{"id":4300,"date":"2014-05-09T00:00:00","date_gmt":"2014-05-09T00:00:00","guid":{"rendered":"https:\/\/ourlandourbusiness.org\/corporatising-agriculture\/"},"modified":"2014-05-09T00:00:00","modified_gmt":"2014-05-09T00:00:00","slug":"corporatising-agriculture","status":"publish","type":"post","link":"https:\/\/ourlandourbusiness.org\/es\/corporatising-agriculture\/","title":{"rendered":"Corporatising Agriculture"},"content":{"rendered":"

Source: Bretton Woods Project<\/p>\n

May 9, 2014<\/span><\/p>\n

Download PDF<\/a><\/p>\n

\u00a0<\/p>\n

World Bank\u2019s rankings facilitate land grabs<\/strong><\/p>\n

The World Bank\u2019s\u00a0Doing Business\u00a0indicators, created in 2002, scores countries according to the ease of doing business. More than ten years after its launch, evidence shows that the index\u2019s push for liberal reforms, creation of land markets, adoption of investor-friendly regulations, and suppression of trade barriers has provided the intellectual and structural framework that facilitates the trend of large-scale land grabs in developing countries.[1]<\/a><\/p>\n

In 2012, the G8 turned a blind eye to the damaging collateral impact of\u00a0Doing Business\u00a0on agricultural sectors, and instead asked the World Bank \u201cto develop options for generating a Doing Business in Agriculture index.\u201d[2]<\/a>\u00a0With funding from the Gates Foundation, the UK, US, Dutch and Danish governments, the Benchmarking the Business of Agriculture (BBA) project emerged in 2013.<\/p>\n

The new indicators\u2019 aim is to \u201cprovide governments and policymakers with information to improve their agriculture policies, so that a stronger, more modern and more productive commercial agriculture and agribusiness sector can emerge.\u201d[3]<\/a>\u00a0However, the Bank fails to demonstrate how farmers will benefit from the benchmarking of the agricultural sector in their own country. On the contrary, private agribusiness investors appear to be the core beneficiaries of the project, which promotes neoliberal land policy and further deregulation of the agricultural sector.<\/p>\n

Deregulate and rule<\/strong><\/p>\n

For more than ten years, the World Bank has used its\u00a0Doing Business\u00a0rankings to advocate for lower economic, social and environmental standards for the sake of corporate profit. In the Doing Business\u00a0annual reform summaries, reduction of corporate and trade taxes and creation of one-stop shops for investors are notably greeted as \u201cgood reforms\u201d making countries gain score in the final ranking.[4]<\/a>\u00a0With the rankings, the World Bank also encouraged reforms that tend to make land a marketable commodity, easily accessible to wealthy corporations.<\/p>\n

The original goal of\u00a0Doing Business\u00a0was to inform governments about regulations that favour business in their countries. However, recipes for successful programmes and efficient laws vary greatly across specific local contexts, and building a worldwide rankings with the goal to guide policy-making is a hazardous bet. Instead of acknowledging the limitations inherent in any global index and showing prudence in displaying the results of narrowly sourced surveys,[5]<\/a>\u00a0the Bank made\u00a0Doing Business\u00a0one of its flagships projects. Through wide promotion of its annual index, praising good performers (and subsequent stigmatisation of low-score countries), the institution that is supposed to lead global thinking on development applies a simplistic logic of comparison and confrontation between nations. Because donors and investors closely follow the ranking, which determine their loans or investments, the rankings has also become a huge financial lever, creating a race to deregulation \u2013 particularly among cash-poor governments desiring to appear as \u2018business friendly\u2019 nations to attract money flows.<\/p>\n

Unfortunately, a rising number of governments seem to be reforming according to the World Bank\u2019s global indexes. Recently, Malawi, Burundi and Senegal, among others, have set as a policy goal to improve their country score in the\u00a0Doing Business\u00a0ranking.[6]<\/a>\u00a0According to the Bank itself, the\u00a0Doing Business\u00a0rankings have \u201cserved as an incomparable catalyst for business reforms initiatives,\u201d[7]<\/a>\u00a0having inspired about a quarter of the 2,100 regulatory reforms recorded since its first publication in 2003.[8]<\/a><\/p>\n

