequire further Taiwan andSingapore (Borras andFranco, 2011). What thisimpliesinterms offuture patterns of intra-regional investments inSoutheast/East Asiawhere we canincludeChina andotherkey players: South Korea, Japan, Spoor, 2011 and Visser, Mamanova and Spoor,2012 for a comparison). They are however comparable to similar we witness inAfrica (see Hall, 2012 for acomparison) ortheoneinformer Soviet Eurasia (see Visser and transnational investments are far more extensive andvibrant inLatin AmericaandtheCaribbeanthanwhat South Africa isto Africa orRussia to former Soviet Eurasia. Interms ofthescaleinvestments, intra-regional/ heterogeneous between regions. What Brazil isinLatin AmericaandtheCaribbeanisdifferent from what Yet, itisnotanissue ofmere presence orabsence ofapowerful region-based player. Itis alsoquite Source: CMPCReport, 2012. Total Others Japanese Argentineans Mennonites Brazilians Bolivians Country ducer Origin ofpro- Chile Brazil Argentina Total Total Uruguay Brazil Argentina Chile Country 241 793 103 490 27 700 19 075 86 760 4 768 1994 - Land area Land area 1 658 751 1 115 237 1 037 722 135 011 145 109 263 394 730 335 213 104 94 283 11% 43% 36% 100 2% 8% - 509 040 142 330 166 700 131 760 30 450 37 800 Forest plantedarea 1999 - Forest planted 28% 33% 26% 7% 100 6% 504 406 112 689 679 916 1 019 639 62 821 130 101 736 637 - 78 234 74 667 area 602 000 145 800 185 500 189 700 40 500 40 500 2004 - 24% 31% 32% 100 7% 7% - 700 331 113 116 175 886 301 715 32 044 70 480 7 090 2009 7 100 25% 10% 16% 43% 1% 5% 38 The land market in Latin America and the Caribbean: concentration and foreignization capital accumulation –asinthecase ofpresent-day Colombia (Ballve, 2011, Grajales, 2011) andin many at organizing territory, enforcing its sovereignty andauthority, aswell assupportingwithenthusiasmprivate Colombian territory (Cardenas, 2012; Grajales, 2012). In some cases, coercion accompanies the state’s effort A concrete example ofinvolvement by thestate usingtheseinstruments isthe Colombian State inAfro- mapping and land use reclassification is animportant instrument employed by the state (Nalepa,2012). legal control inexchange for new large-scale land-basedinvestments ontheselands.Here, technical re- appropriation and(v)reallocation/disposing oftheselandsto transform suchscarce resources undertheir (i) invention/justification, (ii)definition, reclassification, quantification, (iii)identification, (iv) acquisition/ role infacilitating landinvestments inthesespaces includesome, orall,acombination of thefollowing: in systematic policy andadministrative initiatives around thenotionof‘available marginal’ land,andtheir land investments orpromoting national companies to invest abroad hasbeencritical.Allstates are engaged emphasis. In Latin America and the Caribbean, the role of the central state in either promoting (foreign) global landrush.The role played by thecentral state isoften inadvertently ignored ornotgiven sufficient Attention hasbeenfocused onforeign private companies andforeign governments and their role inthe the current context. key is to establish the direct andindirect ways inwhich domestic and international investors are entwinedin this doesnotdiminishinany way thecriticalrole played by foreign investors incontemporary landgrab. The on most occasions worldwide, andthey remain ingreater control oflandinthecurrent globallandrush–but to recognize that domestic elites are directly andfrequently involved insuchtransactions inamajorway and 20,000 hectares ofland,withThai capital,for sugarproduction andexport to Europe. Inshort,itisimportant case ofKampong SpeuSugarCorporation inCambodia,aCambodian company, engagedinthelandgrab of companies take direct control ofeverything elsebeyond that (Franco, Carranza andFernandes, 2011). The domestic partners were recruited to take direct charge oflandacquisition andconsolidation, andtheforeign or to the new broader global context. The case of Isabela in the Philippines mentioned above is classic: that formally control land, but subsequent investments are directly or indirectly linked to foreign investors However, thisphenomenonshouldnotto betaken outofcontext. Inmost places, it isthedomestic elites cane ethanolplantation (Franco, Carranza andFernandes, 2011; Borras andFranco, 2011). company that, inturn,leasedlandsfrom landreform beneficiaries to establish the country’s largest sugar the country, analliance ofTaiwanese, Japanese andAmericancompanies forged ajointventure withalocal ethanol. Inanothercase, inIsabelaprovince inthePhilippines,since foreign companies cannotown lands in not marginal lands–seeBorras andFranco, 2011). The focus isontheproduction ofcassava andoilpalmfor – to develop these‘empty, marginal lands’into productive farms for food security(whichturnedoutto be formally allocated onemillionhectares oflandto thesetwo companies –oneFilipinoandtheotherMalaysian in thePhilippinesisSanMiguelCorporation-Kuok Company landdealwhere thePhilippinegovernment linked to transnational finance capital. Perhaps thelargest recent formal landallocation (at least onpaper) Indonesia, asisMalaysian capitalinMalaysia’s palmsector. Ofcourse, muchofthisnational capitalisinturn The situation isvery similarinSoutheast Asia.Indonesiancapitalismost dominantintheoilpalmsector in In Africa, Cotula (2012) explains asfollows: The key importance ofdomestic ornational capitalists inlanddealstheregion issimilarto otherregions. land asapartnerintheenterprise. ventures inorder to circumvent theproperty ownership limitation by recruiting alocalcompany that canown foreign ownership oflandinmost countries across Latin Americahave perhapsled,inpart,to corporate joint significant insome countries beyond the region, suchasEthiopia (Cotula, 2012). Meanwhile, efforts to control extent thePortuguese landinvestors inBrazil are partofthediaspora –seeTable 2.11). This phenomenonis outside theregion play animportantrole in‘foreign landinvestments’ remains to beresearched (e.g. to what as inthecaseofBrazilians orJapaneseinBolivia(Mackey, 2011). Whether andto what extent diaspora from differentiation between foreign andlocalisblurred especiallywhenitinvolves naturalized and/or dualcitizens, (Trans-)Latina companies, theparticipation ofnationals remains common andsignificant.Insomecases,the in recent ventures linked to thechangedglobalcontext. Inseveral investments involving international and and capitalists) remain themost importantinvestors inlandandagriculture, includingtheirinvolvement feat 4. 3. that, inSenegal,acquisitions by nationals accounted for 61% ofacquired landareas. and Ethiopia(49%) –thoughonly7%inLiberia(Deiningeretal,2011). Similarly, Faye etal.(2011) found acquired in Nigeria, and for about half or more in Sudan (78%), Cambodia (70%), Mozambique (53%) period 2004-2009. The World Bankstudy found that nationals accounted for 97% ofthelandarea In Ethiopia,for example, domestic investors account for over 60%ofthelandarea acquired inthe National/domestic investors Central state 39 The land market in Latin America and the Caribbean: concentration and foreignization critical narrative. extent inLatin AmericaandtheCaribbean. However, thechangeinland use doesnotalways fitthedominant from small-scalefarming to large-scale industrial plantation isalsosubjectto criticism.This occurs to some for localconsumption and/or into landto produce food andbiofuelfor export. The conversion oflanduse One of the most contentious features of global land grabbing is the conversion of land used to produce food state-society relations around theglobalphenomenonthat islandgrabbing. from theperspective ofclass (Bernstein, 2010) aswell asto qualifypoliticallyandhistorically the analysis of to understand better therole ofthestate incontemporary landgrabbing isto analyse state-capital relations issue: legallyandtechnically speaking, takingwhat isyours isnotalways considered ‘grabbing’. Afirst step In short,thecriticalrole ofthecentral state inthecurrent landrushmakes the issue ofland grabbing amurky and over time(Fox, 1993, chapter 2).This isthecaseacross Latin Americaand the Caribbean,asitiselsewhere. political legitimacy –makingaccumulation andlegitimation uneven andcontested, across geographic spaces domestic, though itisalways accompanied by theothertaskofstate to maintainaminimumlevel of (Grajales, 2011) iscarriedoutto alarge extent onbehalfofthedominantclasses ofcapital,transnational or and (para)military force to enforce compliance withthestate simplification project, asinthecaseof Colombia Again, a good example in the region is the Afro-Colombian case (Ballve, 2011). Thirdly , coercion through police building process where sovereignty andauthorityare extended to previously ‘non-state spaces’ (Scott, 1998). Secondly, beyond theeconomic benefits,landinvestment isalsoviewed asabuildingblock for the state- the Cerrado inBrazil (Oliveira, 2011). territories asinthecaseofAfro-Colombians (Cardenas, 2012) ortakingover grasslands suchasthecaseof investments inLatin America andtheCaribbeanare infrontier regions, encroaching onindigenouspeoples’ does notshow significantagricultural production activities,theseare un-usedlands.Currently, many land the official censusdoesnotshow formalsettlements,thenthe landisemptyland;ifthesameofficial census the notionof‘available marginal, emptyland’:ifithasnotbeenformally privatized, thenitisstate-owned; if the official powers ofthe state to register land relations and (re)classify land. Thisinturnbringsusback to land-based social relations that are otherwisetoo complex for state administration (Scott 1998).This requires processes legibleto thestate. The creation oflandregistries, landrecords andtitlesare attempts at simplifying First, inorder to administer andgovern, states engageinasimplification process to render complex social force to enforce compliance, extend territorialisation, andactasbroker for private capitalaccumulation. process’, assertion of sovereignty and authority over territory, coercion through police and (para)military emerging that are relevant for anunderstanding ofcontemporary landgrabs, namely, ‘state simplification Stepping backto lookat thebiggerpicture three broadly distinct butinterlinked areas ofstate actionare is beginningto correct thisomission. (see, for example, Peluso andLund,2011, Borras etal.,2011). grabbing was initiated, thistopic was notresearched, thoughnew scientificliterature onthe role ofthe state firmly established inscholarlyliterature. Itisunfortunate that whencurrent research into current globalland radical studies –thecentrality oftherole ofthestate intheprocess ofprivate capitalaccumulation isquite by dispossession’, orthePolanyian critiqueofprivatizing nature (Polanyi, 1944),andinotherradical eclectic (‘primitive accumulation’), ortheDavid Harvey (2003) reformulation ofacontinuing process of‘accumulation Whether inthecontext oftheoriginalMarxist formulation ofastage towards capitalist development Concessions orELCs. re-mapping ofCambodiaby thestate, identifyingvast tracts oflandsthat are allocated asEconomic Land land, andreallocated hugetracts asfree zones for (foreign) landinvestments. This isthesamecasein natural resources, especiallyland.ItistheEthiopianState that proactively re-classified and re-zoned its opportunities opened up by the changes in the global political economy that allows them to exploit their and hapless victimsassomereports would suggest. States are manoeuvringactively to exploit emerging In examining thecaseoflandgrabs inEthiopia,Lavers (2012) argues that host countries are notpassive right to expropriate landsfor the‘publicgood’isoften invoked whenexpropriating landfrom peasants. the context ofdebates around theSpecialEconomic Zones (SEZs) inIndia,where thestate’s constitutional regions oftheworld despite different contexts. Levien (2011) has examined the role played by the state in The role played by thecentral state inLatin AmericaandtheCaribbeanisquite similarto that V.

Dynamics oflandusechange 40 The land market in Latin America and the Caribbean: concentration and foreignization Table 2.15: Character, direction andorientation oflanduse changes plantations inCambodiato large-scale conservation projects inAfrica. change intheregion isalso not uniqueasitisthesamecaseinmany partsoftheworld: from industrial tree grazing landsinMozambique for conversion to sugarcaneplantations for biofuels.The D2pattern oflanduse clearing ofIndonesianforest for conversion to oilpalmplantations to theacquisition ofsecond growth forest/ The C2pattern oflandusechangeintheregion are similarinmany partsoftheworld: from themassive investors are dominantinlarge-scale conservation. Chilean companies involved inindustrial tree plantations withinand outsideChileascited earlier. International domestic elites, plusasignificant(increasing) role played by (Trans)Latina companies, suchasthe example of forestry captures (e.g. viaREDD+)suchasthoseinMexico (Osborne 2011). The range ofinvestors issimilar: Bolivia, amongothers,large scaleconservations inArgentina andChile, aswell theemerging carbon-related For D2,examples includemany ofthelarge-scale industrial tree plantations inBrazil, Uruguay, Chile, Argentina, among othercountries. international investors. Anotherexample ismuchofthesoya expansion inParaguay, BoliviaandArgentina, Brazilian Amazon andtheCerrado where there iscurrently amajorlandrushby domestic, (Trans) Latina and use (timber, carbonoffset contracts, andsoon),also for export. For theC2type, examples includethe and others). This isinadditionto D2where thesametypeoflandisbeingconverted to landfor non-food savannahs, are beingconverted to production sites for flex crops andother food for export (fruit,livestock does occur in Latin America and the Caribbean, namely, C2 where non-food lands, including forests and Based onFigure 2.1 andTable 2.15, we seethat what criticsobjectto withregard to large-scale landinvestments Adapted from Borras andFranco (2012) Figure 2.1: Maindirections oflandusechange land useiscaptured inFigure 2.1 andelaborated ingreater detailinTable 2.15. analyse land use change dynamics perspective. A broad typology of four ideal-type directions of change in key sector), inadditionto non-flex crop commodities suchastimber. The notionofflex crops willbeused to portion ofnew landinvestments are intheseflex crops andother food sectors (livestock raising remains a possibilities for trading, depending on price movements or state subsidies. It is not surprising that a significant towards theboom-bust cycles ofvarious crops may bepartlysolved by flex crops where onehasmultiple crops may have beenpartlyovertaken by thenew notionofflex crops. The problem ofinvestment anxiety of agrarian change, specificallylandusechange. The conventional notionof comparative advantage between are in turn an integral part of the changing food, feed and fuel triangle. This hasimplications on trajectories global food-energy regime haspartly shaped and hasbeen reshaped by theriseoftheseflex crops, which mills, andsoon.The convergence offood andenergy crises,andthefusionoffood andenergy sectors inthe BRICS andtheMICs.The technological requirement for flex crops hasbeenestablished: e.g., flex sugarcane expansion of livestock raising, especially cattle – intheglobalcontext ofexpansion ofthemiddleclass in the waves ofenclosures istheemergence of‘flex crops’, asalready mentionedabove, as well asthe continuing One phenomenoninagriculture that partlydifferentiates thecurrent globallandgrabbing from previous Non-food toFlex crops/food Type C Food toFlex crops/food Type A B2a B1 B A3 A2 A1 A Ideal Type change Food for consumption, domesticex change Food for consumption, domesticex Food production dustrial farming Food for export, mono-cropping &in- change Food for consumption, domesticex Food for consumption Food production From

Non-food toNon-food Type D Food toNon-food/food Type B - - - but corporate-controlled Non-food for localuseanddomesticexchange, Non-food for export conservation, REDD+,andsoon). Non-food production (industrial tree plantation, small-scale, poly-culture Food for consumption anddomesticexchange, Flex crops/food for export Flex crops/food for domesticexchange Flex crops/food production To

41 The land market in Latin America and the Caribbean: concentration and foreignization international investors, especially those involving foreign governments, is not as widespread as it is in Africa In the context of Latin America and the Caribbean, however, and as mentioned earlier, the extent of Japanese investors) are anotherexample. The GulfStates, Chineseand SouthKoreans whocurrently control landintheCerrado inBrazil (andearlier, different from the less tension-filled Brazilian presence in Santa Cruz, Bolivia, as noted by Mackey, 2011). what is sometimes referred to as ‘Brasiguayos’, Brazilian commercial farmers in Paraguay, is however quite example of how potentially and really explosive this issue is in the region. The tension-filled phenomenon of feel aggrieved oftheir dispossession ofland that hasbeentaken over by Brazilian capitalist farmers isone global land grabbing. The political tension in Paraguay near the border with Brazil where native Paraguayans especially becauseittouches theraw nerve ofwhat isacontroversial andpolitically sensitive dimensionof foreign governments andtheunderminingoffood security).Itiscertainly quite relevant andimportant, of anddebates around ‘foreignization’ oflandproperty (The principalframing beingtheinvolvement of The seventeen FAO studies have beenframed secondarily (though significantly) withintheperspective al. (2010). as well asspatially andtemporally –withoneinfluencingtheother, asempiricallydemonstrated by Novo et of cattle, food crops, soya andsugarcaneinBrazil isbetter seenasinterlinked –inpoliticaleconomic terms, is importantto determine whetherand how different patterns are linked to each. For example, the expansion Finally, thedynamicsoflandusechangeshown inTable 2.15 shouldnotbeseenasunconnected patterns. It contradictions ofalternative production models. community, andsoon)as studied by Fernandes etal.(2010) isagoodillustration ofthedilemmas and The caseofcompeting modelsofalternative biofuel production inBrazil (corporate, community, corporate- as B2–B2aandB2b, where thedifference iswhetherornottheproduction model is corporate-controlled. (Altieri andToledo, 2011, Rosset etal.,2011). Otherpatterns mightbemore complex andposedilemmas,such basis for possible alternatives, including‘food sovereignty’ alternatives basedonagro-ecological perspectives in theseparticularflows, thismay bedifferent forothers,suchasA1orA3. The latter may in fact provide some and elsewhere outsidetheregion. While there are somepotential andactualsocialenvironmental issues However, A2, B1, C2 and D2 are not the only patterns of land use change in Latin America and the Caribbean not really occurred inany significantoralarming extent inLatin Americaand the Caribbean. criticized A2andB1 patterns ofland use change (see Table 2.15), whiletrue in many regions of theworld, have in thisregion (see Table 2.1). Overall, muchofthelandinvestment occurred infrontier land.Hence, theheavily case studies reported noevidence to show that food securityhasbeenunderminedto any significant extent displaced anddispossessed, directly involving about6.6millionhectares offarmland. Most, ifnotall,country in Colombia to pave theway for oilpalmexpansion. To date, itisestimated that 5.1 millionpersonshave been a few possible exceptions, suchaspeasantfarmers andAfro-Colombians whowere expelled from theirlands China. Most country studies in the FAO study on land grabs in the region have reported along this line, with i.e. the A2 and B1 flows (see Table 2.15) – or at least not on the scale witnessed in Africa and Asia as well as in existing food-oriented peasantagriculture into flex crops/food products andnon-food products for export, that evidence tends to suggest that themajorityofrecent landinvestments didnothappenby converting pre- However, what isdifferent inLatin AmericaandtheCaribbeanas compared to other regions inthe world is Note: Source: Adapted from Borras andFranco (forthcoming, 2012). VI. D2 D1 D C2 C1 C B2b

devoted to livestock. campaigns; they allrepresent changefrom local/domestic useto production for export. Food landsinclude more heavily shaded rows represent those types that are the object of anti-land grabbing views and political Dynamics oflandchangesinproperty andlabourrelations Non-food lands Non-food lands Non-food andmarginal/idle lands Non-food lands Non-food lands Non-food change Food for consumption, domestic ex - Non-food for export change Non-food production for useanddomesticex Non-food production Flex crops/food for export change Flex crops/food for consumption, domesticex Flex crops/food production corporate-controlled Non-food localuseanddomesticexchange, non - - 42 The land market in Latin America and the Caribbean: concentration and foreignization 11 SeeZoomers (2010) for adiscussion ofthetopic. and the‘diaspora-as-foreign-land bothare grabber’; indeedprocesses offoreignization ways. First, there are two extreme polesinthisnarrative, namely, the‘foreign government-as-land grabber’ The ‘foreignization ofland’narrative gives anincomplete perspective andcanbemisleadinginanumberof seen against thebackdrop ofthedynamicschangewithregards to landtenure relations. and investments (whichultimately indirectly capture landresources) are welcomed. This question isbetter misleading. Itisalsofraught withcontradictions: foreignization oflandisnotacceptable, butforeign capital practices. But,onitsown, the‘foreignization narrative’ hasmajorweaknesses andlimitations, andcanbe a politicallysensitive issue, pushingSouthAmericangovernments to formally prohibit orregulate such study ofBrazilian-owned landinSantaCruz,Bolivia.Yet, overall, theforeignization oflandproperty remains between localpeopleandforeigners over ‘foreign’ ownership ofland,asexplained by Mackey (2011) inhis American country inorder to directly farm Chinese-purchased land.Inaddition,there isnotalways animosity or theformer Soviet Eurasia. For one, we have notseenhundreds ofChinesefarmers relocating to a Latin not supported by evidence. the Caribbeaninsweeping conclusion of: ‘landgrabs leadto massive dispossession by displacement’ is for internal production-consumption and urban growth requirements). Hence, to include Latin America and the land grab debate, and in China and India in the form of ‘internal land grab’ (by domestic land grabbers, dispossession inotherregions intheworld, especiallyAfrica andSoutheast Asia--inthegeneral context of America andtheCaribbeanisonarelatively smallerscale, at least to date –whencompared to processes of getting displaced in Paraguay and Argentina. But this phenomenon of dispossession by displacement in Latin certainly occur inLatin America,withperhapsColombia asaniconic case, andsomeinstances ofsmallholders in thispaperisfocused more onthelatter thanintheformer. Afew casesofdispossession (thelatter type) Chayanovian perspective) and‘dispossession by displacement’ (Araghi, 2009;seealsoLi, 2011). Ourconcern land dispossession, namely, ‘dispossession through differentiation’ (which is the classic Leninist, or indeed, that land grabs leadto dispossession: peopleare expelled from their lands.There are two broad typesof around landgrabs. Oneistheforeignization ofspaces, asexplained above. The otheristhecasualassumption of agrarian changeinthecontext ofgloballandgrabs. There are two key features ofthedominantnarrative perspective will bring us closer to our task of reaching a better understanding of the dynamics and trajectories relations, to lookinto the character anddirection ofchangesinsocialrelations around property. This Instead ofoverly focusing onforeignization ofproperty, itisuseful,inaddressing changesto landproperty always require foreignization ofland?Conversely, doesforeignization oflandalways implylandgrabbing? (Teubal, 2009)–andelsewhere, asinCambodiaandthePhilippines.Doeslandgrabbing necessarily and continues through activities of the domestic elites, as in Brazil, Bolivia, Ecuador, Paraguay or Argentina this happenswithoutreally addressing thelogicthat underpinsgloballandgrabbing since thephenomenon in acountry, whichin turnpartlydrives recent national policy initiatives to curtailsuchaphenomenon.But Finally, theforeignization narrative intheendisstrongest interms ofobjectingto ‘foreign ownership ofland’ energy regime (Gillon, 2010; Hollander, 2010). 2010), ortheUSdecisionto convert itsmaize sector to ethanolandtheimplications for theglobalfood- thus for establishing new plantations for avariety ofraw materials (Franco etal.,2010; White andDasgupta, biofuel mandatory blending target that has sparked massive speculation worldwide for biofuel markets and corporate landgrabbers at theexpense ofconnecting to somekey policy drivers, e.g. theEuropean Union as well asthebroader role played by theriseofBRICSandMICS, (b) limited to governmental or comprehensive andmore precise understanding oftherole played by the traditional NorthAtlantic empires, or investors, i.e. (a)limited to afew ‘newcomers’: China,GulfStates andSouthKorea, at theexpense ofa Third, theforeignization narrative inadvertently focuses onanarrow sectionof‘foreign’ actors or‘triggers’ instances, thisisthecaseinvarious regions oftheworld. contradictions: what ifitisthesamechangeinlanduse, butdoesnotinvolve aforeign investor? Inmany in theseobjectionablechangeslandusepatterns. Suchananalysis isrelevant, butitposesdilemmasand grabbing. For example, criticslookat A2,B1,C2andD2inotherregions andtherole played by foreign investors global landgrab phenomenon,i.e. thecauses,conditions, mechanismsandconsequences ofgloballand Second, aforeignization narrative tends to deflectthe focus from themore crucialissues surrounding the should gobeyond these. for key primarycommodities. Itiscertainly importantto includethesetwo polesinouranalysis, butone restructuring dueto recent changesintheglobalfood-energy regime andtheoverall capitalist requirement be slightlydeflected away from the relevant dynamics that we are interested in:theprocesses ofagrarian other hand,by automatically counting diaspora landpurchases aslandgrabs, ouranalyticalfocus may one willendupaccounting for onlyavery smallportionofthegloballandrushphenomenon.On the by narrowly defininglandgrabs asthoselandinvestments withdirect participation by foreign governments, 11 . Ontheonehand, 43 The land market in Latin America and the Caribbean: concentration and foreignization poor peasantswhosetenure isinsecure, asisthecaseinmany countries inAfrica (Cousins 2007). in othercases,thistypeofreform involves affirmingand protecting pre-existing land access and occupancyby has been deployed in some cases precisely to avoid more radical redistributive policies (Fox 1993, 10). However, sum’ reform process doesnotconfiscate resources from onesocialclass to redistribute them to anotherandit power isthestate, thecommunity oraprivate entity, whichisfullycompensated by thestate. This ‘positive of land-basedwealth andpower whichare transferred to them.ButinType B,theoriginalsource ofwealth and Type B is distribution. Like Type A (redistribution), the landless and near-landless working poor are beneficiaries wealth andpower isredistributed. whether thepolicy isappliedto private orpublicland.The key isto establish thedegree to whichland-based land tenure reform, landstewardship, recognition ofindigenouslandrightsandlabourreform, regardless of the relative share oflandheldby socialclasses andgroups. These includelandrestitution, shared tenancy, example ofredistributive landpolicy. However, there are avariety ofotherpolicy measures that canchange of redistributive landreform that isappliedonlyto large private land,isthemost commonly understood net loss to thelandedclasses andthenetgainby poorpeoplewithlittleor noland.The conventional notion (poor peasantsandrural labourers). Itisa‘zero-sum’ reform process althoughthisperception dependsonthe monopoly control ofeithertheprivate landedclasses orthestate to landless andnear-landless working poor Agrarian Change, Agrarian 12 The analysis/discussion aboutthistypologyisdrawn from a paperby Borras andFranco that appearsin not even inthosecountries where some sortoflandreform isstill underway andenjoying varying degrees of the region talk about conventional redistributive land reform in a vigorous or vibrant manner – and arguably, to block,notfacilitate, pro-(re)distribution policy trends (Types AandB)(Kay, 1998). Today, few countries in even stronger. The calculation by thestate ofitscontrol over landresources andofpossible dividendsislikely (re)distributive landpolicieseven more soandtheresistance to changeby private landowners willbecome One oftheimmediate effects oftherisingeconomic value oflandisthat it would make thealready difficult investments andlandgrabbing may even exacerbate thisalready difficult problem ofland control. very high.This isdespite thelonghistory ofagrarian reforms intheregion (Kay, 1998).The spate ofland agricultural value chains.Today, inmany countries intheregion, theGinicoefficient forlandownership remains (re)concentration oflandownership andland-basedwealth andpower through direct landgrabs orthrough studies. These seventeen country studies have, more generally, highlighted thedifferent forms and degrees of the sameperiod,Type D(re-concentration) hasaccelerated, according to the findingsfrom the FAO case Type Cbecamemuchmore prevalent andthere was agrowing trend to move away from Types AandB.In Type C(non-redistribution). When thecontemporary landrushstarted to gainmomentum intheregion, the current landrushwas to move away from (re)distributive landpolicies(Types AandB),towards In thecontext ofthetypologygiven above, theexisting trend inLatin AmericaandtheCaribbeanjust before same: thebeneficiariesofsuchtransfers are thedominantsocialclasses andgroups (or the state). The transfer may involve fulllandownership ornot.Different variations are possible, butthebottom lineisthe control over landresources canbemadethrough individual,corporate, state orcommunity property rights. groups suchasvillagechiefs. This kindofchange canoccur onprivate orpubliclands.The organization of social classes and groups: landed classes, capitalists, corporate entities, state or other dominant community power transfers dooccur, access to andcontrol over landare furtherconcentrated inthehandsofdominant The fourth type, Type D, is(re)concentration. The definingcharacter here isthat, whileland-based wealth and we turnnext. not beconfused withothersinvolving active landpoliciesthat are categorically non-(re)distributive, to which comes upagainst impedimentswithinthestate orinsocietyboth.However, thiskindofsituation should policy, iskept dormant‘from above’ orbecomes frozen orfloundersinthe course ofimplementation asit other settings,asimilareffect may be created whenan existing landpolicy, even a redistributive land reform land-based inequitiesandexclusion, supportstheexisting distribution ofland-basedwealth andpower. In based inequityandexclusion. The most typical land policy here isa‘nolandpolicy’ which,inconditions of Type Cisnon-(re)distribution, anditsdefiningcharacter isthemaintenance ofa status quo, marked by land- Source: Borras andFranco (2010c) Figure 2.2:Flow ofland-basedwealth andpower in Figure 2.2 Changes to landproperty relations are better understood from thebroader perspective offered by thetypology Non-(re)distribution Type C Type A Redistribution 12 The definingprincipleof Type Aisthe redistribution ofland-based wealth andpower from the 11(1),January2012; seeBorras andFranco (2012).

