Foreign Direct Investment (FDI) in Land in developing countries

203. Possible impacts of FDI in land ontarget countries in terms of sustainabledevelopmentThe recent foreign large-scale investments inland have been strongly criticised especially bysome NGOs and international developmentorganisations (E.G. Grain, 2008, Oppeln andSchneider (Welthungerhilfe), 2009). Thoseorganisations hint at possible negative impacts forthe target countries and especially for the localpoor. The expropriation of local landholders andthe loss of adequate accessto land supposedly result in negative consequencesfor local food supply (food security) and for theenvironment. On the other hand, some authorshighlight opportunities for economic developmentand poverty reduction in targeted areas throughe.g. job and income creation, technologicaltransfers, know-how spill over effects and infrastructuralimprovements (e.g. v. Braun andMeinzen-Dick (IFPRI), 2009; Cotula et al.(IIED, FAO, IFAD), 2009, p. 5).Negative or positive, the consequences of FDIin land for a particular target country and itspopulation strongly depend on the nationalspecific circumstances, both in overall economicand legal terms, the contractual framework andthe capability of national institutions in boththe investing and target countries to controland assert compliance with the contracts. Internationalrules and institutions may support aneffective implementation. Since many of theactual negotiations about land deals lacktransparency, are characterised by powerasymmetries and do not encompass code ofconducts in favour of the poor (Smaller andMann , 2009, p. 3), it is in question whetherunder the current framework positive effects canoutweigh the negative.With this in mind any interest in controlling theeffects of FDI in land should focus on thedefinition of a code of conduct and the capabilitiesof national and international institutions. Theyshould design and implement agreements in a waythat ensures sustainable development by benefittingthe local population and by addressingdeveloping goals for the affected regions.To develop principles and an international frameworkto promote responsible investment in agriculture,a roundtable was convened in New York on23 September 2009 concurrent with the 64thUnited Nations General Assembly (Governmentof Japan, World Bank, FAO, IFAD, UNCTAD2009). The roundtable was co-chaired by thegovernment of Japan, World Bank, FAO, IFADand UNCTAD. Representative stakeholders from31 governments and 13 organisations attended themeeting. 10The roundtable can be regarded as a first steptowards a coordinated international response toresponsible investments in agriculture associatedwith acquisition of rights to land and relatedresources.In its World Investment Report 2009 theUNCTAD analyses the impact of TransnationalCorporations on the production in targeted10 The Roundtable was attended by over 70 people from 31 countries and 13 organizations. The participants included representatives from the Governmentsof Australia, Belarus, Brazil, Bulgaria, Cameroon, Canada, Central African Republic, Comoros, Denmark, Egypt, France, Germany, Ghana, Holy See, India,Indonesia, Italy, Japan, Luxembourg, Moldova, Pakistan, Papua New Guinea, Sao Tome and Principe, Saudi Arabia, South Africa, South Korea, Sweden,Switzerland, Tanzania, United Kingdom, United States of America, European Union, Food and Agriculture Organization of the United Nations (FAO), InternationalFund for Agricultural Development (IFAD), International Food Policy Research Institute (IFPRI), Organisation for Economic Co-operation andDevelopment (OECD), The United Nation Conference on Trade and Development (UNCTAD), The World Bank, The United Nation World Food Programme (WFP),Global Donor Platform for Rural Development, International Institute for Sustainable Development, International Land Coalition, Rabobank International andYara International.