While pushing for opening developing countries\u2019 economies up to foreign investors,\u00a0Doing Business\u00a0has played a direct role in the recent land-grabbing trend. For example, Liberia implemented 39 reforms to \u201cease business\u201d between 2008 and 2011. The country\u2019s Investment Act of 2010 notably provides guarantees against unfair expropriation of investors, and ensures their ability to repatriate capital and profits.\u00a0[9]<\/a>\u00a0As a result, Liberia attracted growing flows of foreign direct investments (FDI). Among the investors were palm oil and rubber giants: the British Equatorial Palm Oil, Malaysian Sime Darby and Indonesian Golden Agri-Resources, who combined have acquired more than 1.5 million acres (607,000 hectares) in just a few years, taking away farms, resources and livelihoods from thousands of local people.[10]<\/a><\/p>\n

In Sierra Leone, the Bank guided a series of reforms to attract FDIs, which grew from an average of $18 million per year between 2000 and 2005 to $740 million in 2012 alone. Reforms around land registration and fast-tracking land leasing processes have attracted sugar cane and oil palm planters, such as Addax Bioenergy from Switzerland, Quifel Natural Resources from Portugal, CAPARO from UK and SOFCIN from Luxembourg. In 2011 Sierra Leone had leased 508,292 hectares to foreign investors.[11]<\/a>\u00a0A 2014 deal with the palm oil grower Golden Veroleum could double this figure and bring\u00a0the amount of Sierra Leone\u2019s arable land taken away from rural populations to 20 per cent.[12]\n

Maintaining a flawed vision of development<\/strong><\/p>\n

Concerned that the\u00a0Doing Business\u00a0ranking has largely bypassed its original \u201cknowledge production\u201d function, an Independent Panel of Experts, appointed by the Bank president to review the indicators, recommended in its June 2013 report to cease aggregate ranking altogether.[13]<\/a>\u00a0The Panel underlined that\u00a0Doing Business\u00a0rankings are not only used by investors to direct their capital, but also guide some bilateral donors\u2019 funding decisions. Therefore, the indicator becomes a normative tool influencing national policies, despite its very strong limitations. The Bank ignored the Panel\u2019s recommendations, failing to provide an official answer to the report and released the 2014\u00a0Doing Businessrankings untouched. It further defies the recommendations of the Panel by keeping to its plans to produce a new ranking within the BBA project. Although the Bank uses cautious language on that matter, it argues that \u201cbenchmarking produces comparisons and contrasts that will stimulate policy changes.\u201d[14]<\/a>\u00a0A document published by the Danish Aid Agency (DANIDA) \u2013 one of the project\u2019s donors \u2013 following a November 2013 internal grant committee meeting revealed that \u201ca key point for Denmark and other donors has been to maintain a ranking of the countries covered as is the case in\u00a0Doing Business. Though there has been some resistance within the Bank ranking different country groups in the past, this issue now seems resolved, and it is, therefore, anticipated that the agricultural index will contain country rankings from 2015.\u201d[15]<\/a><\/p>\n

Whether or not it ranks countries, the BBA builds on the\u00a0Doing Business\u00a0methodology and is expected to become a mainstream evaluation tool. In late 2013, BBA pilot studies were underway in 10 countries, to be scaled up to 40 countries in 2014. The indicator is expected to benchmark 80 to 100 countries by 2015.[16]<\/a>\u00a0\u00a0The BBA, like\u00a0Doing Business, places nations on a linear development path, telling leaders \u201cwhere their economies are in the process of agricultural transformation.\u201d[17]<\/a>\u00a0This pushes sovereign states to adopt a one-size-fits-all model, which sets as a goal to achieve \u201cagricultural transition\u201d towards a input- and capital-intensive agriculture, developed in the North.<\/p>\n

The BBA notably encourages countries to lower tariffs on commercial seeds and fertilisers, so these can be made accessible to farmers to increase yields.[18]<\/a>\u00a0Massive importation of agricultural inputs nonetheless implies an increased dependency upon Northern firms and corporate suppliers. The indicator overlooks key options that empower smallholders. For example, rehabilitation and improvement of traditional seed production, plant breeding, and agro-ecological techniques can increase productivity while also providing self-reliance and independence from ever-fluctuating international agricultural markets.<\/p>\n

With regard to land, the BBA position retakes the\u00a0Doing Business\u2019stance for land titling reforms, arguing that \u201cformalisation of rights will be needed at some point\u201d to enter the \u201ccommercialised agriculture sector,\u201d[19]<\/a>\u00a0but does not accurately assess the risks of private titling reforms that threaten communities\u2019 access to common areas of pasture, forest, or water sources.[20]<\/a>\u00a0In recent years, smallholders\u2019 capacity to have secure access and invest in their land has largely been hampered by large-scale land deals, which globally amounted to\u00a0203 million hectares\u00a0(500 million acres) between 2000 and 2010.[21]<\/a>\u00a0By advocating for countries to open up to foreign investment and reforms that make land a marketable commodity, the BBA risks increasing that figure and further dispossessing rural communities, even though the Bank claims to act in favour of farmers\u2019 investing capacity.<\/p>\n