Distribution Type B (Re)concentration Type D

the Journal of of Journal the 44 The land market in Latin America and the Caribbean: concentration and foreignization question today inmany landgrabbing hotspotssuch asIndonesia. and timewhere thesepeople are, doesnotneedthem(Li,2011). This becomes abigproblem. And for Lithat isacentral they become ‘surplus’ people;‘surplus’ inthesensethat thecurrent conjuncture ofcapitalist development, at theplace they are expelled from their lands and,inTania Li’s formulation, have nowhere elseto goandnoemployment elsewhere; was notbadper se–aslongthey were absorbedinothersectors oftheeconomy aslabourers. The problem iswhen 13 Ithasto bepointed outthat inclassic Marxist agrarian politicaleconomy peasantsgettingexpelled from theirlands and Paraguay indigenous peoplesfrom theirlandisnotthenorm–save for somespecificcases, for example in Colombia As mentionedearlier, evidence shows that inLatin AmericaandtheCaribbean,expulsion ofpeasantsand suggests that thisislikely to bethemore prevalent condition inthefuture. and Martínez Valle, 2009; Edelman, 2008 and 1999). In the case of Latin America and the Caribbean, evidence (Bryceson etal.,2000;Gómez, 2002; Giarracca andLevy, 2004;BrumerandPiñeiro, 2005;C.deGrammont income and seek a variety of off-farm employment opportunities furthering the process of de-agrarianization 2003). While peasantsmay retain someaccess to land,they increasingly have to diversify theirsources of and indigenouscommunities into theemerging plantations andvalue chains(ButlerFlora andBendini, local communities. Inmany casesitcanresult intheincorporation, adversely orotherwise, ofsmallholders At thesametime, landdealsdonotalways necessarily result indispossession by displacement ofaffected hectares –which,for afamily farm, isrelatively large even by Brazilian standards (Oliveira, 2011). the ceiling for thesize ofindividualfarms hasbeenincreasingly 500 adjusted over timeto thecurrent 1 agriculture, to expand agribusiness into thisunder-exploited agricultural land.IntheTerra Legal campaign, some 300,000 settlersintheAmazon. This policy hasbeencalculated, inacontext ofrisinginvestments in This isthecasefor example inBrazil, withtheaspiration of“Terra Legal” to formalize thelandclaimsof necessarily alongtheideologicalbiasofconventional landreform, isfavoured insomeplaces (Eguren, 2006). for amore efficientuse (World Bank, 2010). Formalization ofland property titles toclaimants,thoughnot lands andthishasbeenheralded by mainstream economists asagoodway to (re)allocate landresources 2007 for ElSalvador). The samehappenedinBrazil (de Medeiros, 2007). Peru hasopted for auctionsofstate delivered dismal outcomes (see, for example, Gauster andIsakson,2007 for Guatemala, anddeBremond, Market-led agrarian reforms were attempted inCentral Americaaspartofthe1996Peace Accords, butthey support andinterest from thestate. These countries includeBrazil, Paraguay, Venezuela, BoliviaandEcuador. that intervene insocio-economic differentiation are multiple, andincludepre-existing social class status, were incorporated into the oil palm sector, and some were incorporated adversely, others not. The factors shows that somegroups were expelled from theirlands, othersnot;for thosewhowere notexpelled, they villages intheprovince ofJambiinIndonesiawhichisanarea ofmajorexpansion ofoilpalm.Hisstudy This isthesamesituation elsewhere outsidetheregion. For example, McCarthy (2010) studied different for somepeasantsasbeingadverse butnotfor others. based biofuelsprojects linked, ornot,to large-scale industrial processors inBrazil, describestheconditions between. The study doneby Fernandes etal.(2010) aboutvarious experiences insmall-scale, community- that there are very different terms ofincorporation, whichmay be ‘adverse’, ‘favourable’ andsomewhere in et al.,2005).This isonearea that needsfurtherscientific research inthefuture. However, itismost likely value chain,suchastheMexican food value chaincontrolled by US-basedsupermarkets (Rubio, 2003, Teubal sector ofBrazil. Moreover, there isevidence that indirectly suggests possible adverse incorporation into the workers in unfavourable terms, such as casual labour, which can be seen in Chile as well as in the sugar cane incorporated adversely. There are earlier studies about existing commercial farms and plantations employing not offer any conclusive insightas to whetherornotand to what extent peasantsand workers are being Available evidence inLatin AmericaandtheCaribbeanbasedonseventeen country studies by FAO does see alsoWorld Bank2010; Deininger, 2011). Agriculture Investments’ putforward by theWorld Bank,UNCTAD, FAO andIFAD (World Banketal.,2010; of theadvocacy for theadoptionofasetprinciples,more specificallyknown as‘Principles for Responsible as farm workers, isakey socialdimensionofthenotionadesirable land investment. Itisat thevery heart as contracted smallfarmers through avariety ofarrangements suchascontract farming orjointventures, or expelling peasants from their lands, and incorporating them into the commercial farms andplantations either 2009; Deininger; 2011; see Borras and Franco, 2010a, 2010b, as well as Cotula, 2012, for critical views). Not that they onlyneedto beregulated, through somesortof‘code ofconduct’ (von Braun andMeinzen-Dick, usually accompanied withthenarrative that landinvestments are goodopportunitiesto bewelcomed and disempowerment. This isimportantto pointoutespecially becausepoliciesongloballandgrabbing are very terms of poor people’s incorporation into the emerging land-based businesses cause their poverty and exclusion/inclusion’. Using the concept of ‘adverse incorporation’, we look at how andin what ways the concept of‘adverse incorporation’ putforward by DuToit (2004)whichgoesbeyond questions of‘social land-based businesses suchasindustrial tree plantations orREDD+contracts. Itbringsusto theuseful the emerging flex crops’ sector, other food sectors (especially livestock), value chains,andothernon-food peasants are expelled from theirland,butmore abouttheterms underwhichthey are incorporated into and concentration oflandandcapital.For thelatter, thequestion isnotsomuchabout whetherornot 13 . Muchoftheconcern isaboutforeignization oflandproperty (whichwe discussed above) 45 The land market in Latin America and the Caribbean: concentration and foreignization political contestations around globallandgrabbing, which we willnow address inthenext section. country. Itisfrom this perspective that we canhave abetter understanding ofthecharacter ofthesubsequent are neitherTypes AnorH–butthoseintheshadesof‘grey’ -from Bto G,or combinations ofthesewithin a win scenarios: ideal-typeAisclearlytheuncontested win-win scenario. Butperhaps themost common types FAO. Itisrelatively easy inthecontext ofpublicpolicy to think aboutethicsofdevelopment andpursuewin- G, occur inreal life intheregion, andare reflected, to varying extents, intheseventeen country studies by no problem gainingpopularityfrom thebroader quarters ofsociety. These various combinations, from Bto agrarian justice. Meanwhile, ideal-typeEmay notbeapproved by advocates for land justice, butitmighthave conversely, ideal-type C may be acceptable to advocates for environmental justice but not to those for B may beacceptable to someadvocates for agrarian justice, butnotto advocates for environmental justice; pose dilemmasandcontradictions to different socialclasses andgroups insociety. For example: ideal-type elements oflandpolicy, food securityandtheecological dimensionofproduction. These various combinations However, inthereal world, between ideal-typesAandH,there exist diverse combinations ofthethree key Source: Borras andFranco (2012) Table 2.16: Possible linkages between changesinlandproperty relations andlanduse needed level ofproductivity, andsoon? The debate goeson. this alternative: can it achieve the necessary scale to feed the region and the world, can it increase to the concept. These alternatives are real andoperational, notimagined.There are several difficultquestions for poles of ‘agro-ecological revolution’ in Latin America and theCaribbeanshow the existence ofthisalternative American agro-ecological movement, andtherecent scoping study by AltieriandToledo (2011) aboutthe five the Cubancampesino-to-campesino agro-ecological movement, Holt-Gimenez’s (2006)bookontheCentral food security through production modelsthat are ecologically nurturing.The study by Rosset etal.(2011) on At theopposite endisideal-type A: where landpolicy is(re)distributive, andproductive enterprises leadto Guatemala, andParaguay. the sametimeclearingforests to produce biofuelsortimberinareas ofconflict in Colombia, Brazil, Argentina, peasants whowere expelled from theirlandsorfrom state lands,beingenclosedfor agribusiness purposes,at does notprotect nature andmighteven beenvironmentally destructive. This scenario putsforward casesof security to peoplewhoneeditormay even undermineexisting food security, andsuchchangeinlanduse for non-redistribution and/or (re)concentration, subsequent changes inland use do not result in greater food the latter leadsto situations captured intheideal-typeH(see Table 2.16): theaccompanying landpolicy is The worst scenario whichisover-hyped inthemediaandNGOquarters aboutgloballandgrabbing isthat perspective what ishappeninginLatin AmericaandtheCaribbean,aswell asbeyond theregion. Table 2.16 provides anothertypologythat canprovide signposts for ouranalyticalexploration andto putinto change. The challengeis:how canwe feed theworld inasociallyjust andenvironmentally sustainable way? in labourrelations changebringusto abroader andmore integrated perspective ofagrarian-environmental Bringing together andconnecting ouranalysis ofthedynamicschangesinlanduse, inlandownership and conditions andfuture trajectories for thesedevelopment strategies (see, e.g. LittleandWatts, 1994). trade agreements, andsoon)inparticularsocietieswillberelevant andimportantto beableto assess current lessons from thepoliticaleconomy ofpast institutional arrangements (e.g. contract farming, jointventures, of insertionwillsurely beableto mobilize evidence to supporttheirpositions.Amore systematic review of positions oneithersideofthedebate, eitherthosefocusing onadverse incorporation orfavourable terms capital andaccess to different kindsofland,qualitylabourandsoon(White, 1989, Kay, 2006). Polarized VII. H: non-redistributive/(re)concentration G: non-redistributive/(re)concentration F: non-redistributive/(re)concentration E: non-redistributive/(re)concentration D: (re)distributive C: (re)distributive B: (re)distributive A: (re)distributive Changes inland property relations Trajectories ofagrarian-environmental change Changes inland use(i):Food security Yes Yes Yes Yes No No No No Changes inland use(ii):Eco- logically nurturing Yes Yes Yes Yes No No No No 46 The land market in Latin America and the Caribbean: concentration and foreignization Earth andLaVia Campesina.However, thesefour international networks seetheproblem ofmassive oil also host to key transnational civilsocietygroups: World Wildlife Fund(WWF), Greenpeace, Friendsofthe example, Indonesia,whichisahotspotinterms ofmassive land investments andforest clearing,istoday an environmental justice group may see it as an environmental disaster and will mobilize against it. For a landgrabbing process whichmightresult intheirdispossession andisthuslikely to opposeit.Finally, to pushfor labourstandards asaregulatory framework, whileasmallfarmers’ association may seeitas A landinvestment may beseenby aworkers’ trade unionasamajor job-generating venture anditislikely to understand better thedifferent reactions, positionsand collective actions by various civilsocietygroups. source offunds(Borras, 2010; Borras, Edelman andKay, 2008).This isanimportantstarting pointinorder divides includingclass originandmass base, ideology, politics,andinstitutional organization including the same way for the same reasons. Yet, civil society groups are diverse and are differentiated along multiple casually assumed that organized civilsocietygroups are opposedto landinvestments, andare opposedin potential divides between labour, agrarian, and environmental justice perspectives. In general, it is rather Third, there are differentiated positionsbetween organized civilsocietygroups, partlyalongtheactualand Nevertheless, furtherresearch into thisangleisurgent andnecessary. been significantlyaddressed inthe FAO country studies. Yet, ourguess isthat itwillbeasimilarsituation. what extent thisistrueinthecurrent context oflandgrabbing inLatin AmericaandtheCaribbeanhasnot as communities relocated from thenearby Limpopointernational park(Borras, FigandMonsalve 2011). To differently on animal herders, subsistence farmers, women, older and younger community members, as well concretely illustrated inthecaseofProcana sugarcaneplantation inMozambique where theproject impacted communities. Inturn,thesegroups react differently to theinvestment: somesupportit,othersnot. This is local communities, itimpactsdifferently onthese various socialclasses andgroups between andwithinthe and generation, anddifferences alsooccur between communities. When alandinvestment ismadeinthese brokers, orcorrupt government officials. These communities are also differentiated alonggender, ethnicity, local elites suchas‘hacenderos’ (ranchers) inLatin AmericaortribalchiefsinAfrica, entrepreneurial land More generally worldwide, localcommunities includelandless rural labourers, poorpeasants,richfarmers, ‘local people’.They (inadvertently) implyanotionofundifferentiated communities, whichisproblematical. The emerging literature onland grabbing worldwide isdominated by terms suchas‘localcommunities’ or Second, thevarious socialgroups withinandbetween localcommunities have different reactions andpositions. as Nicaragua. Argentina, Paraguay andBolivia,whileothersare notdespite having highlyliberalized (land)policies,such across theregion. Someare more successful intheircampaignsto attract land investors suchasBrazil, farming withforeign companies are different issues, andare generally welcomed by all central governments America (withtheexception ofGuatemala) andtheCaribbean.Landrenting/leasing andincreasingly contract prohibit or regulate foreignization of land. On the other hand, there is no significant move like thisin Central governments have moved, invarying ways andextents (past andcurrent), to pass laws andpoliciesthat sensitive andproblematical. However, intheregion, there are two clusters. Ontheonehand,SouthAmerican fact isthat all‘foreignization ofland’–taken here asforeigners being allowed to own land–ispolitically First, there are similaritiesanddifferences ofviews and strategies ofthe states across the region. A to bemade, largely butnotsolelybasedontheseventeen country studies, state-society interactions around landgrabbing inLatin AmericaandtheCaribbean.Afew observations need action inthenext section.This isanimportantreminder ofwhat needsto beanalysed inthedynamicsof Tarrow, 1994;Fox, 1993). This basicstarting pointwillalsoframe ourdiscussion ontheimplications for public and mobilization whenthey may provide windows ofopportunityinthepoliticalset-up(Brockett, 1991; perceived as something negative. Equally important, these cleavages open up avenues for possible debate as problematical. Inaddition,cleavages between andwithinstates andcivilsocietyshouldnotalways be and casuallyclaimthat central states have coherent positionsandstrategies for landinvestments is just views (often timesassumed to beoppositionalto landgrabs) iswrong andmisplaced. Moreover, to assume main pointbeingmadehere isthat to assume orcasuallyclaim that civilsocietygroups have consensus communities are usuallydifferentiated –again,alongclass, genderandethnicitydivides, amongoth Land grabbing debates between state andsociety common 47 The land market in Latin America and the Caribbean: concentration and foreignization advocacy andcampaigns. This isinthe form ofseveral radical NGOsandthink tanksworking around the present: that is,theexistence ofeffective research andinformation collecting tools that caninform policy more persistent andmilitantforms. However, at least, onekey ingredient for effective collective action is to 21November 2011. It remains to beseenwhetheritwillleadto amajorshiftincollective actions towards the first ever international conference and strategizing initiative led by thepeasantmovement inMalifrom 16 Campesina, CLOC (Coordinadora Latinoamericana deOrganisaciones delCampo), andallieshave organized base of(trans)national agrarian movements. Whether ornotthiswillremain so, remains to beseen.LaVia for thisisthat most ofthemajor landgrabs are notoccurring inplaces where there isanorganized mass as well asby the usualmanifestoes andreports from large, well-funded nongovernmental donors.Onereason negotiations around theUNCFS,at theglobalorregional levels, includingLatin Americaand theCaribbean, today in theface of the current global land grabbing. The land grabbing struggle is marked mainlyby Sophisticated politicalstrategy andcollective actionsare notparticularlywidespread, coherent orconsistent type ofactivism(Deere andRoyce, 2009; Borras, 2008). combine diplomatic negotiations withmilitantstreet andfarm actions.Via Campesinaiswell-known for this as iswell-known, civilsocietygroups are more effective intheir collective actionswhenandwhere they scattered movements, includingthoseinthearena oftheUNCommittee onFood Security(CFS). However, the campaignagainst geneticallymodified (GM) crops by thesamegroups (Scoones, 2008). There are and intensity that isanywhere closeto theanti-WTO campaign,or, indeed,to thescaleandintensity of or even ahintofmulti-level protests, from thesamegroups ofcivilsocietyorganizations, withthescale this iseven graver thantheWTO threat. To date, however, we have notwitnessed asimilarconflagration expelling peasantsfrom theirlandswhichcould underminethefood securityoftheworld, thenindeed scale beingreported inthemediaandcivilsocietycircles, namelythat ithasthepotential to andisactually They madeahugeimpact(Borras, Edelman andKay, 2008).Ifindeedgloballandgrabbing isoccurring at the national and international initiatives (Edelman, 2009). Powerful institutions pausedandlistened to them. divide becameunited andengagedinrelentless, widespread, militantcollective actions–connecting local, 1990s andalittlebitbeyond that period.Peasant andfarmer organizations across theGlobalSouth-North of liberal trade through theWorld Trade Organization (WTO) provoked massive protests worldwide inthe Fifth, there isarguably quite weak transnational organized oppositionto globallandgrabbing. The issue and elsewhere. 14 Partly based onfield work by Borras inSao Paulo, in2008. SeealsoMonsalve etal.(2008). groups occur frequently andisincreasing. Many oftheseindividualsare, orwere, membersoforganized civil society organizational. Itis,however, publicknowledge that leasingoflandby landreform beneficiaries continues to lands to theexpanding sugarcaneplantations for various reasons: ideological,political,socio-economic, agency, INCRA,have beenmobilizingsupportto tryto prevent landreform beneficiariesfrom leasingtheir such cleavages. For example, in São Paulo, Brazil, organized agrarian movements and even the land reform framework suchanangleofinquiry. However, there are circumstances that mightsuggest theexistence of Again, theseventeen country studies by FAO inLatin AmericaandtheCaribbeandonotincludeintheir although many ofthemwould have liked to negotiate better deals(Franco, Carranza andFernandes, 2011). of thelocalcommunities (many ofwhomare landreform beneficiaries) are notagainst theinvestment at all, province ofIsabela,denouncing itasalandgrab, whiletheoverwhelming majorityoftheaffected sections groups inthePhilippinesare protesting actively against thelargest sugarcanebiofuelplantation inthe contradict thepositionsoftheirlocalcommunity sections.For example, organized agrarian andenvironmental Therefore, itisfrequent that organized civilsocietygroups take positionstowards landinvestments that dovetail withthoseofthevarious sectionsinlocalcommunities that are affected by amajorlandinvestment. communities. Civilsocietygroups have ideologicalandinstitutional interests that donotalways reflect or Fourth, there are differentiated positionsbetween organized civilsocietygroups andsectionswithinlocal (2010). Overall, thisisanotherissue that requires urgent research. association, workers’ trade unions,andsoon)inBrazil onthesameissue, asexamined inFernandes etal. of biofuels,andsubsequentcontrasting views between rural-oriented civilsocietygroups (small farmers’ in thecaseofmajorsplitwithinBrazilian Landless Movement (MST) afew years agoontheissue in any thorough andsystematic way. However, there are otherstudies that suggest suchcleavages exist, as regards to landinvestments. The seventeen studies by FAO have notparticularlycovered thisarea ofinquiry them. This isausefulanalyticalpointthat canhelpusstudy andunderstand civilsociety’s positionswith agrarian andenvironmental justice groups, thediverse scenarios from Bto Gare issues that potentially divide Hence, whilelandgrabbing, especially the most protested scenario H(see Table 2.16) potentially unites activities by peasants(Osborne, 2011). by apeasants’association partly because itlimits, when itdoesnotcompletely prohibit, certain livelihood Moreover, aREDD+venture may getagreen lightfrom oneenvironmental group, butmightbeopposed around oilpalmandforest are necessarily different from oneanother (see,Pye, Peluso etal.,2008, 2010). governmental institutions indifferent ways. Asa result, theirimpactsonactualpolicy makingandpolitics palm expansion andforest clearingdifferently; they frame theirdemandsdifferently, and interact with(inter) 14 . This isanotherarea ofinquirythat requires furtherresearch inLatin AmericaandtheCaribbean 48 The land market in Latin America and the Caribbean: concentration and foreignization UNCTAD, UNHRC,andUNEP, international financialinstitutions suchasthe World Bank,IADB,andIFAD, By international institutions here we meaninthebroadest senseto includeUNorganizations suchasFAO, (see Table 2.16). an adverse manner. Inshort,states are morally obligedto avoid, asbest asthey can,slidinginto scenario H at the same timemakingsure people are incorporated into theemerging land-oriented ventures butnot in land investments that states should consider: making sure that people are not expelled from their lands, but food-securing andecologically sound production models.Third, there are two central issues at theheart of should begeared towards achieving scenario A(see Table 2.16): (re)distributive landpolicy combined with corporate sector cantake care ofitselfandshouldnotneedadditionalpublicfunds.Any publicinvestment the small-scale farming sector. It is ideal if this is done using agro-ecological alternatives, partly because the the small-scalefarming sector. Itremains acentral obligation ofthestate to provide significantinvestment to large industrial-scale farming withoutlookingat thehistory ofneglectinterms ofproductive investments in Second, whenspeaking aboutequity, itisnotfair to talkabouttheproductivity ofsmall-scalefarming and are bothrecipient andtheoriginoflandinvestments, suchasBrazil (Wolford, 2010) andChile. of large-scale landinvestments suchasBolivia (Kay andUrioste, 2007) andColombia, aswell ascountries that there isahighdegree ofinequalityinlandownership, whichisthecasefor many countries that are recipients mechanisms andpoliciesfor Types AandB(re-distribution) ifappropriate andpossible, especiallywhere generate Type CandDchanges(non-redistribution/re-concentration). Instead, governments shouldestablish discussed earlier. Inthiscontext, states shouldmake themaximumeffort not to veer towards landpoliciesthat related to landpolicy isbetter offembedded withinthetypologyofchangelandproperty relations that we merely regulating landgrabbing isnotasubstitute for abroader state policy onlandinvestments. action Public However, suchgovernment measures donotconfront theissue oflandinvestment andlandgrabbing, since on landgrabs around thisissue. now by most governments in South America is quite understandable, and it is important to focus the analysis There are some issues for discussion. First, regulating/prohibiting foreignization of land that is being taken up of debate andpolicy makingasinherently contentious. actions involving the state are better grounded when they start from the assumption of the state asa point more interaction between sectionsofstate actors andcivilsocietygroups (ibid.).Attempts to lookat public of state actors whowould notcave into pressures from civilsocietygroups, thesamemay openupspaces for and suchcleavages runbetween andwithinministries andlevels ofgovernance. While thisfacilitates therise state: between those who tend to prioritize political legitimacy and those who prioritize capitalaccumulation, same timefacilitating capitalaccumulation (Fox, 1993, chapter 2).This islikely to result incleavages withinthe are always faced with the dilemma of maintaining a minimum level of legitimacy in governance while at the between those who accumulate landand those whoare dispossessed. There is nothing new inthis,asstates time they mediate between thosethat promote large-scale landinvestments andthose whoopposethem, a contradictory role inmany publicactions:askey actors pushingfor landinvestments andat thesame Central states are key players inglobal land grabbing, aswe have discussed earlier. Assuch,they willplay though many ofthemare relevant to theLatin AmericaandCaribbeancontext. report onlandgrabs (Toulmin etal.,2011). This setofrecommendations ismore globalandcomprehensive, take acareful lookat thesetofrecommendations offered intheUNCFSHigh Level Panel ofExperts(HLPE) academic community. We alsostrongly suggest for thoseinterested inpossible optionsfor publicactionsto is simplifiedin four clusters: state, international institutions, civilsocietyorganizations, andthe research and dilemmas that are importantto consider indrawing uppublicactionplans,nationally andtransnationally. This actors. Instead ofalist ofprescriptions regarding publicaction,thissectionraises furtheranalyticalissues and turn posedoldandnew issues in(trans)national governance that requires actionby thestate andnon-state The renewed interest inlandby thestate andcorporations that ledto thecurrent globallandrushhasin and beyond. this isanotherarea that requires closerattention andcareful research inLatin America and theCaribbean, South, and so on, that are inturn working closelywith radical (trans)national agrarian movements. Again, land-grab issue, includingGRAIN,Foodfirst Information and Action Network (FIAN), Focus ontheGlobal IX. 2. 1. State Policy andpoliticalimplications andchallengesfor future research International institutions 49 The land market in Latin America and the Caribbean: concentration and foreignization dozens ofindividualacademics whoare engagedinserious scientific research on global landgrabbing. But Politics Initiative (LDPI–www.iss.nl/ldpi) isagoodexample. Itisaloose globalnetwork ofuniversities and board practical interests andwithdeep senseofurgency, aswell astakes thesideof poor. The LandDeal scholars and practitioners involved in ‘engaged research’ – research that is not purely academic, but takes on and necessary. There are some urgent issues for discussion. First, there isaneedto broaden theranks of policy-making andpolicy advocacy by state andnon-state local, national andinternational actors isurgent The challenge for the research and academic community is equally huge and difficult. Theneed forinformed tensions (see Borras, Edelman andKay, 2008). class coalitions to bemore effective. Andwhilethiswillcreate synergies, thesamewillinherently bringout movements willbecritical. Constructing alternatives, suchas‘food sovereignty’, willrequire similar cross- class alliances. Forging tactical and strategic alliances between agrarian, labour and environmental justice dispossession anddestitution inthecurrent context ofgloballandgrabbing will necessarily require cross- is notalways automatic andobvious, asshown inthecaseofBrazil. Third, any effective struggle against important. Whether andhow land-oriented andlabour-oriented struggles could complement eachother struggle framework. Labourreforms, especiallyinlightoftrends towards adverse incorporation, are equally Second, whilelandiscentral to contemporary peasantstruggles, itisimportantto avoid a‘too-landcentred’ including favourable institutional arenas for politicalcontestations. groups needexternal state andnon-state politicalandlogistical support.This shouldcome invarious forms, and to what extent organized groups willbeableto carryoutthisdualtaskremains to beseen,butthese countries inLatin AmericaandtheCaribbeantoday. This isamore proactive struggle. Whether andhow for (re)possession especiallyinsettingswhere landownership distribution isextremely unequal asinmany struggles against dispossession. This isadefensive struggle. Alongsideistheneedto heighten struggles and thestruggle for (re)possession. Landgrabbing that expels peasantsfrom theirlandsrequire coherent where organized civilsocietygroups must simultaneouslyengage, namely, thestruggle against dispossession some issues for discussion. First, following thetypologyonlandpolicy, there are two broad struggle fronts The challenge for organized civil society including peasant movements is enormous.It is relevant to put forward would remind us. organizations withinstitutional arenas for engagement:‘notaboutus,withoutus’,asapopularrallying slogan direct actionsby thosewhoare most affected by landgrabs, andprovide themandtheirsocialmovement both sides of the North Atlantic. Finally, it is important for international institutions to support efforts for has become more complex withtheriseofBRICSandMICsalongsidetraditional power-holders from from SouthKorea to Argentina, from Indiato SouthAfrica, andsoon.The requirement for globalgovernance land acquisitions coming from theranks ofBRICSandMICs,from theGulfStates to Brazil, from Chinato Chile, and indemnities.This isespeciallyrelevant withtheriseofnon-traditional key actors ingloballarge-scale (trans)national companies, incountries where national policiesdonotfavour theirdemandsfor accountability is especiallyrelevant incaseswhere peoplehave beenexpelled from theirlandsby landinvestors involving Guidelines) to provide aspace for localcommunities to come together andto demandaccountability. This Third, a‘complaints centre’ shouldbeestablished withintheUN(possibly connected to theVoluntary the Caribbean. security andtheenvironment. Itwillbeusefulifthiscanexplored andsupported inLatin Americaand governments to prepare annualreports aboutlandinvestments and theirimpact on localcommunities, food observatory withinFAO, linked to theVoluntary Guidelinessothat itwillbemademandatory for national High Level Panel ofExperts(HLPE)report onlandgrabbing hasputforward theproposal to organize aUN especially (trans) national agrarian movements suchasCLOC andLaVia Campesina.Second, theUNCFS Principles are amove intherightdirection. This will,amongothers,bewell received by civilsocietygroups, support by the international institutions for the Voluntary Guidelines and the Minimum Human Rights for theRightto Food, OlivierdeSchutter (2011). Inthecontext ofLatin AmericaandtheCaribbean,strong Guidelines asanchored by FAO, andtheMinimumHuman RightsPrinciplesasadvanced by theUNRapporteur land grabs, namely, thePrinciplesofResponsible Agricultural Investment asdiscussed earlier, theVoluntary There are someissues for discussion. First, there are three key policy currents allrelated to dealingwith But thiscircle isahighlydifferentiated community, because 4. 3. Civil societyorganizations Research andacademiccommunity 50 The land market in Latin America and the Caribbean: concentration and foreignization 15 The rest ofthe discussion onland sovereignty istaken from Borras and Franco (2010b). Borras andFranco (2010b). and beableto move forward? Below we offer a concept, i.e. ‘landsovereignty’, for discussion, drawing from occurs across different regimes ofproperty rights.How thencan we make senseofthese contradictions problem with choosing either private or public, state or community ownership ofland is that landgrabbing Caribbean involve landreform settlements;thenitisnotashieldagainst landgrabbing anddispossession; the contradictions: landreform –butmany sites ofcurrent landgrabbing worldwide andinLatin Americaandthe communal land,andsoon.The problem withtheseformulations isthat they runinto alotofdilemmasand possible responses to globallandgrabbing, including:landreform, thenon-privatization oftheremaining As thefinal reflection point, we comeback tosomeofthemost commonandcasual issues beingfloated as and policy advocacy work by state andnon-state actors, now andinthenearfuture. practitioners, government officials,andpoliticalactivists aboutland grabs that wouldinform policy making scientific research. Third, there isaneed to buildanetwork between theacademic community, development other strategic questions of political economy, political ecology and political sociology that require deeper understanding oflandgrabbing intheregion, butthat require furtherscientific research. There are several (Chapter 1)alsooffers an extended outlineofpending‘bigpicture’ questions that are important for ourfuller diverse resistances, different stances adopted by organized civilsocietygroups. The summarypaper by FAO have beenidentifiedearlierthat are related to local communities, differentiated impactonlocal communities, supported. Second, there isanurgent needto carryoutresearch onparticular‘blindspots’,someofwhich America andtheCaribbean.Similarnetworks withintheregion andelsewhere shouldbeencouraged and its reach remains relatively limited, andshouldbeexpanded, inorder to includevarious regions suchasLatin necessarily, land sovereignty includeslandreform. The concept of landsovereignty necessarily addresses the land-based socialdynamics ofredistribution, distribution, non-redistribution and(re)concentration. Andso scope of the several variants of land reform, land sovereignty simultaneously addresses all the broad and key goes beyond thecommon binaries:private versus public, state versus community, andsoon.Unlike thelimited these canbecommunal, community, state, orprivate property rights,heldindividuallyorcollectively. Hence it consumption andthe market, aswell asfor otherproductive endeavours. Interms ofsystems ofproperty rights, on specific concrete circumstances. Itcanbenational orlocalinscope. Itcanbeused to produce food for To beuseful,thenotionoflandsovereignty shouldbeinterpreted inabroad andflexible mannerdepending territory, hasanatural connection withthe‘landsovereignty’ framework. the Caribbean, which necessarily deal with ‘state sovereignty’ and ‘people’s effective control’ over landand in arelated discussion by Fox (2007: p.335). The character ofland-grabbing issues inLatin Americaand of ‘bundlelandproperty rights’),butembedsthesewithinthequestion ofpower relations, aselaborated conceptualized by Jesse RibotandNancy Peluso (2003). Ittakes onboard formal ‘rights’(asinthenotion conception of ‘sovereign’ or ‘sovereignty’. In this sense, land sovereignty emphasizes a ‘bundle of powers’, as poor. Here, theword sovereignty impliesthe‘people’and the ‘state’, thetwo key elementsofthecommon highlighting thenotionofa‘popularsovereignty’ –butmore specificallythe working classes, ortherural our definition of land sovereignty, we do not stop at the nation-state as we bring ‘people’ into the definition, state backin,andsotheideaofsovereignty immediately involves therole ofthenation-state. However, in conduct’, for example – see de Schutter, 2011; Borras and Franco, 2010a for critiques). We therefore bring the primarily to profit motivation, andare almost impossible to holdaccountable (thedifficultyof ‘codesof be attained by leaving itprimarilyto theforces ofthefree market. Buttheforces ofthefree market respond quest for themost efficient economic (re)allocation anduseoflandasascarce factor of production that can The starting pointoflandsovereignty isareaction to thedominantview onlandwhichisfounded onthe but we could notthinkofany otherbetter term. UN Peasants’ Charter (see Edelman andCarwil,2011). The useoftheterm ‘sovereignty’ here sounds awkward, people’s rightto land–more orless along thelinesadvocated by Via Campesinainitscampaignto have a and live onitasaresource andterritory (Borras andFranco, 2010b). Simplyput,landsovereignty isrural poor the rightofworking class andindigenouspeoplesto have effective access to, control over anduseofland Rosset, 2011). As an alternative conceptual framework and political platform, we define land sovereignty as of people to produce and consume healthy and safe food in or near their territory – see Martinez-Torres and aspires to dialoguewiththepopularproposition for aradical alternative today: ‘food sovereignty’ (theright people’s effective access to, control over, anduseofland(Borras andFranco 2010b, 2010c). ‘Landsovereignty’ land-based socialrelations (alongJamesScott’s formulation) asthestarting point,emphasizingrural poor In ourview, itisusefulto have anoverarching framework that takes themessy, complex, currently existing the nearfuture. some analytical issues that might help us think deeper about possible policy and political actions now and in X. Conclusion: towards a‘landsovereignty’ agenda 15 Itisnot meant to advocate for ‘landsovereignty’ –butwe simplywant to raise 51 The land market in Latin America and the Caribbean: concentration and foreignization exploring asausefulanalyticalguide. among diverse groups withinacross-class coalition. Landsovereignty isarough concept that may beworth- is onethat confronts, anddoesnotbackaway from, politicaltensions whileexploring potential synergies the pre-existing tensions among these different groups. But a workable politicalproject like landsovereignty working classes andgroups, bothrural andurban,withinacross national borders. Assuch,itinternalizes the notionoflandsovereignty isinherently across-class politicalproject involving different strata ofthe the midst ofwidespread attempts at corporate-driven andstate-sponsored enclosures worldwide. Finally, based property andproduction. Inaway, landsovereignty isthenotionofa‘people’s (counter)enclosure in political andhistorical inorientation, addressing power relations emanating from thesocialrelations oflandin. Itsstarting pointistheactuallyexisting land-basedsocialrelations ‘from below’, andthusisinherently relations. Land governance is a view and initiative ‘from above’. Land sovereignty brings the‘people’ back and categorizations that attempt to simplify(i.e. dismiss, reject, distort) actuallyexisting land-basedsocial dubious and deeply flawed starting point and guide to action is the neat state land property standard grids neoliberal ‘landgovernance’ perspective –whichisastate-centric concept andpoliticalproject whose the hopethat itcanalsocontribute to theconstruction ofacounter-narrative inreaction to theaggressive of policy andpoliticaladvocacy rather like than‘things’ papersandtitles.Landsovereignty isthusused in mainstream conception oflandgovernance, bringinginsocialrelations asthekey unitofanalysis andobject The notionoflandsovereignty politicizes andhistoricizes thede-politicized andahistorical popular well asstruggles for land(re)possession. two broad fronts ofcontemporary landstruggles: struggles against landdispossession anddisplacement, as 52 The land market in Latin America and the Caribbean: concentration and foreignization Bernstein, H.,2010. 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governments (banana,coffee, sugarcane, livestock, sisal) at different momentsofthe19 started to engagenoticeably intheseprocesses, and even withtheparticipation ofdomestic andforeign had increased to US$898million –anincrease of140%. Estimates basedon theStatistics ofSIECA. 18 In2000, thefive Central American countries exported miningproducts oftheorder ofUS$374 millionwhich, by 2010 products, charcoal, andwood pulpincreased from US$370 millionin2000to US$824 millionin2010. 17 According to thestatistics ofSIECA(Secretaría deIntegración Económica Centroamericana), exports oftimber, wood nes Bananeras enCentroamérica, vol 4.Capítulo2. 16 CEDES (Instituto Centroamericano deEstudios Sociales yDesarrollo) inCentral [email protected] * apart from thecolonial periodproper, date backto thesecond halfofthe19 Land concentration andforeignization are long-standing deep-rooted processes inthesecountries which, with more than110millioninhabitants. and theDominicanRepublic andontheotherMexico, thesecond most populated country ofLatin America From theperspective ofsize, there are two maingroups. Ontheonehand,countries ofCentral America I. of thesixcasestudies, considering thefeatures they have incommon andthosethat are country-specific. for Nicaragua andIngridLavandier for theDominicanRepublic. The third sectionisacomparative analysis Panama, by JaimeArturo Carrera C.for Guatemala, ManuelRobles Berlangafor Mexico, Eduardo Baumeister case studies, commissioned by FAO andundertaken by SantanderTristan Donosofor Costa Ricaandfor processes oflandconcentration andforeignization. The second sectionpresents asynthesis ofthesixcountry This chapter comprises three sections.The first explores someofthe structural factors contributing to the Presentation Republic: the context andcomparison Mexico, Nicaragua, Panama andtheDominican Dynamics oflandmarkets inCosta Rica,Guatemala, Chapter III: palm), commercial forest plantations investment thrusts intourism (second homes,hotels, golfcourses), biofuels(mainlysugarcaneandAfrican and international companies aswell asinter-regional oneswithLatin Americancapital.There are alsonew land concentration inthedifferent countries, eachwiththeirspecific rhythms andmechanisms, bydomestic and external commercialization. The samecanbeobserved inthecurrent processes ofconsolidation of both now andinthepast, concentrations ofcapitalcontrolled bothprimaryproduction, millingprocesses such asCosta Rica,Nicaragua, Panama orMexico andto alesser degree inthecaseofGuatemala, where, purchase ofproducts, agro-industry anddirect trade –asreflected typicallyinthe coffee sector in countries Also longstanding isthemechanismofexternal control over theprimaryagrarian production processes --the Argentinian. Doctor inSocialSciences from theUniversity ofNijmegen,Netherlands,heisassociated researcher at IN- With reference to bananaplantations, seeMario Posas (1993) aspartoftheHistoría deCentroamérica sobre Plantacio - Structural context ofthecasesunderconsideration

17 , andintheexpansion ofmining(especially opencast)

th century whenthesecountries Eduardo Baumeister * th and20 18 . th century 16 . 59 The land market in Latin America and the Caribbean: concentration and foreignization Note: Biofuels:total ofsugar, maize andAfrican palm production Source: FAOSTAT andown calculations Table 3.1: Percentage increase intotal area offarms, for biofuelsandfor cattle production have diversified mainlyinto African palm,pineapple, watermelon andmelonproduction. established in theDominicanRepublic andCosta Rica,where thecompanies traditionally linked to banana This highlights the differences inintegration oftheso-callednon-traditional items – relatively earlyand well- these account for 48%ofallagricultural land,31%inCosta Rica,24% inPanama andonly12%inNicaragua. non-traditional items that are relatively intensively grown and highly commercial. In the Dominican Republic, A similar trend can be seen in the sector of fruit, vegetables and other categories, which generally include Mexico and22%inCosta Rica. Costa Rica.Likewise, themost typicalbiofuelcrops, sugar caneandpalm,occupy 4%ofagricultural landin classical oftropical crops, occupying aminimum4%ofallagricultural landinMexico andasmuch28%in The longest-standing integration to international markets hasbeenincoffee andbananas,themost Panama where there hasbeenanoverall declineinagricultural activity. to dairy production, and to a lesser degree, to beef. The growth rate in the production of beef is also low in Costa Rica,where theherd iscurrently lower thanwhat itwas in1980andwhere there was asuddenchange the figure was 44%andbeefproduction alsogrew inGuatemala andMexico, thoughmuchless intensely in beef production, boosted by exports, increased by 105%between 2000and2009. IntheDominicanRepublic, expansion ofcattle farming isassociated muchofthetimewithexpansion ofgrasslands. InNicaragua, Nicaragua, Guatemala andPanama, orco-exists withintensive patterns asinMexico andPanama. Thus, the livestock farming that hasdeveloped inmost ofthecountries isoftheextensive grazing typeparticularlyin Finally, thelast column ofTable 3.1 shows thegrowth inmeat production between 2000and2009. The demonstrating that biofuelshave different rates of expansion. rate of growth ofonly4%was recorded, andadecrease inMexico, Panama andtheDominicanRepublic, these sectors was 41% between 2000 and 2009, while in Costa Rica it was around 23%. In Nicaragua, a lower was associated to biofuel production (maize, sugar cane and African palm). In Guatemala, the increase in In the 2000s, some of the countries experienced important growth in crops, which,for this part of the world, in Mexico, itremained at thesamelevel. area fell by 28% between 1980 and 1990. In the Dominican Republic, the farmed area was also reduced and, production oflivestock andbasicgrains) meant that someareas reverted to forestry andthetotal farmed in Costa Rica,animportant agricultural productivity reconversion inthe1980sand1990s(reduction inthe Guatemala, there was a44%increase infarmed areas, 37% inNicaragua, and20%inPanama. Onthecontrary, Table 3.1 shows that, between 2008and2009, farmed areas grew markedly insomeofthecountries. In small andrelatively denselypopulated countries ofCentral America. to theincrease inlivestock farming andsoybean production. Somethingsimilarishappeninginsomeofthe and Paraguay to mentionbutafew. Inthesecountries, theexpansion offarm landhasbeenduespecifically the agricultural frontier hasexpanded inmany zones ofLatin America,typicallyinBrazil, ineastern Bolivia, indeed have declinedbecauseofurbangrowth andindustrial activitiesaswell asothernon-agricultural uses, many areas oftheworld suchasmost ofEurope where over many centuries farm areas have notgrown, and sum ofareas underannualandpermanentcrops aswell asmeadows andpastures (cultivated orwild).Unlike of farmed areas which,intheFAOSTAT statistics, iscalledagricultural landandwhichcorresponds to the farm sizes. Since thesedata are onlyregistered duringFarm Censuses, itisusefulto usetheproxy statistic A first approximation ofthedynamicnature oftherural landmarket canbeobserved from thechangesin Mexico Nicaragua Guatemala Costa Rica Dominican Republic Panama Evolution ofcultivated areas 1. Dynamics ofagricultural landuse Country Areas infarms 2009/1980 -28 37 44 20 -6 4 Areas for biofuels 2009/2000 -10 -21 -10 41 23 4 Areas for cattleproduc 2009/2000 tion 105 21 13 21 44 7 - 60 The land market in Latin America and the Caribbean: concentration and foreignization Table 3.4:World exports ofsugar, 2009 Source: FAOSTAT andown calculations Table 3.3:Mexico –Landuseinhectares andpercentages is thetop exporter ofavocados, theeighthofsugar, theninthofcoffee, the tenth ofbananasandthe11 exporter ofsugarintheworld, thefourth for bananas,thesixthfor coffee andtheninth for palmoil.Mexico position for bananas andtheeighthfor palmoilandthe12thfor coffee exports. Guatemala isthethird In effect, 2009 data indicate that Costa Ricaoccupies the top positionas exporter ofpineapples,thethird of foreign investors. and, asaconsequence, leadingpossibly to processes ofland[re]concentration andtheincreased presence to several important agricultural products, adding pressure on land use for crops linked to world markets each generally with less than 10 million inhabitants, they occupy leadingpositionsinworld trade with respect Independent ofthefact that five ofthesix countries studied, withthe exception ofMexico, are small countries, Source: FAOSTAT andnational population census inthe2000s. Table 3.2:Agricultural landuse, 2010 pineapples, Panama istheeighthexporter ofpineapples(see tables3.4,3.5,3.6and3.7). giutrl hectare/ EAPA** Agricultural TOTAL te fut ad vegetables andothers - and fruits Other Cacao Sugar cane, palm Coffee, banana Basic grains* South Africa Guatemala Thailand Brazil Agricultural hectare/EAPA Fruit, vegetables &others Grains Alfalfa Soybean Palm Cotton Bananas Sugar cane Coffee Basic grains 2. * maize, wheat, beans,sorghum, rice, wheat, oats Agricultural globalization ** economically active population inagriculture Country Total Costa Rica Exports inUS$000s, 100.0 30.7 21.9 27.9 19.5 1.5 5 978 500 2009 247 467 507 702 756 697 17 537 108 12 244 410 2 867 385 340 000 377 756 153 473 112 937 703 943 741 410 Guatemala 31 804 76 927 100.0 19.9 12.2 14.6 53.2 1.0 Percentage of world trade 59.1 Nicaragua 2.4 5.0 7.5 100.0 11.7 11.8 70.5 1.7 5.9 100.0 69.82 16.35 0.18 0.44 1.94 2.15 0.88 0.64 4.01 4.23 Ranking 2.2 Panama 4 3 2 1 100.0 23.9 13.3 12.4 50.4 1.5 Dominican Rep. 100.0 48.1 18.5 15.1 27.0 2.2 9.8 th for 61 The land market in Latin America and the Caribbean: concentration and foreignization Table 3.6:Leading exporters ofbananasin2009, ‘000sUS$ Source: FAOSTAT Table 3.5:Coffee: mainproducing and exporting countries, 2009 Source: FAOSTAT Source: FAOSTAT Mexico Dominican Republic Cote d’Ivoire Honduras Philippines United Statesof America Guatemala Costa Rica Colombia Ecuador Country Brazil Colombia Mexico Argentina Mauritius Cuba Kenya El Salvador Nicaragua Costa Rica India Uganda Mexico Ethiopia Honduras Guatemala Peru Indonesia Vietnam Colombia US$000, 2009 Exports in 1 983 970 Green coffee 106 085 112 476 179 752 360 289 376 322 414 582 613 744 794 121 Green coffee Green coffee Green coffee Green coffee Green coffee Green coffee Green coffee Green coffee Green coffee Green coffee Green coffee Green coffee Green coffee Green coffee 77 177 106 891 148 252 153 517 214 117 215 570 Ranking 10 9 8 7 6 5 4 3 2 1 3 761,610 1 552 440 1 508 870 198 103 229 831 236 764 237 088 261 526 268 704 358 037 365 689 515 313 582 281 583 789 822 313 1.1 1.5 1.5 2.1 2.1 1 15 14 13 12 11 10 9 8 7 6 5 2 9 8 7 6 5 4 3 62 The land market in Latin America and the Caribbean: concentration and foreignization Source: http://www.asd-cr.com/images/The_oil_palm_industry_in_Costa_Rica.pdf, consultation on10January2012. racteristics adapted for different environments and plantingdensities. productive oilpalmseedvarieties andclones.ASD offers, ontheinternational market, sowing materials withspecial cha- 19 ASD Costa Ricawas created in1986asanindependent,specialized company dedicated to thedevelopment ofhighly Table 3.8: nationals) wholive intheUnited States andspendthevacations intheircountry oforigin. the tourists whotravel to ElSalvador andNicaragua are nationals orchildren ofnationals (generally dual in Mexico by itssignificantnatural andcultural resources, witha tourist flow from a range of origins.Among Rica, itcanbeexplained by attractive hotel complexes onthebeaches, mountainsandprotected zones and fiscal paradise, and retirement destination for pensionersfrom NorthAmericaandother countries. In Costa In Panama, the expansion of tourism can be explained by its role in maritime transport, as a financial centre, and Nicaragua theninth.Itisinteresting to observe that thedynamicsoftourism isdifferent for each country. second place, Costa Ricathethird, DominicanRepublic thefourth, Mexico thesixth,ElSalvador theeighth in eachcountry. Ofthe19countries ofLatin America, ranked by order ofimportance, Panama occupies the measured by theproportion ofinternational tourists peryear inrelation to thetotal numberofinhabitants Table 3.8gives anindication ofthepresence ofinternational tourism inthedifferent countries ofLatin America, become more sluggishdueto theglobalcrisis. continue to grow over thenext few decades, even though thedynamicprocesses observed until2007 have manpower) that would suppose that the expansion in demand for resources, andparticularlyland,will structural conditions (geographical location, natural beauty, climate, beaches,mountains,relatively cheap In reality, theseLatin Americancountries have already launchedthemselves into tourism andthere are the demandfor agricultural landiscoming from thetourism sector initsdifferent forms. or golfcourses. The casestudies ofPanama, DominicanRepublic, Mexico andNicaragua show how partof from thedevelopment ofsecond homesandadditionalinvestments suchasmarinasfor international yachts Some ofthepressures onlandare linked to thedevelopment oftourism, dueasmuchfrom hotel expansion as Table 3.7: Distribution ofoilpalmplantations inCentral Americaby age, in000sofhectares, in Mexico Cuba Dominican Rep. Costa Rica Panama Uruguay Country Costa Rica Guatemala Honduras Mexico Nicaragua Panama Dominican Republic TOTAL 3. Globalization andtourism

2010 2010 Number ofinternational tourists, inhabitants,percentage oftourists perinhabitant, Tourists 22 395 2 507 4 125 2 100 1 712 2 407 10 904 35 189 0-2 6 824 8 655 4 380 3 725 15% 538 163 Number ofyears since sowing (000shectares) Population 110 675 21 559 25 838 12 000 77 322 3-7 11 258 9 383 4 990 1 952 1 600 34% 9 899 4 639 3 508 3 369 inhabitants*100 8-15 17 581 10 928 24 179 60 208 4 768 1 266 26% 568 918 Tourists/ 20.2 41.7 45.3 48.8 71.4 22.3 16-22 10 304 34 191 9 961 4 353 2 696 1 650 4 818 15% 409 Rank in ‘000s 6 4 3 2 1 5 13 238 21 087 23+ 4 057 2 621 260 830 9% 81 - 227 997 47 807 45 576 84 463 24104 10 933 Total 6 786 8 329 19 63 The land market in Latin America and the Caribbean: concentration and foreignization for petroleum, and this shouldmaintaindemandandadequate prices for producers. The report ofSEPSA The planted area indicates anactivitythat isgrowing becauseofitsimportance asasubstitute product exported. producers). Ontheotherhand,44%ofallfarms are less than21hectares insize and the65%produced is hectares), 60%isinthehandsoftransnational anddomestic companies (cooperatives andindependent Land concentration and foreign presence exist intheoilpalmsector. 600 Ofthetotal planted area (52 Pacific region) asanalternative crop onabandonedlandthat hadbeenpreviously used to grow bananas. always beeninterested indiversification. The first oilpalmplantations were setupin 1944in Parrita (Central 22 http://www.asd-cr.com/images/The_oil_palm_industry_in_Costa_Rica.pdf 21 20 Basedonthestudy prepared by Santander Tristan Donoso, Consultant for FAO in2011. This company, themainactivityofwhichwas bananaproduction andexport at theendof19 The history of oil palm in Central America went initially hand in hand with that of the United FruitCompany. produced directly by thesugarmills. of less than3.3hectares andalltogether they account for 45%ofallsugarcaneproduced. The remainder is (Register ofsugar-caneproducers andmills). Almost 90%ofthemare smallproducers withproductive units independent suppliersofsugarcane, according to thedatabase oftheRegistro deProductores yIngenios Recent data show that there are 15sugarmillsinCosta Rica.The sugar-cane sector hasmore than12,000 co-existing alongsideforeign companies suchasChiquita,Dole, andDelMonte. coastal areas ofboththePacific andthe Atlantic. Subsequently, domestic companies have beendeveloped, Traditionally, there has always beenastrong presence ofexternal capitalintheproduction ofbananas,inthe companies. subsequent processes andtheexporting of coffee have beenmore concentrated andincludemultinational small andmediumproducers have historically beenvery present intheprimaryprocessing ofcoffee, while the coffee, bananas,livestock andsugarcane, andthat ofnon-traditional products. Ashas already beenobserved, There are differences between thepattern of concentration inthedirect production ofbasiccrops suchas II. Source: International tourist statistics from Wikipedia, CELADEandown computations. TOTAL Venezuela Brazil Colombia Bolivia Paraguay Ecuador Peru Guatemala Honduras Argentina Nicaragua El Salvador Chile http://www.laica.co.cr/productores.php Oil palm Sugar cane 1. Cases studied Costa Rica 20 60 455 5 161 2 385 1 047 2 299 1 219 5 288 1 011 1 150 3 389 615 671 465 896 21 563 831 194 946 28 980 46 299 10 031 13 773 29 495 14 376 40 738 17 114 6 455 7 621 5 822 6 192 19.8 10.7 11.8 17.4 18.6 13.0 7.2 2.1 2.6 5.2 6.7 7.6 7.8 8.5 19 18 17 16 15 14 13 12 11 10 9 8 7 th century, has 22

