TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE Evidence from case studies The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views of FAO. ISBN [insert number] All rights reserved. FAO encourages the reproduction and dissemination of material in this information product. Non-commercial uses will be authorized free of charge, upon request. Reproduction for resale or other commercial purposes, including educational purposes, may incur fees. Applications for permission to reproduce or disseminate FAO copyright materials, and all queries concerning rights and licences, should be addressed by e-mail to [email protected] or to the Chief, Publishing Policy and Support Branch, Office of Knowledge Exchange, Research and Extension, FAO, Viale delle Terme di Caracalla, 00153 Rome, Italy. © FAO 2012 Trends and impacts of foreign investment in developing country agriculture Evidence from case studies Food and Agriculture Organization of the United Nations Rome, 2012 Acknowledgements This book was produced by the Team on International Investment in Agriculture, Standards and Partnerships for Sustainable Trade of FAO’s Trade and Market Division1. The work was co-funded by the Government of Japan through a Trust Fund project to the Food and Agriculture Organization of the United Nations “Support to study on appropriate policy measures to increase investments in agriculture and to stimulate food production”. This publication was edited by, in alphabetical order, Pedro Arias, David Hallam, Suffyan Koroma and Pascal Liu. The editors are very grateful to Massimo Iafrate for the processing of data and preparation of graphs, to Rita Ashton, Daniela Piergentili and Ettore Vecchione for the formatting and layout of the book, and to Jesper Karlsson for his assistance in the proofreading. They would like to thank colleagues from other divisions of FAO for their support and/or inputs, in particular Mafa Chipeta, Sarah Lowder, Paul Mathieu, Masahiro Miyazako, Jakob Skoet, Saifullah Syed and Diana Tempelman. They are grateful to the International Institute for Environment and Development (IIED), in particular Lorenzo Cotula, for the coordination of the case studies on Ghana, Mali and Zambia. Special thanks go to the following national researchers and consultants who undertook the original field research and wrote the draft reports: t Fison Mujenja for the Zambia case study t Alice K. Gowa for the Uganda case study t Waleerat Suphannachart and Nipawan Thirawat for the Thailand case study t Bede Lyimo for the Tanzania case study t Adama Ekberg Coulibaly for the Senegal case study t Moussa Djiré, Amadou Kéita and Alfousseyni Diawara for the Mali case study t John Bugri and Adama Ekberg Coulibaly for the Ghana case study t Saing Chan Hang, Hem Socheth, Ouch Chandarany, Phann Dalis and Pon Dorina, Cambodia Development Resource Institute, for the Cambodia case study t Jose Rente Nascimento for the Brazil case study 1 The team members are Pedro Arias, Maria Arnal, Gianluca Gondolini, David Hallam, Massimo Iafrate, Jesper Karlsson, Suffyan Koroma, Pascal Liu, Daniela Piergentili and Manitra Rakotoarisoa iii Acronyms ABRAF Brazilian Association of Plantation Forest Producers ADB African Development Bank ADB Asian Development Bank ADM Archer Daniels Midland Company ADRA Adventist Development and Relief Agency AGOA African Growth Opportunity Act AGRA Alliance for a Green Revolution in Africa ANRM Assemblée Nationale de la République du Mali (Malian National Assembly) APEC Asia Pacific Economic Cooperation APEP USAID’s Agricultural Productivity Enhancement Program APEX Brazilian Agency for Export and Investment Promotion APIX Agence de Promotion des Investissements du Sénégal ASDP Agriculture Sector Development Programme ASEAN Association of South East Asian Nations BCB Brazilian Central Bank BDS Business Development Services BEST Business Environment Strengthening for Tanzania BFS Brazilian Forest Service BIT Bilateral Investment Treaties BNDES Brazilian Development Bank BOI Board of Investment BOT Bank of Thailand BPF Business and Property Formalization CAADP Comprehensive Africa Agriculture Development Programme CC Coordinating Committee to implement the PROMECIF CCG Codes of Corporate Governance CCROs Customary Certificates of Rights of Occupancy CCSR Codes of Corporate Social Responsibility CDC Commonwealth Development Corporation CDC Council for the Development