National policies cannot be founded on an international institution\u2019s unique external assessment, particularly when evaluation criteria have never been approved globally, nor proven to reduce poverty, food insecurity or create sustainable development. The BBA will perpetuate the World Bank\u2019s imposition of policies, instead of encouraging domestic construction of sound agricultural programmes. This further reinforces that the Bank favours private interests over small farmers. This needs to stop, as smallholders hold a crucial role in maintaining developing countries\u2019 food security, providing independence and food sovereignty, and generating sustainable development.<\/p>\n

\n

Alice Martin-Pr\u00e9vel is a policy analyst at the\u00a0Oakland Institute<\/a>\u00a0focusing on access to land and common resources, food security, food sovereignty, international institutions\u2019 policies and their impact on the right to food and land.\u00a0In 2014 she authored the report\u00a0Willful Blindness: How World Bank\u2019s Country Rankings Impoverish Smallholder Farmers<\/a>\u00a0and wrote several articles about the World Bank and large-scale land acquisitions.<\/p>\n

Read the\u00a0Willful Blindness<\/a>\u00a0report as well country fact sheets on the World Bank\u2019s damaging agricultural activities and sign the\u00a0petition<\/a>\u00a0at\u00a0http:\/\/ourlandourbusiness.org<\/a>.<\/p>\n

\u00a0<\/p>\n

Footnotes<\/h3>\n
\n

[1]<\/a>\u00a0Martin-Pr\u00e9vel A.,\u00a0Willful Blindness, How World Bank\u2019s Country Rankings Impoverish Smallholder Farmers, Oakland Institute, 2014.http:\/\/ourlandourbusiness.org\/wp-content\/uploads\/2014\/03\/Brief_Eng_Final.pdf<\/a><\/p>\n

[2]<\/a>\u00a0\u201cFact Sheet: G-8 Action on Food Security and Nutrition,\u201d The White House, press release, 2012.<\/p>\n

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[3]<\/a>\u00a0World Bank, BBA: About us\u00a0http:\/\/bba.worldbank.org\/about-us<\/a><\/p>\n<\/div>\n

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[4]<\/a>\u00a0World Bank, Doing Business: Reform Business Summaries.\u00a0http:\/\/www.doingbusiness.org\/reforms<\/a><\/p>\n<\/div>\n

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[5]<\/a>\u00a0Manuel, T., et al.\u00a0The Independent Panel Review of the Doing Business Report, June 2013.\u00a0http:\/\/www.dbrpanel.org\/sites\/dbrpanel\/files\/doing-business-review-panel-report.pdf<\/a><\/p>\n<\/div>\n

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[6]<\/a>\u00a0Sabola T., \u201cMalawi Government upbeat on doing business ranking\u201d,Bnltimes, April 14 2014. Ndamiye B., \u201cDoing Business : Faire tout pour que le Burundi soit bien class\u00e9 en 2015\u201d, Burundi Eco, April 4 2014.<\/p>\n<\/div>\n

Agence de Presse S\u00e9n\u00e9galaise, \u201cDoing business : La d\u00e9mat\u00e9rialisation du permis de construire permettra d\u2019am\u00e9liorer le score du S\u00e9n\u00e9gal\u201d, Le Soleil, December 19, 2013.<\/div>\n
\n[7]\u00a0Doing Business in Agriculture,\u00a0Concept Note,\u00a0World Bank, 2012.http:\/\/urgewald.org\/sites\/default\/files\/galerie\/bilder\/doing_business_in_agriculture_concept_note_world_bank.pdf<\/a><\/p>\n

[8]<\/a>\u00a0Doing Business 2014, Understanding Regulation for Small and Medium-Size Enterprises, World Bank and International Finance Corporation, 2013.https:\/\/openknowledge.worldbank.org\/bitstream\/handle\/10986\/16204\/19984.pdf?sequence=1<\/a>.<\/p>\n<\/div>\n

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[9]<\/a>National Investment Commission,\u00a0The Investors\u2019 Guide to Liberia, 2011.http:\/\/www.nic.gov.lr\/public\/download\/Liberia_Investors_Guide_2011.pdf<\/a>.<\/p>\n<\/div>\n