64 The land market in Latin America and the Caribbean: concentration and foreignization of theOmbudsman heavy pollution of the area. This has led to sanctions by the Constitutional Chamber and reports by the Office compatible withatropical environment anditrequires highlevels ofagrochemicals whichhave resulted in where 72% of all pineapples are grown. The monoculture production system of pineapple is not very impacts especiallyintheregions inthenorthofcountry, aswell astheAtlantic andthePacific regions Pineapple farming has provoked complaints becauseofpollution ground water andotherenvironmental pineapple iscontrolled by seven bigcompanies that includeDole, DelMonte, Fyffes andChiquita is a subsidiary of the North American multi-national Fresh del Monte Produce Inc. Commercialization of In thissector, thePineappleDevelopment Corporation (PINDECO) hectares and stands out.Itfarms 4 000 food security ofthisseasonalcommodity for thepopulation. tenible. SanJosé, Costa Rica, 2008p.41 28 Programa Estado delaNación2009. DécimoQuinto Informe delEstado delaNaciónenDesarrollo HumanoSos- Rica.2008. http: 27 26 Secretaria Ejecutiva dePlanificaciónSectorial Agropecuaria. op.cit. p.45 25 CONARROX (Corporación arrocera nacional).Informe Estadístico 2007-2008. SanJosé, Costa Rica,p.43. de mercancías. Revista Centroamericana deAdministración SanJosé, Publica. Costa Rica.P.71 24 23 Secretaria Ejecutiva dePlanificaciónSectorial Agropecuaria, op. cit.,p 35 in thehandsoftransnational companies –inotherwords, thelatter control 12 730 hectares concentrated inthehandsof150large producers. Amongthese150producers, 38%ofthelandcultivated is producers cultivate 50%ofthepineappleplanted area. InNorthernHuetar, thepineapple-growing area is hectaresThe pineapple-farmed (2008).Also, area 95% ofthesmall andmedium-sized iscurrently 33 500 Pineapple hasanimportantplace intheglobalmarket andenjoys stable prices. Gross Domestic Product. Costa Ricaisthefourth biggest producer intheworld andthefirst global exporter. This non-traditional activityhasbecome thesecond biggest currency-generating activityintheagricultural where landconcentration andforeignization exist andhave animpactonagricultural coverage. Pineapple production, albeit astrategic partofagricultural exports ofnon-traditional products, isasector average, control theownership andproductive structure. While numerically smallproducers are inthemajority, thelarge producers, withfarms of500hectares on 200 hectares. The remaining 6%are large-scale producers withfarms of200hectares andabove. than 50hectares represent 77%.Medium-size producers are 17%ofthetotal, withfarms ranging from 50to occupying anarea hectares. of62 400 Ofthetotal numberofproducers, smallproducers withfarms ofless The 000producers phenomenonoflandconcentration isvery evident for rice cultivation. There are 1 which 52.1% isplanted by transnationals andtheremainder by independentproducers. (Pindeco). Pindeco isthebiggest producer ofpineapple. The planted area for thiscrop is44 000 hectares, of company Fresh DelMonte Produce Inc,whichalsohas,asasubsidiary, thePineappleDevelopment Corporation and theBananaDevelopment Corporation; thelatter isthesubsidiaryofNorthAmerican multinational area andbananacommercialization isconcentrated inthebananacompanies, whichare ChiquitaBrand, Dole This isthemainagricultural export andishighlymechanized. Transnational companies have thelargest planted hectares intheAtlantic region) 33 200 region. There ispotential to expand thiscrop to hectares hectares 89 400 (56 200 inthePacific region and 95% oftheareas planted withoilpalmare inthePacific coastal region andthe remaining 5%inthe Atlantic in thecountry, generating directly 7 000jobsandanother21 000indirectly. (Secretaria técnica dePlanificaciónSectorial Agropecuaria, 2010) stated that there are some2 106 producers or 29 728 hectares the large rice producers, namelythosewith farms of200hectares andabove, control about55.2%oftheland, an area of54 052 hectares was planted withrice in2007-2008 andthere isevidence ofconcentration since origin from way backwhoare alsoinvesting inoilpalmNicaragua. Roberto Jovel DíazandRafael Díaz.2007. Elsector arrocero en Costa Ricadesdelaperspectiva decadenas globales Frente nacionaldesectores afectados porlaproducción pinera. Laproducción depinaenCosta Rica.SanJosé, Costa Pineapple Rice Banana production 25 28 . The above shows the high level of land concentration, notwithstanding the impact on . 23 ; someoftheinvestors inthissector are investors ofNicaraguan 24 According to information provided by Conarroz, 26 . 27 . 65 The land market in Latin America and the Caribbean: concentration and foreignization 29 Basedonthereport for FAO in2011 by Ing.Jaime Arturo Carrera C. other countries of the region. Even within the sugar trade, the size seems very unequal: for the sugar cane associated with and have extended the range of their operations to other productive sectors and also to in the hands of a few family owners. The activity is concentrated in 15 sugar mills, some of which have been Sugar caneisoneofthemost important agricultural activitiesinthecountry anditisfurthermore concentrated Source: Agricultural Census 2003/04 Table 3.9:Guatemala: Distribution oflandby typeofproducer, 2003 was inthecentral zones andthehighlandsofDepartmentsAltaBajaVerapaz. Census, thegreatest concentration oflandwas to befound onthecoast andthelowest level ofconcentration only 21.86% of the area while 1.86% of commercial producers occupied 56.59% of the area. According to this Seen from anotherpointof view, theAgricultural Census shows that 92.06% ofsmallproducers cultivated 7 hectares andoccupied 78.2% ofnational territory. The above shows theunequaldistribution oflandtenure. 7 hectares inarea andaccounted for 18.6%ofnational territory, while8%ofallfarms had areas greater than than 0.7 hectares, occupying 3.2%ofthenational territory. Significantly, 46.8%of farms were between 0.7 and The most recent Agricultural Census of2003 demonstrates that 45.2%ofallfarms are smallholdingswithless be globallycompetitive andthecountry iswell positionedgloballyamongexporting countries. on very fertile land.This condition andthemechanized systems ofproduction have allowed thecompanies to while theAfrican palmisgrown, for themost part,onthelowlands intheNorthandPetén, inbothinstances the country. However, sugarcaneisto befound almost exclusively onthe alluvialplainontheSouthernCoast capital. Bothcrops are grown ontheplainsSouthernCoast andinthelow-lying areas inthenorthof African palm is grown on100 000 hectares belonging to eightcommercial groups someofwhichhave foreign to 260 000hectares andisprocessed in14domestically owned sugarmills. agro-industrial transformation processes ofseveral endproducts. Sugarcanecultivation occurs on230 000 cane sector, andmore recently, for African palm;inbothcases,primaryproduction isintegrated into the Land concentration andre-concentration inGuatemala have beenevident for more thanadecadeinthesugar in protected areas. specific to the country, since itis, for alarge part, beingdeveloped by communities and forestry cooperatives concentration, althoughthiscannotyet bedistinguished clearly. The forestry sector hasfeatures that are very are: sugarcane, African palm,forestry, andlivestock-raising, whichitseemsisinadynamic process of In thecaseofGuatemala, thecommodities andactivitiesthat canbeassociated withlandconcentration rural extractive activities,suchasforestry andmining. transfer ofcrops orproductive activitiesfrom oneregion to anotherandwithincreases innew anddynamic be observed bothvertically andhorizontally. Someoftheseprocesses have beencomplemented withthe of commodities. Processes oflandconcentration and concentration intheproductive value chainscanthus can beseenthrough theincrease incultivated areas, theexpansion ofagricultural landsandintheexport General trends intheaccumulation and/or concentration oflandover thepast two decadesare evident and Monte hastoday animportance presence, astheUnited FruitCompany hadinthepast. and throughout therest oftheproductive chain.The classical example is bananaproduction, where Del agricultural crops andinthesesectors there hasbeenahighdegree offoreignization inprimaryproduction Guatemala hastraditionally beenacountry withahighdegree oflandconcentration for export-oriented Commercial With asurplus Subsistence Below subsistence levels Sugar cane Agricultural structure 2. Total Guatemala 29 % producers 46.8 45.2 100 1.9 6,1 % land 56.6 21.6 18.6 100 3.2 66 The land market in Latin America and the Caribbean: concentration and foreignization sugar caneplanted of Sugar Cane Producers of Guatemala), for the 2009-2010 harvest, there was a 5% increase in the amount of of farms inthePolochic Valley. Union, documentconflicts between communities andthesugar companies regarding thepurchase andsale -- were reduced. BothHurtado(2008)andthereport “Rightto Food inGuatemala”, funded by theEuropean for food production -inmany cases,basicgrains -eitherfor self-consumption orascommercial production (2008), theprocess inmany casesmeantthat tenant farmers were evicted andtheareas previously used 31 mapas-zona-canera/Boletines-Estadisticos/ ). 34 Hurtado, 2008 33 Ídem 32 Ídem 30 CENGICANA,2009. country amounted to 230 000 hectares the SouthCoast. For 2009, CENGICANAestablished that theareas planted withsugarcanethroughout the Agricultural Census of 2003 recorded that 187 000 hectares hadbeendistributed, for themost part (95%) in The data show that sugar cane expansion in the South Coast continued during the past decade. The country whichhave beenintegrated into thesugarvalue chain. the European UnionandtheUnited States ofAmerica;thisproduction camefrom thefive distilleries inthe the European Unionand,inthat year alone, more than265millionlitres ofethanolandalcohol were soldto boom intheinternational market for biofuels.Infact in2008,Guatemala was themainexporter ofethanolto In thecaseofsugarcane, itisimportantto mentionthat expansion ofthis crop hasbeenencouraged by the country’s total sugarproduction. production. For thesameyear, thesixbiggest mills,includingCorporación Pantaleón, produced 75% ofthe harvest of2006-2007, theCorporación Pantaleón SugarHoldingsaccounted alonefor 26%ofnational sugar herds to Petén andIzabal,even to Nicaragua creation ofsugarplantations; insomeinstances thesewere large ranches where itwas decidedto move the In theSouthCoast, what ishappeningthat livestock farmers have decidedto sellorleasetheirlandfor the identified: Regarding those who are selling productive land to sugar entrepreneurs, two types of owners have been that thearea planted withthecrop was 268 000hectares in2008. previously were cultivating partoftheirlandandleasing partofitto landless farmers In thetownships ofAltaVerapaz andtheValley ofPolochic, thosesellinglandare generally farmers who medium-size farm leases. the cultivated areas belong to the sugar mills, a further 20% are large farm leases and 10% correspond to plantations in the previous three years in EscuintiatheSouthCoast reported that ranches withinthetownship hadbeenreplaced by sugarcane Prensa Libre Libre Prensa of 21/06/2010. 31 . New plantations were developed inthenorthwest ofthecountry anditwas estimated Boletín Estadístico. Estadístico. Boletín Año 10, no.1. Guatemala (Alsoavailable at http://www.cengicana.org/es/ 33 30 . Some of the persons interviewed estimate that currently 70% of . According to the managing director of ASAZGUA (the Association 32 . Inmid-2010, themayor ofSantaLuciaCotzumalguapa 34 . According to Hurtado 67 The land market in Latin America and the Caribbean: concentration and foreignization the liberalization ofpalmoilimports the middle1990s,whenGuatemala’s entryto theWorld Trade Organization in1995 provided conditions for 37 37 GCOOP). dominio enGuatemala. Instituto deEstudios Agrarios yRurales (IDEAR)y Coordinación deONGyCooperativas (CON- 36 Fradejas, A.etal.,2008.Cañadeazúcar ypalmaafricana:combustibles para unnuevo ciclodeacumulacióny of thiscrop inCosta RicaandHonduras. gua, thefirst plantations were setup, according to thesame source, in1968 and even before 1960there were plantations 35 and Nicaragua beginning ofthe1980s,quite abitlater than intheothercountries oftheregion suchasCosta Rica,Honduras plantations. FAO’s records show that thefirst plantations of African palminthe country goback to the The most recent caseoflandconcentration in Guatemala hasbeencaused by thecreation ofAfrican palm Background match thetotal cultivated area. sugar perhectare (TAH). For theperiod2000-2005,thisfigure was 10.17 TAH. Total area inhectares doesnotnecessarily *According to CEBGUCABA(2007), Suarez, A.etal.,theproductivity index for theperiod1980-1990 was 6.77 tonnes of Source: Statistics compiled from Hurtado, 2008bandCENGICANA,2009. Table 3.10: always beenlinked to theindustrial production ofoil. planted with African palm in theregion, and half ofthat area was inCosta Rica Santa Teresa El Pilar Chabil Utzaj Guadulupe Trinidad San Diego Madre Tierra La Unión Los Tarros Palo Gordo Santa Ana Magdalena Concepción Pantaleón La Sonrisa InthecaseofGuatemala, FAO statistics present theareas planted withAfrican palmsince 1983.Inthe caseofNicara- FAOSTAT data base. Revised inAugust 2010 Refinery African palm Sugar millsinGuatemala, volume ofproduction andcultivated area, 1982-83and2008-09 35 Villa Canales, Guatemala Retalhuleu paz; ElEstor, Izabal zós ylaTinta,AltaVera- Under construction Pan- Escuintia, Escuintia Escuintia, Escuintia Escuintia, Escuintia péquez Mazatenango, Suchite- guapa, Escuintia Santa LuciaCotzumal- guapa, Escuintia Santa LuciaCotzumal- péquez San Antonio, Suchite- guapa, Escuintia Santa LuciaCotzumal- Escuintia, Escuintia Escuintia, Escuintia guapa, Escuintia Santa LuciaCotzumal- Cuilapa, SantaRosa TOTAL Location (municipality/ . Intheyears that followed, theproduction ofoilfrom palmdeveloped andincreased until department) 36 . In2000, itwas estimated that there were hectares less than20 000 Escamilla family berg families Campollo Weissem - Widmann Family Villa Family families Campollo andCodina Aparicio family Abascal families De laHoz, Bonifasi, Botrán family Leal family ings Pantaleón SugarHold- Pivaral family Owner orcorporation 101 066 459 594 38 995 13 237 17 434 37 123 37 040 10 086 46 148 72 864 18 187 56 639 Sugar production 1982- 4 686 4 437 1 652 (metric tons) 83 Being established 2 229 130 2008-09 213 614 163 476 264 903 264 342 454 617 138 601 421 166 62 871 69 324 50 126 28 845 93 354 2 916 1 425 37 . African palmproduction has 10 763 14 929 67 887 1982- farmed area* 5 760 1 955 2 575 5 483 5 471 1 490 6 817 2 686 8 366 Productive (hectares) 692 655 244 83 219 187 20 960 16 074 26 047 44 702 13 628 25 992 41 413 2008- 6 182 6 817 4 929 2 836 9 719 287 140 09 68 The land market in Latin America and the Caribbean: concentration and foreignization 39 hectares in2008.Revised inAugust 2010. 38 According to data from FAOSTAT, thearea planted withAfrican palmrose from 100 130 hectares in2000to 192 000 in Latin America to thegroup ofthe20biggest exporters ofpalmoilworldwide andwere amongthefive biggest exporters officially recorded data, asis presented below. From 2000on, Costa Rica,Honduras andGuatemala belonged Table 3.11: Principalproducers ofAfrican palminGuatemala generated ahugedemandfor large production unitsofland. into biodiesel are concentrated in six large producers, which,in their search to expand theirplantations, have be seenfrom Table 3.11 whichconfirms that bothagricultural production andthetransformation ofpalmoil with foreigners. They have concentrated production andestablished alliances at different levels, whichcan The expansion inAfrican palmhasbeendoneby arestricted group ofdomestic entrepreneurs associated and Hurtado, 2008. Source: Owncalculation usingthedata from theIVCenso NacionalAgropecuario. Agricultural surveys. 2005,2006,2007 Figure 3.1: Areas cultivated withAfrican palmover several years since 2003 between 2000and2008 land into commercial plantations. FAO estimates that, intheregion, thearea usedfor African palm doubled palm inthecountries ofCentral America,provoking theaccelerated transformation ofhighlyproductive In thefirst decadeof2000, theriseinglobalprices for African palmtriggered, again,thecultivation of African * Updated withinformation from Source: Infopress Centraoamericana andElPeriódico, adapted by Hurtado(2008) 120 000 Tikindustrias S.A. trial S.A.-NAISA Nacional Agroindus- Palmas deIxcán arte andArriolaFuxet toco, GrupoTerrebi- Extractora delAtlan- AGROCARIBE/ INDESA/PADESA Group HAME/REPS Agricultural company 20 000 40 000 60 000 80 000 FAOSTAT data base. Revised inAugust 2010 or entrepreneurs 0 2003 200520062007 20082010 39 . Aldea Arenas, Sayaxché (Petén) Sayaxché (Petén) Cobán (AltaVerapaz) Playitas, ChisecandLachúa, Ixcán (Quiche), Rubelsanto, and (Mexico) of Soconusco andChiapas Villa Comaltitián, intheregion Mazatán, Mapastepecand Acapetehua, Acacoyagua, Finca Berlin,Morales (Izabal), Chahal (AltaVerapaz) sec, Fray BartoloméLasCasas y El Estor(Izabal), Panzós, Chi- Sayaxché (Petén) zatenango, Ocós (SanMarcos), Escuintia, Coatepeque (Quet 38 (figure 3.1), although,according to several experts, theincrease was greater than Location ofplantation El Mercado de los Agrocombustibles los de Mercado El - El Pilarrefinery Grupo Kong, AlimentosIdeal Privadas delIxcán CARIBE, Reservas Naturales & GoldmanSachs,AGRO- Group, Riverstone Holdings Green EarthFuel,Carlyle Earth Fuel,Palmas deIxcán Propalma Mexico, Green Unilever, ElSalvador Olmeca.SA. Latin Americanandtransna - National, Central American, tional alliances , Action Aid.2010 5 000 (beingdeveloped) 5 000 (beingdeveloped) reached by 2017) 2013 =100 000tobe oped –goal for 2008- 25 000 (beingdevel- 9 000 (2010) PADESA 8 000(2012) INDESA (6 921(2009) 40,000 (2008) in development (hect Area inproduction or ares)* - 69 The land market in Latin America and the Caribbean: concentration and foreignization hectares) andfrom US$5 000andUS$7 000 peryear to owners ofplots45hectares. in whichsuchcontracts represent between USS2 500 andUS$3 500 peryear for owners ofsmallplots(22.5 The market for land leasesisalsoactive, withsomecontracts for 20to 25years. Hurtadodocumentsacase has alsodocumented similarcasesinotherregions ofthecountry. plantations andhave problems accessing theirplots,sellingcrops andaccessing water. Hurtado(2008) have beenencircled inSayaxché, insouthElPetén, since they have remained trapped withinAfrican palm and el Estor in Polochic Valley ( Alta Verapaz). Moreover, the report documentshow several communities funding from theEuropean Union,gives detailsofspecificcases forced eviction of communities in Panzós communities have beenevicted inorder to gaincontrol over productive land.Areport have beendocumented where owners have beenpressured, indifferent ways, to selltheirlandandwhere While there isevidence ofarelatively dynamiclandmarket inidentifiedareas, itisalsotruethat cases 40 • • the start ofthe integration ofprimaryproduction to industrial processes. observed. Amodernslaughterhouse has recently beeninstalled in the cattle-raising region whichcould be private individuals,even though theincreases inherd size anddynamicsalesofproductive farms have been In relation to cattle farming, itisnotyet possible to observe landconcentration inthehandsofcompanies or mainly for external markets. Guatemala. Primary production isstarting to beorganized around industrial production ofwood products, 69% oftheland available inthecountry for that purpose. Itresults from concessions granted by theState of concessions. Given the scale of forest coverage in protected areas, forestry land concentration amounts to Regarding forest concessions inprotected areas, itispossible to identifyconcentration oflandin14group capital ispresent inthecaseofAfrican palm. processing withalinkto international markets. Landgrabbing as such hasnotbeenidentifiedbut foreign continue to develop. For bothcrops, there isdirect integration between primaryproduction andindustrial exists undermarket conditions, despite seriousimperfections andlimitations, anditislikely that itwill According to thecasesunderstudy, for at least two crops –sugarcaneandAfrican palm–landconcentration cheap Although there is no information about the price of land, available information suggests that it is relatively beneficiaries oflandallocation by the state; they are individuals, communities andagricultural smallholders. The majorityofthoseidentifiedinthe research assellinglandin Petén andlaFranja Tranversal deNorte, are receive annualrents that are equalorgreater thantheincome from theirannual production. 44 InthemunicipalityofFray Bartolomé delasCasas Franja Transversal deNorte, landowners with45 hectares ormore (Also available at http://www.rtfn-watch.org/uploads/media/The_Right_to_Food_in_Guatemala.pdf). 43 The report isentitled:The right to food in Guatemala. FinalReport oftheinternational fact-finding mission. are livestock farmers. 42 41 have beencoveted by entrepreneurs for theirprice, amongotherfactors. land, ranges from US$12 000to US$50 000, dependingonthelocation these municipalities,ithasbeendetermined that theprices offered for a “caballería”, a45-hectare tract of estimated that, over thelast ten years, 30%ofthepeasantfarmers insouthPetén have soldtheirland Dürretal.2010. Cadenasproductivas, dinámicasagrarias ycuentasterritoriales debase agropecuaria: elSurdePetén. In Sayaxché municipality, thebuyers are mainlyAfrican palm producers. Inthe othermunicipalities,themainbuyers According to thearticleinPeriódico, 15/07/08 ( allows theproduction ofsugar and otherfinishedproducts suchasalcohol andethanol. industrial transformation hasoccurred. Inthecaseofsugarcane, there isahorizontal integration that recently for African palm. In both cases, a pattern of integration between primary production and agro- plains intheSouthCoast, whileAfrican palmisgrown mainlyinthelowlands oftheNorthandPetén. land. However, theconcentration ofsugarcaneproduction isto befound almost exclusively onthe alluvial investment. Bothcrops are grown onthesouthcoast andinthe northonsomeofthebest agricultural covers around 100 000 hectares belongingto eightbusiness groups, someofwhichhave foreign capital domestic ownership, whichprocess thecrops. The processing ofAfrican palm,whichismore recent, Sugar canecrops are concentrated to 260000hectares belongingto 14sugarmillsunder in230 000 grabbing The phenomenonoflandconcentration andre-concentration canbeobserved inGuatemala butnotland Final reflections Land concentration –asynthesis Vendors andtypesoftransactions 40 , even thoughtheprices offered may appear attractive to the owners, generally small farmers. Itis per se per . This trend hasbeenvisiblefor more thanadecadeinthecaseofsugarcaneandmore Auge en combustibles dispara demanda de tierras de demanda dispara combustibles en Auge 42 .

43 produced in2010 with 44 ), theseareas 41 . In 70 The land market in Latin America and the Caribbean: concentration and foreignization 45 Basedonthestudy prepared for FAO, 2011 by Hector ManuelRobles Berlanga. registered. 3 097 000 hectares. Itisalsoimportantto emphasize that, inathird oftheagrarian nuclei,noland saleswere involved personsfrom outsidethecommunity. Inthepast ten years, thepurchase/sale oflandinvolved been reported, thishastaken place between membersofthesamecommunity and,in54.1%, thetransactions nuclei there have been land sales. In 82.4% of the “ejidos” (communal land) where landtransactions have The analysis oftheresults oftheIXCommunal LandCensus of2007 shows that intwo outofthree agricultural to bebroken upanddisposed of, inaccordance withtheprocedures laiddown infederal laws. Article 124 stipulates that, in cases where farms exceed the limits for individual small properties, they will have more thantheequivalent of25timesthesize ofsmallindividualproperties. Likewise, theAgrarian Law in It isalsostipulated that commercial orcivilsocieties cannotown agricultural, livestock orforest landthat is in accordance withequivalencies laiddown by theFederal Government. not exceed theareas necessary to maintainupto 500headsoflivestock oritsequivalent insmalllivestock, cattle ranches which,dependingonthe weighted coefficient forpastureland inthe regioninquestion, does Other forms of smallproperty are alsodefined:any area of forest that doesnot exceed 800hectares and other categories ofland: farm isagricultural land,irrigated orrainfed that doesnotexceed thefollowing limitsortheirequivalent for be alatifundio (large farm) ifitexceeds thesize ofasmallproperty. InArticle117, thedefinitionofasmall land area usedfor agricultural, livestock orforestry purposesandowned by oneindividual,isconsidered to Article 27 of the Political Constitution of the United Mexican States and Article 115 of the Agrarian Law, any Different agricultural laws established limitsonthesize ofrural properties. Currently, insubsection XV of of monocrops. markets. This supply may beimpacted iftheproduction ofgrain hasto compete for landwiththeexpansion Alta Verapaz andIzabalwhere there isextensive production ofgrain production whichreaches thelocal for self-consumption and for seasonal sales of product; however, there are some departments such as Petén, In terms oftheproduction ofbasicfood grains, thisis mostly carriedoutby smallproducers insmallplots, note that itisnotuncommon to seethisactivitylinked to illegalactivitiessuchasdrugtrafficking. stakeholders andthemediabutthey are notyet reflected inofficialfigures and statistics. Itisimportant to crops. There issomeknowledge abouttheseprocesses ofconcentration from theopinionsofimportant reduction offorests canbeobserved intheseterritories aswell asanincrease inpasture andsemi-permanent cane cultivation onthesouthcoast andwhat seemsto beatransfer oflivestock farming to theNorth.A an increase intheherd size intheagricultural landofPetén. This isaconsequence oftheexpansion ofsugar Regarding theproduction ofcattle, aninitialprocess oflandconcentration oflandcanbeperceived through seal andare intheprocess ofintegrating themselves into thedifferent forms ofindustrialization of wood. hectares representing around 69% ofprotected forestry land.The companies intheirmajorityhave thegreen state to twelve community companies andtwo industrial ones.The concession covers atotal area of532 951 important protected area of the country. The concession for the use of forestry resources was awarded by the in order to improve thelivingstandards ofthebeneficiariesand to ensure adequate conservation ofan a concession for theuseofforestry resources asoneoftheconditions ofthePeace Agreements of1996 use zones oftheprotected areas oftheBiosphere Reserve Maya-RBM. The State ofGuatemala granted Another interesting pointisthat offorestry concessions located inthefar northofthecountry, inthemultiple- the world. most qualified worldwide and hasplaced Guatemala in a strong position among the exporting countries of This, together withmechanized production systems, hasallowed theproducers to beranked amongthe In bothcases,production systems have beenestablished interritories withexcellent production capacity. Buying andsellingofland c) b) a) 3. 100 hectares for growing crops otherthanthoselisted inparagraphs IIandIIIofthesamearticle Mexico olive, Peruvian barktree, vanilla, cacao, agave, pricklypearorfruittrees. 300 hectares ifitisdestined to thecultivation ofbanana,sugarcane, coffee, sisal,rubber, palm,vine, 150 hectares ifitisintended for thecultivation ofcotton 45 71 The land market in Latin America and the Caribbean: concentration and foreignization y agricultura comercial en el noroeste de México. Historia económica y tendencias actuales. tendencias y económica Historia México. de noroeste el en comercial agricultura y 46 The research findingsare presented inthebook: Romero Ibarra, María yCarrillo Rojas Arturo (Coord), 2009. Source: From own calculations, based oninformation from INEGI-SAGARRA Table 3.12: Hectares sown andnumberofcompanies by typeofproduct of the20 which started inthe1980s.Today, somestudies refer to theexistence oftheagro-industry since thebeginning It isimportantto pointoutthat agro-industries inMexico have existed since well before thestructural reforms According to the 8 addition, theselanddealsare predominantly for agricultural orlivestock activities. it isobvious that they are theonesthat involve thehighest numberoffarmers andthelargest surface area. In In other words, these transactions only generate indirect rights. If we add the areas committed in these ways, These forms ofagrarian dealsdonotmodifyownership rights,since they onlyinvolve theusufructofland. agriculture andirrigation inthenorthofSinaloa(1932-1969) 1911). They alsomentioncorporate agricultural activityintheValley ofMayo (1920-34) aswell ascorporate the construction oftheSouthernPacific railway anditsimpactonagriculture inSinaloaandSonora (1905- hectares have beenrented to about500persons,representing 36.8%oftotal arable land. practice inthenorthofcountry, They pointto thefact that, inSinaloa,for example, around 500 000 of productive land,most ofwhichisirrigated, issubjectto thismechanismwhichhasbecome acommon sources mentionthat landrenting increases intheautumn-winter seasonwhenitisestimated that 50% who rent complete communal farms, may appropriate more than 2 000 hectares. In publications, government The average size ofplotsbelonging to communal farmers isabout10hectares, whileprivate entrepreneurs beans, hasbeenestablished through theleasingofplotsland. maize. Othersreport that since the1990s,an elite oflarge producers, whoconcentrate ongrowing maize and (ejidatorio). This concentration ofthebest landthrough rent-seeking exists for basiccrops: rice, wheat and – 2.5 million tonnes – is produced farmers communal and the remaining farmers by 30% by 2 000 60 000 Different rural actors have pointed to the concentration oflandthrough leasing.InSinaloa, 70% ofmaize been subjectto usufructarrangements inthepast few years. in recent years. This meansthat, ifalltheusufructdealsinvolved agricultural land,28.8% ofarable landhas mentioned, total arable land amounts to 31 million hectares, of which around 22 million have been cultivated This amountisnotnegligible, becausedealsare generally associated withagriculture and,aswe have already 6.3 millionhectares are covered by someform ofusufructarrangement. sharecropping for 677 000 hectares, landloansfor 1 557 000, andotherforms hectares. 1 435 000 Allinall, prices from theproducer. Alltheseinstitutions disappeared inthe1980sandbeginningof1990s. provided technical assistance, carried outresearch to develop technologies andthey regulated purchase agro-industry’s interventions intherural sector. They commercialized agricultural products, distributed inputs, Before thestructural reforms ofthe1980sand1990s,state institutions represented acounterweight to the its consolidation andexpansion are theresults ofthesepolicies. Mexico isnottheresult oftheimplementation ofpoliciesto restructure therole ofthestate andfree trade, company Herdez S.A.deCV, whichdates backto 1914.Inotherwords, whilethepresence ofagro-industry in TOTAL Tobacco Tequila Barley Vegetables Coffee Sugar cane Fruit Product Contract agriculture Income, sharecropping andlandloans th century, highlightingthe importance ofthefarming valleys oftheNorthPacific with regard to th Agricultural andLivestock Census of2007, landleasesaccount for hectares, 2 667 000 3 901 212 1 360 140 Hectares 165 475 329 853 647 417 680 000 719 000 4 327 16.5 17.4 18.4 34.9 100 4.2 8.5 0.1 % Number ofcompanies 22 12 3 4 2 5 6 46 . Anotherexample isthearrival inMexico ofthe FE-UNAM.México. Empresa Empresa 72 The land market in Latin America and the Caribbean: concentration and foreignization increase of52.2% oftheharvested area and 70.2% increase inproduction hectares, representing an tangerines, plumsandcoconuts. By 2009, thearea hadincreased to 1 360 000 cacao, apples, prickly pears, peaches, pineapples, grapes, guavas, mandarin oranges, grapefruit, papayas, sub-tropical fruit.In1990, 982 192 hectares were sown withoranges, mangos, lemons,avocados, nuts,plantain, In thecaseoffruitgrowing, ithasto benoted that Mexico isanimportantproducer oftemperate, tropical and capital, even thoughthere are four Swiss companies, oneFrench andtwo withstate government participation. There are 22large international firmsassociated with horticulture, for themost partwithNorthAmerican 48 SIAP-SAGARRA 47 While fruitand vegetable production inMexico exists since thebeginningof20 is cutby around 90 000day labourers usingmachetes, after burningthefield. San LuisPotosi (9.4%), Tamaulipas (8.2%)andOaxaca (7.8%) beingthemost prominent. Inaddition,thecane smallholders (having onaverage 5hectares),belonging to 15groups, withVeracruz (36.6%),Jalisco (9.8%), 000hectares. Sugarcaneisgrown byThese companies are suppliedwithsugarcaneproduced on719 operating inthecountry, most ofthembelongingto 12industrial groups. to thetransformation oftheraw material into sugaroralcohol by thesugarmill.Intotal, 60sugarmillsare Currently, thesugarindustry isahighlyintegrated productive chain,covering allprocesses from theproduction according to theVIIICensus of2007). farm units smallfarmers whogrowthe landandhave sugar cane(142 000 to dealwitharound 160 000 Unlike countries suchasGuatemala, Brazil, Colombia andtheUnited States, Mexican sugarmillsdonotown International. basic grains have operations in Mexico – Cargill-Continental, ADM-Maseco and Minsa-Arancia-Corn Products maize exports oftheUnited States ofAmerica.Three ofthelargest globalcartels inthecommercialization of also themainimporters andexporters intheUnited States. Cargill, ADMandZen Nohcontrol 81%ofthe purchasers oftheharvest: Masaeca,Minsa,Cargill, Arancia, Archer Daniels Midland.These companies are of Conasupo leftproducers inthehandsofalimited numberoflarge transnational companies, andsole and thismakes upthebulkofproduction; theremaining amountgrown isyellow maize. The disappearance words, seven outofevery ten agricultural unitsinMexico sow thisgrain. 80%offarmers grow white maize, 35.4% oftotal area sown inone farming year. 2 000 627 agricultural production unitsgrow thiscrop. Inother The most importantcrop for thecountry ismaize: 7 726 000 hectares are currently sown for grain, representing 3.3 hectares; lemons3.0 hectares, mangos3.6hectares, andbananas5hectares, to give afew examples. of properties is3.1 hectares perproducer; for avocados, itis2.07 hectares, for cacao2.2hectares; coconuts As isthecasewithhorticulture, most fruitgrowers are producing onasmall scale:for oranges, theaverage size which export directly technology, well organized and in some cases partners of large-scale agro-industries or family enterprises Jalisco, Michoacán);c) large producers withproperties ofmore than10hectares, withahighdegree of bigger (between 5and10hectares) andthey are to befound inthecentre orwest ofthecountry (Guanajuato, small producers whodiffer from the previous category inthat they usemore technology, theirproperties are their plotorinlocalandregional markets. They are mainlyfound inthecentre orsouthofthecountry; b) smallholders with properties of less than 2 hectares, using basic technology, who essentialy sell just outside Horticultural producers cultivate 6hectares onaverage, although thiscovers adiversity ofcases:a) production, packaging, distribution andmarketing ofvegetables, principallyfor theNorthAmericanmarket. the export ofvegetables inGuanajuato andaround 120companies inSinaloadedicate theirresources to the vegetableAt growers thenational level, are 100 000 registered. Ofthistotal, 30family groups dominate Sinaloa, Sonora, Michoacán,Tamaulipas, Morelos, Guanajuato, Guerrero, Tamaulipas andJalisco. sought outregions withfavourable geographic conditions for growing thesetypesofproducts, suchas this season, the production of the United States is insufficient to meet domestic demand. These companies on agrand scalewiththeaimofdirecting products to thewinter market intheUnited States because, during dynamic inthe1950s whenNorthAmericancompanies started to promote fruitandvegetable production ídem Fruit andhorticulture Sugar cane Maize 47 . 48 . th century, itbecamevery 73 The land market in Latin America and the Caribbean: concentration and foreignization Table 3.14: Large transnational companies inMexico’s horticultural sector Source: Complied withinformation from SIAP-SAGARPA Table 3.13: Horticultural production: Area sown andharvested, output,1990-2000 other brands (17.2%). 31% market share; DelValle (24%); Boing/Pascual (10%);Lala(5%);Florida7(4%);Valle Redondo (2.4%),and who produce fruitjuice, nectarandfruitconcentrate. The maincompanies are: Jumex withapproximately Torre, Veracruz, and the mango growers in Sinaloa who formed Diazteca S.A. supply around 250 companies in deCiudadCuauhtémoc, Chihuahua,theorange growers inMontemorelos Nuevo León orMartínez dela technology andwithcompanies to process andcommercialize theirfruit.For example, theapple-growers The above doesnotmeanthat there are noproducers withbiggerareas andmore advanced levels of Casa Cuervos S.A.deC.V. Productos deMaizS.A.C.V Anderson Clayton&Co Hendez S.A.deCV Company Industrias AlimenticiasClubS.A.deCV Nestlé S.A.deC.V. Campbell S.de Mexico S.A.deC.V. Productos GerberS.A.deC.V. Formez Ybarra S.A.deC.V. Productos delMonteS.A.deCV Danone S.A.deC.V. Sabritas S.A.deC.V. Kraft General Fondos deMexico Alimentos delFuerteS.A.de C.V Conservas LaTorres S.A.deC.V Frigorificos LaHuertaS.A.deC.V Conservas LaCostena S.A.deC.V Jugos delValle S.A.deC.V Yavaro IndustrialS.A.de C.V S.A. deC.V. Industria Horticolas deMontemorelos VerdeGigante S.A.deC.V. Export S.A.deC.V. Carmel Difference 2009 1990 Year Sown area (hectares) 642 417 645 545 -3 128 1935 1930 1922 1914 in Mexico Established 1961 1960 1950 1956 1943 1962 1974 1974 1962 1973 1964 1957 1948 1947 1983 1974 Harvested (hectares) 615 264 612 513 2 751 100% USA 100% USA Swiss 97% USAand3% 100% USA capital Origin ofinvested 100% Swiss 100& Swiss 100% USA 49% USA 100% USA 100% French 100% USA 99% USA tion 15% stateparticipa- tion 20% stateparticipa- individual assoc. State participation/ 100% USA Production 11 815 909 tonnes 4 302 010 7 513 899 Aerobal S.A. Subsidiary of CPCInternationalInc. Subsidiary of Unilever Listed company Observations Subsidiary of Nestle. pany Subsidiary of Campbell SoupCom- Pepsico S,A,deCV Subsidiary of GamesaS.A.deCVand Subsidiary of Pepsico 1990 Takeover of Kraft by General Foods in Listed onthestockexchange Belongs totheJumex Group Pilsbury Co. Subsidiary of Grand Metropolitan Belongs totheBimboGroup 74 The land market in Latin America and the Caribbean: concentration and foreignization 50 IntheState ofMichoacán, itisestimated that there are, inall, 11 400avocado farmers. available at http://ias2011.wordpress.com/wac/2011-congress-proceedings/vii-world-avocado-congress-2007/). 49 protection for miningcompanies by state governments, basedontheMiningLaw. generated from mining, non-compliance with what has been agreed, damage to productive land and the miningcompanies andthelandowners: very low prices for landleaseswhencompared to theincome The mainfeature ofleaseorpurchase agreements linked to miningis the unequalrelationship between of whichwere sociallyowned”. the country and in 2010 it had obtained 24 182 concessions which involved 49 472 055 hectares of land, most the state. López Bárcenas (2010) points out that “through thisprocess, theminingindustry hasdeveloped in Natural resources belongto thenation andindividuals can onlyuse themthrough aconcession awarded by 000growers and26packers geared to theexport4 markets have beencertified by authoritiesintheUnited States andinMexico. The association represents more than exporters ofMichoacán,isthemost importantorganization andbringstogether growers andexporters who States, they have to belong to a trade association: APEAM, the association of avocado producers and The productive baseiscomposed mainlyofsmallproducers. However, to beableto export to theUnited worker, basedonhttp://www.amsda.com.mx/PREstatales/Estatales/MORELOS/PREaguacate.Pdf and Note: Full-timeequivalence calculated onthebasisof57 day labourers perhectare and280workdays perpermanent Table 3.15: Structure ofavocado farming intheState ofMichoacán Mexico isat thesametimebiggest consumer ofavocado intheworld. for thedomestic market andtheremainder for theworld market, basicallyfor theUnited States ofAmerica. Michoacán is the main producer of avocados in Mexico andin the world. Currently 75% of its production is As already seenfor othercrops, small-scaleproducers predominate. According to the7 producer oforganic coffee. annual production is4.7 millionbags(60kg). Mexico isthesixthcoffee producer inthe world andthesecond and Communal Land Census of 2007. hectares have been planted with coffee 680 000 and the average Coffee production is very importantinMexico with349 701 productive units(PU),according to the Agricultural exports cannegotiate onexport policiesandprogrammes. not onlyas a coordination mechanism for exporting avocados to USA but alsoasaforum where growers and United States. MembershipinAPEAMisaprerequisite for exporting to theUnited States. APEAMoperates government agencies in order to coordinate the efforts of avocado growers and packers exporting to the coffee, formed ANACAFE A.C. (thenational association ofthe coffee industry). Incidentally, the32most importantcompanies, whocommercialize soluble, roasted, ground anddecaffeinated coffee (fermented or over-dried, etc.) becausethere isa strong market for thistypeof coffee inthe country. (Cargill) and Agroindustrias deMéxico (AMSA-ECOM) whobuyhealthy parchment coffee anddamaged five companies, allwith foreign capital:Nestlé, Café California (Neumann)Becaficsa (Volkaffe); Espograno (0.08%) have more than50hectares andthey own 8.2%oftheland.Coffee growers supplygreen coffee to have two hectares orless andthey account for 47.2% ofthecoffee growing area whileonly 416 producers size ofacoffee productive unitis1.94hectares. The structure of coffee farmsis:84.2%of coffee growers Proceedings VIWorld Avocado Congress 2007. Viña DelMar, Chile. 12-16 Nov. 2007. ISBNNo978-956-17-0413-8. (Also Land market andminingconcessions Avocado Coffee Large Medium Small Overall Average area (in hectares) 5.7 40 20 4 100 35 57 Area % 8 Producers 10.3 88.5 100 1.2 % 50 . Ithasbeenpromoted andsupported by Permanent per farm workers 1.16 8.14 4.07 0.81 th Census, theaverage 49 75 The land market in Latin America and the Caribbean: concentration and foreignization 51 frequently withNorthAmerican troops, inthe19 agricultural purposes.Inthefirst place, despite beinga country subject to foreign politicalinterventions, The caseofNicaragua hassomespecific features with respect to land concentration and foreignization for when itcomes to negotiating product prices withthelarge companies. small volumes of produce and their farms are not highly mechanized. These conditions make them vulnerable barley sixhectares andtobacco two hectares. Moreover themajorityare poorlyorganized, sellingindividually the figure isfive hectares, for vegetable growers sixhectares, for fruit five hectares or less, coffee 1.9hectares, industry are smallholderfarmers. Maize farmers have onaverage 2.7 hectares ofland.For sugarcanegrowers, One of the research findings that stands outis the fact that themajorityof producers tied to theagro- vegetable sectors, Herdez infruitandvegetables. Nestlé isheavily involved insectors producing milk,coffee, fruitand vegetables, Cargill ingrain, poultryand In addition,several ofthesecompanies are involved indifferent sectors. To mentionjust a few examples, barley, two; tequila, four; tobacco three; poultryproduction three; andmilk,five. of maize, six companies stand out; in sugar cane, there are 12 industrial groups; in vegetables, 22; fruit, six; The data that reflect the process of concentration of companies are: in the purchase and industrialization established andthedisappearance littleby littleofmedium-size andfamily companies. growth andconcentration isthrough thepurchase ofcompanies orregional brands that are already well in globalization. For themost part,they are linked to NorthAmericancapital.The most common form of Not onlyislandconcentration takingplace indirectly butalsothere are fewer andfewer companies involved a lotofsmallproducers whoare livingfrom handto mouth. concentrated in the agro-industrial companies and they have the biggest profits. On the other hand, we see large volumes ofproduction, processes andcommercialization especiallyontheinternational markets are industry. The study found that this process has given rise to concentration and polarization. On the one hand, sector hasallowed, over thepast thirtyyears, theprocess oflandconcentration to take place viatheagro- implementation ofstructural reforms inthe1980s.The withdrawal oftheMexican State from theagricultural Although theagro-industry hasexisted for many years, itsgrowth andconsolidation started withthe maintaining thelandwhenitisnotbeingworked. This functionhasto beassumed by thelandowner. and thecompanies donothave to assume alltherisksofproduction, nordothey have to spendmoney on committing to buytheharvest –inorder to generate economies ofscale. This renders capitalmore mobile to use other mechanisms to control production – providing seeds and inputs, empowering the farmer and through thecontrol of productive processes. Thus, itcanbeseenthat agro-industries prefer to leaselandor The study showed that landconcentration inMexico doesnotoccur through themarket for landbutrather scale thanwhat hasbeenseeninother Latin American countries. to cattle farming. This results insomelandconcentration processes by foreign investors, thoughona lesser observed onthepartofregional investors (from therest ofCentral AmericaandMexico) insectors linked And fifthly, over the past two decades, increased investments for the purchase of agricultural land can be and vegetables for theexport market, whichare generically designated as“non-traditional crops”. Fourthly, unlike neighbouringcountries, Nicaragua hasnotexperienced growth inintensive crops suchasfruit medium-size andlarge sectors to expand particularlyinextensive livestock farming. and whichhasmadeitpossible, inpart,to lower thepressure onland by peasantfarmers. Ithasalsoenabled an importantagricultural frontier whichhasgenerated large increases infarm areas inthepast few decades, Thirdly, theexpansion oftheland area dedicated to agriculture continues to beanopenoption,asthere is other state actionsinthe1990sandinfluence ofmarkets since 1990. with regard to thedecrease andre-concentration ofland)asaresult oftheagrarian reform laws ofthe1980s, Secondly, since theendof1970s, thelevels oflandconcentration have beenmodifiedpermanently(both which occurred intherest ofCentral America, CubaortheDominicanRepublic. investments have notgrown intheagro-industry insectors suchasbanana,sugarcaneorcoffee plantation, a determining role intheestablishment ofthedictatorship oftheSomoza Family (1937-1979), direct foreign Based onthestudy prepared by Eduardo Baumeister for FAO (2011). 4. Conclusions Nicaragua 51 th andearlydecadesofthe20 th century, whichalsoplayed 76 The land market in Latin America and the Caribbean: concentration and foreignization thus contributing to thesustainability ofthebuffer zone intheBosawas Reserve way iscommitted to reforestation inpartto mitigate theenvironmental effects ofminingactivities,anditis On the one hand, there are companies such as HEMCO, a Canadian mining company that in a complementary other canesub-products, inorder to selltheexcess energy to thenational grid. of electricalenergy, usingfirewood andthebagasse obtainedfrom thetransformation ofcane to sugarand to beableto getcertification for carboncapture plantations Reforestation activities in Nicaragua seek to achieve two major objectives: timber production and secondly additional 5 000 hectares additional 5 000 Other reforestation initiatives by sugarmills(SanAntonio, Monterrosa andMontelimar) account for an while Boaco isintheCentral Region. initiatives ofFuturo Forestal, Precious Wood, andMaderas Cultivadas delCentro are located inthePacific initiatives, located to alarge extent onthePacific coast perhectare. ofNicaragua, isaround The US$1 000 purpose ofproducing timber andobtainingcarboncapture credits. The price paidfor landfor thisblockof other Costa Rican,Danish and Norwegian investors interested exclusively inforestry activitieswiththetwofold which involve large NorthAmericanpensionfunds(includingthat oftheUniversity ofHarvard) aswell as Secondly, otherreforestation initiatives exist withNorthAmericaninvestors (Futuro Forestal deNicaragua) 56 Interview withSalvador Mayorga Sacasa,August 2010. co-en-bonanza/ (14May 2010). 55 The objectives ofthecompany are summedup http://www.creacomunicaciones.com/2010/05/14/reforestacion-hem- 54 For carboncapture processes inNicaragua, seehttp://impreso.elnuevodiario.com.ni/2008/06/16/nacionales/78697 53 52 increase for vegetable oils.Bothinitiatives are located intheAtlantic Coast zone ofNicaragua. the otherfrom Costa Rica.These have expanded thedomestic production ofAfrican palm,before theprice Two importantinitiatives to plantAfrican palmare bothlinked to foreign investments, onefrom Honduras and be halfofwhat itwas after thesecond world war for forestry; even thoughthestatistics are notalways comparable, current forest coverage inNicaragua must Reforestation hasseveral aspectsto it.Ontheonehand,muchoflandinNicaragua isnaturally well suited investors andalsochangesinlandusefor agricultural andforestry products. In the2000s,increase inlandconcentration processes could beobserved withthepresence offoreign * manzana=0.7 hectares Source: Table 3.16: Nicaragua: Landdistribution andre-concentration (inpercentages) importance oftheseinitiatives. According to FAOSTAT sufficient to push up the price of land. Nonetheless, the rate of deforestation in Nicaragua is high, hence the because since information circulates aboutthepresence ofinterested foreign investors intheactivity, thisis rather limited, andrestricted to surveillance andoccasional extraction. Fourthly, itpushesuptheprice ofland, turn, jobcreation isconcentrated intheinitialsettingupofplantations. At later stages, thecreation ofjobsis in thefuture may come upagainst barriersofaccess to landbecauseofthegrowth offorestry activities.In Total Reformed collective sector 500 andmore 200 –500 50 –200 10 –50 0 -10 Manzana* Baumeister andFernandez, 2005. http://faostat.fao.org African palm Afforestation Main processes oflandconcentration inthepast decade Available official statistics (CIERA,MIDINRA,INEC) concerning distribution oflandand owncalculations. 56 . The interest ofsugarmillsinreforestation isalsoconnected to theproduction 1978 100 36 16 30 15 0 2 1988 100 25 14 13 28 17 3 52 ; there isalsotheissue that agrowing rural population 2001 53 100 , forest coverage fell by 28%between 1990and2008. 17 18 37 20 4 4 54 . 55 . 77 The land market in Latin America and the Caribbean: concentration and foreignization been built. A pilotplan for theproduction of biodiesel has been set up in León, in the former site of Agrosa. = 0.7 hectares) inproduction, employing persons.InKukrahill, more 300kilometres than1 500 ofroad have and Mexico. IntheCaribbeancoastal region ofNicaragua, there are more “manzana”(1manzana than10 000 whose main shareholder is Nicaraguan. Numar has plantations in Costa Rica, Panama, Honduras, Guatemala (South Atlantic Autonomous Region) withNumar, acompany belongingto aCosta Rican-basedmultinational One initiative intheRioSanJuandepartment 64 FAOSTAT. 63 ra (2011) for theLandGrabbing project ofFAO). 25 February 2009. InGuatemala they alsohave sugarcaneplantations ofaround 41 000 hectares (study by JaimeCarre - 62 They have investments indifferent locations of Central America.http://www.radiolaprimerisima.com/noticias/48109,Nicaragua. in opment 2 000 hectares whilearecent World Bankreport (Deininger, et. al,2010 57 1 400 000 trees andanannualproduction ofapproximately 1 000million oranges close to Costa Rica.They have 7 000 hectares closeto theSanJuanRiver for theproduction oforanges, with with Costa Ricanentrepreneurs are developing plantations inthefrontier departmentofSanJuanRiver, economic group ofNicaraguan origin,andotherrepresentatives ofdomestic financialgroups, inassociation An alliance ofNicaraguan entrepreneurs, ofwhomthemost prominent isthePellas Family, thewealthiest America and was acquired by theowners ofthePantaleón, thebiggest sugarmillinGuatemala andindeedinCentral also areas for reforestation. Monterrosa Millisalong-standing Nicaraguan millintheElViejo municipality by Guatemalan investors hectares, whichincludeslandfor sugarcaneand isroughly estimated at 10 000 also hasNicaraguan investors, andtheMonterrosa Millbelongingto Guatemalan capital.The area acquired investors: SanAntonio Millbelonging to thePellas family, CASUR to theCuadra family andMontelimar, which molasses and more recently ethanol. Production isdoneinfour mills,three ofwhichhave mainlydomestic The sugarcanesector hasgrown considerably inrecent years, bothfor theproduction ofsugar, rumand conditions for palmcultivation intheAtlantic Coast zone ofthecountry A recent 000 hectares study shows in optimal biophysical that Nicaragua has a potential of around 200 the contrary, thisactivityiscurrently, initsearlystages, increasing from alow base Honduras and Guatemala, partly as initiatives by banana plantations to diversify their crops. In Nicaragua, on In Central America, there is a long history of African palm production, withextensive plantations in Costa Rica, for family consumption. today, imported vegetable oilspredominate. They are eitherprocessed inthecountry orimported directly from thecotton seedand,untiltheendof1980s,thiswas themainsource ofedibleoil.Since 1990suntil boom that eventually occupied agoodpart ofthePacific plains,there was a switch to cooking oil extracted was prepared inatraditional way; to alesser extent, imported vegetable oilwas alsoused.With thecotton for food preparation. Before 1960, theoilusedfor cooking camemainlyfrom animalfat, especiallypigs,and From ahistorical perspective, itisworth highlightingthedifferent stages intheoriginsofedible oil and fats was acquired belonged principallyto large landowners. others that were acquired inorder to have relatively compact plantations mainlyoforanges. The landthat investments started inthe1990sandincludedsomeproperties that investors already owned, together with close to theborder. The finalprocessed product is exported from Costa Rica to theUnited States. These land Production isgeared to thesupplyoffresh fruitto Costa Ricanjuice-extracting plants,whichare situated both anexporter andimporter ofpalmoilandAfrican palmnuts. 61 ntry/nicaragua 60 This company received aloanfrom theWorld Bankfor thepalm development. Seehttp://www.worldbank.org/en/cou- 59 rative, apalmplantation ofsome 2000hectares, dating from the1980s.. 58 Headedby a Nicaraguan entrepreneur, Jorge Salazarandwithlinksto Honduran investors whobought,from acoope- around 16 000 hectares are cultivated thoughnotallthisarea isinproduction. that currently thefigure isaround 3 000hectares; however, from thedata collected in Table 3.9, itmay beclaimedthat Costa Ricacurrently has26 000hectares oforange groves with reforestation activities,given thedualuseasalongmaturing forest andasseedlingsfor firewood. SNV. 2010. There are contradictory accounts of the area cultivated withAfrican palm.For example, FAOSTAT reports around http://www.renuevodeplenitud.com/reflexiones-pellas.html, consulted on1July2009. http://www.vicepresidencia.gob.ni. March 2007 data andaninterview ofthecompany owner withPresident Ortega. Oranges Sugar cane 62 . The outlook for sugar cane for the production of ethanol and sugar may grow in the future, along Diagnosis of the bio-physical, social, institutional and economic potential and limitations on biofuel devel biofuel on limitations and potential economic and institutional social, bio-physical, the of Diagnosis 58 isassociated withHonduran investors andanotherinKukrahill 64 . Rising global interest in farmland in interest global Rising 61 . At thepresent time, Nicaragua is 63 Asapointofcomparison, 57 . ) estimates 59 -

