Shining a light on land deals: Sharing lessons for transparency

An Oxfam demonstration calls for G-8 leaders to tackle land grabbing and tax dodging at this year's G-8 summit from June 17 to 18 in Northern Ireland. There has been an exponential increase in the rate of land acquisition for commercial purposes since 2008. Photo by: Andy Aitchison / Oxfam / CC BY-NC-ND

EDITOR’S NOTE: Will the G-8 make a clear commitment to ensure transparency on land ownership? Anna Locke, Giles Henley and Andrew Norton from the Overseas Development Institute explain why regulating large-scale land acquisition is so important for many developing countries.

The ‘3Ts’ of the G-8 summit  tax, trade and transparency  are interlinked, especially through the axis between transparency and tax, as Kevin Watkins outlines. Discussions on tax are bringing to light the hidden worlds of corporate tax avoidance and tax evasion by individuals, whereas  led by the United Kingdom the transparency agenda is focusing on land, open data and extractives.

There has been an exponential increase in the rate of acquisition of land for commercial purposes since 2008, particularly in certain African countries. In a context where many African countries have struggled for years to attract significant and sustained investment in agriculture, this increased interest is hoped to bring many benefits. However, the increase in large-scale land acquisition has sparked concerns about outcomes  namely, the level of benefits and risks generated, and their distribution  as well as the impact on tenure security of existing land-rights holders.

Despite efforts by Land Matrix to collect and publish information on land deals, there is a dearth of accurate, live information on the nature of these deals, and their impact on host countries and their citizens.

So how might this information help citizens of land-rich, poor countries? It could help by shining a light on the processes and decision-making leading to land-tenure conditions and procedures, and by opening them up to public scrutiny. Making official, accurate information about land already sold to investors publicly available, and creating more public clarity about who has rights to use land, and for what, would be good first steps. In Africa, particularly, land rights for the majority of farming and pastoralist communities are not clearly acknowledged or recorded, and local government and communities are not always well informed on the laws of land ownership or how transactions are decided. Instead, when large-scale investors come calling, the dominant tenure right is held by the state. While there may be legitimate reasons for this, both the justification, and the checks and balances on how the state can act, are often lacking. Ensuring that existing rights to natural resources are documented and codified in transaction negotiations with investors is crucial.

However, as Marta Foresti outlined,  transparency alone may make little difference to development outcomes; citizens also need to be able to use the information effectively to gain meaningful change.

So what are the lessons that can be drawn from other transparency initiatives to bridge this gap for the land question? Drawing on the Extractive Industries Transparency Initiative (EITI), the Making the Forestry Sector Transparent project (MFST), the International Aid Transparency Initiative (IATI), the Construction Sector Transparency Initiative (CoST) and the Open Contracting Initiative (OCI), the key things that seem to make a difference are:

We expect to see the G-8 make a major public commitment to support national governments and other actors in implementing the Voluntary Guidelines on Responsible Tenure of Land, Fisheries and Forests in the Context of National Food Security: A step to be welcomed, as the guidelines provide a robust framework for the protection of tenure rights essential for local livelihoods.

So, if the G-8 delivers on a significant programme of work to promote clearer land rights and more protection for poor people’s livelihoods — working in partnership with governments, companies and civil society — is anything more needed? Well, it will be important to support LICs to negotiate the right terms for land acquisitions. The World Bank’s Extractive Industries Technical Advisory Facility provides advisory services to resource-rich, developing country governments for capacity building for contract negotiations and associated policy reforms in extractives, and could be an interesting model.

However, there is still some way to go before we could be sure we can monitor the realities of social change resulting from land acquisition. To ensure protection for poor people’s natural resource rights are real and meaningful, it is important to get a much better sense of what is actually happening to people on the ground when land deals happen. This is the only way to determine whether they actually represent the best option for rural development.

Edited for style and republished with permission from the Overseas Development Institute (ODI). Read the original article.