of Cambodia CDF Code Domanial et Foncier (Mali) (Property and Land Law) CDRI Cambodian Development Resource Institute CDTF Cotton Development Trust Fund CEA Cambodia Economic Association CEDAC Centre d’Étude et de Développement Agricole Cambodgien CERFLOR Brazilian Forest Certification Scheme iv Acronyms CFA Communauté Financière Africaine (African Finance Community) CGI Global Competitiveness Index CIB Cambodia Investment Board CIBRAZEM Brazilian Storage Company CICOL Civil Society Coalition on Land CILSS Comité Inter - Etats de Lutte Contre la Sécheresse dans le Sahel (Permanent InterState Committee for Drought Control in the Sahel) COMESA Common Market for Eastern and Southern Africa CPI Corruption Perceptions Index CROs Certificates of Rights of Occupancy CSO Central Statistical Office CSR Corporate Social Responsibility CT Collectivité Territoriale (Local Authority) CTSP Children to School Support Programme DANIDA Danish International Development Agency DEP Department of Export Promotion DFI Development Finance Institution DFiD Department for International Development DGID Direction Générale des Impôts et des Domaines DISEZ Dakar Integrated Special Economic Zone DN Domaine National DNCN Direction Nationale de la Conservation de la Nature (Malian Nature Conservation Department) DNEF Direction Nationale des Eaux et Forêts (Malian Water and Forestry Department) DNH Direction National de l’Hydraulique (Malian Hydraulics Department) DNP Direction Nationale de la Pêche (Malian Fisheries Department) DNPIA Direction Nationale des Productions et des Industries Animales (Malian Livestock Production and Industry Department) DNSV Direction Nationale des Services Vétérinaires (Veterinary Services Department) DRA Direction Régionale de l’Agriculture (Regional Agriculture Department) DRC Democratic Republic of the Congo DRPIA Direction Régionale des Productions et des Industries Animales (Regional Livestock Production and Industry Department) DSIP Development Strategy and Investment Plan DTAs Double Taxation Agreements v EAC East African Community EC Executive Committee ECOWAP Economic Community of West Africa States Agricultural Policy ECOWAS Economic Community of West Africa States EFE Zone Franche d’Exportation EGF Etats Généraux du Foncier (Malian Land Tenure Congress) EIA Environmental Impact Assessment ELC Economic Land Concession EMBRAPA Brazilian Agricultural Research Corporation EMBRATER Brazilian Enterprise of Technical Assistance and Rural Extension EPA Environmental Protection Agency EPZ Export Processing Zone ERR Expected Rate of Return ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU European Union FAO Food and Agriculture Organization of the United Nations FAQ Fair Average Quality FASDEP Food and Agriculture Sector Development Policy FBG Farmer Business Group FBOs Farm Base Organizations FCC Fair Competition Commission FDI Foreign Direct Investment FFA Free Fatty Acids FGD Focus Group Discussion FIAS Foreign Investment Advisory Service FINAME Special Agency for Industrial Financing, a branch of BNDES FIPA Foreign Investment Protection Agreement FISP Farmer Input Support Programme FSC Forest Stewardship Council FSP Fertilizer Support Programme FTA Free Trade Agreement FVL Forest Vocation Lands GCF Gross Capital Formation GDP Gross Domestic Product GDS Grands Domaines du Sénégal GEPC Ghana Export Promotion Council GERSDA Groupe d’Etude et de Recherche en Sociologie et Droit Appliqué (Research and Study Group on Sociology and Applied Law) GFC Ghana Forestry Commission vi GFZB Ghana Free Zones Board GHC Ghanaian Cedi GIF Ghana Investment Fund GIPC Ghana Investment Promotion Centre GLOBALGAP Global Good Agricultural Practices GMO Genetically Modified Organism GNP Growth National Product GOANA Grande Offensive Agricole pour la Nourriture et l’Abondance GoB Government of Brazil GOPDC Ghana Oil Palm Development Companies GPS Geographical Positioning System GRZ Government of the Republic of Zambia GSE Ghana Stock Exchange GTC Green Trade Company GTZ German Technical Cooperation GVC Global Value Chains HACCP Hazard Analysis Critical Control Point HDI Human Development Index HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome HS Harmonized System IBRD International Bank for Reconstruction and Development. Also WB ICSID International Centre for the Settlement of Investment Disputes ICT Information and Communication Technology IDB