60 78 The land market in Latin America and the Caribbean: concentration and foreignization Costa Rica than intheUnited States orotherdestinations whichhadhosted thistypeofresidents, bethey inMexico or looking to thesebeachesaspossible destinations, attracted by lower property prices andlower livingcosts World War II baby boomer generation of North Americans reaches retirement age, they and their families are Nicaragua border and it is possible to imagine a better connection in the future. Secondly as the post- The International AirportofLiberiawithflighttraffic similar to that ofSanJoseis80kilometres fromthe possibilities (that have still to materialize) to linkthetwo tourist areas directly. high scenic beautyisvery closeto thepresent large-scale tourist hubthat isCosta Rica estate developments that includebeachhouses,golfcourses, islinked to several factors. Firstly, thisarea of the portcityofSanJuandelSur, periodicvisitsfrom tourist cruiseboats, construction ofhotels, andreal control oftheirlandincreases significantlytheirdegree ofvulnerability. grains inrather precarious conditions asthey work withlow levels ofmechanization; thepossibility oflosing An importantsegmentoffamily farming that cannotbeoverlooked isthat ofpoorpeasantswhosow basic decreases, makingtortillas andothermaize products inthetraditional way isaless attractive option. a processing plant for this type of product. And as urbanization grows and the average size offamilies flour, from neighbouring countries orfrom Mexico. This isdue to the fact that the country doesnothave One example that surprises:althoughalarge producer ofmaize, Nicaragua isanimportantimporter ofcorn per unitoflandandtheaddedvalue ofitsproduction islimited, given thelow level ofindustrial processing. (maize, beans,milk,meat, coffee, fruitand vegetables for theinternal market), itsgeneral productivity islow Important asfamily farming may be, interms ofnumbers,landarea andprimaryproduction ofsomeitems have muchaddedvalue. Equally, for otherproducts suchascoffee, family agriculture hasanimportant role. market, creating for itselfakindofdivisionlabourinwhichitplays thisrole around products whichdonot than inthepast andNicaragua hasbecome animportantsupplier ofbeans,dairyproduce andmeat for this Central American market of some 45 million people. The Central American isthmus is much more important in family farm production istheimportantdomestic market withinthecountry andmore particularlythe document. FAO-RUTA 69 68 http://www.revistasumma.com/negocios/6180-apuesta-por-los-baby-boomers.html. 13October 2010 Report_-_Impact_Tourism_Related_Development_Pacific_Coast_Costa_Rica.pdf 67 66 http://www.eclac.org/publicaciones/xml/4/28854/L779.pdf fic_Coast_Costa_Rica.pdf Coastal-tourism-documents/Summary%20Report/Summary_Report_-_Impact_Tourism_Related_Development_Paci- amount to at least 15 000hectares intheRivas Department.http://www.responsibletravel.org/resources/documents/ connected to theUniversidad Centroamericana, oftheCompañía deJesus,tourist activitiesintheSouthPacific coast study by Matilde Mordt andAlejandro BonillaonTola. According to Lea Montes, from thelegal departmentofNitlapan, 65 See:Canada,Eetal.2010. Turismo yconflictos socio-ambientalesen Centroamérica, 2010, Managua,particularlythe production Nicaragua has an important family agricultural sector which accounts for around 50% of national agricultural benefit derived from the forestry activity. reforestation, to achieve several objectives, bothsocialand environmental, inadditionto thedirect economic In thecaseofreforestation, itisimportant to mentiontheCanadianminingcompany that isseeking,through America. Costa Ricancapitalismore associated withreforestation, African palmplantations andprocessing. on involvement inthecommercialization ofagricultural products that are exported to therest ofCentral farming, cultivation ofAfrican palmorsugarcane. InthecaseofSalvadorians there isagreater emphasis transactions can be observed that are led by Mexican and Central American investors, especially for livestock such asGuatemala orArgentina, Brazil, Uruguay, Bolivia andParaguay inSouthAmerica.However, some The direct purchase oflandinNicaragua by external investors isnotvery bigwhencompared to countries of land, involving external investments The large tourism projects intheSouthofNicaragua onthePacific Coast amount to thousandsofhectares grew from US$493 000 in2006to alittleover US$3millionin2008(FAOSTAT, consulted on8April2011). The activitiesoftheseplantations oforanges, whichare processed andthenexported to theUnited States, Liberia-Guanacaste zone tourism. of strong speculation around thesignificantincreases inthe cost oflandlinked to the development ofbeach http://www.responsibletravel.org/resources/documents/Coastal-tourism-documents/Summary%20Report/Summary_ Baumeister, E.2010, Características Económicas ySocialesdeLos Agricultores Familiares enAméricaCentral, working Main conclusions Beach tourism 68 69 . Andfinally, andnottheleast important,thesebeach tourism initiatives have generated a wave . Itconstitutes alarge sector, centred ontheproduction offood. Afavourable trend for thegrowth 67 , withitsbeachesthat continue ontheNicaraguan sideoftheborder andopenup 65 . The expansion of beach tourism, including tourist centres such as 66 andparticularlythe 79 The land market in Latin America and the Caribbean: concentration and foreignization monopoly inthecommercialization offruitendedin2008 74 74 http://www.vicomex.gob.pa/texto/banano2003.pdf 73 72 sale ofNicaraguan products inVenezuela andthepurchase of different assets inNicaragua. 71 70 commercialization: Banana Chiquita Brand ontheAtlantic Coast has44%(5 151hectares) ofthetotal cultivated area for bananas de ServiciosMúltiplesPuerto ArmuellesR.L.(COOSEMUPAR R.L.). BocasFruitCompany, asubsidiary of the domestic bananaproducers, Cooperativa de Banano del Atlántico R.L. (COOBANA R. L.) and the Cooperativa hectares) is on the Pacific coast and 16% (1 825 hectares) on the Atlantic. Two workers’ cooperatives are among hectares)56% (6 556 of the total cultivated area (11 707 hectares) of this crop. 40% of the cultivate area (4,731 Panama has19companies producing bananas,ofwhich18 are national independentcompanies, representing private control ofthisactivityfollows acommercial logic. of available landsfor theproduction ofcoffee inaddition to their coffee processing plants;fundamentally However, coffee producers suchas“Café Sitton”, Café de Eleta andFinca Corsa amongothershave large areas In thecoffee sector, ontheotherhand,smallandmediumproducers are very present insome regions. commercialization andprofits. fruit. However, thetransnational bananacompany continues to have amajordecision-makinginfluence on in whichthecountry hassucceeded insaving partofitsbananaplantations andcommercialization ofthis cooperatives ofproducers have integrated horizontally withotherproducers. Anotherexample istheway sectors shows examples of land concentration for specific commodities. This is the caseof oil palmwhere holdings ofless than5hectares account for 74.6% ofallfarms and4.4%ofland.Ananalysis oftheproductive The Panamanian agrarian structure isvery polarized. Less than1%ofallfarms control 34%ofthelandwhile d) c) b) a) vulnerability asthey losetheirabilityto produce food for theirown consumption. of family agriculture declinesandfamilies whoselltheirlandquickly findthemselves insituations ofgreater producers or to other sectors (beach tourism, external reforestation, duty-free zones), the overall importance process ofdeforestation. When family farmers selltheirlandwhichishandedover to large agricultural their landandmove to thetowns orto theagricultural frontier lands,thus contributing to theaccelerating In different regions, increased land concentration affects family farmingsince many farmerschoose tosell Nicaraguan-Venezuelan company structured onthebasisofpetrol importsfrom Venezuela withlong-term loans, the Basedonthereport prepared for FAO 2011, by SantanderTristan Donoso Dirección NacionaldelBanano. 2003. http://www.rebelion.org/noticia.php?id=121797 Tribuna Latina. Saturday 6 November, 2010. (alsoavailable at http://www.tribunalatina.com/es/viewer.php?IDN=6917 enlargement ofthePort ofBilwi ontheAtlantic andreforestation activities agricultural activities.To date, thishasbeenconcentrated onarefinery onthe Pacific coast, the The increase inVenezuelan investment withintheALBAframework may eventually bedirected toward potential foreign investors. as thefunctioningoflandmarkets are far from providing adequate legalassurances to asegmentof Institutional andpoliticalperformance are factors that work against thesestructural possibilities insofar difference between present levels ofagricultural productivity anditspotential for thefuture. favourable factors: theexistence ofagricultural frontier land,low population densityandaconsiderable From astructural pointofview, thepossibility to extend thisprocess ishugebecauseofthree very tourism, especiallyinthesouthwest ofthecountry. investment more thanfor theamountoflandinvolved, particularlyinthecoastal areas earmarked for land usedfor agriculture andforestry. Landacquired by foreigners isimportantbecauseofthesize of The amountofagricultural andforest 000hectares, or1%oftotal landthat itinvolves isaround 100 This phenomenondoesnothave thesameimportance inNicaragua asitmay have inothercountries. ALBANISA Venezuela) isthecorporate arm/side ofVenezuela investments inNicaragua, underthecompany name as landconcentration would involve state actors, Nicaragua andVenezuela, since PDVSA (Petróleos de be allocated directly to agricultural activities, this would besuigeneriscaseof“landgrabbing” insofar Bananas 5. Extent oflandconcentration andforeignization Panama 71 . 72

Until 1991,Chiquitawas thesoleexporter ofPanamanian fruit.However, the Memoria del Ministerio de Comercio e Industrias e Comercio de Ministerio del Memoria 74 . The cooperative COOSEMUPAR istakingcontrol . Panamá pp. 2-4 70 . Shouldtheseinvestments

73 . 80 The land market in Latin America and the Caribbean: concentration and foreignization 75 In theagricultural sector, theeconomy hasstagnated since 19 the world. Carlos zone (Pacific) with North American capital, which has projects in more than seven countries around chain; Hotel Decameron withColombian capital; Nikki Beach Resort andResidences, beach clubs intheSan area of 300 hectares; Breezes Panama operated by the Jamaican chain Superclubs; Lagomar, linked to USA Bristol Resort, S.A. both part of the Verdeazul Group, with an investment of more than US$40 million over an plans to build1700 houses,11swimming pools;thetourist development project ofBuenaventura S.Aandthe residential investments, suchasthePlaya BlancaProject, withPanamanian capital(Schwartz family) which Likewise onthePacific coastal area intheDistrict ofAntón, there are anincreasing numberof tourist and Club, theowner beingthebillionaire DonaldTrump Jr. area of755 hectares) where aresidential tourist complex of15hectares isbeingdeveloped by Trump Ocean In theLasPerlas Archipelago, withits13islandsand100islets,itisworth mentioningtheIslandofSaboga(an come from 16countries. 170 houses, recreation and sporting facilities. 65% ofthe residents are North American, though theresidents developing atourism project ofresidential homesespeciallyfor NorthAmericanretirees. The area comprises In theBoqueto area withitsclimate andnatural beauty, theNorthAmericanpromoter SamTaliaferro is biggest construction companies inthecountry, SUCASA). as theHotel Playa Tortuga andResort Beachwhichbelongsto theQuijanoGroup (whoalso owns oneofthe best and the most attractive to tourists are owned by foreigners or large business companies of Panama, such On IslaColón (close to thetown ofBocasdelToro), there were three hotels in1999;today there are 60. The the Archipelago ofthesamename. with foreign investments. Itislocated intheBocadelDrago zone, closeto thetown ofBocasdelToro within In thesameway, theDragomar Tropical Beach Resort, located strategically onahill,hasbeenestablished hectares andhasaresidential complex of800homeswithswimming pools,two marinasandagolfcourse. this protected area istheRed Frog BeachClub, financed withNorthAmericancapital. The project covers 68 an areas of16 325 hectares, 11 528 hectares ofwhichare marineandtherest coast. Within thebuffer zone of Toro Archipelago andcloseto thetown ofBocasdelToro intheSaltCreek indigenousarea. The parkcovers sensitive andimportantissue istheBastimentos National MarinePark, located to thenorthofBocasdel The BocasdelToro region hasexperienced awave ofinvestment intourism andreal estate speculation. A transnational company, Chiquita Brand. in plantations hasdecreased, commercialization continues through achannelunderthecontrol ofthe in the production and commercialization processes and this continues today. Although foreign involvement It isclearthat for thebananasector, historically there hasbeenlandconcentration andforeign intervention commercialize theirproduce directly to theEuropean market. Bananacom andBananera Lía(14%control ofcommercialization), anddomestic bananacompanies commercialized to take advantage ofthemarket. being soldto thebananacompany inaccordance withtheagreements between themandtheremainder is of bananaproduction inthePacific region where ithadacquired theplantation. Part ofitsproduction is sourcing agriculture products were alsoemerging. since aconsumer societywas emerging that was demandingotheragriculture products andnew markets for This situation started to changefrom the1980son,whenitwas necessary to diversify agricultural production strengthened the balance ofpayments oftheformal economy ofDominican Republic. The othertraditional agricultural crops that were exported were coffee, cacaoand tobacco, allofwhich was thentheUnited States andsugarexports accounted for around halfofallDominicanRepublic exports. Republic to beoneofthebiggest producers ofsugarinLatin Americabetween 1950 and1970. The mainmarket For more thanonehundred years, sugarcanewas themaincrop inthecountry, whichallowed theDominican which have represented animportant source offoreign currency andemployment. the cultivation oftraditional crops suchassugarcane, coffee, cacao, tobacco as well asnon-traditional crops, Basedonthereport by Ingrid Lavandier. 6. Tourism Dominican Republic 75 th century despite itsfertile landthat enables 81 The land market in Latin America and the Caribbean: concentration and foreignization Spanish JulioIglesias.This groups owns around 6 250 hectares thoughsomeareas still remain undeveloped. USA companies andprominent personalities suchasthedesignerOscardelaRenta (Dominican)and the The CanaGroup, Punta formed by theDominicanfamily Rainieri(of Italianextraction) andin association with group hasaround 6 250hectares for tourist development. estate magnate, hasinvestments inanexclusive complex targeting persons withhighpurchasing power. The The CanaGroup, Gap inwhichDominicancompanies are inassociation withDonaldTrump, theNew York real visitors. is awiderange offour andfive-star hotels, golf courses andallthe tourist attractions for high-spending Romana zones, withcapital from Spanish, American andVenezuelan companies. In theBávaro complex there The largest tourist investments are to befound intheeast ofthecountry, intheBávaro, Canaand Punta coveted by biginvestors, bothdomestic andforeign. a border withHaiti.Situated intheAntilles,country hasexcellent beachesandtourist areas whichare Canal whichseparates itfrom Puerto Rico to theeast andtheCaribbeanSeato thesouth;onwest ithas Republic. The country alongwithHaitiforms HispaniolaIsland,with theAtlantic Ocean to thenorth,LaMona Mention has to be made of foreign investment in the tourist sector given its importance for the Dominican Provenir, hadalready beeninvolved insimilarnegotiations intheprevious four years. to theState SugarCouncil by three sugarmills,BocaChica,Consuelo andProvenir. The latter, Consuelo and production ofethanolover hectares. The anarea landtenure of23 000 modelisthrough theleaseofland In 2006,Tall OilofSweden andDominicanaEtanolformed astrategic alliance to plantsugarcanefor the Plata (Hoy Newspaper, 18March 2005). the production ofethanolin theformer sugarcanezones oftheOzamadeRioHainasugarmillsinMonte Also in 2004, a company ofEnglish origin, expressed interest in investing alongside theDominicanState, in 2004). to produce ethanolinthree sugarmillsbelongingto CEA,the State SugarCouncil (Hoy newspaper, 11March diversification in the sugar cane areas, it was negotiating with Brazilian, Guatemalan and Colombian investors The DominicanGovernment announced that, onthebasisofafeasibility study prepared by FAO oncrop some 10 000hectares inthesouth ofthecountry (Hoy newspaper, 1August 2004). started in2004to plantandgrow mangoesandcitricfruitsfor export. At theoutset,project covered BEC-MEHAC Consortium, with Israeli capital and support from the government of the Dominican Republic plant for processing coconuts, guavas, papayas, tamarindandbananas(ElNacionalnewspaper, 17May 2004). for bothdomestic andinternational markets. Ithasexpanded itscold storage capacityandinstalled amodern diversification, planting extensively fruitsuchasoranges, grapefruit andpineapples for fruitpulpandjuice, 125hectares ofland,haslaunchedaprocess of Consorcio Cítricos Dominicanos,withmore than3 sugar milldiversification project (sorghum, maize, yucca, bean, sweet potato, etc.). Dominicana (pineappleagro-industry), Concorcio Citricos Dominicanos(citric fruitagro-industry), Esperanza such as:FRUDOCA(Pineappleagro-industry), Consorcio Citricola delEste (Citric fruitagro-industry), Dole investment combining foreign investment anddomestic capital.This hasenablednew companies to beformed Since 1980, aprocess ofcrop diversification hasbeeninitiated inrural areas, alongwithnew modelsof international markets. industrial consortia dedicated to thecultivation andprocessing offruitandvegetables for bothlocaland Then theDominicanState invested inthesugarindustry through itssugarmills.There are alsootheragro- Foreign investments are, inthefirst place, inthesugarcanesector witha century-old presence inthe country. USA andEuropean markets. sustained thecountry’s economic stability over many decades,becauseithadlarge export quotasfor the was linked to sugarcaneandothertraditional products such ascacao, tobacco andcoffee allofwhichhad The process oflandconcentration andforeignization intheprivate sector, ashas already beenmentioned, fertility oftheland,started to invest innon-traditional crops, insomecasesassociation withlocalcapital. capital withNorthAmerican,Israeli, Chilean,JapaneseandTaiwanese companies who, interested by the The transformation oftheDominicanRepublic agriculture brought initswake new investments offoreign Foreign investment inthetourist sector Non-traditional agricultural consortia 82 The land market in Latin America and the Caribbean: concentration and foreignization mountain tourism. Smallandmediumsize famers produce directly inintensive farming systems in coffee, fruit external investment in sectors such as sugar cane, bananaand coffee production as well asinbeach and Finally, thecaseofCosta Ricaismuchmore heterogeneous, withdifferent modelsofland concentration and coming from bothdomestic andexternal investment intourism, mining,andforestry plantations. but alsointhearea ofagro-industrial transformation andcommercialization. Additional pressure onlandis Mexican, Salvadorian, Guatemalan andCosta Ricancapitalare alsopresent, withdirect control of production industrial private groups that are expanding, withregional investment, andpartlywithdirect control ofland. before andafter theagrarian reform. Currently many smallandmedium-sized framers coexist alongsideagro- Nicaragua, for itspart,isanexample ofacase ofwhere there have beenmajorchangesinlandownership, of lesser importance. such astheCanal,whichisat theheartofexistence ofthePanamanian State, meansthat agriculture is Panama could besimilarto thecaseofDominicanRepublic. However, thepresence ofaneconomic sector and Latin America. dictatorship; there isa strong presence of foreign investment inagriculture, from the United States, Europe by large landowners, buthasbeenpartlyaltered by theagrarian reform that followed thefall oftheTrujillo world market, aswell asbiofuelsfrom sugarcaneandpalm).Inthelatter case, thelandiscontrolled mainly sugar canecultivation andmodernconcentration innon-traditional items (fruitandvegetables, mainly for the Thirdly, there isthecaseofDominicanRepublic withtraditional concentration oflandfor bananaand links withagro-industries that facilitate theproduction ofcertain items through buyingtheprimaryproducts. using nomineesystems. However, there are othermechanismsoflandconcentration such aslandleasesand livestock farming andforestry activities,mechanisms exist to avoid thelimitsplaced onlandconcentration by depending ontheproductive sector. Even though,there are possibilities to have large farms insectors such as making way for different kindsoflanddistribution, withspecificlimitsonthemaximumsize of farms, At the other end of the typology is Mexico where the historic land reform changed the forms of landownership, the domestic market aswell astheCentral American,regional andinternational markets. to bereintegrated inthedominantproduction processes, insectors suchascoffee and vegetables, selling to peasant communities in the recent past and currently, although some ofthepeasant farmers have managed in theproduction ofsugarcane, palm,bananasandfruitvegetables. Ithas involved thedisplacement of processes withexternal capitalhave always been significant. This has continued today withthe expansion Guatemala where theconcentration ofownership ofland,agro-industrial production andcommercialization In a typology of the six cases, it can be said that the two extremes are to be found, on the one hand, there is external capital,bothinternational and Latin American. in forestry plantations, allofwhichare puttingadditionalpressures onland,exacerbated by thepresence of processes are developing intheminingsector, incrops more recently associated withbiofuels,intourism and products (banana,coffee, sugarcane) andalsoothersectors suchaslivestock andsisal.More recently, these commercialization of raw materials with foreign investments. This has happened in the case of typical tropical All the countries have historically experienced processes of concentration of landownership or III. and incentives to promote foreign investment intourist areas. Bank to supportthetransfer oflandto interested foreign investors whoreceived favourable taxexemptions Agricultural Institute. However, since the 1970s, an official body (INFRATUR) was set up under the Central for Europeans. The landbelongedto theDominicanState, to theNational SugarCouncil andtheDominican have developed tourism which has been stratified and converted into a low-cost mass tourist destination and tourist attractions. InPuerto Plata, German,Italian,American,British,SpanishandRussian investors In the north, from the province of Puerto Plata to the province of Samaná, the coast is one of beaches sparked adebate aboutwhetherornotitisappropriate to usethislandfor tourism purposes. legal problems because it has acquired, for tourist development, landthat is national park land,which has Recently the holding of the Venezuelan Gustavo Cisneros has invested heavily intheeastern zone. It has had hectares inLaRomana province. internationally best known hotel complexes for more thanthirtyyears. Itsinvestment covers more than4 000 The Fanjul Family group, ofCubanorigin,are owners oftheCasadeCampohotel complex, oneofthe out inthecountry, butdata are notavailable asto thetotal area they occupy. The Barceló group, ofSpanishoriginandowners ofaninternational chainofhote Conclusions 83 The land market in Latin America and the Caribbean: concentration and foreignization has beenatradition ofmigrating to theUnited States since thesecond halfofthe19 For themajorityofcountries, migration hasgrown since the1980swithexception ofMexico, where there abroad (Nicaragua), fourth place (Mexico), sixthplace (DominicanRepublic) andinthe12 the countries covered by thiscasestudy are ranked second withregard to thepercentage ofnationals living Table 3.17 presents theproportion ofcitizens livingoutsidetheircountry; ofthenineteen countries considered, from thesecountries inrecent decadesandthedeclineofemployment inagriculture. need to bementioned,namelytheincreasing share ofimported food, international migration ofnationals In theseconcluding comments, three additionalvariables, linked to globalization butinanotherdimension, these countries needsto behighlighted. and large countries inLatin Americaandintheworld. Similarly, theimportantrole ofinternational tourism for that, for themost part,they are smallcountries withlimited landresources, whencompared withthemedium highlighted, given the weight they have globally in some specific agricultural products. This is despite the fact in future studies. Inthefirst partofthischapter, the strong impactofglobalization onthese countries was concentration andforeignization. What follows are someprovisional hypotheses whichneedto bere-examined linked to themodelsofagricultural development andtheproblems associated withtheincrease inland Looking at thesixcasestudies, there are features whichmost ofthemhave incommon andwhichcanbe in theseareas have passed into foreign ownership. domestic and external capital have led to increased pressure onlandand,as a result, large amountsofland In recent decades,activitiessuchastourism (secondary homes,beachandmountainhotels) withboth more importantagricultural sectors. and vegetables. There is a large agro-industry with both domestic and international capital in most of the are optingto migrate, bothinternally andinternationally indifferent ways. as importantsegmentsofrural population are notfindingdirect employment opportunitiesinagriculture and variables ofimported foods, international migration andthereduction ofemployment inagriculture insofar that thetypeofagricultural regime andparticularlylandconcentration processes could belinked to the high immigration rates andthehighlevels ofimported foodstuffs. This would seem to suggest, at first view, Nicaragua and Guatemala, there is quite a strong association between the proportion ofjobs in agriculture, These data would suggest that, insomeofthecountries considered, particularlyMexico, DominicanRepublic, proportion ofthepopulation working inagriculture hasfallen dramatically between 1970s andtoday. of calories that are imported is high in many of the countries considered. The tablealsoshows that the and two indicators regarding theimportance ofemployment inagriculture. Itcanbeseenthat theproportion Table 3.18 presents otherstatistics –theproportion ofcaloriesinthenational dietthat have beenimported 6 %(see Table 3.16); many ofthecountries inthestudy have migration rates ofaround 10%. (living inacountry different from their country ofbirth).Latin Americahasan overall average that isless than terms, itworth mentioningthat theaverage migration rate worldwide isapproximately 3%ofthepopulation th century. Incomparative th place Guatemala. 84 The land market in Latin America and the Caribbean: concentration and foreignization Table 3.18 de uncambiostructural. Encuentro, 2011. Source: World Bank,CELADEandestimations basedonErnest Canada,Migraciones enCentroamérica: enlamédulla Table 3.17 International migration, innumbersandasapercentage ofthepopulation ofthecountry Sources: FAO, ILO andECLAC. data from theUNHighCommission for HumanRights. approximately 3%,basedonanestimated 240 millionpersonsliving inacountry different from that oftheirbirth;basic Dominican Republic Panama Nicaragua Mexico Guatemala Costa Rica Country El Salvador Cuba Nicaragua Mexico Dominican Republic Uruguay Haiti Ecuador Honduras Paraguay Peru Chile Panama Guatemala Bolivia Brazil Venezuela Argentina Costa Rica TOTAL agriculture, 1970 andaround 2009 Proportion of calories that are imported, % of economically active population in of origin,2010 Country % ofcaloriesimported 2005-2008 Revista Académica de la Universidad Centroamérica Universidad la de Académica Revista 46 52 26 29 45 49 No of migrants 11 859 236 28 298 257 1 269 190 1 219 244 1 035 963 1 009 751 1 147 902 1 091 079 1 367 287 729 242 353 634 569 731 810 839 634 001 141 141 871 981 694 998 521 620 957 190 125 300 % ofeconomically active populationin 1970 44 39 47 39 57 36 % of population agriculture 20.5 12.5 10.8 10.7 10.5 10.5 10.1 7.5 7.9 8.3 3.7 4.0 6.1 6.8 3.7 1.8 2.3 2.7 0.7 5.4 Around 2009 15 18 34 13 31 12 .

The world average is Rank 10 14 13 12 11 15 18 17 16 19 1 2 3 4 5 6 7 9 8 85 The land market in Latin America and the Caribbean: concentration and foreignization Programa Estado de la Nación 2009. ECLAC. Hurtado, L.2008B. Hurtado, L.2008a. FAOSTAT. http://faostat.fao.org/ * For thecomplete references to thesixstudies covered inthischapter, pleaseseeAnnex to Chapter 1 or WIKIPEDIA, for tourism http://en.wikipedia.org/wiki/Tourism Posas, M.1993. PlantacionesBananeras enCentroamérica, en Cañada, E.2011. ASD. Bibliography Chapter 2Madrid:Ediciones Siruela. Verapaz,1970-2007. 2011 (Academic review oftheUniversidad Centroamérica) alimentos en Guatemala. Guatemala. en alimentos p9f.xsl http://www.eclac.cl/cgi-bin/getProd.asp?xml=/publicaciones/xml/5/45175/P45175.xml&xsl=/dds/tpl-i/ informes-anteriores/informes-2001-2011/xv-informe2009). http://www.asd-cr.com/paginas/espanol/articulos/bol31-2sp.html, consulted 10January2012 Sostenible. Sostenible. http://www.rlc.fao.org/fileadmin/content/events/semtierras/acaparamiento.pdf Producción palma africana en Costa Rica Costa en africana palma Producción Social Panorama of Latin America in 2011. in America Latin of Panorama Social San José, Costa Rica.(Alsoavailable at http://www.estadonacion.or.cr/estado-nacion/nacion- Migración en Centroamérica: en la médula de un cambio estructural cambio un de médula la en Centroamérica: en Migración Las plantaciones para agro combustibles y la pérdida de tierras para la producción de de producción la para tierras de pérdida la y combustibles agro para plantaciones Las Dinámicas agrarias y reproducción campesina en la globalización. El caso de Alta Alta de caso El globalización. la en campesina reproducción y agrarias Dinámicas F&G Editores. Guatemala. ActionAid Guatemala. Décimo Quinto Informe del Estado de la Nación en Desarrollo Humano Humano Desarrollo en Nación la de Estado del Informe Quinto Décimo

Santiago Historia General de Centroamérica: Centroamérica: de General Historia , Encuentro, añoXLIII, vol 4. 86 The land market in Latin America and the Caribbean: concentration and foreignization Coalition hasbeencallingthisprocess “commercial pressures onland” Only later has land grabbing been considered as a rather broader process. Since 2009, the International Land been thecaseofChinaandpractice hasbeencriticized asbeingamodernform ofcolonization. have beenaccompanied by production processes employing nationals from theinvestor country. This has of theArab Emirates, SaudiArabia andSouthKorea. Insomecases,ithasbeenstriking that landpurchases countries butfrom emerging economies, including, inaparticularlyvisiblemanner, China,India,Egypt, some Agraria rarily orpermanently. se rightsconferred by leases,concessions andothermechanismsthat accord theexclusive useof theland,beittempo- 78 AGTER. April2009. 77 MichelMerlet&Clara Jamart.2009. Commercial pressures onlandworldwide. Issues andconceptual framework. ILC/ the press: www.grain.org which publishedinOctober 2008 areport ondifferent casesoflandgrabbing, compiled from Internet sources andfrom 76 Paris. President ofCEPES(Peruvian Centre for SocialStudies). Director ofthejournal * attention to it insecurity –inAfrica, sometwenty countries are involved –hasbeenoneofthefactors that hasdrawn world The fact that suchacquisitions oflandhave occurred incountries suffering from severe problems of food and asameansofgainingaccess to forestry, miningandhydrocarbon resources andfor speculative ends. other parties,includingtransnational corporations, notonlyfor theproduction offood but alsofor biofuels food supplies. The term hasbeenextended to includeaswell theacquisition oflarge tracts oflandinvolving been definedasaprocess ofmassive acquisition ofland by one state from another, for thepurposeofsecuring restrictive definition ofwhat constitutes landgrabbing. In effect, the recent phenomenon ofland grabbing has The four casestudies found that theprocesses ofagricultural landconcentration donotcorrespond to the region includetheprocess oflandgrabbing ofthepast few decades? between theprocesses ineachofthecountries analysed? To what extent dothedebates aboutlandinthe established? What typeofsocialrelations dothey generate? What are thesimilaritiesanddifferences of land?What istheimpactinregions where they occur? What typesoflabourrelations have been they constitute amodelofagricultural modernization intheregion? What istheextent offoreign acquisition such casesmerely acontinuation oftheirrespective agrarian histories orare they abreak withthepast? Do grabbing ingeneral andtheprocesses oflandgrabbing intheAndeancountries inrecent decades? Are Some ofthequestions that guidetheanalysis are thefollowing. Isthere any relationship between land processes. processes inthefour countries oftheAndeanregion aswell asananalysis ofthedynamicnature ofthese Colombia, Ecuador and Peru, thischapter provides asynthesis oflandconcentration andforeignization Drawing ontheinformation presented inthefour country casestudies that were carriedoutinBolivia, Presentation Reflections, based ontheAndeancase studies Chapter IV: of processes of concentration on the control of agricultural land The fact remains that the scope hasbeenbroadened to assess andanalyse thecausesandpotential impact used today butismore focused onAfrica. I. Peruvian sociologist, graduate oftheUniversity ofLouvain (Belgium).Postgraduate studies at Ecole desHautes Etudes, The term “control” isusedin order to includenotonlyconcentration withregard to landownership rightsbutalsotho- Amongthefirst organizations to draw attention to thisphenomenon was Grain, anon-governmental organization Does landgrabbing exist intheanalysed countries? . [email protected]. 76 . Itisalsostriking that themainpurchasers oflandwere not,for themost part,from rich 78 that are occurring in many countries of 77 . The term “grabbing” continues to be Debate Agrario Debate andofthe Fernando Eguren* Revista Revista 87 The land market in Latin America and the Caribbean: concentration and foreignization risks and opportunities and risks 82 Seethetext by Merletand Jamart, 81 MerletandJamart,op.cit. available at http://www.commercialpressuresonland.org/research-papers/regulating-land-grabbing). 80 Saturnino Borras Jr. andJennifer Franco. “Regulating landgrabbing?”. Pambazuka News. 16December, 2010. (Also (Also available at http://www.landcoalition.org/ pdf/ifpri_land_grabbing_apr_09.pdf). rights, profit sharing,environmental sustainability, acceptation ofnational commercial policies. of conduct to reduce therisks oflandgrabbing shouldincludetransparency innegotiations, respect for existing land the needfor investment inagriculture inpoorcountries canonlybemetby direct foreign investment. Anadequate code Commercial pressures onland:opportunitiesandrisks of responsible conduct isrespected in theprocess, itcould alsoculminate inawin-win situation bothfor investors andpeasants,provided thecode grabbing hasbeenchanged.Itbecome more acceptable, anditiseven considered that, despite therisks denunciatory content of the original term has been weakened, and the callto action with respect to land large-scale investments inagriculture. Borras andFranco construe that, by broadening thedefinition, The concept ofcommercial pressures onlandbroadens thescope oflandgrabbing to includeadiversity of national casestudies. the so-calleddeveloping world. Itisprecisely for thisreason that theFAO took theinitiative to supportthe 79 land grabbing” were denounced. natural resources competition”, theDeclaration ofTirana was unanimouslyadopted, inwhich“all forms of its 2011 GlobalAssembly inAlbania,undertheslogan“Securinglandaccess for the poorintimesofintensified of peasant and indigenous communities as well as family farming and,genericallyspeaking, the rural poor. At information andpromoting the analysis oflandgrabbing from aperspective ofconcern abouttheland rights The International LandCoalition referred to above isoneofthemost active organizations indisseminating of landgrabbing, theauthorsclearlyconsider that therisksoutweigh theopportunities a process where everyone isawinner. Inacomparison oftheopportunitiesandrisksinvolved intheprocess Merlet andJamarusethesameexpression “commercial pressures onland”withoutbeingconvinced that itis scepticism asto thereality ofthe“opportunities” andraise questions abouttheunderlyingassumptions summarizes these opportunities and risks. It is worth noting that, in their report, the authors express their protected. necessary tousevirgin landthatcould thus be perior tocurrent systems,thusmakingitun- it possible toobtaingross yieldsthatare su- The more modernsystemsof production make Mitigation of damage tonatural biodiversity. nario for poverty alleviation. world trade would bethemostfavourable sce- Poverty alleviation. Permanent liberalization of vestors have both. to optimize theirsources, whilelarge-scale in- ers would lackthefundsandtechnologies Development of unusedresources. Smallfarm- Opportunities SeeJoachimvon Braun andRuthMeinzen-Dick. 2009. 1. 2. Commercial pressures onland Tirana Declaration oftheInternational LandCoalition . IFPRIPolicy Brief 13.April2009. The authorsargue that avirtuebe madeofnecessity, given that

op.cit. 79 . The authorsremain sceptical aboutthis,anditisaview that we share

pp. 14-16. mechanized farms usingsalariedworkers. appearance of smallproducers andthedevelopment of vast Risk of large-scale destructionof small-scaleproduction. Dis- that have irreversible effects, usuallywithnegative impacts. of resources andextraction (asinmining);spread of practices sources andbiodiversity. Highriskof unsustainableexploitation in theshorttermoutweighs thepreservation of forestry re- Environmental risks.Promise of large quantitiesof investments world market based onhighlyvolatile prices of basiccommodities onthe uses; uncertainty weighing onnationalsupplyfor basicfoods, Risks for food security. Competition around food andenergy stigmatization of foreigners; disputesbetween governments. social relations; increased inequalities;inter-ethnic conflicts; Risks of new conflicts. Deep-seatedchanges inpre-existing world markets. sic agricultural andenergy products andcommodities onthe and profits for investors are directly linked totheprice of ba- Risks causedby strong price fluctuations.Theamount of rent Risks

