Thursday, December 30, 2010

Multinationals and biofuel: major drivers of land grab

This is the best article I have seen on the global land grab. 

"The land grabbing statistics in Africa is not only overwhelming but is also extraordinary shocking. The past five years has seen more African rich agricultural lands being taken over by food insecure but rich countries in the Middle East and rich multinational firms in Europe, US, and Asia particularly China, Korea and India. Some of the land acquisitions have occurred under bizarre and non-transparent circumstances. In Mozambique for example China has US$800 million investment to expand 100,000 to 500,000 metric tons of rice production in the country and Skebab (Sweden) and Sun Biofuels (UK) have acquired more than 100, 000 hectares of land for biofuel production. In Ethiopia Flora EcoPower (Germany) has acquired 13,000 hectares for bio-crop production while India is investing US$4 billion in agriculture, flower growing and sugar estates in the country. In Tanzania Sun Biofuels (UK) has acquired 5,500 hectares of land for sorghum (biofuel) production while the Chinese firm Chongqing See Corp has secured 300 hectares of farm lands for rice production. In the same Tanzania the Gulf State of Saudi Arabia has requested a lease of 500,000 hectares of land. In Southern Sudan Jarch Capital (USA) has signed a 400, 000 hectare deal with a local army commander while the Middle East and Gulf States of Qatar, Saudi Arabia, United Arab Emirates, Jordan, Kuwait and Egypt together have about 1.045m hectares under their thumb in that country. In the same Sudan, South Korea is running away with 690,000 hectares of farmland secured for wheat production. In Nigeria, Trans4mation Agrictech Ltd (UK) has secured 10,000 hectares of land. In Angola, Lornho (UK) has 25,000 hectares leased to her for rice cultivation and is negotiating for a further 125,000 hectares in Malawi andMali. China has requested 2 million hectares for jetropha production in Zambia; and in Democratic Republic of Congo the Chinese firm ZTE International has secured 2.8 million hectares for biofuel oil palm plantation, von Braun and Meinzen-Dick (2009).

These figures do not only reflect the unequal power relations between rich multinational corporations and governments of rich countries on one hand and poor African countries on the other, but it also reflects the vulnerability of poor African countries to the predatory activities of rich multinational corporations and governments of these rich countries. This global assault on Africa has the tendency to produce the same negative effects that colonialism has had on the continent."

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