Foreign Direct Investment (FDI) in Land in developing countries

525. Conclusions and recommendationsThe case studies give some evidence of the benefitsand threats that FDI in land present to the targetcountry as regards to the domestic economy,people’s livelihoods and ecological sustainability.As most of the investment projects are not yetfully implemented in the case countries, a comprehensiveevaluation is not possible at present.The effects of FDI in land are dependent on thecontractual design and on the opportunities toimplement and enforce the provisions that theparties agree on.v. Braun and Meinzen-Dick (IFPRI, 2009)recommend a dual approach to addressthe threats and opportunities related to FDI inagricultural land: “First, the threats need to becontrolled through a code of conduct for hostgovernments and foreign investors. Second, theopportunities need to be facilitated by appropriatepolicies in the countries that are the targets ofthese foreign direct investments”.It is important to stress - foreign investors and thetarget country can and should contribute tominimise the negative and increase the positiveimpacts. It is the nature of FDI in land thatinterests may differ between these actors. However,in the end win-win situations should bepossible if the right business model is in place.Elements to optimise FDI can be applied atdifferent levels of the process of negotiating FDIin land:A priori elements refer to the negotiation processof planned investment, i.e. how to involve allaffected stakeholders in a transparent manner.Also all provisions relevant for considering localneeds fall into this category, starting with landproperty rights. Some of these elements are onlythe responsibility of the target country, likedomestic law on land property and all monitoringand enforcing mechanisms. Others are the jointresponsibility of both actors like all proceduralissues:• Generation of an accurate and reliable information(data) base. Most information comesfrom ‘grey’ literature, newspapers and internetblogs. To verify these sources, local informationand stakeholder opinions are necessary (sinceobtaining accurate information about landdeals is quite a sensitive topic). Information onthe volume, conditions and possible effects ofFDI in land on a global level as well as on theground in the target countries should be availablebeforehand in order to assess threats andopportunities adequately.• Transparency of the negotiations and participationof all relevant stakeholders. In order to beable to support their interests, local landholdersmust be granted access to all relevant informationand be involved in negotiations. “Free,prior, and informed consent is the standard to beupheld” (v. Braun and Meinzen-Dick, (IFPRI),2009). In particular, the rights of indigenouspeople and other marginalised groups are to beprotected. It is the media as well as civil societythat can make information available especially ifthere is no official announcement of negotiations.Obtaining information on large-scale landinvestments is the first step to ensure sustainabilityof FDI in land. The essential elements are:• Participation of all affected communities at thedifferent stages of an investment project (fromplanning to evaluation), and• Implementation of an effective system for theredistribution of benefits and provision of publicgoods.• Policy dialogue between investing and targetcountries and private investors. Public presentationsand discussions on the risks andchances of large-scale investments in land canhelp in reaching an agreement on rules to find asustainable approach which encompasses