“Land grabbing” by foreign investors in developing countries: countries: developing in investors foreign by grabbing” “Land 81 . The following table 82 . 80 . 88 The land market in Latin America and the Caribbean: concentration and foreignization problem. The definitionfinallyadopted andwhichispartoftheDeclaration states the following: differed from what was considered landgrabbing whentheinternational community was first alerted tothe of land grabbing, given that land grabs were occurring in many countries and in a variety of forms, which The Assembly debates andthedrafting ofthedeclaration took note oftherestrictive nature ofthedefinitions relating thelandgrabbing oftoday withthat whichhasbeenoccurring since 1990intheAndeancountries. cane. Itistheglobalization ofdemandfor food, agrifuels andlandto produce themthat isarticulating and industrial plants.Althoughonalower scale, Peru isexpanding thearea for growing African palmandsugar plantations are dedicated to providing inputsfor theproduction ofagrifuelsandoils,inassociation with the planted areas ofcrops for biofuelproduction suchassugarcaneandAfrican palm.InColombia, large fuels. Ecuador hastraditionally been,andcontinues to be, anexporter ofbananas.However, ithasexpanded other, they are adjusting to emerging globalconsumer trends suchasalternative sources ofenergy to fossil one hand,to theincrease indemandfor highvalue food products suchasfruitandvegetables and,onthe the oilseedindustry andanimalfeedstuffs. In Peru, new large farms have beensetup to respond, onthe farms inBoliviaare exporters ofsoybean, acrop that covers around onemillionhectares andisaninputfor The production of the large agricultural businesses in the Andean countries is export-driven: the main large in itssubsoil.The landmarket isthusbeingglobalized. merely served to increase competition andthevalue ofproductive landorwhichhasnatural resources wood. Future perspectives for theneedto increase food production andrenewable energy sources have commodities andhave increased thedisputes for natural resources: land,water, minerals, hydrocarbons, economy. Transformations in the world economy have had a strong impact on the structure and demand for globalization isinfluencingandtransforming national economies and,inthecasethat interests us,theagrarian Our pointofview isthat bothprocesses are anexpression ofhow, indifferent ways and at different times, connection between thetwo processes? the characteristics observed inAfrica over thepast five years. However, thequestion remains: isthere any In any caseithashelpedputthespotlightonconcentration processes inLatin Americathat donotmatch although it has advantages from the perspective of respecting land rights of the more vulnerable social sectors. definition of the Declaration is not too comprehensive and imprecise from an analytical point of view, even World BankandIFAD, whichgives aspecialweight to thedenunciation. Onemay ask,however, ifthebroader It isnoteworthy that theDeclaration was adopted unanimouslyby allparticipantsincludingtheFAO, the this may bequite improbable whenspecificcasesare analysed. listed characteristics, itbeingunderstood that caseswhere noneofthecharacteristics exist are notincluded; The greatest strength oftheaccusation liesinthelarge-scale landgrabbing that has“one ormore” ofthe large-scale, theterm commonly associated withlandgrabbing. in theAndeancountries. Intheseinstances, they are locallandgrabs thoughitisdifficult to considerthem communities”, aquite frequent occurrence inAfrica andsomeAsiancountries, thoughrarely encountered that untilthenhadnotbeenconsidered assuch.Thus, itmanagesto includelocal-level landgrabbing “within The Tirana Declaration broadens thescope ofapplication oftheterm, landgrabbing, to includeprocesses 83 http://www.landcoalition.org/about-us/aom2011/tirana-declaration extent isitthecapitalist modernization ofagriculture inthesecountries. us to examine theinternal effects ofthelandgrab process inthe countries beinganalysed and to ask to what corresponds to alarge extent, aswe have just seen,to globalization trends. However, Martinez’s remark leads modernization thanto external processes oflandgrabbing”. This internal process ofcapitalist modernization tenure inthecaseof Ecuador shows clearlythat theprocess islinked more to thetrends ofinternal capitalist In theconcluding comments ofhisreport onEcuador, LucianoMartinez “theanalysis affirmsthat ofland II. rights, particularly the equal rights of women; (ii) not based on free, prior and informed consent of the the of consent informed and prior free, on based not (ii) women; of rights equal the particularly rights, affected land-users; (iii) not based on a thorough assessment, or are in disregard of social, economic and and economic social, of disregard in are or assessment, thorough a on based not (iii) land-users; affected environmental impacts, including the way they are gendered; (iv) not based on transparent contracts contracts transparent on based not (iv) gendered; are they way the including impacts, environmental (v) not based on effective democratic planning, independent oversight and meaningful participation meaningful and oversight independent planning, democratic effective on based not (v) that specify clear and binding commitments about activities, employment and benefits sharing, and; and; sharing, benefits and employment activities, about commitments binding and clear specify that we define as acquisitions or concessions that are one ormore ofthe following: denounce large-scale landgrabbing, whichhasaccelerated hugelyover thepast three years, andwhich land grabs, particularly by powerful local elites, within communities or among family members. We “We denounce allforms oflandgrabbing, Land grabbing orthemodernization ofagriculture inacapitalist system whether international or national. We denounce local-level (i) in violation of human human of violation in (i) .” 83

89 The land market in Latin America and the Caribbean: concentration and foreignization Modernization ofproduction the socio-economic distance from thelocalpopulation. its size anddiversification give itapower whichgoes far beyond thearea ofitsrural operations andamplifies operating in different areas of the country. Although this may offer significant advantages for the company, agricultural investments come from economic groups withdiversified interests, linked ornot to agriculture and Without necessarily being afeature ofmodernization, itisworth notingthat animportantnumberofnew farmer to new knowhow, inputs,techniques andprocedures for amore efficientagriculture. and techniques. Althoughthisrelationship presents someproblems, aswe willseelater, itdoesintroduce the latter to provide theformer withtheproducts they need,isamechanismfor thetransfer ofnew knowhow Contract agriculture established between companies andfarmers (frequently family farmers) inorder for the purely economic butalsosocial,thuscontributing to anincrease ininequalities. large modernagriculture andamore traditional form ofagriculture have grown andthesedifferences are not One of the consequences of modernization is that, becauseofits excluding nature, thedifferences between of private agricultural exporters. inadequate –for thepurposeofmodernizingagriculture andthusinnovation remains limited to theinitiative Added to theselimitations isthefact that governments donothave policies–orwhenthey do, they are function. for spreading innovations althoughthere could have beenpublicpoliciesto encourage themto take onthis phytosanitary isolation orsimplyfor securityreasons. Obviously they are notobligedto become centres new companies are located orare developing. Moreover, thesecould become closedenclaves becauseof namely the medium and above all small-scale farmers including thosein the areas close to where the A second limitation hasbeentheinsufficientdissemination ofthismodernization tothe rest ofthe producers, curriculum ofagricultural universities andfaculties have notbeenadapted to meetthesenew demands. imported inputscanbereplaced, suchasknowledge software andhardware. Inmany case, thedirection and is ageneralized shortcoming –there have notbeensufficient efforts to create conditionswherebythe someof are imported (theimportanduseoftransgenic seedsare notauthorized). Inbothcountries –andpossibly, this is thecaseoftransgenic soybean seedsinBoliviaandalsoPeru, where theseedsfor different export crops more sophisticated inputs,machineryandsoftware, appearto beimported andnotproduced domestically. This At thesametime, suchmodernization may belimited inanumberofrespects, ontheonehand,because have gonebeyond thescope ofthecompany andtheagricultural sector. educational institutions and in laboratories, etc. in such a way that the modernizing effects onthe economy consequently, stimulating thecreation orgrowth ofinstitutional providers, innovation inthecurriculaof into markets for services andtechnologies, which inmany cases required highly qualified staff. They are, companies whocallthemselves modelsofmodernization. These companies have transformed themselves wage systems are generalized althoughworking conditions are lower thanwhat could beexpected from techniques, highlytechnical production processes andmechanized irrigation systems predominate. Likewise, forefront ofthetechnological modernization ofagriculture. Inthesecompanies, modern management In Peru, thenew agro-exporting companies, whichwere created intheirmajorityafter 1995, are at the as semi-feudal. which didnothappeninmany Boliviancompanies whomaintainedlabourrelations whichUrioste qualifies The new Brazilian companies have modernized theirworking relations, generalizing thepayment ofsalaries, support ofresearch andtechnical extension institutions oftheirown country. working theland.Possibly, oneofthereasons isthat, unlike theBrazilians, they were notableto count onthe province. Indeed,unlike theBrazilian farmers, thosefrom Argentina have kept to theirtraditional methodsof presence meansinnovation, ashasbeenthecaseofArgentinian landowners whohave settledinthesame They have thusbeenineffect amodernization presence. Urioste stresses, however, that not every foreign destructive ofthe soil. Furthermore, they had the support of Brazilian scientificand technological institutions. replacing thoseintroduced decadesbefore by theMennonite settlers,whichhadbecome inefficientand biggest landowners for theproduction ofsoybean. They introduced new techniques for growing thiscrop, in agricultureafter” inSanta Cruz, themain agricultural region ofthecountry. The Brazilian farmers are the In Bolivia,to alarge extent, Brazilian migration from thebeginningof1990sestablished a“before and was notthepurposeof studies –there are somevery interesting evaluations. Even though there is insufficient information in the national case studies toknow thedetails on this point – it What isbeingmodernized? 90 The land market in Latin America and the Caribbean: concentration and foreignization ved useofwater through mechanized irrigation. that they play apositive role intheirareas ofinfluence, spreading more efficient procedures and practices suchasimpro- little contribution to thedevelopment ofnational science andtechnology capacity. Onanotherlevel, however, itistrue hardware andsoftware –withthelocal contribution beingthenatural resources andthecheaplabour force, thusmaking areas). Inotherwords, they useimported inputs–seeds,fertilizers andpesticides, machinery, information technology by thenew large-scale farmers (neolatifundios), shares thesamefeatures asthemaquila(factory operating infree zone considered inthisstudy, itisextremely likely that at least asignificantpartofmodern agricultural production, headed of ethanolhasputthecountry at theforefront ofscience andtechnology for that industry. Incontrast, inthecountries nization ofothereconomic sectors. InBrazil, for example, theprioritygiven earlyonto theproduction andconsumption 85 The question remains asto how muchthemodernization ofthesebigcompanies contributes orpromotes themoder- la tierra enAméricaLatina yelCaribe:concentración yextranjerización. FAO. Santiago deChile. p. 63. 84 MiguelUrioste. ElcasodeBolivia.InFernando Soto Baquero ySergio Gómez (Eds). 2012. Dinámicasdelmercado de Labour relations landscape. The following passage by Urioste iseloquent: them from themore traditional bigestates (latifundio) whichformed partofthesocial,cultural andeconomic they appear, physically, as closed enclaves. This distance from the local society is a feature that differentiates perceived asoutsiders.This sensation ofbeinganoutsiderisreinforced, aswe saw above, by thefact that not succeed inintegrating thelocalandregional socialnetworks andinstitutions. For thisreason, they are Generally managedandadministered by employees undercontract, thenew companies frequently do New companies andterritory capacity to respond. remaining unemployed, generating social problems of another kind, to which local governments have little other sectors. However, anumberofthemstay putinthenew settlements,developing informal activitiesor to return to theirplaces oforigin,whenthere isalow demandfor employment, orto seekemployment in land use and development plans nor in the local budgets. The seasonal nature of work forces many workers not onlyrequire housingbutalsohealth,education andotherpublicservices that are notforeseen inthe expressed theirconcern aboutthecreation ofnew settlements,resulting from agro-industry initiatives, that Martinez mentionshow inEcuador -andthiscertainly could refer to othercountries –localauthoritieshave not solutionsfor moderncompanies that donotassume responsibilities beyond thoselaiddown inthelaw. in other cases, workers have been given a small plot of land where they could build their house. These are “rancherías” (rural communities) which,althoughprecarious, resolve to someextent theproblem ofstability; and paternalistic ideology, have builthomeswithintheconfines oftheirproperties –in Peru they are called many ofwhomare women whoneedstable employment. Somelarge-scale farmers, whoshare anaristocratic specific periodsofthe year andthey own processing plants for whichthey employ alarge numberof workers, this. Somenew companies –fruitandvegetable producers, for example –make intensive useofmanpower for drilling hasbeensuspended. admitted to thecompanies andthere have beenrepeated violations ofthebanto digwells inareas where latter country, caseshave beenreported where labourinspectors from theMinistry ofLabourhave notbeen their ignorance aboutlocalcommunities andauthoritiesasseenincertain areas ofEcuador andPeru. Inthe and have to keep themselves alsoat thecuttingedgeoftechnological progress. other sectionsofthischapter, many ofthemare at theforefront ofmodernization ofagricultural production costs. This requires themto have efficientmanagement systems and productive technologies.As stated in base themselves solelyontheuseoftheirnatural advantages becausethey are obligedto have competitive regions oftheworld onanopeninternational market. The large agricultural companies consequently cannot of the globalization of information and transport, they are now in competition with similar areas in distant exclusive natural features in a country or region, giving them a competitive advantage, find that, because and attracts large-scale investments. However, theglobalization ofmarkets meansthat areas whichhave for theproduction ofgoodsfor whichthere isaheavy demand.These conditions are afactor that favours geographical andclimatic conditions that give themacomparative advantage over otherregions oftheworld into biofuels for domestic consumption and also for export. The Andean countries have natural resources and Intensive agriculture investments mobilize populations but do not assume the responsibilities that derive from The relative power ofcompanies intheareas where they are located canbeseenindifferent ways, including The major part of the production of large agricultural companies is intended for export or for transformation local territory since itdoesnotneedit.” of thelarge soybean farm whosesolereason for beingisitsagribusiness, doesnotdevelop the manpower iscontracted, thefewer jobscreated andtheless impactthere isonpoverty. This model larger“the thearea oflandplanted withsoybean by large producers, proportionately theless 84

91 The land market in Latin America and the Caribbean: concentration and foreignization countries Schutter, presented at the66thSession oftheGeneral Assembly oftheUnited Nations, August 2011. 92 Sector. Law no27360, 2000. to wage-earners inothersectors ofthe economy. This isthecaseofPeruvian Law on thePromotion oftheAgricultural 91 Insomecases,thelabourlegislation that governs rural wage-earners gives themfewer rightsthanthoseaccorded have notradition aswage-earners andthey are, intheirmajority, immigrants. as theworkers becameowners ofthelandthey hadbeen allocated. Inthenew large agricultural businesses, theworkers 90 After theagrarian reform, theunions–someof themlarge andvery active -inthebigfarms onthe coast disappeared 89 del Perú. op. cit.P. 302. 88 87 Latina. FAO. Santiago. p. 296 86 Fernando Eguren. ElcasodelPerú. InEmilioKlein (Ed.), Políticas demercado detrabajo ypobreza rural enAmérica Contract agriculture position withregard to contract farming price crisis, Olivier de Schutter, Special Rapporteur for the United Nations on the Right to Food, adopted a importance ofagriculture becauseofsignificantinvestments, driven precisely by the2007-2008 global food These have beenmentionedinthecasestudies. biofuel industries to contract small andmedium-size farmers assuppliers,onaseasonalorpermanentbasis. including thosecarriedoutby FAO andECLAC. Asmentionedabove, itisfrequent for agro-exporting or working wage were informal, inotherwords they hadnoinsurance andtheirsalarieswere lower thantheofficialminimum farms are located, 57% ofwage-earners inthelarge agrarian companies (withmore than500employees) so, thedegree ofinformality isvery high.In2009, onthePeruvian coast where many ofthelarge exporting importing countries demandcertificates ofgoodpractices andof compliance withlabour regulations. Even who monitor compliance withlabourlegislation andalsobecauseanincreasing numberofclientsfrom small businesses. Oneofthereasons isbecausethey are more closelycontrolled by thelabourauthorities Relatively speaking,thesituation ofsalariedworkers inthesefirmsisbetter thanthosein more traditional, studies butitmeritsmore attention. when themajorityofworkers includingwomen are unqualified. This topic hasnotbeendealtwithinthecase and production technologies donotalways gohandinwithmodernized labourrelations, especially for this reason, the tendency to keep salaries low is typical of thesector. Thus modernization ofmanagement workers. Salariedlabourisoneofthemaincomponents inthecost structure ofthenew agricultural estates; have few qualifications andwhose wages and working conditions are lower than those of urban salaried process andthetypeoftasksresponsibilities, andinanothercomprising themajorityofworkers who category ofspecialized andhighlyqualified workers, according to thedegree of complexity oftheproductive to export agriculture are underpinnedby theuseofasalariedlabourforce whichhasto bestratified ina contracts. origin andhave notradition oftrade unionism farmers” asmentionedby Martinez withreference to Ecuador Another factor ofinfluence isthe“lackofanorganizational culture amongrural wage-earners andlandless the increase inmulti-jobbingby agricultural workers whocombine farm work withnon-farm work. temporary employees; theexistence oflabourcontractors, intermediaries intheemployee-worker relationship; separate reasons: thereticence ofmany employers; thereplacement ofpermanentwage-earners by in theagricultural GDP. between large-scale farming andsmallmedium-scalefarmers. markets, andhighlighted thepositive aspectsand therisksofthismechanismwithrespect to therelationship What are theadvantages anddisadvantages ofcontract farming? Recently, andwithregard to therenewed The mechanismofcontract agriculture isnotanew oneandhasbeenthesubjectofsomeimportantstudies The scaleofproduction andthenecessary divisionoflabouronthenew large farms (neolatifundios) dedicated In somecountries, labourlegislation facilitates instability by allowing greater flexibility inemployment Another problem isthedifficultyin forming trade unions. Thedifficultiesinunionization aredue to several Labour relations inthelarge-scale farms meritamore in-depthanalysis. The rightto food. Provisional Report by theSpecialRapporteur oftheUnited Nations ontheRightto Food, Olivierde LucianoMartínez. ElcasodeEcuador. InSoto Baquero yGómez (eds.). op. cit.p. 248. Klein, op. cit.,p. 28 In Peru, only27% ofwage earnersinbusiness withmore than500workers have indefinite contracts. Eguren. Elcaso 90 88 . Itshouldalsobementionedthat many ofthewage-earners inthenew businesses are ofpeasant

86 . InColombia, rural wages declinedinreal terms between 2000and2007 despite theincrease 92 . Hestated that small-scalefarming neededabetter relation to 91 . 89 butwhichsurely alsooccurs intheother 87

92 The land market in Latin America and the Caribbean: concentration and foreignization 93 class andthemodernizingstate. rural areas theincipientdomestic market: thesewere thepeasants,emerging urbanandindustrial middle not onlythepolarized landownership structure butalsoinmodernizing rural societyandextending to the domestic markets supported by astrong state. There were then several socialsectors interested inreforming development towards industrialization and import substitution, which required the growth andprotection of been lost intheface ofdemographic andeconomic urbanization. Governments andbusiness leadersoriented redistribution ofland,whilethenational andregional influence ofthelandowning classes had waned or even in 1961. reform, whichthecountries oftheregion committed to at theInter-American Conference delEste ofPunta of theregion. Consequently, theUnited States pushedfor theimplementation ofreforms includingagrarian itself withtheSoviet Union,alerted therival power abouttheriskofadominoeffect intheother countries Union. InthemiddleofCold War, thetriumphof Cubanrevolution, whichpromptly opted to align majority of countries were aligned behind the two major powers – United States of America and the Soviet conflict, causingthousandsofvictims. was radical, itgave riseto very serioussocialconflicts whichspilled over insomecasesinto internal armed the restoration oflandandanew distribution. When thedistance between thetalkofjustice andthereality structure oflandownership, itdidreinforce thebeliefthat, for justice to bere-established, there hadto be maintained asasymbolic recognition ofthedispossessed, withoutany concrete changesbeingmadeto the of thesloganstheseagrarian reform processes) to reach amore equitableandjust distribution ofland. extended therightto thosewhodirectly worked landbelongsto theland(“the thosewhowork was it” one pretended to doso--therightto landfor thoseto whomhistorically thelandhadbelonged, andthey the needfor agrarian reform, though not allofthemimplemented thereform. Thus they re-established --or local market, thusaffecting the food securityofthelocalpopulation. potential to increase theincome ofsomefarmers, may causeinadditionprice increases offood stuffs onthe including children. The contract farmer may redirect production to cashcrops which,whilethey have the lower theirlabourcosts, since contract farmers commonly usetheunpaidlabouroftheirfamily members, have thenecessary legalknowledge. By transferring managementresponsibility to farmers, thecompanies they donothave sufficientinformation orthesamenegotiating capacityasthe companies have. Nordothey for thesmallfarmer. Smallfarmers are inaweak negotiating positionbefore they signthecontracts, since them to access technical advice, goodqualityinputs,systems ofcertification and compliance with standards. addition becauseofthelackpublicextension services, contract agriculture isoneofthemeansavailable to commercialization andtransaction costs; theabilityto access credit; and,theguarantee ofincome stability. In of higherincomes asthey switch to highervalue crops, withbetter productivity andareduction intheir by fixed assets. on cash prices of the market. They can also maintain more flexible operations becausethey are not bound facilitates theoptimalschedulingofdelivery ofproducts, whichcannotbecontrolled whendependent fluctuations insupplyanddemand, to promote security standards andotherquality requirements. It the origin of production and the standardization of the product. It also enables them to reduce the risks of In several countries oftheregion, peasant movements demanded,withvarying degrees ofintensity, the The national andinternational contexts ofthoseyears could notbemore different from thoseof today. The Although inseveral countries, thetalkofagrarian reform barely progressed beyond thetalkandwas This periodofthe1960sand1970s was exceptional: alarge ofnumberLatin Americancountries announced What are thefactors that have stimulated orfacilitated theconcentration oflandownership over thepast two decades? More generally, DeSchutter states that: However, De Schutter also warns about the unequal nature of the contractual relationship and the disadvantages There are alsoadvantages for farmers that encourage themto enter into contracts: theexpectation One oftheadvantages for companies isthat they are ableto strengthen theircontrol over thesupplychain, III. Ibid. p.10 Factors facilitating concentration ofownership labour, suchasminimumwages, sickleave andotherlegislated benefits.” earning agricultural labourers ontheirown land,butwithoutthebenefitsassociated withpaid and how to produce them.Contract farming canthuscausefarmers to become essentially wage- “contract farming canleadto aloss ofcontrol over production, includingwhichcrops to produce 93 93 The land market in Latin America and the Caribbean: concentration and foreignization between Peru ontheonehandandEcuador andBoliviaontheother, theauthorsstate: public investments andcover socialcosts. Inanarticleanalysing theconvergence ofpolicies inthissubject they alldependontheincome from theextractive industries, above alloilandminingindustries, to finance the caseofEcuador andalsoofBolivia. Such aparadox canbeexplained by thefact that, inthefinalanalysis, 97 96 Anthony Bebbington &DeniseHumphreys Bebbington. multinational multi-ethnicstate”. http://www.jornada.unam.mx/2007/10/12/index.php?section=politica&article=007e1pol all inBolivia.Itcombines popular uprisingswithinstitutional political solutionsandistryingto reform theState, builda History hasalways beenmadeinunorthodox ways. Post-neoliberalism ispresent inVenezuela and Ecuador butabove in aninterview withLaJornadadeMexico on12October 2007. “Post neoliberalism isstarting to bebuiltinLatin America. 95 94 This isthecaseofPeru, ChileandColombia. Colombia, it is very paradoxical incountries where thegovernments have taken post liberal directions been weakened. Though itisnotsurprisingfor countries that firmlychoseneoliberal policiessuch as Peru and pre-eminence over thelegitimate landrights of communities, andpoliciesto protect communal landhave In thefour countries beingstudied, theconcessions awarded by thestate to theextractive industries took the localpopulation. trade agreements whichguaranteed better therightsofdomestic andinternational investors thanthoseof equal treatment to foreign capital.InsomecasessuchasPeru andmore recently Colombia, they signedfree in 1990andby Alberto FujimoriinPeru in1990. Estenssoro in 1985, by Sixto Durán Bellén in Ecuador in 1992, by the government of Virgilio Barco in Colombia economy andtheopening up ofmarkets. Suchpolicieswere initiated inBolivia by theGovernment ofPaz protection ofdomestic markets, were replaced by neo-liberal policies,thenon-intervention ofthestate inthe models basedonindustrialization andimportsubstitution, whichsupposedstrong state invention andthe that have helpedfavour theemerging trends ofconcentration oflandownership. of free trade andinvestment. Little by little, thistreatment hasbeenfacilitated, andat thesametimeprotected, through bilateral treaties a large number of countries offered foreign investment thesameorbetter terms thandomestic investment. by investors whose origin,national or international, was increasingly unimportant,becausethelegislation in The role ofthenational bourgeoisie askey actors innational development was substituted, to alarge degree, exports, inmany casesofraw materials withlittleaddedvalue, andthrough attracting foreign investment. dominant trend inthemid-20thcentury, to privilegingincreased integration to international markets through paradigm shifted from strategies basedonextending andconsolidating domestic markets, whichwas the Latin Americangovernments greater optionsintheirrespective geo-politicalstrategies. The development for promoting extractive industries extractive promoting for If itiseffectively so, they state that By adoptingneo-liberal policies,governments facilitated andpromoted large scaleinvestments andgave The so-called lost decade marked an important turning point in government policies. The national development These changesintheinternational andnational contexts were very powerful andgave riseto asetoffactors The changesto theinternational economy andpoliticsthat cameaboutwiththeendofCold War allowed

Itwould seemthat theterm “post-neoliberalism” was coined by EmirSader, current Executive Secretary ofCLACSO Ibid. loc.cit Ibid. 2. 1. and politicalprojects.” authoritarian practices inorder to secure theextractive baseoftheirmacro-economy, socialspending whose abilityto diversify theireconomies iscircumscribed andwhoshow signsofcreeping “Here we appearto have three national governments withextraction-dependent publicbudgets, sympathetic, thenironically the‘post’-neoliberal seemstheless transparent ofthetwo.” regimes that are brazenly sympathetic to extractive capital from those that are just actually than substantive. Andifitrefers to differences inpolitical style andpractice, distinguishing are talked about,thenthedifference implied by being‘ differences inpoliticaldiscourses andthe ways inwhichnationalism, imperialismandcapitalism the extractive economy isconcerned thesedifferences are notthat great. Ifitmerely refers to ‘post’ refers to. If it is supposed to refer to differences in macro-economic policy, then as far as distinctions between neoliberalism andpost-neoliberalism, raising questions asto what theprefix politicsandeconomics“the surrounding extraction inthesethree countries complicate Pre-eminence ofextractive activities Changes inpoliticalorientations

94 96 . BWPI Working Paper 117. University ofManchester An Andean avatar: Post-neoliberal and neoliberal strategies strategies neoliberal and Post-neoliberal avatar: Andean An post ’ would seemto bemore rhetorical 95 , asis 97

94 The land market in Latin America and the Caribbean: concentration and foreignization free andinafraudulent manner. at thebeginningof1990sdistributed hundreds ofthousandshectares oflandto politicalfollowers for In Bolivia,thedictatorships inthe1970s andthebeginningof1980saswell astheelected governments that are notliberal could notresist thetemptation to take advantage ofthisopportunity. peasants” the laws that eliminated agrarian reform from publicpoliciesandblunted thedemandfor landamongpoor conception that indigenousgroups have aboutland,whichincludesdemandfor landandwater, andfinally to be attributed to alackofanorganizational culture amongrural wage-earners andlandless workers, to the linked to agricultural production, orsimplythey hadmigrated outofthecountry. The lack ofinterest canalso demobilization isalsodueto thechangesthat thesamepeasantsexperienced that, insomeregions, was not as LucianoMartinez states withreference to Ecuador butwhichcanalsoapplyto othercountries, this peace agreements, whichinprincipalwould guidereforms through institutional channels.However, also, 100 UNDP. Colombia rural. Razones para laesperanza. 99 Urioste, op.cit., p. 63. Jurgen Schmidt.2004.Bonanzamacroeconómica ymalestar micro-económico. Universidad delPacifico, Lima.p 376 force, more thanoftheentrepreneurial andcreative spiritandoftheingenuityhard work ofourworkers at alllevels”. 98 Thus economic growth hasbecome dependent primarily on the “over-exploitation of natural resources and of the working as unoccupied land, ofwhichnomore thanoneUAF (Family Agriculture Unit)canbeallocated. individual andpublicentities.The samelaw established restrictions ontheaccess to othertypesofland,such could beowned orcommercially transacted, ifithadbelongedbefore to theState butwas now owned by to agrarian legislation inthedifferent countries, most ofwhich were madein1994and1995. trade warlords over thepopulation for thecontrol oftheterritory, driven to alarge extent by thedrugtrafficking of thearmedconflict andpublicpolicies. The struggle for land was subsumed by that maintained by the responsibilities intheirdistricts. and agricultural wage-earners. Then greater democratic openness enabledpeasantleadersto assume public and reduced demands.InPeru, millionsofhectares were redistributed to hundreds ofthousandspeasants the onlystandard. displaced by otherswhosetupmarket forces asthemainstandard for rational behaviour and,frequently, as legislation. Asamatter offact, radical ideologieslost boththeircapacityto leadandtheirstrength, andwere working-class organizations andinstalled uncertainty inthelabourmarket withthemodification oflabour secondly becausethenew economic order ofthe1980shadmodifiedproductive sector, dismantled place, they were weakened by thedictatorships whohadrepressed theseorganizations andtheirleaders; democracy, however, was not accompanied by an empowerment ofthemasses, for two reasons. Inthefirst domain where militarydictatorships were overcome anddemocratic governments installed. The return to resources have benefited from importantincomes has increased competition between investors for access to theseresources andcountries holdingsuch for minerals, fuelandotherraw materials inrecent decades,driven by Asiancountries andespeciallyChina, primary products andto itsre-alignment anddependency onexternal markets. The increase inthedemand lasted for arelatively shorttime;neoliberalism hascontributed to areturn oftheeconomy to production of the lynchpinofstrategy for economic development directed at thedevelopment ofdomestic markets exploitation andexport ofnatural resources tiesincloselywiththehistory oftheregion. Industrialization as to remunerate itswork andobtainsurpluscapital that contributes to theformation ofitsassets (Law 160of1994). whose expanse, according to agro-ecological conditions ofthearea andusingappropriate technology, allows thefamily 102 101 Beyond politicalorientations, corruption has alsoplayed animportantrole infacilitating landconcentration. In 1995, Law 160was passed inColombia, whichremoved therestrictions limitingthearea oflandthat In thecontext ofthepolicies already described,landgrabbing hasalsobeenseento bepromoted by changes In Colombia, the active peasant movement for land, organized by ANUC, retreated in the 1980s because On the other hand, the peasant movements died down. In some cases, agrarian reforms redistributed land Despite economic stagnation, the1980swas adecadeofpositive developments, especiallyinthepolitical In reality, thedependency oftheeconomies ofmost Latin Americancountries ontheincome from the LucianoMartinez, op.cit. p. 248. The Family Agriculture Unitislegallydefined asthebasicagriculture, livestock, aquaculture, and forestry business, 4. 3. 100 . Inothercasessuchasinsomecountries ofCentral America, prolonged armedconflict endedin Lethargy ofpeasantmovements The new agrarian legislation 101 . 99 Informe nacional de Desarrollo Humano Desarrollo de nacional Informe 98 . Ashasjust beenobserved, however, even governments , UNDP, Bogota,2011. 102 95 The land market in Latin America and the Caribbean: concentration and foreignization 2004. Eguren. Laspolíticasagrarias enlaúltimadécada:unaevaluación. InPerú: Elproblema agrario endebate. SEPIAX.Lima. 106 MarisaRemy. ElcasoPerú. InSoto Baquero yGómez (Eds.), Dinámicasdelmercado…op. oit.pp. 438-439. Also, F. www.fao.org/docrep/007/y5407t/y5407t0j.htm). la experienca delPRODEPINEenelEcuador. InReforma agraria, colonizacion ycooperativas. FAO. (Available at http:// 105 CarlosNieto Cabrera. 2004.Elacceso legalalatierra yeldesarrollo delascomunidades indígenas afroecuatorianal: by theState, enjoying thesamerightsasBolivians,thusopeningupoccupation oflow lyinglandsintheEast. 104 Incontrast withtheAgrarian Reform Law of1953 whichstipulated that foreigners could holdlandprovided for free 103 or more remote. Incountries withabiggerindigenous population, thecommunal organization continued but inhabitants were eitherevicted, becamebondedlabourers, ormoved to landsthat were eitheroflesser value estates were invariably established at theexpense oftheoriginalinhabitantstheselands.The indigenous The sentimentthat thelatifundio may belegalbutnotnecessarily legitimate isdueto itsorigins.The “latifundio” still resounds asanimposedreality andoneofexclusion, by itsvery nature. legal support,may have aproblem oflegitimacy, namelytheconsensual acceptation by society. The word The laws which,since 1990s,promote ortolerate concentration oflandownership, inotherwords give ita in thelandmarket. Though free allocation oflandorawarding ofgovernment-owned landto foreigners market for land,andthelandthat isinthehandsofmedium-scaleandlarge-scale owners, whichcanbeincluded the community and to small farmers, which would be protected by the state and would beexcluded from the service for agrarian reform. This law established adifference between two typesofland;thelandbelonging to limit examined intheCongress andwhichopensthepossibility ofacquiring more thanoneUAF, withoutanupper commercial initiatives, for whichthey have beenwell adapted. Policies for thedevelopment ofagriculture have beenthusdirected, inthe past two decades,to large-scale energy andthemultiplication ofnichemarkets for agricultural products. even more soinacontext ofstrong international demandfor raw materials for industry, for livestock, bio- property andto marginalize family farming. These conditions have favoured concentration oflandownership, market for land,to encourage investments bothby nationals andforeigners, to weaken communal forms of property, to have more flexible limits–or even to eliminate them–onthesize ofproperties, to openupthe To synthesize, thegeneral tendency inthe1990sregarding landlegislation hasbeento guarantee private land willmove upthepoliticalagenda. election was dueinpartto hispledgeto prioritize socialinclusionofthepoor, thetopic limitingthesize of to setalimit.Itislikely that duringthenew Government Perú”, presided of“Gana by OllantaHumala,whose During theGovernment ofPresident AlanGarcía (2006-2011) there were somefeeble initiatives inCongress the size, and established procedures that peasant communities had to follow in order to selltheir lands. In 1995, theLandLaw 26505was passed, whichremoved restrictions onlanddeals,withoutsettinglimits in theearlier Constitution of 1979, and reduced theprotection oflands belonging to peasant communities. the Government ofAlberto Fujimori,whicheliminated theterms oftheagrarian reform that was still maintained by the agrarian reform of 1969-75. The biggest milestones were the new Constitution of 1993, established by process that developed over fifteen years since they had to dismantlegradually thenormsandinstitutions created In Peru, finally, theprocess ofopeningupthelandmarkets andliftingthe restrictions onlandownership was a lands by givingthenew owners thefreedom to selltheirlandanditencouraged thecreation ofsmallfarms”. in agreement. According to Nieto Cabrera, thislatter provision “affected greatly the structure of communal the division of communal land into individual private plots in cases where the respective assemblies were made provisions for theeviction oflandsquatters. Inaddition–aswas doneayear later inPeru –itauthorized land rights.Iteliminated restrictions onlandtransfers through themarketplace, limited expropriations and the powers that be, inundertakingthevarious reforms that ithadoriginallyputforward. country, where theoppositionto hisgovernment isstronger, indicating theweakness oftheregime, vis-à-vis stance, thegovernment ofEvo Morales hashadto negotiate withthelarge landowners intheeast ofthe and could result inlarge estates. The caseofBoliviaisinteresting becausedespite thepro-rural pro-indigenous of commercial entities,thismaximummay bemultipliedaccording to thenumberofpartnersorshareholders, provision that was upheldinthenew Constitution of2009. has beenprohibited, thepossibility still exists for foreigners to buylandfrom anational private landowner, a In thesameyear, four decadesafter theagrarian reform, Boliviapassed theINRALaw, alaw onnational However, there isadraft law undertheNational PlanofDevelopment 2010 “Prosperity for All”,whichisbeing Also in1994,Ecuador passed theLaw onAgrarian Development. Ingeneral, thislaw strengthened private Although thenew Constitution setsalimitonthesize ofagricultural property –5 000 hectares, for thecase Yamile SalinasAbdala.ElcasodeColombia. InSoto Baquero andGómez (Eds). Op.cit, p.183. 5. 103 . Legality andlegitimacy 104 106 105

96 The land market in Latin America and the Caribbean: concentration and foreignization we know) throughout the20 Interculturalidad ycomunidades: propiedad colectiva ypropiedad individual. that landsandproperties canbequalifiedasbeingancestral, independentoftheirhistorical origin”.Alejandro Diez. 2003. date backto theagrarian reform orto mass movements andsubsequentrestructuring. Itisbecauseofthistimelessness to thelandastimeless despite the fact that many ofthemare ableto recognise thehistorical originsofthelandsthat in theperception ofpeasants, thecurrent situation represents what hasalsobeenandthey therefore conceive theirrights 107 allowed the latter to appropriate 4.4millionhectares offertile land. political violence and 300 000 property titleschangedhands.Inthe1980s,violence linked to drugtraffickers marked thehistory ofthecountry. Between 1946and1966,two millionpeoplewere displaced becauseof even today. Landconcentration inthiscountry isassociated directly withtheviolence andtheexile that have The caseofColombia deserves separate consideration becauseofthecentral role ofviolence inthepast and This dualstructure oflarge andsmallfarms was maintainedwell into the20 many ofthemsmallfarmers. with importantchangesfrom itspre-Hispanic origins,integrating families whoowned smallplotsofcrops, in the19 societal andeconomic changesresulting from independence andtheinstallation ofrepublican governments the moral backingto theagrarian reforms ofthe20 Latin Americanlatifundio was notaccepted morally by large sectors ofthepopulation. This explains, inpart, However, thislegalitywas notnecessarily accompanied by legitimacy. The originalsininthecreation ofthe of laws that formalized therightto thelandthat hadbeenseized. The peasant land movements of the mid-20 inhabitants persists inthecollective memoryoflarge sectors oftherural population andalsoofothers. 109 conflictos/2011/reporte_91_1.pdf conflicts are between rural populations and the extractive industries. http://www.defensoria.gob.pe/modules/Downloads/ almost two thirds (96)oftheon-goingconflicts in the country are of asocio-environmental origin.Amajorityof these 108 According to theregister ofconflicts that isupdated on amonthlybasis by theOffice oftheOmbudsman Peru, which ledto thelegislation beingannulled. extractive industry investments to thedetrimentofrightscommunities hasproduced intense reactions regions ofbothEcuador andPeru. Insomerecent cases,new legislation that favoured thelarge agrarian or regulations. This hasclearlybeenthecaseinColombia butalsointhelowlands ofBolivia,intheAmazonian past few decadesto have beenestablished, by violating rights,displacingpopulation orcontravening current even beenstrengthened in recent times due to the fact that it is not unusualfor the big farms formed inthe been seized illegally, dishonestly or based on regulations that themselves were illegal – has lasted and has Beyond theextractive industries, thisillegitimacy –inotherwords, theperception orfeeling that landhad Finally, inmany cases,theactivities donotgenerate employment for thelocalpopulation. of thelocalpopulation change;they do notparticipate inthewealth extracted from thelandthey occupy. negative impacts on the environment, especially on water. The economic activities and the ways of life rights onthelandthat was beingleased.Itisalsobecausetheextractive activitieshave important and the majorityofcases,there hadbeennoconsultation withthepopulation whohadformal orcustomary The feeling that theserightsare notlegitimate –even whenthey are legal –stems from thefact that, in current analysis, theminingindustry hasexploration andexploitation rightsover millionsofhectares ofland. with massive mining and hydrocarbon resources such as in the four countries, which are the focus of the of landgrabbing: theacquisition orconcessions ofnatural resources by theminingindustries. In countries Some ofthesecircumstances have beenemerging over thelast two decades.Itisstrongly felt inoneform feel they are descendants oftheoriginalinhabitantsuntilcircumstances emerge that revive themagain. of social,political,cultural andeconomic processes, may even remain, for longperiods,hiddenfrom thosewho This imaginaryworld whichisnever static butwhichisalways recreating itselfinrelation to theconstant flux 110 Yamile SalinasAbdala.Elcaso de Colombia. The regulations were finally annulled,after provoking apoliticalcrisis that led to changesinthecabinetofminister. occupied for centuries by indigenouscommunities generated aprolonged resistance whichendedpainfullyinJune2007. who usethesetools to access theimaginaryworld, whichat timesisexpressed through legendsandmyths official history –butalso bythelosersanditisless well-known outsidetheir world.Above allitisanthropologists It shouldberemembered that historical memoryisbuiltandre-built notonlyby thewinners–that isonlythe that, at thebeginning,there was aviolation ofrights,asindelibletheoriginalsin. the laws in force, or of the length of the buying-selling chain. In the collective memory, there is the recollection landowners, regardless ofwhetherornotthey hadacquired theirlandfrom otherowners inaccordance with of the1960sand1970s raised thisancestral rightto lost landsto arightthat was above that ofcontemporary “For peasants,theunityoflandandcommunity exists inspace butnotintimesucha way that, beyond itsorigins,

In Peru, oppositionto abodyofregulations that gave priorityto therightsofoilcompanies over landsthat have been th centuries aswell thegradual democratization ofpoliticalsystems (withtheperiodicset-backsthat th century. Across theyears, thecolonial andtherepublican state created abody 109 Op. cit. Op. th century which preceded and accompanied the agrarian reforms th century. The initialviolation oftherightsoriginal 110 Debate Agrario Agrario Debate th century, despite thepolitical, 36. Lima.Pág. 73 107 108 .