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[10]<\/a>\u00a0Daniel S. and A. Mittal,\u00a0(Mis)investment in Agriculture: the Role of International Finance Corporations in Global Land Grabs,\u00a0Oakland Institute, 2010.\u00a0http:\/\/www.oaklandinstitute.org\/misinvestment-agriculture-role-international-finance-corporation-global-land-grab<\/a><\/p>\n

Friends of the Earth International, \u201cLand Grabs and Human Right Violations exposed in Liberia ahead of global development summit\u201d,\u00a0February 1st, 2013\u00a0http:\/\/www.foei.org\/en\/media\/resources-for-journalists\/sime-darby-and-landgrabs-in-liberia\/land-grabs-and-human-rights-violations-exposed-in-liberia-ahead-of-global-development-summit<\/a><\/p>\n

[11]<\/a>\u00a0Baxter J.,\u00a0Understanding Land Investment Deals in Africa: Sierra Leone, Oakland Institute, 2011.\u00a0http:\/\/www.oaklandinstitute.org\/understanding-land-investment-deals-africa-sierra-leone<\/a>.<\/p>\n<\/div>\n

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[12]<\/a>\u00a0\u201cSierra Leone: SLIEPA to facilitate $1.6b investment for Golden veroleum Plam Oil Production in Sierra Leone\u201d, Awoko Newspaper, 2013.http:\/\/awoko.org\/2013\/06\/21\/sierra-leone-sliepa-to-facilitate-1-6b-investment-for-golden-veroleum-palm-oil-production-in-sierra-leone\/<\/a><\/p>\n

[13]<\/a>\u00a0Manuel, T., et al. op. cit.<\/p>\n<\/div>\n

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[14]<\/a>\u00a0World Bank, BBA: Frequently Asked Questions.\u00a0http:\/\/bba.worldbank.org\/faqs<\/a>.<\/p>\n<\/div>\n

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[15]<\/a>\u00a0Danida, Internal Grant Committee Meeting, Ministry of Foreign Affairs Emb. Washington, November 18, 2013.http:\/\/um.dk\/en\/~\/media\/UM\/English-site\/Documents\/Danida\/About-Danida\/Danida%20transparency\/Documents\/Grant%20committee\/Int%20doc\/06%20Agriculture%20index.pdf<\/a><\/p>\n<\/div>\n

\n

[16]<\/a>\u00a0\u201cWorld Bank push for agribusiness in Africa,\u201d Bretton Woods Observer, October 4, 2013.<\/p>\n<\/div>\n

\n

[17]<\/a>\u00a0\u00a0World Bank, BBA: Frequently Asked Questions, op. cit.<\/p>\n<\/div>\n

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[18]<\/a>\u00a0\u201cSnapshot Background Note on Access to Seed,\u201d The World Bank.http:\/\/bba.worldbank.org\/~\/media\/GIAWB\/AgriBusiness\/Documents\/Snapshot_WBBBA_Seeds.pdf<\/a><\/p>\n<\/div>\n

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\u201cSnapshot Background Note on Access to Fertilizers,\u201d The World Bank.http:\/\/bba.worldbank.org\/~\/media\/GIAWB\/AgriBusiness\/Documents\/Snapshot-WBBBA-Fertilizer.pdf<\/a><\/p>\n

[19]<\/a>\u00a0\u201cSnapshot Background Note on Access to Secure Property Rights on Land,\u201d The World Bank.http:\/\/bba.worldbank.org\/~\/media\/GIAWB\/AgriBusiness\/Documents\/Snapshot_WBBBA_Land.pdf<\/a><\/p>\n<\/div>\n

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[20]<\/a>\u00a0Alden Wily L.,\u00a0The Tragedy of Public Lands: The Fate of the Commons under Global Commercial Pressure, CIRAD and International Land Coalition, 2011.http:\/\/www.landcoalition.org\/sites\/default\/files\/publication\/901\/WILY_Commons_web_11.03.11.pdf<\/a><\/p>\n<\/div>\n

\n

[21]<\/a>\u00a0International Land Coalition,\u00a0Annual Report,2011,ttp:\/\/www.landcoalition.org\/sites\/default\/files\/publication\/1282\/ILC.Annual.Report.2011.pdf<\/a><\/p>\n<\/div>\n

View Full Article at Bretton Woods Project <\/a><\/p>\n<\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

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