97 The land market in Latin America and the Caribbean: concentration and foreignization de propiedad delatierra. 112 DionisioOrtiz-Miranda, Ian Hodge. 2012. Entre lapropiedad agraria ylaambiental:Eldebate respecto alosderechos non, Rogier van derBrink. The World Bank.Washington D.C. 2009. pp. 7and8. 111 He continues Regarding theseconsiderations, itisworth quotingat length,HansBinswanger: leave theirmarkonmore recent processes. recent processes ofconcentration oflandownership by givingthemahaloofillegitimacy. Vestiges ofthepast which thishasbeenprocessed intheimagination oflarge sectors ofthepopulation, hassurely influenced The history of concentration of control over theland both inthedistant past and today, and the manner in Value. “Instead offocussing on thelackofcompetitiveness inagrarian activities,these areas shouldbe justify maintainingthepublicsubsidiesto marginal agrarian systems, often situated inareas ofHighNatural Ortiz-Mirana andHodgeargue that itisnecessary to remunerate environmental publicgoods,which would above. There isthenatension between environmental andproductivist tendencies. productive aspect ofagriculture andthesuperiority ofmodernproduction methodsover thosereferred to 2008, have revived arenewed neo-productivist perspective, revitalizing discussions that emphasize the However, growing fears that food security is threatened, following the sharp increase in food prices in 2007- the companies accumulating arable landrightsintheAndeanregion. intensive useoffossil energy, monocrops and mechanization, features whichcorrespond to thoseofmany of time, theseconcerns alsoraise doubtsaboutthesustainability ofmodernagriculture, whichisbasedonthe which isless aggressive for theenvironment andmakes better useofrenewable energy sources. At thesame attention onmore sustainable forms oflanduse, and,inthisregard, thepositive role offamily agriculture, Beyond theauthors’references to theEuropean Union,increasing environmental concerns have focused anddefineddifferent typesofsubsidiesaimed atmeeting environmental requirements. and Hodge to respond to demands of society with regard to agriculture andlandmanagement.” Ortiz-Miranda The legitimacy oflandproperty rightsisalsorelated to thecapacityto achieve somespecificobjectives 113 Ibid.,p.38 border between therights of thelandowner andtherightsofsocietyasawhole, protected by theState” the market economy. The European Union introduced regulatory measures such as the reference level “the resisted the“environmentalization” ofagrarian policies,butthenthey managedto harmonize themwith of landproperty rightsby having owners assume environmental responsibilities. At theoutset,owners shifted from market products to non-market services andproducts, whichhave meantaloss ofsecurity that isnon-production oriented. Inotherwords, they have moved to policies in whichtheemphasishas agricultural policiesoftheEuropean Union.These have moved from aproduction-oriented regime to one environmental concerns have modifiedthisdemand,whichhave been expressed inchanges to the the predominant demand has historically beenfor food production butthat more recently increased In Agricultural land redistribution. Toward greater consensus. greater Toward redistribution. land Agricultural In more inclusive institutions andpolicies,hence promote better long-term development.” equitable distribution oflandwillcontribute greatly to more socialcohesion, whichwillfoster conflict isarisky economic strategy. Inmost ofthecasesdiscussed inthisbook, restoring amore make decisionsabouttheirdistribution because, ashistory shows, ignoringaloomingland That isasitshouldbe. People shouldreflect onthe existing property rightsanddemocratically what isfair. They simplymay lookat thelandissue asoneofjustice andofredressing oldwrongs. “Communities andnations willhave to dealwiththislegacy. They invariably willform opinionsabout even civilwar demonstrates how strong thesenotionsoffairness are.” a system that isfair. The fact that unresolved landissues sofrequently leadto violence, civilunrest, or countryside populated by smallfamily farmers tillingthelandcorresponds inmany peoples’mindsto communities tend to feel that landshouldbeequitablydistributed to asmany peopleaspossible. A of income for many people. The matter ofequityisparticularlypronounced whenitcomes to land: overall area oflandinacountry isfixed, andbecauseagriculture is (or could be) animportantsource Societies usuallyhave strong feelings abouthow andby whomlandshouldbeusedbecausethe views onwhat isappropriate andfair over time. nation thinksisfair useand ownership ofland.Ashistory shows, communities even may changetheir nature ofproperty rights.History, culture, andmany otherfactors canmouldwhat acommunity ora “Perhaps the most important reason to worry about equityislinked to the inherent political and social that landlegislation could lackinlegitimacy since itformalized thedispossession oftheoriginalowners. In thepagesabove, reference was madeto thedifference between legalityandlegitimacy andthe fact 112 inastudy that refers to developed countries especiallyintheEuropean Union,states that Revista Española de Estudios Agrosociales y Pesqueros, y Agrosociales Estudios de Española Revista Edited by Hans P. Binswanger-Mkhize, CamilleBourguig- Nº231. 113 111

98 The land market in Latin America and the Caribbean: concentration and foreignization with thetentative titleof 114 This sectionisbasedinpartontheworking documentprepared by theauthorfor theInternational LandCoalition economy orcorporations andare diversifying theirinvestment portfolios; for themthelandisonlyafactor environment, thesecond category ofinvestors frequently have come into farming from othersectors ofthe have inherited afamily tradition in farming andmay have acertain identitywiththesocialandphysical farming behaviour according to whetherthey belong to theformer orlatter group. While inthefirst group they may have transformed themselves over time, or new entrepreneurs, which introduces nuances to their business growth andagrarian modernization inaglobalized world. They may betraditional large-scale farmers who by thegoverning classes, thebusiness world andbroad professional andacademicsectors, asthepillarsof In acontext where thecultofeconomic efficiency was raised toahigher value, the new estates are seen contributed to very different approaches to landproblems from thoseofprevious decades. between countries andeven withinthesecountries, andbetween different governments. However they It isevident that thetendencies already mentionedexisted withnuances that were more orless pronounced the 1990s. However they ended up becoming permanent. The assumption that the challenge of poverty measures to alleviate theimpactofneoliberal policiesimplemented inthe1980sandabove allin replaced by redistributive measures andsocialprogrammes. Many ofthesewere drawn upastemporary that themost efficient way to overcome poverty wasthrough socio-economic development was development were largely substituted by short-term assistance accompanied by cronyism. The hypothesis shifted to themargins ofthepoliticalagendas.The pro-poor policieswhichearlieraimedto generate and populations oflittlerelevance for thesemechanismsofintegration to theinternational economy sectors, whichhadbeen one of the motors oftheagrarian reforms, becameless urgent. Territories The cost was that thereforms to achieve socialandeconomic inclusionofsomeimportantsocial guarantee afavourable regulatory framework to attract investments andensure theirsustainability. competitive were neglected. The former received greater private investments andgovernments took care to be internationally competitive. The otherproductive areas andlandsthat didnothave thepotential to be branches andterritories deserved greater attention andallthereforms andsupportsnecessary for themto agricultural sector, through competitive advantages ofspecificlandareas. According to thenew trends, these markets. Suchintegration could bedonethrough specificproductive branches and,with regard to the national economy into theinternational markets andnotintheenlargement andconsolidation ofdomestic main changeswas theconviction that acountry’s development dependedonitscapacityto integrate its managed to achieve reforms, ingeneral through changesto national andinternational contexts. Oneofthe Later, theproblem oflandmoved down thepoliticalagendas;insomecountries it was becausethey had redistribute landaspartoftheimplementation oftheagrarian reforms. In the1960sand1970s, thegeneral debate aboutlandandrural development revolved around theneedto development andlandincludethephenomenonofconcentration inrecent decades? What doprocesses ofconcentration meanfor rural development? Inwhat way dothedebates onrural criteria ofeconomic efficiency and competitiveness that typically overlook any environmental references. undervalues theenvironment services provided by smallfarmers andpretends to evaluate themonlywith they host.” This last consideration is very pertinent for the Andean context, since the productivist discourse described anddefinedonthebasisofwhat in reality isgood:cultural landscapesandtheuniquehabitats inequality. of transmission Development Report for Latin AmericaandtheCaribbean,2010. 116 The persistence ofinequalityinLatin Americawarranted beingthecentral themeofthe UNDP’s Regional Human poverty isdetachedfrom theproduction system. into atrivialcategory which canbeadministered by socialandeconomic engineering.Inthisway theresponsibility for not guarantee anadequate minimum income andqualityoflife butrecreated itad infinitum,poverty hasbeenchanged 115 The concept ofpoverty hasbeenmodified.From beingthe result ofasocialandeconomic system that notonly could also grew. the 1980s,called“lost decade”andwhichhascontinued untiltoday, income distribution inequalities the economy andeconomic policies.Alongwith the economic growth which characterized theregion after branches andterritories was disproved by reality, precisely by theexcluding nature ofthenew directions of could bedealtwithby thetrickle-down effect ofthe wealth generated inthemore competitive economic IV. 1. The debate onland,rural development andlandgrabbing The new “latifundios” and small scaleagriculture 116 El hombre y la tierra: las relaciones cambiantes en la región latinoamericana, latinoamericana, región la en cambiantes relaciones las tierra: la y hombre El Acting on the future: breaking the intergenerational intergenerational the breaking future: the on Acting 114

2011. 115

99 The land market in Latin America and the Caribbean: concentration and foreignization accordance withcurrent state legislation. Inaddition,deSoto isoftheview that communal property rights prosper in a market economy, provided that he has a plot of land over which he has formal property rights in part ofthechapter, de Soto findsthat thesmall farmer, peasantorindigenousinhabitanthasthepotential to Unlike theargument that circumscribes competitive capacityto the“neo-latifundio”, asseenintheearlier access to capital. commercial agreements” bethey intheform ofmortgages, credit guarantees orotherinstruments that allow in title deeds which unlike physical assets are “easily combined, divided, mobilized and used to support 119 (New York: Basic Books and London: Bantam Press/Random House, Press/Random Bantam London: and Books Basic York: (New broader market” legal leverage to theeconomic potential oftheirassets to produce, finance orguarantee better value on the plot oflandbeconverted into capital?With easy access to [formal, legal]ownership mechanismsthat give 117 Inthisrespect, refer for example to HansP.Binswanger-Mkhize etal. looking at ourassets aswhat they are andstart to lookat themfor what they could become” of poverty. “Capitallike energy isalso avalue suspendedasapotential. To bringthem to life, we needto stop poor –theirmakeshift houses–andoftherural poor-theirplotsof land –have thepotential to liftthemout In hiswell-known bestseller “The mystery ofcapital”,HernandodeSoto states that theassets oftheurban that theseoffer In contrast, the efficiency oflarge-scale agriculture dependslargely on favourable policies andtheincentives different partsofthe world that demonstrate theadvantages of family agriculture over large-scale agriculture. more efficient(less aggressive tothe environment, foodsecurity, for example). There are sufficient studiesin efficiency (microeconomics) noronsubstantiating whetherornotsmall-scaleagriculture isor couldbe efficiency. In effect thecriticismof“neo latifundios”hasnoinfluence onthediscussion ofthe concept of and indigenouspopulations, butare usuallyweak precisely where theotherspretend to bestrong –in The counterarguments to thesepro-big farming positionsfavour small-scalepeasantfarming, family farming access to infrastructure, financialandnon-financial services andotheradvantages. bias of agrarian policies that place them on an unequal footing with the large-scale farmers withregard to part of the problems of efficiency that may exist in conventional terms are largely because of the negative agriculture asbeinginefficient;inadditiontheideological assumption that underlinesthis,hidesthe factthat other natural resources suchaswater andforests, are notusedefficiently bythem. This condemns family Thirdly, theseconceptions weaken thelandrightsofrural poorsince itisconsidered that theseand investment inagriculture, especiallylarge-scale investments. which includes, as seen above, the policies of incentives (fiscal, labour, hiddensubsidies, etc.) to favour Secondly theseconceptions favour theconcentration oflandownership usingseveral mechanisms,oneof consumption. of the“neolatifundios” produce food for exportation orfor biofuels,bothfor international anddomestic should be the responsibilities of the state: food security and the fight against poverty. In effect the majority on occasions, are confounded withwelfare redistribution programmes. This prioritization goesagainst what promote landgrabbing. Inexchange, policiesto supportfamily agriculture are absentormarginalized and, defined as to what the state shoulddoornotdo, butalsothey supportthelegitimacy ofpoliciesthat The influence ofthese conceptions is to be found at separate levels. Ontheoneside, notonlyare thecriteria countries oftheregion isusuallyperceived asinefficientandobsolete. In contrast, family farming whichincludestheoverwhelming majorityofagricultural producers inallthe social, economic andenvironmental impacts. profitability itoffers. From thesedifferences stem differences in behaviour which havetheir own distinctive of production andagriculture just anothereconomic activity, thejustification for whichis exclusively the 118 population that continues to grow andwhichisincreasingly urbanwithahighercapacityofconsumption. of ourtime(andeven more sointhefuture), namelyhow to meettheincreasing demandfor food by a when itcomes to showing thecapacityofsmall-scaleagriculture to confront oneofthebiggest problems fabric, fewer social disparities, and improved adaptation with the environment. However, it is more reserved economic potential. The weight of the arguments shifts to qualitative aspects: quality oflife, better social equity, respecting andvaluing differences, strengthening democracy thanwitheconomic performance and peoples –isfocused more onethical,social,cultural andpoliticalcriteria. Itisconcerned more withrights, A more solidargument infavour ofsmall-scale agriculture –by smallfarmers, peasants,native andindigenous Hernando de Soto, 2000. The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else Else Everywhere Fails and West the in Triumphs Capitalism Why Capital: of Mystery The 2000. Soto, de Hernando Ibid, 2. p.78 Mystery ofcapital,therural power andproperty rights

117 119 . . Property isunderstood asrightsthat are recognized, registered andformally represented 2000 op.cit.

118 . How cana 100 The land market in Latin America and the Caribbean: concentration and foreignization or otherwiseuse. http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---normes/documents/publication/wcms_100897.pdf 16 shallincludetheconcept ofterritories, whichcovers thetotal environment oftheareas whichthepeoples concerned occupy cupy orotherwiseuse, andinparticular thecollective aspectsofthisrelationship. 2.The useoftheterm landsinArticles15and spiritual values ofthepeoplesconcerned oftheirrelationship withthelandsorterritories, orbothasapplicable, whichthey oc- applying theprovisions ofthisPart oftheConvention, governments shallrespect thespecialimportance for thecultures and 123 These demandsare moreover covered by ILO’s Convention 169. Article13of theConvention whichstipulates that: 1.In org/files/Borras%20Franco%20Politics%20of%20Land%20Grab%20v3.pdf king Land Issues, Reframing Resistance. Reframing Issues, Land king 120 HernandodeSoto, the landfor production butover theirancestral space for material, socialandcultural reproduction. demands. Within the framework ofthedebate, indigenouspeopleare demandingtheirrightsnotonlyover cross thepark,andgovernment’s roll backofthedecisionto construct it,shows thevitalityofthese Indigenous Territory against the construction of the Villa Tunari-San Ignacio de Moxos highway, which would be recognized. The recent movement ofthenative peoplelivingintheIsiboro Sécure National Park and given to thedebate onterritory (amore inclusive term thanland)andthat theirrightsto natural resources march called“The March for Territory andDignity”.Acentral elementoftheirdemandswas that prioritybe providing anintercultural bilingualeducation. InBolivia,tens ofthousandsindigenouspeoplemadealong presidency ofRodrigo Borja,to declare apluri-national state, recognizing theindigenousterritories and In June1990, thefirst indigenousuprising was organized in Ecuador to demandthegovernment, underthe milestones intherecent history oftheindigenousmovement were themobilizations inEcuador andBolivia. countries, especially Peru, BoliviaandEcuador. Althoughtheprocess hasbeen continuing for years, two the total indigenouspopulation oftheregion lives inMexico andGuatemala andanother45%intheAndean centres ofpower ofthepre-colonial empires: Mexico, Guatemala andtheAndeancountries. Around halfof The indigenouspopulation isvery large insomeLatin Americancountries, particularlythosewhichwere the in theAndeancountries, dueto themobilization oftheindigenouspeoplethemselves. In thepast two decades,thecallfor therespect ofindigenousrightshasbeenincludedonthepublicagenda private property: buy, sell,rent, mortgage, etc. norto thoseofcorporate rightssuchaslimited responsibility prevent theirconversion into capitalbecausesuchrightsdonotallow access to themechanismsavailable to private property, beitfor smallorlarge plots,constitutes themost favourable scenario for investors. property rights“literally, are concerned notsocialrelations”. about‘things’, Moreover, theconsolidation of whether theseare inprivate orpublichands”.They consider that themajorityofprogrammes granting formal property and“detect actuallyexisting land-basedsocialrelations regardless ofwhat officialdocumentsclaim, production, distribution anddisposition”.Usingthisapproach, itispossible to gobeyond theconcept of or control over landresources isthe“effective control over thenature, pace, extent anddirection ofsurplus Borras andFranco make ausefulpointinreference to thisissue. They note that what ismeantby ownership to award property titles have beenfunctionalintheprocess oflandconcentration market inwhichsmallfarmers andpeasantsare more likely to besellingthanbuying.Asaresult, programmes are generally marginalized. Ontheotherhand,individualproperty deedsfacilitate thedevelopment ofaland does notdependsomuchonhaving titledeedsbutonpublicpoliciesandtheprivate bank,from whichthey guaranteed. Actual practice alsoshows that, for thesmallfarmer, access to credit andotherfinancialservices rights to rural farmers, itneedsmore thananadministrative process to ensure that theserightsare really capital“ isnotrevealed, at least notfor smallfarmers. Without denying theneedto formally grant property granting oflandproperty rightsdoesnotlive upto thesupposedadvantages“the andfinallymystery of The practice hasshown that theresults may bevery different from what have beenoffered. The formal to facilitate negotiations withindividualfamilies instead ofthecommunity asawhole. industries asthey seekto establish themselves incommunal areas isprecisely to weaken thecommunity ties these different types of external onslaughts. Itis aknown fact that one ofthe methodsused by the extractive the communal rights,basedoncustomary law, aswell asthecapacityfor thecommunity to defend itselfagain In thecaseofpeasantcommunities, theseprogrammes by givingindividualtitledeedsare defacto weakening well asto peasantcommunities, whichare financed inmany countries inthe region by themultilateral banks. De Soto’s positionissimilarto that usedby theprogrammes to give titledeedsbothto the smallfarmer as has to beableto changehands.Javier Iguinez, to beeconomic progress, inthisinstance inAmazonia. The property ofpoorpeoplehasto besomehow inalienable, and 121 “The proposition [of deSoto] isbroadly known: poorpeopleneedto convert theirassets …into acommodity for there watch?v=vLs4kenEbhg 122 Saturnino M.Borras Jr. &Jennifer Franco. 2010. 3. Land orterritory El misterio del capital de los indigenas amazónicas, indigenas los de capital del misterio El .ICAS Working Paper SeriesNo. 001.May 2010 http://www.tni.org/sites/www.tni. De Soto en la Amazonia. la en Soto De Towards a Broader View of the Politics of Global Land Grab: Rethin Grab: Land Global of Politics the of View Broader a Towards http://servindi.org/pdf/Serv_66_DeSoto.pdf Parte 2,Video 2009. http://www.youtube.com/ 121 . 123 122 - 120 . 101 The land market in Latin America and the Caribbean: concentration and foreignization participation ofindigenouspopulation inpublic life. practically allthegovernments oftheregion, even thoughinsomeofthecountries, there hasbeen progress withgreater Copenhagen, gives many illustrations ofmore orless discriminatory policiestowards indigenous populations, appliedby 127 Full text at: http://elcomercio.pe/edicionimpresa/html/2007-10-28/el_sindrome_del_perro_del_hort.html land soldinlarge lotswould bringtechnology whichwould also benefitthevillagers...“. are located are notable to exploit them“becausethey donothave thetraining ortheeconomic resources …This same resources would be withmassive investments, since thecommunities that occupy theterritories inwhichtheseresources ted andmillionsofhectares ofseathat willnever beusedfor mariculture orproduction”. The onlyway to exploit these communities andassociations have notfarmed orwillnotfarm, plushundreds ofmineral depositsthat are notexploi- García sumsup:“There are millionsofhectares ofwood that are idle, othermillionsofhectares that [peasantandnative] proach is very practical for theextractive choice that iscommon to many Governments intheregion andthat President explored, andPeruvian oilwould stay untappedwhileeachbarrel ofoilcosts US$90ontheworld market”. Suchanap- created thefigure ofthe‘unconnected’ junglenative; that is,unknown butpresumed, somillionsofhectares could notbe words oftheformer Peruvian President AlanGarcía (2006-2011): “and against oil,[theanti-capitalists always] have 126 This visionwhichrenders invisible or is notat allinterested inthenative population isexpressed socandidlyinthe ce theseare notimplemented very muchor, ifthey are, inadistorted manner. In Venezuela, theGovernment ofChavez haspassed several regulations infavour ofindigenouspopulations butinpracti- their rightevent thoughthey exist. The Constitutions ofColombia andChilemake noreference to the existence ofindigenouspopulations andeven less to though notnecessarily inpractice. not mentionterritory. However, asasignatory to Convention 169 ofILO itisobligedto formally recognize theterritory The Constitution ofPeru recognizes therightofnative andpeasantcommunities to theirland(article89) butdoes intangible ancestral possession andallforms of extractive activitiesshallbe forbidden there” (article57 oftheConstitution). indigenous communities, peoplesandnations. The territories ofthepeopleslivinginvoluntary isolation are “an irreducible and of theBolivianConstitution, therightto own ancestral landsandterritories andto obtainfree awarding ofthislandawarded to The 2008Constitution ofEcuador –acountry that alsohashadsignificant indigenous movements – recognizes, withoutthe force renewable natural resources existing intheirterritory…” land andterritories” andto “autonomous indigenousterritorial management,andto theexclusive useandexploitation of this declaration, Article30stipulates the“rightto free determination andterritoriality”, to collective “the ownership of ranteed withintheframework oftheunityState, inaccordance withthisConstitution andthelaw.” By virtueof self-government, theirculture, recognition oftheirinstitutions, andtheconsolidation oftheirterritorial entities,isgua- peoples andtheirancestral control oftheirterritories, theirfree determination, whichconsists of therightto autonomy, 125 Article2oftheConstitution declares that: “Given thepre-colonial existence ofnations andrural native indigenous 124 Wilfredo Plata. 2007. Autonomías, tierra yterritorio. Sistematización de nueve cologuios interculturales. FundaciónTierra. LazPaz. all that ofthegovernment, doesnotmatch thetalknordo the laws that are supposedlyinfavour ofthem Currently, itispoliticallycorrect to affirm the rightsofindigenouspeoplesbutactualbehaviour, above deemed empty or so sparsely populated that the inhabitants do not have the right to share inthese resources. by governments andcommercial parties,interested intheexploitation oftheresources oftheseterritories that are the forests’ sustainability. These territories have been considered to be“of benefit for the country’s development” agriculture. The fragile ecology oftropical forests isnotableto supportadensepopulation, becauseoftheriskto given the nomadic nature of sustainable forestry exploitation: gathering, huntingandfishing small-scale The Amazonian populations also demand theright to the territory on which they live. This covers extensive areas, decentralization inthecountry, for thedecentralized distribution ofpublicresources andalso ofpower. dimension. Ineffect, asthecaseofBoliviashows, itisofparticularimportance for politicalandadministrative The consequences ofthedemandfor territorial rightsgowell beyond agriculture andtheeconomic productive more radical version, by the Aymaras, understands itasademand for political self-determination andautonomy. indigenous peoplesthroughout thecountry andincorporated, in2009, into thenew Boliviancon global warming. of production andconsumption have beenbasedonaggression ofnature, destruction ofresources, and this relation notonlyismore importantfor thembutalso–andincreasingly –for aworld where themodes view ofthelandfor commercial agriculture andthat theepistemological, cultural andsymbolic dimensionof recognized that therelationship ofthesepeopleto theirterritory isdifferent from thepurely instrumental There is nodoubtaboutthejustice of territorial claims by theindigenouspopulation; it is increasingly ranging from legalactionsto actualmassacres. including river pollution.This virtualloss ofrightsindigenouspeoplesisgenerating very intense conflicts, territories, generally without consulting first the inhabitants and having a negative impact on where they live, growing presence oftheextractive andparticularlyhydrocarbon industries whichare intrudingonindigenous In Peru andEcuador, thissharpenedsenseofrightshasbeentriggered, to alarge extent, by theever- The report “The indigenousworld 2010” publishedby the International Work Group for IndigenousAffairs, basedin 4. The state andpublicinterest

125 127 126 124 .

102 The land market in Latin America and the Caribbean: concentration and foreignization ponsible for social andgeographic inequalitiesinrural areas” Bonnal,P., BoscP.M. Díaz,J.M., Losch, B. 129 The new rurality “isinscribedinanintellectual movement that criticizes economic policiesthat are considered res- caciones/xml/8/45608/LCG2513b.pdf de la agricultura y nueva ruralidad. Restructuración de la politicas públicas a la hora de la globalización? la de hora la a públicas politicas la de Restructuración ruralidad. nueva y agricultura la de 128 ECLAC. was poorandsixyears later in2010, thefigure was still 52.6% With theextent andpersistence ofrural poverty –in1994,65%oftherural population ofLatin America Here thedebate refers more to thethemeofrightsandpoliticalsocialdemocracy. physical, cultural andsocialspaces (territory) that gobeyond theareas strictly usedfor production (land). much around theadvantages ordisadvantages ofoneortheotherbutover therightto exercise control over By contrast, thedebate onlandandterritory, despite obvious economic implications, doesnotrevolve so we could callthediscussion oneconomic development. other factors that contribute to makingpeasantlandrightsmore secure. This debate islinked more to what opposite economic parties who are stronger. In the best ofcases, granting property titlescanbeoneofmany contexts, thesemay beoutstripped by therisksofputtingthemselves onthelandmarket inaweak situation more than it canreally offer. Itbrings advantages with itbut, depending ontheeconomic andsocio-political in otherwords what themystery ofcapital will reveal once thepeasantshave ownership deeds,promises believe that bigisbeautiful.Ontheotherhand,focus ofwhat we could calltheobsession withtitledeeds, be profitable, efficient, competitive both nationallyand internationally). Thiscapacityisdenied bythosewho whether ornotthey are capableofmakingthebest possible useoftheirland(inotherwords, for the land to its natural resources doesnotdevelop inavacuum but refers eitherexplicitly orimplicitlyto thequestion of As can be inferred from earlier parts of this chapter, the debate on the rights of peasants to their land and to more distant areas. eventually economic andalsoaboutqualityoflife ofthepopulations inneighbouringzones andeven in not public). For thisreason, extractive industries generate negative externalities usuallyenvironmental but public interest isnotobvious, onmany occasions (or theopposite isevident, namelyitisprivate interests interest” to backthisjustification has a weak legitimacy, amongother reasons becausethenature ofthe which individualsandcommunities have property orpossession rights.However, therecurrence of“public invariably asbeing“inthepublicinterest”. This provides justification to the state to disposeoflandon of thepoliticalorientation ofthegovernment oftheday, theextractive industries are considered almost on the extraction and export of natural resources, as in the case of the Andean countries, and regardless finally they are simplyadapted to governments’ criteria. Inthe countries witheconomies that are dependent well-being”). The problem isthat noexact definition exists as to what exactly these concepts meanand of indigenousandcommunity groups, inthenameof“publicinterest” (or “national interest” or“collective In most constitutions, the State reserves the power to intervene on individual property rights including those is more nuanced, emphasizingthemany relations linkingthetwo andconfiguring a continuum. The concern triggered by globalization: corporate agriculture, agro-industry, tourism, leisure, etc. The urban-rural duality albeit avery importantone. Rural areas are far from beingsimplyagricultural; they also convey the trends diversity ofoccupations andasituation inwhichfarming activityisbutoneofmany economic activities, In contrast, the new rurality could becharacterized by multi-activitiesinwhichfamilies canbeinvolved, health. Finally, thisview values too highly theurbanspace considered theonlypossible way to prosperity. with oneoftheconsequences beingpooraccess to services andpublicgoods, includingeducation and have nocontrol. Asecond feature oftraditional rurality would bethelow population densityofrural areas, agriculture – are practically the same and are at the mercy of natural phenomenaand cycles over which they rurality”. The former assumes that therural population andtheagricultural populations –thoseworking in the comparison between theconception ofrurality initstraditional version andwhat could bethe“new From a review of literature dealing with rural and agrarian issues, Sergio Goméz summarises, in an overview, ca Universidad Javeriana. María Adelaida Fara (Eds). 2004. Desarrollo rural ynueva ruralidad en AméricaLatina ylaUniónEuropea. CIRAD-Pontifi- Javeriana, CLACSO, REDCAPA, Bogotá, Octubre 15-17 de2003. Amodified version was publisheden Edelmira Pérez and at theInternational Seminar:ElMundo Rural: Transformaciones yPerspectivas alaluzdeNueva Ruralidad. Universidad more holistic perspective new approaches emerged which questioned the old assumptions and practices and posed the need for a became widespread inthe1990s have ledto anextension ofboth urbanandrural poverty. Inreaction to this, cooperation have beencriticallyscrutinized. Moreover, theneoliberal policieswhichstarted inthe1980sand by publicpoliciesfor rural development aswell asnon-governmental organizations anddevelopment 6. 5. New rurality Rural development approaches Statistical yearbook for Latin America and the Caribbean, the and America Latin for yearbook Statistical

129 . 2011. SantiagodeChile. http://www.eclac.org/publi- 128 -someoftheconcepts adopted/promoted Multifuncionalidad Multifuncionalidad Paper presented 103 The land market in Latin America and the Caribbean: concentration and foreignization geous for suchadevelopment to thosewhere itisimpractical. ment asarecipe that canbegeneral appliedto establish atypologyofterritories, from thosethat are the most advanta- rural territories whoseaimisthereduction of poverty andinequality”. territorial dynamicsasaprocess ofcloselyintegrated productive transformation andinstitutional changeof and theproposals for territorial rural development asdefined by SchejmanandBerdegue: “We definerural favourable orunfavourable to development initsdifferent dimensions.Hence, thelinkbetween thisapproach actors inanarea oraterritory, connected withmultiplesocial,cultural andeconomic relations, whichmay be considers productive agents-businesses, peasants,farmers andothers–notasindependententitiesbut objectives andactionswiththedifferent stakeholders andthesearch for territorial competitiveness. It in rural areas, theneedfor amore intense andarticulated relationship withurbancentres, agreement on sector viewpoint andputsforward theneedfor intersectoral policies,diversification ofeconomic activities The focus ofthenew “rurality” breaks withthenotionofrural economy seenfrom apurely agricultural 134 Bonnaletal. 131 Alejandro SchejtmanandJulioA.Berdegué. 2004. 130 Sergio Goméz. 2002. democratic. Inthewords ofCaballero andPérez: diversified rural economy and aspart ofdevelopment that isinclusive, economically equitableandsocially accommodate thesedifferent typesofagriculture. They accept thepotential of family farming butina The new approaches do not opt explicitly for or against, small-, medium- or large-scale agriculture but development onrural development. possibilities andrestrictions finally tofailing policies;(j) to consider thepossible positive effects ofurban to consider agro-industry andothereconomic agentsto disseminate technologies; (i)failing to tailorlocal heavily ondecisionsthat determine trends, opportunitiesandrestrictions facing rural populations; (h)failing actions for rural development withmacro ones;(g) failing to recognize that markets andtheiragentsweigh are frequent inrural areas oreven to failing mitigate to someofthese;(f) articulate specificpoliciesand have a multitude of activities; (d) not intervening to correct the failures or absences of the market which (b) ignoringthemulti-faceted aspectsofrural poverty; (c) focusing onfarming activitywhilerural families societies as homogenous, while they are heterogeneous and require for that reason differentiated policies.; in the“old perspectives” ofrural development whichcanbesummedupasfollows: (a)considering rural An influential report by RIMISP(theLatin American Center for Rural Development) noted aseriesof weaknesses areas are re-valued. for thesustainability of natural resources andtheenvironment ismore prominent andinsomeways therural 133 ShejtmanandBerdegué, Bank andFAO. pp.10-11. 132 Antonio Pérez andJoséMaríaCaballero. 2002. in thecontext ofglobalization meansthat: capacity oftheseapproaches to really dealwithrural poverty. The nature ofthemarket economy, particularly development”. However it is worth highlighting the critical comment by Bonnal et al because it questions the It isachallengeto sumupinafew linestheconceptual complexity ofthe“new rurality” andof“rural territorial favourable conditions to liftthemselves outofmarginalization andpoverty. competitive and it is within this framework that the different parties, including small-scale farmers can find The territory isperceived asa“space for initiatives” by economic actors. The intention isfor territories to be territory that rural development may bepossible andrural poverty resolved. and dynamicterritories.” The question ofmarginalized groups isgloballyignored intheinterests ofidentifyingthemost attractive processes of delocalization of investments and of productions toward zones that are more attractive […]. rulesofthegameare“the notthesamefor allterritories andtheinequalitiesare reinforced by the alternatives to alarge numberofpoorpeasants. modernization by absorbingexcess manpower resulting from thisandto offer viableeconomic America because it is the only way to match theincrease inthe rural population, to facilitate agrarian alternative to liftthemselves outofpoverty (…)Diversifying theeconomy isvery importantinLatin “For animportantnumberofpoorpeasants,commercial agriculture doesnotoffer aviable op.cit. 130 ShejtmanandBerdegué themselves underlinethelimitsofproposed rural territorial develop - La “nueva ruralidad”. Qué tan nueva? nueva? tan Qué ruralidad”. “nueva La op.cit. op.cit. 134 p.21

131 La nueva ruralidad en Europa y su interés para America Latina. America para interés su y Europa en ruralidad nueva La Desarrollo territorial rural territorial Desarrollo Universidad Austral deChile. 132

133 . SantiagodeChile, RIMISP. Itisthrough thetransformation ofa

World 104 The land market in Latin America and the Caribbean: concentration and foreignization continuation ofthediscussion, andwe trust that thischapter hascontributed to thedebate. The many facets ofthe landgrabbing process anditsimportanteconomic and social impactmerita and thepossible clash between theserightsandthepublicinterest. relation to this,therightsestablished by thestate andthecustomary rightsoftheindigenouspopulations business andrural territorial development; thedifference between landrightsand territorial rights;and,in particular the advantages and disadvantages of large farms as opposed to family farms; the large agricultural by thestate to theextractive industries. Different topics that are beingdiscussed are linked to thesetrends, in modernization basedincompanies that control large tracts offarm landandalsoby the concession ofland Nowadays thequestion oflandintheAndeancountries isthus,to alarge extent, the oneposedby a affected. relations. However, working conditions are usually below urbanstandards, withwomen beingparticularly The companies generate salariedwork andcontribute positively to thedisplacement ofpre-capitalist labour these companies isusuallyaddedtheirpower to influence localauthorities,thus weakening localgovernance. reduce thepotential advantages andonthe contrary may increase incertitude. To theeconomic weight of work withfamily producers (for example inthecaseofcontract farming), the asymmetrical relationship may companies frequently exist asenclaves, thuslimitingthespread ofmodernproductive techniques; whenthey concentration ofproperty (except inPeru whichabolishedthelatifundio undertheagrarian reform). These and extension oftheunequaldistribution ofland,incountries where already there was alarge degree of others that vary according to thespecificitiesofdifferent countries.Amongthe formeristhe consolidation This mechanismof“capitalist modernization” ofagriculture hasseveral inconveniences, somegeneral and of theextractive activity. that challengesboththeviolation ofitsrightsover natural resources andthenegative environmental impact them ontherightsoflocalpopulations. The most vigorous rural socialmovement ofthemomentisone states have been awarding the rights over wide tracts of earth to the extractive industries, superimposing Furthermore, asglobalcompetition for underground resources (mainlyminerals andhydrocarbons) intensified, reality. This too helpedweaken thepeasantmovement. and agrifuels.Later changes to thelegislation inspired by non-liberal trends didnotmanageto changethis sector -large-scale production, mainlyfor export, ofsoybean, highvalue addedfoods (fruitandvegetables) Colombia, Ecuador andPeru --brought theiragrarian laws into linewiththenew investment trends inthis However, inthe1990s,withinframework oftheneo-liberal policies,thefour countries inquestion –Bolivia, a dynamicandflexible interaction withthelocalelites. Bolivia, where Brazilian investors play a leading role but without the intervention of the Brazilian State and in “new” landgrabbing intheAndeancountries, where themainpartiesare domestic investors. Anexception is countries ofSoutheast AsiaandinBrazil andArgentina. This isnotthesameaswhat isbeingwitnessed inthe buying state, thesupplyoffood oragrifuelsfor speculation. This hashappenedabove allinAfrica, insome – eventually withtheintervention oftransnational corporations –for thepurpose ofguaranteeing, for the Land grabbing isarecent andaccelerated process for states to acquire large tracts oflandfor agriculture V.

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Issues and conceptual framework. framework. conceptual and Issues worldwide. land on pressures Commercial La nueva ruralidad en Europa y su interés para América Latina. Latina. América para interés su y Europa en ruralidad nueva La Rural territorial development territorial Rural Revista Española de Estudios Agrosociales y Pesqueros y Agrosociales Estudios de Española Revista Desarrollo rural y nueva ruralidad en América Latina y la Unión Unión la y Latina América en ruralidad nueva y rural Desarrollo “Land Grabbing” by Foreign Investors in Developing Countries: Countries: Developing in Investors Foreign by Grabbing” “Land . SantiagodeChile. RIMISP. SanJose, Costa Rica. Reforma agraria, colonización y y colonización agraria, Reforma Universidad delPacífico. Lima. . FAO. SantiagodeChile. (Also inámicas del mercado de de mercado del inámicas . FAO. Santiagode FAO. Santiagode FAO. Santiagode Dinámicas del del Dinámicas Fundación Dinámicas del del Dinámicas Dinámicas del del Dinámicas , No231 , 2011. Unidad 107 The land market in Latin America and the Caribbean: concentration and foreignization Agricultural Development Unit,whichsheheaded, until2010. [email protected] worked withtheUnited Nations indifferent positionsandindifferent countries andalsoinECLAC (Santiago, Chile) inthe * OfBelgiannationality withaLicense inAppliedEconomics andaMasters inDevelopment Planning, MartineDirven has than 0.95) andwhere theprocesses ofcolonization have beenoccurring, to agreater orlesser degree, over where theGiniindices for landtenure are already amongthehighest intheworld (ranging from 0.80 to more analysis. At what point,doestheprocess oflandconcentration orforeignization become excessive inaregion There are otherquestions that were notraised inthecasestudies butwhichare emerging inthecomparative of thelandover thelongerterm? knit socialandcultural fabric? Andwithpossibly less attention to theenvironment andtheproductive quality which aimsto bemore egalitarian? Oronebasedonmono-crops, highlymechanized andwithaless tightly of country and/or society isbeingsought.Onebasedonfamily farming, preserving a peasantculture, and better export opportunities.Finallyaspartofthispositioning, questions orstatements ariseaboutwhat type processes are seenaspartofprogress, understood asimproved production andproductivity aswell as of these on-going processes; they range from total disapproval to total approval. In the latter case, these environmental and also tourist services. This position and the socio-economic context lead to an examination In bothcasesitisconsidered asfinite, inthe face ofanincreasing demand for itsagro-food, agro-industry, right politicalandideologicalspectrum,landisconsidered asapublicorsocialgoodany otherasset. market and to recent trends towards concentration and foreignization. Depending on the position on the left- members ofthedifferent agricultural unionsandcitizens ingeneral consider and react to theagricultural land with theirdifferent nuances, have influenced legislation andthemannerinwhichpoliticians,civilservants, In effect, the neo-liberalization and globalization processes of recent decades in each of the five countries, need to beplaced intheprevailing politico-economic modeland the associated setofvalues andbeliefs. whom? Isitpossible oreven necessary to restrain theseprocesses? These questions andtheanswers to them concentration onagricultural land?What istheimpactofforeignization processes onthisland?Why? For The project focuses on the following questions: what is the impactof the on-going processes ofland in Africa andAsia. 2011) aspartoftheproject ofthesamename. This project stemmed from similarstudies on“landgrabbing” commissioned for presentation at aworkshop on“The dynamicsoflandmarkets inLatin America”(November Chile, Paraguay and Uruguay and which FAO’s Regional Office for Latin America and the Caribbean had This chapter isasummaryofcross-analysis ofthecasestudies which were undertaken inArgentina, Brazil, of neo-liberal policies. aligned withpoliticalaffinitiesand bysocio-economic group, influenced nodoubt byalmost three decades these processes range from unreserved approval to complete rejection oftheprocesses andthey are often also includesgrabbing otherresources suchasfresh water basinsandmineral resources). Opinionsabout geopolitical andenvironmental topics aswell asindigenousrightsandthepotential for landgrabbing (which of landtenure isagainontheagendafor discussion, thistimerelated to topics ofvalue chainorganization, properties. These dynamicstogether withtheregion’s role insupplyingfood globallymeanthat theissue In allofthecountries, there have alsobeennotableprice rises,especiallyfor thepurchase andsaleoflarge there has been strong concentration of land in the period of study and a foreignization oflarge tracts of land. farming (cattle andsheep) aswell asconservation activities.The casestudies conclude unanimouslythat These crops includesoybean, wheat andmaize butalsoindustrial forestry and,inseveral areas, livestock for agriculture. Inthelast few decades,landusedfor growing certain crops hasincreased exponentially. The five countries ofthesouthern cone oftheAmerican continent have regions exceptionally well suited Summary ChapterV: I. and Chile:acriticalanalyticaloverview Land market dynamicsintheMercosur countries Introduction

Martine Dirven* 108 The land market in Latin America and the Caribbean: concentration and foreignization sions asto theproductive useofthelandaswell assomany otherforms ofunrestricted ownership ofland. the pejorative connotations of the term, they constitute nonetheless a potential loss of sovereignty over deci- exist, theseare not common today intheregion. demands usuallygobeyond, andare generally notlinked to, specifictransactions; whilepure andsimple evictions do 136 This isnotto ignore thesocialmovements andthe demandsofpeasants,ethnicgroups andothers.However their bing intheMercosur countries. 135 the majorityoftransactions seemto take place withtheconsent ofbothparties (2012) intheiranalysis ofthesameseventeen casestudies. Ouropinionisthat inthefive countries studied, in 2011, civilsocietyorthemediaprefer to useexpressions suchas“landgrabbing” asdoBorras andothers term “dynamics of theland market” for theset of seventeen casestudies inLatin America andtheCaribbean and thelanguageusedshows how emotionallycharged isthetopic. Thus, whileFAO/RLC usedtheneutral Undoubtedly, thetopic oflandtenure andlandusecontinues to stir uparguments andopposingpositions with ashortageofagricultural resources countries –andasenseofthepurchase negotiations orotherarrangements withgovernments ofcountries gard to concentration and foreignization – much of which involves citizens or companies in the neighbouring which were notincludedinthethird section;and,5)conclusions relating to what hasbeenobserved withre- rise; 3)anattempt to respond to someofthequestions posedearlier;4)someadditionalfacts andcomments of thediscussion :economies ofscaleinagriculture andmarginalization ofsmallfarmers whenlandprices summary offacts; 2)atheoretical overview oftwo topics oftheanalysis ofparticularrelevance inthecontext In additionto thesummaryandpresent introduction, thecurrent chapter isdividedinto fivea sections:1) water- orglacier-grabbing intentions. foreign companies or foreign entrepreneurs, with the declared aim of protecting the environment, concealed that thepurchase oflarge tracts oflandinthefrontier areas oftheAndesbetween ChileandArgentina by During theworkshop, otherquestions (or rather doubts) were raised, amongst others,aboutthepossibility they agricultural ornot,for export ornot. subsidies ortaxbreaks to theforestry sector over andabove otherproductive activitiesinmarginal areas, be point ofview, -at theprimaryandindustrial levels andalsofor exports, thequestion that israised iswhy give use of agriculturally marginal lands. Though these policies have beenvery successful from theproductive guay), there have beenstrong incentives to reforest for productive purposesand/or for amore productive In several countries oftheregion includingthosebeinganalysed inthischapter (for example, ChileandUru- one withanethicalresponsibility for humanity(see alsoECLAC/FAO/IICA, 2010). us backto thetopic oflandasapublicgoodbutnotfor aparticularcountry orsociety, but the world’s population (seen asanethicalconsideration andnotoneofeconomic production)? This brings and livestock production, confer onthemspecialresponsibility andaprimordial role inproviding food for Finally, doesthefact that thecountries inquestion have particularlyfavourable conditions for agricultural and ofprevailing globalvalue chains? have more landthanisavailable inthecountry oforiginto respond competitively to themodeoforganization served today? Or, rather isitdueto thevalues oflandwhat have notyet converged? Oristhere anecessity to laws andregulations play arole, notexplicitly foreseen, inthecross-border foreignization that canbeob- more than500years, withanew impetussome100years agoandnow againtoday? DoesMercosur withits most rapid case(at least for farms ofupto 5 000ha),seenindata ofmore thanten years. of landconcentration in thecaseofArgentina canbeseenfrom Graph 5.1. This is perhapstheclearest and prices have increased significantly, especially for the purchase andsale of large scaleproperties. The process directly concerned by agricultural orenvironmental topics, norby indigenous rights.Inallofthecountries, land generally are notinvolved indiscussions regarding landtenure suchasthearmedforces orpoliticalgroups not land that was foreignized islocated intheborder areas. This hasattracted theattention ofdifferent partieswho and foreignization for larger tracts ofland.Inaddition,thestudies highlightthat an importantproportion of case studies conclude unanimously that, in the past decade, there has been a strong process of concentration The countries of the southern cone of the Americas stand out because of their suitability for agriculture. The IDS, 2011 p.1). of landtransacted intheprevious forty years (for example, seetheHighLevel Panel ofExperts,2011 p8and been transacted by governments andprivate investors. On average, thisisequivalent to ten timestheamount The statistics show that worldwide around 50to 80millionhectares oflandare beingnegotiated orhave that follows, theterms “concentration” andforeignization” willbeused. II. SeeChapter 1.For anoverview ofon-goingnegotiations orinitiatives that present potential instances oflandgrab- Overview ofdevelopments 135 . While they cannot correctly be assimilated to “landgrabbing” with 136 . For that reason, inthetext 109 The land market in Latin America and the Caribbean: concentration and foreignization in Chile, Paraguay andUruguay, respectively 1.2%,1.9%and0.3% onaverage peryear (see Table 1inannex). been adecrease intotal agricultural area (respectively -0.4% and-0.7% onaverage peryear), andanincrease case studies, theresults oftherespective agricultural censuses show that, inArgentina andBrazil, there has Contrary to what onemightthinkintuitively aswell asto theviews ofmany authorsincludingthoseofthe Source: Sili,Marcelo andLucianaSoumoulou(2011): stratum andinpercentages) Graph 5.1. Argentina 1998-2000. Intercensal changesinthenumberoffarms, according to size (by Brazil isthemost extreme caseofthefive countries beinganalysed. Map 1shows theextent ofthechangesinlanduseBrazil between 1996and2006,thoughitisprobable that Argentina andBrazil, butabove all inChileandUruguay, there hasalsobeenanincrease inforestry plantations. and in parallel in Brazil for sugar-cane, by a displacement and intensification in livestock farming, while in movements, encouraged strongly inArgentina, Brazil andParaguay by theincrease inthearea for soybean These processes have occurred simultaneouslywithotherimportantchangesinlanduseandregional de uso, tenencia y concentración y tenencia uso, de to 25ha Up

100 ha 25 - Area , FIDA/Cooperación Italiana/Ministerio deAgricultura, yPesca deArgentina. Ganadería 500 ha 100- 2500 ha 500 - Economically active population.

La problemática de la tierra en Argentina - Conflictos y dinámicas dinámicas y Conflictos - Argentina en tierra la de problemática La 5000 ha More than 110 The land market in Latin America and the Caribbean: concentration and foreignization Source: IBGE:Agricultural census 2006 Map 1.Brazil: changesinlandusebetween 1996and2006 111 The land market in Latin America and the Caribbean: concentration and foreignization studies, In thediscussion ofeconomies versus diseconomies ofscale, they remain neutral, asdosomemore recent and thesequence oftasks,whichmakes specialization difficultifnotimpossible. forces workers to take decisionsontheirown withoutconsultation; b) the needto follow thebiologicalcycle and more dispersedmanpower andmachinery, whichmakes supervisionmore difficultyandmore costly and hectare) than onethird higherthat theaverage obtainedfor therest (respectively R515perhectare versus R322per On the other hand, in 2006, the gross production value for family farms in Brazil was on average more according to thesize ofthefarm. access to irrigation are neutralized. Ascanbeseenin Table 1,average yieldsstill increase progressively 140 Hayami, YandRuttan,V.W. 1970 and1985. almost all farming areas – average yields per hectare are lower in smaller farms capacity, in information, in access to credit, quality land, water and irrigation, etc.) would explain that – in America, several factors (some ofwhichare shortcomings ineducation andconsequently inmanagement factors would explain thetrend intheincreases inthescaleofproduction indeveloped countries. InLatin namely greater advantages for large farms when buying inputs, selling products, accessing credit, etc. These could influence thesize ofthe farm. Nevertheless, they recognize that there are external economies ofscale, production factors (labourversus machinery)affect the extent to whichthey are usedand, at thesametime, of equivalences (basicirrigated hectare 143 SeeMinisterio deDesarrollo Agrario. 142 Area equivalent to thepotential production of1irrigated hectare (Class 1)intheRiver MaipoValley. Census inseveral countries 141 139 138 Seefor example, The HighLevel Panel ofExperts(2011) in Argentina (600 000hectares). Seefollowing sections. 137 the importance of the subject, it is worth using recent data to further deepen our understanding of the issue. years, smallfarmers sellto theGovernment which offers themadvantageous conditions. Inall events, given scale farmer, withless landlyingfallow andusingcrops that are more profitable. InthecaseofBrazil, in recent The apparent contradictions shown above may beexplained by themore intensive useofthelandby thesmall- Source: Echenique (2011), basedonastudy by FAO (2009) Table 5.1: Chile 2007: Average per hectare yields per farm size, measured in basic irrigated hectares. mechanization inagriculture hasbeenless widespread thaninindustry In theirlandmarkarticle, “Why are farms sosmall?”,JohnsonandRuttan(1994)question why theprocess of capacity oftheowner-operator; and,following Hayami andRuttan that, underneutral conditions ofscale, there would benoadvantages inexpanding operations beyond the With regard to thelimitonfarm size, JohnsonandRuttan(1994)revert to theconclusion ofBrewster (1950) in agriculture. This served asoneofthearguments infavour ofagrarian reform. farm types,false dichotomies between smallandlarge-scale shouldbeavoided”. of proponents anddetractors ofsmall-scaleversus large-scale agriculture –by saying “Because ofthelarge variation in 145 The HighLevel Panel ofExperts(2011, p. 33)circumvent theissue, by concluding -after reviewing thearguments 144 FAO. 2009. Evolución delaagricultura familiar enChileelperíodo1997-2007. SantiagodeChile. in commercialization (internal document,Agricultural Development Unit,ECLAC). Gross Production Value thanfor yields (perhectare cultivated withthesame crop). This was attributed to disadvantages Mónica Rodrigues concluded that thedifference between large-scale andsmall-scale farms inBrazil was higher for the III. Wheat Maize Beet ECLAC. Internal documentoftheAgricultural Development Unit,by MónicaRodrigues, basedontheAgricultural Apartfrom thecaseofJariinBrazil, allthecasesstudied by JohnsonandRuttanhadless landthanthecurrent pools Brewster, John.1950. The machineprocess inagriculture andindustry. 138 Overview ofthetheoryeconomies ofscaleinagriculture 143 althoughinthe1960squasiconsensus prevailing inacademiawas that ofdiseconomies to scale . irrigated hectares Up to2basic 69.1 2.7 7.5

Agricultural familiar no Brasil e o census agropecuário 2006. agropecuário census o e Brasil no familiar Agricultural irrigated hectares 142 2-12 basic

), thedifferences that canbe attributed to thequalityoflandand Agricultural development: an international perspective. international an development: Agricultural 71.6 4.6 9.8 144 anddata from theNational Institute ofStatistics. irrigated hectares 12-60 basic 10.8 78.5 5.4 Journal of Farm Economics. Farm of Journal 140 137 , consider that therelative costs of . They explain thisby: a)more mobile basic irrigated 60 andabove hectares 141 . In Chile, through a system 11.7 82.5 6.0

Nonetheless, Vol. 32,No.1 145 139

112 The land market in Latin America and the Caribbean: concentration and foreignization foreign investment (basedonWilkinson and others,2011). also mixed formulas, where, inmany instances, thenational entrepreneurs are onlythevisiblepartof investments relate to private and/or publiccapital, ofeithernational orforeign origin.Increasingly, there are and Argentina inparticular becauseofthelaws that give thempriorityontheuseofland).Many ofthese investments(f) related to environmental incentives; and(g) miningandoilprospecting companies (inBrazil but poor in natural resources, which are seeking to guarantee the supply of food, raw materials and energy; trend for increased prices ofagricultural commodities; (e) states orcompanies ofcountries, richincapital investment fundsattracted by theprospects ofimproved returns onland,amongothers,becauseofthe that provide services for fencing, building,electricity, soilpreparation, landsalesasaturnkey project); (d) with biofuels); (c) asaresponse to better landuseandtheprospects for agriculture (stimulating firms sector, includingnon-traditional agro-industry capital(e.g. petrochemical industry, carindustry, logistics main agricultural commodities; (b) capitalthat hassynergies orisconvergent withtheprimaryfarming and by consolidation, especiallyinBrazil andArgentina, whichare majorglobalsuppliersofseveral ofthe intrinsic value ofthelandfor thecurrent owner may causethelatter to sell(or thetenant to stop renting) land for non-agricultural purposes). The difference between thehigherprice that thebiddercanpay andthe will beableto pay ahigherprice for agiven piece ofland(thesamereasoning appliesto renting ortheuseof equal to thefuture revenue flows that theuseoflandcangenerate. For that matter, amore efficient farmer Soto (2005)explains that, from astrictly economic viewpoint, theprice ofbuying/selling landis(or shouldbe) study authors,seemsto usamisrepresentation ofthefacts. al (2012) have done, aswell asotherpeasantfarmer movements andmuchless strongly someofthecase However, to present buyingandsellingoflandthrough thelensofexpulsion anddispossession asBorras et Nor doesitmeanthat we donotregret thedisappearance ofmore traditional ormore balanced ways oflife. and Brazil where over many years there have beenpoliciesandprogrammes to supportthesmallfarmer. to asituation where thepowers that begoagainst thesmallfarmers, includingincountries suchasChile economic, orthat thefree market system together withstrong inequalitiesandanelitist politicalsystem leads Nor doesitmeanignoringthat rural peoplehave values associated withlandownership, whichare notmerely in whichcoercion, violence andillegalactsare usedto appropriate landimproperly for agricultural purposes. Explaining the buyingandsellingoflandusing economic theorydoesnotmeanignoringthemany instances groups (several whostarted inmining)switched to agriculture ahundred years ago. but notfrom traditional landowners; many even beganwithlittleornoproperty. InChile, someimportant economic 148 InArgentina, many importantdomestic entrepreneurs ofthenew business modelcome from agro-industry families in anotheractivityor farm -anincome stream equivalent to what hehaslost through thelandsale. a price equalorbelow that oftheexpected future revenue flows, theseller, on theotherhand,willhave to try to obtain - nomic system that tends towards concentration, at any cost --even if, ontheonehand,purchaser probably boughtat 147 higher thanthosefor self-employed farmers. (see, FAO/ECLAC/ILO, 2010) andthat, depending ontheregion, poverty indices for rural wage-earners canbelower or 146 Itshouldbetaken into account that Chileisoneofthecountries where labour andsociallaws are usuallyrespected sector itself The reasons for acquiring andaccumulating landcanbecategorized asbeing:a)capital from theagriculture production. crops to differentiated product ranges, suchas coffee for example, has hadan effect ofde-concentration of market gardening andtraditional small-scaleagriculture. Ontheotherhand,transition from commodity industries, exporters) seek to lower transaction costs, putting pressure on concentration, even in areas such as capacity (includingcashflow andpayment terms). Inaddition,buyers (large retailers, supermarkets, agro- homogenous presentation, compliance withprivate sector andtraceability normsandstandards) anddelivery the dynamicsofsomelarge agricultural andforestry commodity markets, by qualityrequirements (including large volumes andcompetitive prices. IntheSouthernCone, on-goingtransformations are essentially driven by where agriculture is directly linked to external markets, in all their complexity andwith their requirements of The neo-liberal modelisat thebasisofcurrent processes oflandconcentration, withitsopeneconomies and town andwork for awage. and old,menwomen) believe that itisaform ofprogress to leave theirown farms to goandlive inthe In interviews undertaken inChile, we have found that anoverwhelming majorityofrural inhabitants(young IV. Interms ofprofit -againseenpurely in economic terms andwiththe awareness that bothpartiesare partofan eco- a) 1. Do theprocesses oflandconcentration matter? Some questions andanswers usinginformation from thecase studies “Eviction” ofsmallfarmers through increased landprices 148 , both domestic and foreign, either driven or stimulated by the new competitive environment 146

147 . 113 The land market in Latin America and the Caribbean: concentration and foreignization The modelofthe medium-sized owners to keep theirproperty as“minilandlords” (MurmisandMurmis,2011). domestic ones.This hasledto controversy and draft legislation. Ontheotherhand,leasingallows small-and In addition,processes oflandconcentration are greater inforeign companies andjointventures thanin Buenos Aires, inparticular, there isanincrease inthenumberandsize ofproperties of over hectares. 1 000 was farmed inmixed modeby acombination oflandowners, tenants andcontract farmers. Intheprovince of is controlled by asmallnumberofcompanies. In2001, 46%ofthearea ofthepampas(31millionhectares) and expansion ofthepools.Asaresult, ahighpercentage oftheeconomic activityinagriculture inArgentina of accumulation are notnecessarily evident through landownership butthrough leasing,capitalconcentration with varying degrees ofintegration alongtheproduct chain.What isimportantto note isthat theprocesses from family businesses to large transnational corporations anduseavariety ofcontractual arrangements, version, they are informal associations between thelandowner, thecontractor andanagronomist. They range production, managementandcommercialization. The poolscanbecreated astrusts or, intheirmost basic of modernmachinery, biotechnology, agrochemicals, digitalsystems andspecialists intheselectionoffields, capital andhumanresources, through tenure and/or ownership oflandandbasedonatechnological package years agowithManuel Peñalillo, whowas thenPresident oftheConfederation ofCooperative Farmers, Campocoop). cates to thesouthto alarger area and/or ahigherreturn onproduction (from aconversation theauthorhadaboutten 149 in Chileaswell asintheAmazonia inBrazil. regards to theirrightsandfuture. This hasbeenthe caseinlanddestined for environmental conservation urban concentrations) in these new large farms in which thestatus of peasantfarmers is often unclearwith from landthey have occupied for years orwhere they have beenliterally entwined (even includingsomesmall With theselarge-scale purchases, there have beenseveral casesofpeasantfarmers whohave beenevicted as biosphere reserves, fresh water resources and mineral resources (Seechapter 1). processes linked to themanagementofnatural resources -including thosethat are especiallysensitive such large-scale monocrops and the loss of the cultural and socialfabric) there are other on-going concentration Beyond theconcentration oflandfor different productive purposes(anditspotential consequences suchas 2008, farms ofless than50hectares continued to produce ahighproportion offood for thedomestic market. historical backdrop that, between 1991and2008,theGiniindex increased from 0.91 to 0.93. Nonetheless, in borders withArgentina andBrazil. However, they quicklyfaced socio-economic breakdown. Itisagainst this frontiers, some 120 000 peasantfamilies settled in the central areas of the country andinthe areas alongthe which soughtto pushthrough anagrarian reform. Inthe1960sand1970s, through theexpansion ofagricultural properties andforeign capitalinvestments, withtheexception ofthesocial-democratic regime (1936-37) Paraguay, andconcludes that nearly all the Governments –since themid-19th century –encouraged large in recent decadesbutalsothroughout itshistory. (2011) describesthevagaries Galeano oflandtenure in More blatant processes ofconcentration andforeignization are probably more evident inParaguay notonly power inotherareas, includingthemedia. genetics andtheproduction ofinputs,to thedistribution systems andtheendmarkets) and theireconomic is theparticipation oflarge economic groups inthisconcentration, theirpowerful vertical integration (from these figures, land concentration hasnotbeenthesubjectof recent publicdebate. Onepartial explanation threshold andthey control 80%oftheagricultural landinthecountry andalso80%ofirrigated land.Despite and beneficiaryofINDAP -theInstitute of Agricultural Development). Only25,000 farms were above this were 242 000 holdingsofless than12basicirrigated hectares (thethreshold to beconsidered ‹smallfarmer› agricultural value andwhere forestry isdifficult.Ontheotherhand,2007 Censushighlighted that there hectaresthe farms are ofmore located than2 000 intheextremes ofthecountry where thelandisoflow (2011) warns that theperception ofhighconcentration oflandshouldbenuanced becausearound halfof million hectares according to thecensus in1997 and29.8 millionhectares in2007 census). However, Echenique increased between 1997 and2007 (from 16.0 to 20.7 millionhectares –outofatotal agricultural area of26.5 hectareswere andabove) analysed; thelarger holdings(2 000 have beentheonlyoneswhere total area Chile istheonlycountry where there hasbeenadrop inthenumberoffarms inallcategories ofsizes which Argentina, withits buying andsellingofland. lower cost) inotherregions andmove theirherds there. Itispossible that thesamerationality operates inthe are leasingtheirlandto investors, generally Argentinians; they themselves thenrent pastures for cattle (at a would seemthat farmers andlivestock ranchers inwestern Uruguay, where thebest landsare to befound, strategy indifferent areas andthushave reduced their exposure to climate risks.From theinterviews, it invested inlandandat thesametimeensure theirown production. Large enterprises have repeated this work thelandthey own andleasesurrounding plotsofland.This allows themto reduce theamountofcapital sunflower, etc.). Companies typically buy land, establish the operational base and machinery on their property, Uruguay must includeallforms oftenure, particularlyfor rainfed agriculture (soybean, wheat, corn, sorghum, companies orthosethat tryto emulate them.Piñeiro (2011) stresses that ananalysis oflandconcentration in The samesituation apparently exists inChilewhere landissoldfor real estate around Santiago; thesellerthenrelo-

pools pools

, isacaseapart.The poolsare innovative arrangements that bringtogether land, has beenextended to othercountries of theregion, introduced by Argentinian 149 114 The land market in Latin America and the Caribbean: concentration and foreignization production contracts andlandpurchases madeabroad. and the export of ethanol in Africa and Latin America as well as a globalized meat company, which included same pageandonthenext one, theauthorsmentionbrieflyinvestments for theproduction ofsugarcane in neighbouringcountries, namelyParaguay andBoliviainthecaseofsoybean, andinUruguay rice”. Onthe (2011, p. 28)devote onlyonesentence to it:“Brazil, inturn,moves beyond its borders andprogresses strongly It isstriking that, given thepreponderance ofBrazil intheprocesses offoreignization, Wilkinson and others Brazilian state agencies. rented orboughtlandinParaguay canreceive technical assistance for farming andlivestock production from Government (asitdoes inBolivia)onthedevelopment ofalandregistry. Inaddition,theBrazilians whohave At thesametime, theBrazilian Government isintervening actively inParaguay, providing advice to the Brazilians. Ontheotherhand,Paraguayan producers dominate inlivestock farming for allfarm sizes. until they have sufficient to constitute a farmofthedimensionsdemanded by investors, who are alsomostly Brazilians, withorwithoutthehelpofParaguayan intermediaries –whobuylandsadjacent to oneanother in foreign hands, is particularly striking. Some of this accumulation was done through intermediaries - mostly and Brazilians predominated (see chart2).The caseofsoybean, with64%ofthetotal 2.5millionofhectares (50 hectares andabove inthecaseofsoya andmaize, and200hectares andabove inthecaseofwheat); all theseprocesses was that, by 2008,several crops were controlled by foreigners inthelarge farm category hectares ormore, withextensive50 000 landclearance andintensive useofchemicalinputs.The result of and corn production asa complement, together with livestock farming. Insomecases, the farms covered companies, someofwhichwere transnational, andwhichconcentrated onsoybean production withwheat family farming by Brazilians and“brasiguayos” hadlost importance to medium-andlarge-scale agricultural settled to work thelandwiththeirfamilies insmall-to medium-sized farms. InParaguay, already inthe1980s, beginning ofthe20thcentury. Inbothcases,theimmigrants thenwere essentially family farmers whohad immigration ofBrazilians to Paraguay between 1960and1970 andthat ofEuropeans to Uruguay at the (2011) andPiñeiroBoth Galeano (2001) highlightthedifferences between the recent phenomenaandthe increasing difficulties toensure basicliving conditions,especiallyindenselypopulated rural communities. hectares intheEastern Region. By contrast, peasantfarming families started to complain since they faced Argentinian firm owned 5.6millionhectares inElChaco andanAnglo-Argentinian company has2.6million of disposingfederal landthat started in1881,thetwo largest properties were owned by foreign capital.An As already mentioned,Paraguay isthecountry where foreignization oflandismost evident. With theprocess the size ofmany larger settlementsare underestimated. various plotslocated withintheboundariesofoneadministrative unit(province, municipality),inallcountries Finally, itisnecessary to stress that, becauseofthecensus definitionof “agricultural ashaving settlement” infrastructure anddeclineinservices, andintheend,ageneral impoverishment inthebroad senseoftheterm. in productive diversity, lackofemployment opportunities,decrease inlocalconsumption, deterioration of Soumoulou (2011, diagramme p. 35) have mentioned:devaluation oftherural space asaway oflife, reduction for specificpopulation orinterest groups. Amongthenegative consequences ofland concentration, Siliand per hectare butmore highlyskilledandbetter paidwork) andseveral otherparameters that are sensitive urbanization), productive andconsumption supplychains(fewer localchains), labourmarkets (less work self-consumption (Murmis and Murmis, 2011). Likewise, they have modified human settlements (increased “modernization”, -butthey have changedthemechanismsofaccess to food andreduced theproducts for production – instead, they have had positive consequences on production, productivity, exports and For now, theseprocesses ofconcentration andforeignization have notproduced adecrease indomestic its consequences below. impact onbothconcentration andforeignization. We willreturn to thesubjectofforestry development and energies, suchassugarcaneandothers,inBrazil. Reforestation incentives, inparticular, have hadamajor cited inthecasestudies includeirrigation inChile, afforestation inChileandUruguay, crops for renewable that, “ultimately, meanatransfer ofpublic resources to third parties”.(SeeChapter 1).Someofthepolicies there isawiderange ofpublicpoliciesandeconomic incentives to encourage specificproductive activities well known, theexistence oflegalframeworks doesnotensure compliance withthelaw. Ontheotherhand, hands offoreigners, andto situations where there are norestric b) Do theprocesses offoreignization matter? 115 The land market in Latin America and the Caribbean: concentration and foreignization Soybean Chinese state company –of100thousandhectares for soybean crops intheState ofBahia;Argentinian and specialized firmsthat foster thismigration; landgrabbing innegotiation withChinain2010 -through a three main types of foreign interests are emerging: North American farmers, especially in the State of Bahia, belonged to foreign individualsorentities,intotal anarea of4.3millionhectares (1.5%ofthetotal). Currently, productive use. Despite theabove, in 2010, onlyabout34thousandrural properties (0.7% ofthetotal) Additionally, 30%oftheproperties (15%ofthearea) inthehandsofforeign entitiesare notfor adeclared farming prevails, whileamonglegalentitiespermanentagriculture prevails. in number of properties in the handsofforeign individualswas lower. Among foreign individual,livestock southeast and mid-west ofBrazil andfell inthenorthandsouth.However, for thecountry asawholethetrend Between 1998and2010, thenumberofproperties inthehandsofforeign individualsincreased inthenortheast, in Africa, particularlyinMozambique, whichissimilarto itsrole inthedevelopment oftheCerrado ofBrazil. Moreover, Japanalsocollaborates withBrazil inanambitious programme to occupy agricultural frontier land the MiddleEast, includingJapan,whichleadstheinitiative to promote Responsible Agricultural Investment. use andsize ofthesepurchases, amongst others,ifthere isevidence oflandgrabbing by countries inAsiaand audited”(Wilkinson andothers,2011, p. 5).Inadditionaseriesofrestrictions willbeenforced regarding the foreign individualsorcompanies have majoritycontrol, willhave theiracquisitions ofrural real estate In contrast, inBrazil, after several years withoutrestrictions, since August 2010 “Brazilian companies where Source: Galeano, Luis(2011): “Dinámicadelmercado delatierra –caseofParaguay”. FAO/RLC. Graph 5.2.Paraguay 2008:Foreignization ofagricultural production (%ofhectares cultivated by in thesectionoftheirreport whichisentitled:“Diversity from abroad”. of European investors andmanages the land for them.Murmis and Murmis(2011) analyse these mechanisms appeared, whereby anEnglishreal estate company, through anArgentinian counterpart, buys landonbehalf Bolivia, Brazil and Uruguay. On the other hand, an agricultural variant of a traditionally real estate activity has and international levels, andlinked to thepurchase oflandinneighbouringcountries, namelyParaguay, by networks ofproducers are being replaced by financialand commercial integration, at boththenational including capitalization withforeign funds.Asenterprises grow, arrangements originallybased onoperations enterprises, especially inArgentina, to associate themselves withdifferent typesofinternational finance, Beyond thevariety ofmotives, products, inter-enterprise relations, etc., there isatendency for agricultural residential andtourism ones. livestock production, agriculture, forestry andmining,for ecological andconservation purposesaswell asfor the beginning of theprevious section, bothforeign individuals andcompanies have alsoboughtlandfor with acombination ofpurchased andleasedland,inthePampas). Recently, for the reasons mentionedat resort to agreater degree, oreven exclusively, 000hectares percompany to landownership (upto 600 are marked differences between thenational pools,which resort more to leasing,and foreign pools,which Argentina withtheparticipation ofnational capital and amixofowned andleasedlands.However, there In the same way as Argentinian investment abroad tends to be mixed, so are foreign investments in essentially through leasing,for theproduction ofsoybean intheCerrado, (Wilkinson etal.,2011). Maize nationality oftheproducer andsize offarm) Livestock Wheat pools , 116 The land market in Latin America and the Caribbean: concentration and foreignization backed by aforeign government.» (Piñeiro, 2011, p. 38). The land-grabbing condition that hasnotbeenmetisthat thebuyer isaforeign government oracompany that another part(perhapsthebiggest) hasbeengiven over to rainfed agriculture andlivestock farming. foreign. Regarding landuse, we alsoknow that aconsiderable parthasbeendevoted to afforestation, but many purchases oflandmore than10 000 hectares. We know that, inseveral cases,thebuyers have been «the answer dependson how to interpret the definition since several conditions are met. There have been with Finnish,Swedish andChileancapitalthe otherwithFinnishcapital.With regard to landgrabbing: largest landowners are two hectares. foreign Oneisconstituted forestry companies, withnearly200 000 all ofthemforeign. This hasbeenanimportantreversal inthehistory ofagriculture inUruguay. The two leasing oflandby foreigners. Currently, at least onemillionhectares are inthehandsofadozen companies, of stakeholders andscattered information suggest that there hasbeenanintense process ofpurchasing and the question asto whetherornot there hadbeenaprocess offoreignization ofland.However, theperception companies withnoindication asto nationality. Therefore, itisnotpossible to respond inaconclusive way to 000hectares. The rest went to «purchasers whoare notindividuals»,i.e. differentgain of40 types of Similarly, 000hectares whileArgentinian landowners have Brazilian landowners hadanet lost some100 and 10%ofagricultural land.Inthepast decade, Uruguayans have lost control ofaround 1.8millionhectares. In Uruguay, between 1970 and 2010, foreigners owned between 4% and 8%ofthefarms and between 8% that encourages theseoperations (Echenique, 2011). the price oflandisrelatively highand,despite beingopento foreign investment, there isnopublicprovision intensive farming, would explain why there isnoevidence oflandgrabbing. Inaddition,aswe shallsee later, and theneedfor irrigation, limitingthegrowing area to aboutonemillionhectares, whichare already usedfor of activitiesdeveloped successfully inChile. The shortageofavailable landinChileto produce staple foods limited national resources, by thestimulus from economic reforms inthesecountries, andby thereplication Argentina for thewinesector. This internationalization isexplained by theloss ofreturns oninvestments and Brazil, Argentina, Uruguay andMexico, thecoast ofPeru andthenorthofMexico for thefruitsector, and than vice versa. Countries andsectors receiving inward investment from Chileintheforestry sector include purchase land.Chilewould have invested more inothercountries intheagroforestry sector andrelated areas this, only6%to agriculture perse. Inotherwords, itwas avery smallpartandwas notnecessarily usedto the capitalthat entered thecountry between 1974 and2009was destined for theagri-food sector, andof OECD (2003) ranked Chileasoneofthecountries most opento foreign investment, thoughonly6.6%of their weak regulations andnegotiating capacity? addressing. The question isif, inadditionto appropriate productive conditions, they have beenchosenfor infrastructure (roads andirrigation), technology andtraining, thevery shortfalls that thesearrangements are can reject them,especiallywhentheregional governments (andmunicipalities) have importantshortfalls in development projects, through arrangements withlocalinstitutions. Therefore, itisnotobvious that they with theinstitutions andcompanies representing them–andthere are promises ofcontributions andmajor and Murmis,2011). BothArgentina andBrazil are currently innegotiations withforeign governments –or governments have taken thestance ofrefusing to sellstate-owned landto foreign governments (Murmis foreign states requires new policiesandprocedures. Currently, thecentral government andsomeprovincial tion withtheproperty laws andrightsof foreigners ofhigherinstances (Constitution andCivilCode). 152 151 The draft law sentto Congress proposes to limitforeign ownership to 20%. law”(sent to Congress inApril2011) (see, amongothers,www.elpais.com). about alotinthefuture, itisthat of landownership, astrategic non-renewable resource. We needto adoptrapidly that 150 Following herre-election, President Fernández madethefollowing statement: “Ifthere isatopic that willbetalked To limit foreign ownership in Argentina, a draft law has been drawn up 15% oftotal agricultural land on landownership by foreigners inArgentina. Current estimates offoreign ownership range from 8%to the development ofanational rural landregistry, since there isalackofcentralized andsystematized data in allocating government landinfrontier areas to citizens from neighbouringcountries. The Law alsoincludes by foreigners (includingRioNegro in2010 andpreviously SanLuis well as for their management and adjudication (1994 Constitution). Some of them restrict landownership In Argentina, provincial governments are incharge ofjurisdictionandregulation ofstate-owned landsas frontier. intentions behindthedeclared conservation objectives onboththeChileanandArgentinian sidesofthe of thelandanditsfeatures, itispossible to imaginethat there are “water-grabbing” or“glacier-grabbing” purchases donotappearto have aclearproductive objective (MurmisandMurmis,2011). From thelocation bought large tracts ofland,intheAndeanregions alongtheborder. With theexception ofBenetton, these Argentinian/foreign capital has increased by more than 100%. Several investors with global fortunes have without Argentinians. It is estimated that, between 2004 and 2010, land belonging to companies with mixed have enabledinternational investors to buylarge tracts oflandalongtheborder areas, acquired withor Provincial proposals relate essentially to provincial state-owned landsince amore general law may beincontradic- 151 . The lackofclearregulation andtheweak implementation ofexisting laws 150 . This would extend existing restrictions 152 ). Nevertheless, land-grabbing by 117 The land market in Latin America and the Caribbean: concentration and foreignization (Galeano, 2011), whichiscurrently partofthenational agendaofseveral governments. of theprocesses ofconcentration could, according to some, seriouslylimittheachievement offood security adds asubstantive dimensionto theproblem. On the otherhand,exclusion offamily farming asaresult perception that theconcentration oflandinthehandsforeign companies isaloss offood sovereignty Food safety andsovereignty issues are becoming importantinacademic,politicalandsocialcircles. The necessary to regulate it(alongwithwater andclimate itself). resource andisseenasakey problem/ solutioninthegeo-politicalenvironment, itbecomes increasingly between thedifferent parties). In contrast, Wilkinson andothers(2011) claimthat, as landbecomes ascarce by otherfactors (capital, technology, skilledlabour, andalsoorganization ofproduction andagreements Murmis and(2011) are oftheopinionthat theland,afundamentalfactor in agriculture, isbeingreplaced The authorsofthecasestudies differ ontheimportance to beaccorded to the issue ofland concentration. unlimited usewithfew restrictions from society”. “.. thebalance seemsto tipdecidedlytowards theview that seeslandasanasset where theowner has officials and lawmakers. Piñeiro (2011, p.8)sums uphisperception ofthe moodinUruguay by stating: restrictions onlandpurchases. This appearsincontrast to theseeminglyuniform positionsofpoliticians, Murmis and Murmis (2011), including the producers, value positively foreign investments and do notwant by aNorthAmericanentrepreneur. InArgentina, itisstriking that thevast majority ofthoseinterviewed by environmental objectives. This hasbeenseenintheyears ofcontroversy surrounding theacquisition ofland about landconcentration whenitisfor agricultural production butonlywhenforeignization occurs for foreignization. Echenique (2011) however stresses theirony that, inChile, there does notseemto beconcern from environmental groups, especiallywhen,ashasbeenthecase, landconcentration isaccompanied by of land concentration, in economic, social and environmental terms, and there are debates and protests Increasingly, several governments andcivilsociety are showing theirconcern abouttheconsequences farmers, today only10%ofthemparticipate –directly orindirectly –inexports. they are celebrated asasuccess oftheexport strategy”. Nonetheless, despite government supportto small of companies inthesector ortheimportoffood andcereals for mass consumption are notquestioned, rather balance, there is a certain national consensus that Echenique (2011, p. trans-nationalization 35) sums up as: “the In Chile, for example, after more than30years ofanagro-exporting strategy withapositive commercial evidence intheregion, we tend to share thisvision. the inertiaofpublicpoliciestends to favour therichcaneasilyleadto theopposite result”. Basedonthe reduce poverty when there is wide participation in production, but a laissez-faire policy inacountry where that are bothcoherent andeffective. tools to thinkaboutintervening (ifthey ever hadthesetools). Alsolost isthe knowhow to make practical interventions 153 them, whichincludethemany ways to circumvent themandinstitutional weaknesses other hand,whenthere are laws andregulations to restrict theseprocesses, difficultiesariseinenforcing which have hadanimpacton-andinsomecasesalsofavour –concentration and/or foreignization. Onthe to have policiesto promote thedevelopment ofcertain subsectors (forestry, biofuels,mining, amongothers), concentration andforeignization. Ontheonehand,over recent decades,governments have hadandcontinue The casestudies have to bepessimistic aboutthepossibility ofrestraining processes ofon-goingland se per interprets theunderlyingdiscussion whenhementionsthat many share “...thebeliefthat increasing exports In someway, Berry(2001, p. 139), whenreferring to exports, whichare partofthedesired growth model, economic andorganizational model. as well as for participation in both global and local value chains, an expression ofthelogic of theprevailing the modernization ofagriculture, whereas today ithasprobably become arequirement for modernization, As Gomez pointsoutinChapter 1,inthe1960sand1970s, landconcentration was considered anobstacle to convictions determined by socio-economic group orby politicalaffinity. tend to be a mix of informed opinions, influenced of course by politicaldebates and thepress, and ideological and Chile, thecomplete spectrumofpositionsexists, from aresounding rejection to fullacceptance. They There have already beenglimpsesoftheanswer to thequestion ofthissection.Inthecountries ofMercosur because miningisconsidered to bein the publicinterest. Ofthe25miningprojects currently in operation control over thelandinadditionto theirminingconcession. The owner ofthelandcannotopposethis In Argentina, since theamendmentsto theMiningCivilCode ofthe1990s,miningcompanies alsohave Inrecent decadesalsothecustom ofintervening hasbeenlost andmany technocrats no longerhave thetheoretical d) c)

is asolutionto theproblems ofacountry”. Hethengoesonto say that: “agricultural exports can For whomislandconcentration/foreignization aproblem? Is itpossible to restrain theseprocesses ofconcentration andforeignization? 153 . 118 The land market in Latin America and the Caribbean: concentration and foreignization (Wilkinson andothers,2011). 154 InBrazil, around 60millionhectares are used for growing themaincrops andaround 180millionfor raising livestock off dramatically. By 2010, sugarcane was beinggrown on8millionhectares flex-fuels in2003, together with favourable conditions for sugar, causedsugarcaneproduction to take have beenbothgovernment andprivate orsupported by foreign cooperation. The launchofcarsusing Throughout itshistory, Brazil hashadmajorprojects to develop andexpand itsagricultural borders. These border security(MurmisandMurmis,2011). thousands to tens of thousands of hectares in the Andean provinces, thoughnotnecessarily intheareas of foreign capital,and18are controlled by foreign companies. Eachexploration orexploitation isworking over or at anadvanced stage, three are domestic, four are operated by companies withamixofArgentinian and points ofthedebate are: limitsonsize, duration intime, maximumprices andmandatory rotation by law. The Agrarian Federation of Argentina (FAA) has proposed amendments to thelaw onlandtenure. The main to strengthen family agriculture (Galeano, 2011). peasant farmers to land,regularize landtenure, develop plansto settlepeasant andindigenouspeople, and by peasantfarmers, thecurrent Government ofParaguay ispromoting programmes to increase theaccess of Despite thelegalban,many transactions have hadthetacitapproval ofINDERT officials. Faced with protests foreigners from having access to landadministered by the Institute ofRural Development andLand(INDERT). whom were Brazilians. In2008,theclause oftheAgrarian Statutes of2004was implemented. This prevented been uprooted, the“brasiguayos” andforeign businesses, bothmedium-sized andlarge, themajority of that generate employment. Ontheotherhand, thistriggered conflicts between peasant farmers whohad if theexecutive power decreed that suchanacquisition was inthepublicinterest, for example for activities neighbouring countries aswell aslegalentitiesmainlycomposed offoreign capital.The onlyexception was and fluvialborders, within whichthelaw prohibited ownership orusufructofland by foreigners from In Paraguay, a border security law was passed in 2005, providing for a 50 km strip of land along the terrestrial rejected, citing,amongst others,theinvestment law that ensures equaltreatment to investors. (Piñeiro, 2011). security, inwhichthesaleoflandto foreigners was prohibited. This emulated theArgentinian law, butitwas value oftheland.Inaddition,adraft law was drawn updefininga100kmwide strip ofland for border belonging to physical persons,since anonymity isconsidered adisadvantage inpreserving theagricultural owners ofrural properties andfarms are individualsorcompanies whosecapitalisinnominative shares purchase itfor thesamevalue andpayment terms”. In2007, itwas alsodeclared inthepublicinterest that on salethat ismore than500hectares hasto beoffered first totheINC,“whichwill have preference to intervene inpurchase/sale operations andplaces certain limitsontheconcentration process. Today, property them. The 2007 modification ofthelaw grants thenational institute ofsettlement(INC)a certain right to and socialfunctionofland,thesubdivisionlarge extensive holdingsinfavour ofpeoplewhosettleon In Uruguay, theLaw onSettlements(1948),inlinewiththevisionoftimes,emphasizes boththeproductive can beacquired through acquisitive prescription. (Murmis andMurmis,2011). real estate for 20years inapeaceful, continuous anduninterrupted manner, even withouttitledeeds,thisland institutional control. Ontheotherhand,regulations oftheCivilCode allows that ifapersonhaspossessed and 50kmalongitsmaritimeborders. However, asmentionedearlier, there isalackofadequate records and in theborder andsecurityzones. This corresponds to amaximum150km-wide strip alongitslandborders the landorindirect landuse. To foreigners, there are onlylimitations intheallocation ofstate-owned land provinces (SantaCruz,for example) have tax provisions to discourage theconcentration ofownership of there isregulation to prevent thecreation ofsmallfarms through inheritance. At thesametime, some In Argentina, there are noregulations that imposeanupperlimitonthe size ofowned orleasedlandthough economic model,whichalsoincludeslandownership (see tables2and3inannex). lack of transfer between generations, etc.), nor to counteract the effects of concentration asa result ofthe to theirdevelopment (low levelaccess ofschooling,barriers to markets andtechnologies, smallscale, years to small-scale farmers, about 300 000 it has not been possible to overcome the structural constraints were leaving the sector. In Chile, despite having channelled US$3.5 billion of public funds over the past 20 hectares. Inotherwords,100 000 at thesametimeasthesenew farmers were beingsettled,many others increased only by 131 000 between the two most recent censuses and the land they occupy increased by only (an average of92.7 hectares perfamily). However, thenumberofproducers withfarms ofunder100hectares Between 1985and2009, agrarian reform policieswould have settled906 000 families on84millionhectares In contrast, despite thestrong supportto family farming inBrazil, itwas notpossible to arrest itsdecline. in principle-monitoring (Wilkinson etal.,2011). environmentally soundpractices. The financialsupportfrom BNDESinthemajorityofprojects guaranteed - of mechanization; zoning that excludes theAmazon, thePantanal andnative forest; andconditional credit for including: elimination of burning;mechanization of the harvest; training for workers maderedundant because funding from theBNDES(theNational BankofEconomic andSocial Development) andmitigation measures, gave priority to the sector through the PAC (Programme for accelerated 154 . The Federal Government 119 The land market in Latin America and the Caribbean: concentration and foreignization are located. to Montevideo delEste, andPunta andalongtheborder withArgentina, where thebest lands(Piñeiro, 2011) this still isbelow theaverage price in Brazil orArgentina. Higherprices are observed indepartmentsclose hectares. The average price for thiscategory of farm reached around US$2800perhectare in2010, though 000 between 10and200hectares, theprice hasmultiplied3.8timesand12for farms ofover 2 land has thus been an excellent financial business, especially for larger-scale operations. Indeed, for farms the average price ofland(from US$385perhectare in2002 to US$2 519 perhectare in2010). Investment in was onthe“food crisis”andbefore the“economic crisis”.At thesametime, there was asharpincrease in 2006 and2007, whilethetotal transacted area was higherin2005and2006,theyears whenthespotlight sactions changed handsmore thanonce between 2000and 2007 155 When comparing thetwo figures, itisnecessary to take into account the fact that one-sixthofall purchase/sale tran- compared to thetotal numberoffarms (57 000) in2000 2000 and2010, there were purchase/sale some25 000 transactions inUruguay, avery highnumberwhen on agricultural goods,there has been a movement of capital for the purchase ofland in Uruguay. Between prices markedly higherinArgentina andBrazil, together withArgentine’s policy ofexport retention taxes The entryinto force oftheMercosur agreements hasfacilitated themovement ofgoodsandcapital.With land number oftransactions andtheincrease inprices, especiallyinUruguay. Processes ofconcentration andforeignization are by nomeansnew intheregion. What isreally striking isthe industry, includingthephaseofplantations (www.bndes.org). practices. However, in2006,BNDESprovided funding, amongthebiggest initshistory, to anagro-forestry of BNDESfor theachievement ofinternational benchmarks, bothintechnology andinsocio-environmental Wilkinson andother(2011) donotmentionspecificpolicies for the forest sector inBrazil, except thesupport bought landinUruguay are forestry companies, together managinghalfofforested areas. to the partial survey of Piñeiro (2011), half of the 14 major companies or foreign investment groups that have withdrawn, themomentumacquired by theforestry sector continues now withitsown resources. According 16 millionhectares ofagricultural land.Althoughthesubsidiesandsomeoftaxexemptions have been afforestation withpine andeucalyptus, covering one millionhectares, ahigh figure if compared withthe law onlandtenure, longercontracts (upto 30years) are allowed for theforestry sector. The effect hasbeen subsidies ofupto halftheestablishment costs for thereforestation hectares peryear of10 000 and,inthe equipment andmachinery, through taxexemptions. Inaddition,theState, through itsForestry Fund,granted non-native forests ofcommercial andindustrial value, aswell asimportsofsupplementaryraw materials, In Uruguay, the«forest law» of1987 andrelated legislation promote afforestation withnative speciesand purposes (Echenique, 2011). Recently after 30years, modifications have beenmade to favour smallholdersandplantations for conservation by two hectares megacomplexes across Argentina, Brazil which,inaddition,own andUruguay. 450 000 Plantations have hectares in1970 risenfrom 300 000 to 2.8millionin2010, ofwhich1.2millionare owned are refunded, inexchange for aplanofmanagementandtheobligation to reforest theareas beingexploited. In Chile, theDecree-Law of1974 establishes that thecosts ofplantation andmanagementtaxbenefits Government supportto forest plantations, for example. In the context of the about-turn to neo-liberalism in the 1980s (1974 inChile), there issurprisinglystrong framework, many aboriginalcommunities are still withouttitledeedsandoccupying marginal lands. Finally, althoughindigenouspeoplestoday have theirrightsprotected by anational andinternational legal the land,asincaseoffutures contracts for soybean by cooperatives financed by Chinesebanks. by third partieswhoactonbehalfofthereal owners. These limitsalsoencourage forms ofindirect control over Wilkinson andothers(2011) warn that inBrazil, thelimitations onownership oflandby foreigners are overlooked obligation doesnotapplyto landowners (MurmisandMurmis,2011). Opponents to thelaw question, amongothers,theobligation ofcrop rotation for tenant farmers ifthesame V. 1. e)

Some facts andadditionalcomments that arisefrom thecasestudies Why give subsidiesorspecialtaxincentives to specificsectors, suchas forestry? Increase inthenumberoftransactions andintheprice ofland 155 . The largest numberoftransactions took place in 120 The land market in Latin America and the Caribbean: concentration and foreignization buying andsellingland,whichpeaked earlier. This would demonstrate that, inUruguay at least, leasesreacted more to the‹food crisis›thantheprices for in 2002 to US$116perhectare in2010, withtheexception of2008,whenitpeaked at US$124 perhectare. hectares leasedin2008.The average value ofhectare leasedincreased continuously from US$24 perhectare number of leases recorded between 2000 andthefirst halfof2010 was 18 000, withamaximumof1.1 million grabbing”. productive purposesoravowedly for environmental purposes,may conceal instances of“water grabbing” or“glacier 158 Ithasalready beenmentioned that there are suspicions that someofthese initiatives, eitherwithoutapparent 157 and othercurrencies have tended to appreciate vis–a-vis theUSdollar. 156 Approximately avalue of US$2 700 asofApril14,2012. Ithasto betaken into account that, inrecent years, theReal apparently unrelated to agriculture or tourism 118 000 hectares (Echenique, 2011). InPatagonia there are several international tycoons withventures that are with private management.Anotherprivate initiative ofconservation ontheislandofChiloecovers a total of to reach an agreement with the Chilean Government to transfer the Park to the State in the future, but the largest known private park, with300 000 hectares. After endless debates andcontroversies, hemanaged rainforest in the South. By buying land from settlers and farmers in the surroundings, he managed to constitute entrepreneur from theUSA created aprivate parkof17 000 hectares in1991,to protect thenative temperate conservation ofnative forests andnatural resources, although they are self-sustaining withecotourism. An estate owners) who conserve wilderness hectares areas in2010). (386 600 The ideaof many of them is the in 1997. This network hasmore thanahundred members(individuals,universities, NGOs,foundations, real In Chile, protected by new environmental legislation, a network ofprivate protected areas (RAPP)was formed speculating onmarkets linked to environmental services andcarbonsequestration (Wilkinson etal.,2011). hectares have been plantedwood. by Another 200 000 incomers to the sector, mainly investment funds, hectares, by thesteel industry, whichhaspromised to useplantation wood for itsfurnaces instead ofnative estimated that, by 2014, anadditional onemillionhectares willhave beenplanted. The majority, 780 000 integration, although the 2006 Census showed lower concentration ofownership offorest plantations. Itis of intimidation, expulsion and,especially, impacton water sources. The dominantmodelisoneofvertical Currently, Brazil hasmore than6millionhectares ofplanted forests, allofwhichhave seenconflicts because investments intheAmazon since around 2005,andhave resulted inatransfer to thesouthernstates. and technical considerations (low densityofhigh-value timber)appearto have slowed down new forest In Brazil, thesocialmobilization ofthe late 1990s,greater international sensitivity, certification requirements and Murmis,2011). budget includedasectionfor thefinancingofNational Fundwhich isincorporated inthelaw (Murmis be preceded by anenvironmental impactstudy. Notallprovinces have complied withthelaw. The 2010 provinces ayear to setupthelandmanagement oftheirforests. Any landclearances inthefuture must push through alaw ofenvironmental protection for native forests, implemented in2009whichgave the accompanied by dysfunctions inwater resources systems, riverside forests andwetlands. This helpedto more thanonemillionhectares, causingdeforestation at arate sixtimeshigherthantheworld average, outside the core area. Some estimate that the soybean pools would have caused the felling of trees on In Argentina, theexpansion offarming andlivestock farming ofthe past two decadestook place essentially perhectare perhectare untiltheyear 2000;itthentended to risereachingR$2 500 R$5 000 between 2007 and 2010. Ingeneral, since thePlanReal (1995), the average price oflandstabilized at around so strong that the buying and selling price increased eight times (R$50 per hectare to R$400perhectare) region, where two forestry companies are hectares, planningto pressure plant200 000 to sellorleasewas In Brazil, someforest landshave shown even greater price increases thaninUruguay. Thus, inthe«Mapito» USA whohasalready invested inChile. Land leasestend to bemore sensitive to thesituation thanpurchase/sale prices The price difference withtheother countries analysed isglaring. per hectare); around Santiagotheprice of lands is US$16 400 andUS$28 800 per hectare (Echenique, 2011). In Chile, the price of agricultural land is lower in the South and in the North (between US$7 700 and US$10 500 And yet inChaco, itwas possible to buylandat US$40perhectare four years ago(Galeano, 2011). hectares oflandare located andwhere thesoilisvery fertile andtheinfrastructure andlocation are good. perhectare intheEastern Region, whereUS$7 000 many oftheforeign companies withmore than1,000 In Paraguay, thevalues range between US$250perhectare inthelarge livestock raising areas ofChaco and considered robust inBrazil, compared to that ofUruguay itwas modest. where ithasremained, despite theglobaleconomic crisis(Wilkinson etal.,2011). Althoughthisincrease was SeeECLAC (2003), among others 2. Changes inlanduseandtheenvironment 158 . One such venture belongs to the same businessman from 157 . InUruguay, thetotal 156 in2008, 121 The land market in Latin America and the Caribbean: concentration and foreignization not beimaginedseveral years ago. the technologies available, thesemay cover dimensions for cultivated areas andrelated activitiesthat could Argentina, theconsortia inChileandthe operations ofseveral globalcompanies, show that currently andwith is needed on a small farm and thus to optimize the human capital, the farms need to be bigger; the pools in the prices ofagricultural commoditiesmanagerial:theabilityofagoodmanagerexceeds to rise;(f) what finite resource, land is agood bet duringfinancial turbulence and even more sowhenthere is a trend for in Argentina, although the model is spreading to other countries and cultures; (e) financial:becauseitisa existence oflarge consortia that manageandserve several farms, especiallywithregard to soybean farming value chains(inputsandmachinery;exports andretail sales); (d) organisational at thelevel ofthefarm : importance ofconcentration inthepower centres at theextremes ofthedomestic andespeciallyglobalized which almost always donotdifferentiate between nationals and foreigners; (c) organizational: increase inthe the agri-food value chainsandtheneo-liberal modelingeneral; (b) legal:theliberalization oflandmarkets reasons for this? The explanations are: (a)economic: less regulation; andtheforces ofconcentration, bothin continent? Certainly there are, and these processes beganseveral years before the‘food crisis’!What are the Are there concentration andforeignization ofagricultural landintheSouthernCone oftheAmerican productive landorto thecommunities livingdownstream (MurmisandMurmis,2011). control ofheadwaters ofriver basinsandtheecosystems that sustain themcanbeconsidered athreat to the analysed, includingitsexpansion to areas previously considered marginal. Inaddition,theunregulated private interest. On the other hand, the sustainability of the current agricultural production system deserves to be to the development and wealth of the country should not be a private decision but one taken in the public Some peopleare oftheview that removing from production aresource which,ifexploited, could contribute VI. Conclusions 122 The land market in Latin America and the Caribbean: concentration and foreignization ECLAC. 2003. HLPE, 2011. Soto, R.2005. Borras, S.M.Jr., Franco, J.C., Gómez, S.,Kay, C.&Spoor, M.2012 .Landgrabbing inLatin Americaandthe International Development Institute (IDS). 2011. Johnson, N.&Ruttan,V. 1994.Why are farms sosmall? Articles inthisbookordocumentsprepared for theFAO project “Dinámicadelmercado delatierra en Bibliography ECLAC/FAO/IICA. 2010. Sili, M.&Soumoulou,L.2011. Berry, A.2001: “When doagricultural exports helptherural poor?Apoliticaleconomy approach”, The fullbibliographic references are given inAnnex inChapter 1. Wilkinson, John,Bastian Reydon andAlberto DiSabbato: Brasil. Piñeiro, Jorge: Uruguay. Murmis, MiguelandMaríaRosa: Argentina. Gómez, Sergio: Análisisdelos17estudios decasoAméricaLatina yelCaribe. Galeano, Luís:Paraguay. Echenique, Jorge: Chile. tenencia y concentración. concentración. y tenencia B2005I.PDF). int/Esp/organizacion/LTGC/modernizacion/Publicaciones%20de%20Modernizacin%20Institucional/ xml/4/23744/lcl2355e.pdf). Productivo Nº 163; CEPAL, SantiagodeChile. (Alsoavailable at http://www.eclac.org/publicaciones/ perspective on Latin America and the Caribbean, the and America Latin on perspective Santiago deChile. Argentina Caribbean. international-investments-in-agriculture-2011.pdf). available at http://www.fao.org/fileadmin/user_upload/hlpe/hlpe_documents/HLPE-Land-tenure-and- Experts onFood SecurityandNutritionoftheCommittee onWorld Food Security, Rome 2011. (Also conference_summary_May_2011.pdf Development Studies, Development América Latina yelCaribe”(A Grabbing. Land tenure and international investments in agriculture. agriculture. in investments international and tenure Land http://www.iss.nl/fileadmin/ASSETS/iss/Documents/Conference_programmes/LDPI_ Mercados de tierras agrícolas en América Latina y el Caribe. Caribe. el y Latina América en agrícolas tierras de Mercados El precio del mercado de la tierra desde la perspectiva económica. perspectiva la desde tierra la de mercado del precio El Journal of Peasant Studies Peasant of Journal The outlook for agriculture and rural development in the Americas 2010: A A 2010: Americas the in development rural and agriculture for outlook The Vol. 29, Nº 2. La problemática de la tierra en Argentina – Conflictos dinámicas de uso, uso, de dinámicas Conflictos – Argentina en tierra la de problemática La FIDA/Cooperación Italiana/Ministerio deAgricultura, yPesca de Ganadería ugust 2011): , 39 (3-4). Update from the International Conference on Global Land Land Global on Conference International the from Update SantiagodeChile. (Alsoavailable at http://www.iica. World Development, World A report by theHighLevel Panel of Libro delaCepal No. 74. Vol. 22, Nº 5. SerieDesarrollo Oxford Oxford 123 The land market in Latin America and the Caribbean: concentration and foreignization Argentina 1988 and 1996 and 1997 and 1991 and 1990 and Paraguay Uruguay Brazil 2002 2006 2007 Chile 2008 2000

mag.gov.py/PresentacionCAN2008.pdf) andUruguay (www.mgap.gub.uy/portal). (www.ine.cl/canales/chile_estadistico/estadisticas_agropecuarias/2009/07/cambios_estructurales.pdf), Paraguay (www. Source: Casestudies (Argentina, p24; Brazil p.8; Chile, p.10, Uruguay, p.4); theweb pagesoftheGovernment ofChile Table 2:Landconcentration process inthecountries ofMercosur andChile mag.gov.py/PresentacionCAN2008.pdf) andUruguay (www.mgap.gub.uy/portal). (www.ine.cl/canales/chile_estadistico/estadisticas_agropecuarias/2009/07/cambios_estructurales.pdf), Paraguay (www. Sources: Casestudies (Argentina p.24, Brazil p.8, Chilep.10, Uruguay p.4) andweb pagesoftheGovernment ofChile Table No1:Between census changesto thetotal numberoffarms andareas. Number of farms Area Average area perfarm number of farms the in rate growth Annual Annual growth rate -area Annex Number (million ha) Area (thousand) Number (million ha) Area Number (million ha) Area Number (thousand ha) Area Number (thou-sand ha) Area 189 355 662.0 33 811 908.9 329 801 318 701 Year 1 2 402 28.9 7.9 7.3 177 400 000 1998 < 500hectares < 500hectares < 100hectares < 10hectares <10 hectares 184 221 654.7 36 045 919.8 Argentina 246 947 274 126 Year 2 2 477 23.2 7.8 6.1 174 808 564 2002 297 425 -2.7 -1.1 6.6 1.2 587.7 Variation -0.4 -25.1 -19.7 -14.0 -16.4 in % -1.3 3.1 (using thesamebreakdown by area asthat usedby thecasestudy authors) 353 611 246 1996 4 859 865 105 319 2 167.4 16 975 5 820.9 36 397 Year 1 1 916 2 891 72.8 39.1 62.7 1.6 Brazil 500 -<2 500hectares 500 -<1 000hectares 100 -<1 000hectares 10 -<100hectares 10 -<100hectares 329 941 393 87 480 1 765.0 17 052 5 763.9 2006 5 175 489 38 062 Year 2 1 972 2 056 41.8 62.9 1.4 63.8 -0.7 0.6 -16.9 18.6 0.5 -1.0 Variation 26 502 363 en % -28.9 -12.5 1997 4.6 6.9 2.9 0.3 312 302 84.9 Chile 7 782 1 619.2 4 030 9 074 Year 1 123.5 9 297 1 536 46.0 470 29 781 691 1.6 2007 2 500 -<10 000hectares 278 660 1 000 -<2 000hectares 100 -<1 000hectares 100- <500hectares 106.9 > 1000hectares -1.1 1.2 10 487 2 300.2 4 034 9 650.3 Year 2 424.9 112.7 9 629 1 048 47.0 1.4 23 817 738 1991 307 221 34.8 42.1 0.1 6.4 77.5 Variation Paraguay en % -31.8 -12.5 -9.6 -8.7 3.6 2.7 32 527 075 2008 289 666 4 765 19 319.2 112.3 Year 1 159.5 2 862 2 245 -0.3 63.4 49.3 16.0 1.9 > 10 000hectares > 1 000hectares > 2 000hectares > 500hectares 15 803 763 7 478 27 807.2 1990 Year 2 146.6 2 787 1 430 62.8 46.9 20.7 54 816 288.3 Uruguay 56.9 43.6 Variation 16 333 939 en % -36.3 28.1 -2.6 -1.0 -4.9 -8.3 2000 57 115 286.0 0.4 0.3 124 The land market in Latin America and the Caribbean: concentration and foreignization Brasil_censoagro2006.pdf Uruguay 2008 and 1991 Paraguay 2006 and 1996 Brazil 2002 and 1998 Argentina 2007 and 1997 Chile Notes: Argentina: Relevant information onthe1998Census could notbefound ontheWeb; andthere are Uruguay: www.mgap.gub.uy/portal/hgxpp001.aspx?7,5,88,O,S,0,MNU;E;2;16;10;6;MNU; tables3and4. Paraguay: www.mag.gov.py/PresentacionCAN2008.pdf Chile: www.ine.cl/canales/chile_estadistico/censos_agropecuarios/censo_agropecuario_07.php Sources: Argentina: Brazil: www.ibge.gov.br/home/estatistica/economia/agropecuaria/censoagro/brasil_2006/ Paraguay: The tables have nocategories above 500hectares. hectares andabove. 2 000 hectares; andthecategory ofmore than 10 000hectares contains information aboutfarms of2 000 Chile: thecategory offarms from 1 000to10 000 hectares hasinformation about farms between 1 000and farms of2 500hectares andabove. between 1 000 a2 500hectares andfor thecategory above 10 000hectares there isalsoinformation about Brazil: For thecategory offarms between 1 000and10 000hectares, there isinformation regarding farms discrepancies between someofthestatistics that have beenfound. (area) rate Annual rate (no.) Annual area Average Area Number (area) rate nual An- Number rate (no.) Annual area Average Area rate (area) Annual rate (no.) Annual area Average Area Number rate (area) Annual rate (No.) Annual area Average Area Number area Average Area Number rate (area) Annual rate (no) Annual Table 3.Process oflandconcentration inthecountries ofMercosur andChile 2 402 000 7 900 000 189 355 661 963 593 443 180 405 Year 1 57 883 11 051 5.2 3.5 3.3 3.3 Less than10ha 2 447 071 7 798 608 184 221 654 715 552 923 283 869 165 813 64 382 13 445 63 621 Year 2 -0.1 -0.2 -0.7 -0.8 -0.1 1.1 4.8 2.0 3.6 3.3 4.5 3.1 0.3 1 664 711 2 035 432 388 112 16 268 97 742 91 687 Year 1 23.9 17.0 22.2 10 to50ha 36 410 312 1 741 052 2 004 713 1 580 703 1 305 397 382 606 79 576 73 620 16 040 80 601 Year 2 -0.10. 21.9 27.2 23.0 23.9 16.2 -1.6 -1.4 -0.1 -1.4 -1.1 1 290 506 462 876 502 648 18 771 Year 1 6 492 7 577 66.7 71.3 66.3 50 to100ha 26 482 780 1 028 222 2 660 006 472 798 459 555 390 874 14 911 34 881 6 645 6 879 Year 2 71.2 66.8 -0.5 -0.6 69.0 76.3 67.8 0.2 0.2 -2.2 -2.3 3 341 851 3 066 150 1 619 203 16 331 13 088 Year 1 204.6 234.3 208.1 7 782 100 to500ha 75 738 293 2 300193 2 861 757 263 620 371 114 13 129 10 487 13 826 74 825 Year 2 233.2 219.3 207.0 244.1 204.1 -1.5 -1.7 0.0 0.0 2.1 1.8 18 (with standardized range ofarea between countries) 19 369 213 1 625 900 2 754 780 4 064.9 Year 1 690.1 2 355 708.7 3 887 4 765 500 to1 000ha 15 261 567 36 958 185 27 807 215 1 414 035 2 702 137 21 441 53 792 3 718.5 Year 2 687.8 711.8 687.1 2 056 700.9 3 855 7 478 -1.4 -1.3 -0.2 -0.1 2.1 2.7 1 629 572 8 716 820 1 382.2 2 175.9 Year 1 1 179 4 006 1 000 to10 000ha 73 524 033 48 072 546 1 440 758 8 732 487 1 374.8 2 800.9 1 507.0 26 250 31 899 2 213.6 Year 2 1 048 3 945 -1.2 -1.2 -0.2 0.0 15 986 470 10 150.4 14 880.9 357 142 Year 1 1 575 24 > 10 000ha 20 742 944 62 810 758 98 480 672 22 537.0 14 505.6 16 389.2 917 793 6 560.1 15 012 Year 2 125 1 430 2 787 -1.0

The land market in Latin America and the Caribbean: concentration and foreignization 2.6 9.9 8.8 56 tion_per/networks/land_deal_politics_ldpi/the_ldpi_framework/ 160 See:http://www.iss.nl/research/research_programmes/political_economy_of_resources_environment_and_popula - Volume 39, Issue 3-4,July2012, p. 845-872. Gómez, Christopher Kay &Max Spoor. Land-grabbing inLatin AmericaandtheCaribbean, 159 Within thisframework, somemore specificquestions that shouldguidefuture research are: (vi) how dopolicy changesgetshapedby dynamicecologies andvice versa? do withtheirsurpluswealth?(v) how dosocialclasses andgroups inthesocietyinteract witheachother;and dothey getswhat? (iv) what following doeswhat? sixkey (iii) who owns what? (ii) who questions: (i) who The dissemination oftheempiricalevidence refer to itas“landgrabbing inthestrict sense”,thesecond “landconcentration andforeignization”. between thistypeofsituation andland concentration inamuchbroader perspective. For thefirst situation we with the ultimate aim of producing food. For that reason, when the study first started, thedistinction was made happening then,inotherwords, thepurchase oflarge tracts oflandby aforeign government oracompany, concepts therefore correspond to the attempt to reach an understanding and an explanation of what was large acquisitions of land that were beingmade, mostly in Asia andAfrica, at the end of the last decade. The As already noted, itisnecessary to reiterate that theoriginalinterest inthesubjectwas prompted by the initial academics whoare undertakingsocial research linked to landgrabbing. Institute for GlobalDevelopment ofCornell University, New York, USA. Individualmembersare recognized Institute for Development Studies (IDS) at the University of Sussex in the United Kingdom; and the Polson for Poverty, LandandAgrarian Studies (PLAAS) oftheUniversity oftheWestern CapeinSouthAfrica; the members. The four institutions are: theInstitute ofSocialStudies (ISS), The Hague(Netherlands); Institute coordinating function. Itcomprises four recognized academicinstitutions andhasaboutahundred individual The LDPIisanacademicbody, specialized in socialresearch ontheissue oflandgrabbing andwitha Initiative (LDPI)andmake ananalysis oftwo importantinternational academicevents that took place recently. To discuss the state ofthe debate onland grabbing, we usetheframework proposed by theLandDealPolitics Final Reflexions Chapter VI In terms of the reference framework, put forward by LDPI grabbing that canbeobserved today across theworld. America hashelpedbroaden theconceptual reflection, by incorporating thedifferent manifestations ofland expressed inthebookwillcreate controversy. This isnotaccidental butissoughtafter. opinions onthecontent ofthestudies they have beencommissioned to review. This iswhy many oftheviews in thedifferent sectionsofthisbook,theauthorshave beenspecifically invited to express theirviews and on theobligation to record anddocumentprocesses oflandconcentration andforeignization. Likewise, Similarly, inthe terms of reference ofthe research for thenational casestudies, emphasis has beenplaced interpretation ofthefacts revealed intheindividualcasestudies they have analysed. basis ofthisbook.When reading thedifferent chapters, oneisleftinnodoubtthat they emphasize the It seemsappropriate to beginthisfinalchapter, by recalling the form ofthedifferent studiesthat are atthe future research ontheissue oflandgrabbing. recently been approved by FAO; and, (iii) some questions that could be considered as a possible agenda for the voluntary guidelinesonresponsible governance oftenure oflandandothernatural resources that have This finalchapter offers (i)an overview onthe state ofdiscussions onthesubject;(ii)someinsights I. Particularly thedissemination carriedoutby JunBorras. See:Saturnino M.Borras Jr., Jennifer C.Franco, Sergio a) State ofthediscussion capitalism ordothey simplyrepeat thepast? What are thechangesthat are emerging inthenew agrarian structure? Are they new forms ofagrarian 159 that hasbeenbrought to lightby theFAO study inLatin 160 , content is supplied by the responses to the Journal of Peasant Studies. Studies. Peasant of Journal Sergio Gomez 126 The land market in Latin America and the Caribbean: concentration and foreignization objectivity ofscientific research with researchers’ declared commitments to specific stakeholders. were affected by the processes they were studying. There were also discussions about how to reconcile the excellence andat thesame timeto make ameaningfulcontribution through theirwork to communities that or graduate researchers presenting theirdissertations onthetopic, allofwhomwere seekingacademic Secondly, areflection ontheambiance at the Conference: participants were mainly relatively young academics of information inthepress, access to information aboutprocesses that are notalways transparent, etc. validity of information, were discussed. On this last point, there were importantdiscussions aboutthe value 163 activities/2012-land-grabbing-conference/papers/ 162 Seeweb site for paperspresented at the2 ategory&layout=blog&id=1547&Itemid=978 161 Seeweb site for thesecasestudies (88):http://www.future-agricultures.org/index.php?option=com_content&view=c formulation ofpublic policiesthat canintervene inprocesses that currently are infulldevelopment, asfor to discuss thesubjectoftenure ofnatural resources andto generate thenecessary agreements for the approved at FAO in May 2012. This is a document of utmost importance, in that it provides a framework Responsible Governance ofTenure ofLand,FisheriesandForests intheContext ofNational Food Security, The issue oflandgrabbing alsoneedsto belinked to therole to beplayed by theVoluntary Guidelines on the the concept proved relevant to thefirst Conference. In fact, abroad conceptual discussion took place inwhichtheuniversalization of The first refers to the variety of topics covered andissues considered inthis event, especiallyif compared Finally, regarding thissecond Conference, two aspectsneedto behighlighted. the Caribbean,concentrating especiallyonBrazil (4),Colombia (4),andGuatemala (3) which focused onAsiaandAfrica. Fourteen casestudies were presented that dealtwithLatin Americaand The first conference debated a range of conceptual andmethodologicalsubmissions as well ascase studies second Conference was heldinOctober 2012 at Cornell University (Ithaca,New York State). organized aninternational conference where 120paperswere presented anddiscussed onthesubject.The concerns us.InApril2011, theInstitute ofDevelopment Studies (IDS) at theUniversity ofSussex (UK) On theotherhand,itisworth recalling two academicevents whichdealtspecificallywiththesubjectthat climate andthefinancial crisis,deserve to behighlighted: Two alternatives, whichare dealtwithat thepublicpolicy level andinspeechesdealingwithfood, energy, Brazil andColombia. number ofcasestudies presented –there were 16inallfor theregion andmost ofthemconcentrated on an appreciation of land by powerful economic and political actors. Again the region lagged behind in the to lay outthegeneral principlesoflandappropriations that theworld. Converging factors have resulted in presented. The numberwas limited mainlydueto physical constraints. Ingeneral, thepresentations attempted Three hundred abstracts were submitted at thisConference andtheorganizers invited 138papersto be alternatives; resistance; andinternational policy actors. forms andbusiness models;green grabs; land, land tenure andproperty; displacement anddispossession; included thefollowing issues: agricultural change;power, politicsandfinance; political concepts, institutional economy, political ecology and political sociology. Parallel sessions were organized on a range of topics that transactions worldwide andto consider broader issues around landgrabbing that are linked to political The purposeofthe2012 Conference was to continue to deepenandexpand theunderstanding ofland II. Alsomentioned was the effort to “de-Africanise” the earlier concept. c) b) - - of thedynamicsthesenew investments? To what extent isthere arelationship between thecurrent conflicts inrural areas asa consequence production andexchange? groups anddothey follow thechangesinlanduseandownership, aswell asintheorganization of What isthenature andextent ofsocial differentiation inrural areas in terms ofclass, gender, ethnic Voluntary guidelines Marginalization, displacement andimpoverishment ofsignificantgroups inrural areas. Investment, growth andthemodernization ofagricultural activity;versus 162 163 , andmethodologicalissues, especiallythoserelated to thereliability and nd Conference inCornell University: http://www.cornell-landproject.org/ 161 . 127 The land market in Latin America and the Caribbean: concentration and foreignization extranjerización. Santiago, 2012. 165 Seefinalchapter of FAO, 2013. Dinámicas del mercado delatierra enAméricaLatina yelCaribe: concentración y this document. es. In: fisheries and forests inthe context ofnational food security:Aturningpointintheglobalgovernance ofnatural resourc- 164 See:SofiaMonsalve Suárez, 2012. The new voluntary guidelines for the responsible governance of the tenure ofland, change andimproved theirproductivity? Are they theonesthat already hadmore capitalinputs? How dothe the phenomenabeingstudied? Have somecategories offamily farms incorporated elementsoftechnological To what extent isitnecessary to differentiate different strata of family farmingin order toanalyse theimpactof How muchofthelandthat hasbeenconcentrated comes from peasantfarms? Some ofthequestions that have already beenformulated earlier the possible environmental effects, andtheimpactonemployment andpopulation displacement. studies onthe issue oflandgrabbing. These includefood securityandthesituation ofpoverty inrural areas, It seemsnecessary to outlineapossible agendaonthemainaspects ofwhat could bethe focus for future are theconditions that effectively are necessary for socialtransformations. organizations representing thegroups that are directly involved, willanagreement beimplemented. These own, however positive and progressive its content may be. It is only through pressure and mobilization by Sixth andfinally, itis to benoted that history shows usthat noagreement ortreaty canbeappliedonits for thestability andsustainability ofsocietiestoday. access to natural resources by themost vulnerable andmarginalized, socialgroups, which,inturn,are vital at national and international levels, that recognize, respect, protect andguarantee individualandcollective privatization andcommodification ofnature, itisimperative to strengthen and expand thelegalframeworks, as we have mentioned,must beperformed ineachofthecountries. Given thegrowing globalprocess of Fifthly, it is necessary to highlight the importance of using the guidelines as a tool in negotiations, which, discussions that willhave to take place at thecountry level, inthespecificareas where they have to beapplied. handling andmanagementofnatural resources. The very ambiguousnature ofthetext canbeatool inthe general andambiguous.Inaddition,theguidelinesare mainlyappliedto issues oftenure andnotofuse, had beennecessary to accommodate many different visions,and,therefore, the text is,onsomeoccasions, Fourthly, thetext, asmentioned already, was agreed upon by allgovernments. Inthesearch for consensus, it by awiderange ofpoliticalexpressions. management systems are urgently needed.This was athemehotlydebated by importantcountries governed and protection ofland,fisheries and forests ofpublic property, andtheir respective collective useand security oftenure ofresources, whichguarantees legalprotection against forced evictions. The recognition informal and customary tenure rightsnotprotected by law, andto ensure that allpersonsenjoy adegree of Thirdly, theguidelines,alsocallonstate partiesto legallyrecognize thelegitimate rightsoftenure, particularly respected andguaranteed. of theland,fisheriesand forests, isnotonlyabusiness butisafundamental rightthat must be recognized, of natural resources, and the obligation of consultation and participation. All ofthem underline that ownership discrimination, equity and justice, genderequality, theholistic andsustainable approach to themanagement that must bepresent intheimplementation oftheguidelines,inparticular, values suchashumandignity, non- they explicitly mentiontheUniversal Declaration ofHumanRights.Therefore, principleshave beensetout Secondly, theguidelinesare basedonexisting obligations by virtueofinternational humanrightslaw, and society organizations (whoplayed anactive role inthediscussion) aswell astheprivate sector. over several years. What isimportantthat aconsensus hasbeenreached, involving allGovernments, civil Firstly, ithasto berecognized that theseguidelineshave beendrawn upasaresult oflengthy consultations about theVoluntary Guidelines. example, thecurrent dynamicsofthelandmarket. Inthisregard, itisworth highlightingthefollowing aspects III. 1. Observatory of the right to food and nutrition nutrition and food to right the of Observatory foodstuffs with thefunctioningofpeasantfarming andhow doesthisaffect theproduction of staple Relationship between theanalysed processes oflandconcentration andforeignization Topics for future agendas 164 2012. FIAN,BROT, IICO. www.rtfn-watch.org. This partisbasedon 165 . 128 The land market in Latin America and the Caribbean: concentration and foreignization and contribute to food securityinthecountries where thesephenomenaexist? What istherole that thestate hasplayed orcould play to protect family agriculture from thesephenomena result ofthemonopolization oflandmust beontheagendaoffuture studies. which thenew migrant starts anew activityinthenew destination. The issue ofpopulation movements asa up theladderincountry ofdestination. Orif, onthecontrary, itisamore traditional typeofmigration in of thelackpossibilities inthecountry oforiginandifthemigrant hasthepossibility to continue to move previous activity of the head of the family in the country of origin, in order to verify if this migration is because In the case of the expansion trajectory which corresponds to migration, it would be important to know the exists today, interms ofquantityand qualityofemployment. A comparison needs to be established between the employment situation on farms before and that which I the regional andtransnational expansion trajectories: What are thedifferences that canbeestablished, with regard to thephenomenonmentionedabove, between land concentration andownership occurred? What hasbeenthefate oftherural peoplewho were living and/or working inthearea before theprocess of the protection ofnatural resources andfor activitieslinked to tourism? purposes? How muchisbeingusedcurrently for theproduction ofraw materials for energy andforestry, for How muchoftheselandsthat were beingusedfor food production before are now beingusedfor other or into otherways to reduce theirpoverty? what policiesshouldbeenacted sothat thesedifferent stakeholders are incorporated into the value chains phenomena describedhere affect thosewhohave hadless capitalinvestment? What are theirchances and farming practices andwhat impactdothey have inthe they have? What are thedifferences between large- andmedium-sized farms? What are thedifferences in What farming practices andlivestock managementexist onthelarge farms; what level ofsustainability do In thissense, itshouldbepossible to take somerepresentative casesandanalyse in-depththephenomena. open depredation. projects, whichare explicitly lookingto protect natural resources, to otherswhich are accused ofdirect and on whetherornotthey have regular tenure. how pressure from large-scale investors contribute to thelevel of vulnerability ofsmallfarmers, depending tenure ortheabsence oftitlescontribute to themanagingofresources, investment andconservation; and when faced withthepressure oflarge-scale investors. Ananalysis could bemadeasto how irregularity inland resource management,investments andconservation. Andalsothelevel ofvulnerability ofsmallfarmers An analysis needsalsoto bemadeasto how irregularity inlandtenure ortheabsence ofproperty deedsaffects foreigners andhow thesecasesshouldbemanagedorlegislated. and how it is exercised. Also an analysis could be made of theimportance ofthe land that isin the hands of practices ofconservation by private partiesandthelevel ofcontrol by thestate whichfalls withintheirremit areas, inareas withheadwaters) hierarchizing theirimportance, analysing theexistence ornotoftutelage and Finally, land titledeedsshouldbestudied inareas where there are strategic resources (for example, inborder contribution to conservation ofresources andtheirsustainability andwhat shouldbetherelevant regulation. the interventions they carryout?The question ofwhetherornotthenationality isrelevant withregard to the On theotherhand,motivations ofthe owners oflandearmarked for conservation canbeexplored. What are through landusemanagement? they excluded? How canthepressure onnatural areas bemanagedat the political level and indifferent ways Is there an overlap with regard to areas? Are there projects to incorporate ecologically valuable areas or are Native Forests (thecaseofArgentina). areas that have aconservation value, ecological corridors orzones ofrestricted use, for example theLaw on are saidto bevery extensive inLatin AmericaespeciallyinArgentina, andtherelationship withprotected In addition,itwould beappropriate to analyse thepossible areas projected for agricultural expansion, which versus apoorone? expansion? Inwhat way are there differences according to thetypeofcrop? What determines agoodpractice n this regard, there are extreme situations that range from the large-scale concentration and/or foreignization 3. 2. Relationship withenvironmental issues? Relationship withemployment?

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, value chainsandmigrations? areas andinmarginal areas of agricultural 129 The land market in Latin America and the Caribbean: concentration and foreignization that are relevant to thedifferent realities ineachofthe countries. systematically information inorder to generate asolid data basethat could serve indrawing uppublicpolicies Without adoubt,there isnosingleanswer to thesequestions anditwould beworthwhile to search harmed by them. processes interms ofidentifyingthesectors that have benefited from themandthosewhichhave been Finally, thesetofquestions that have beenraised here shouldbeplaced inthecontext oftheimpactthese the functioningoflocallabourmarkets? What are theconditions ofemployment oftheworkers onthesefarms andhow hastheirexistence influenced 130 The land market in Latin America and the Caribbean: concentration and foreignization I4172E /111.14 131 The land market in Latin America and the Caribbean: concentration and foreignization