Foreign Direct Investment (FDI) in Land in developing countries

More documents

Recommendations

Info

64GlossaryAgro-fuelsAgro-fuels are defined as liquid energy sourcesproduced from agricultural commodities (e.g.from sugar, starch and oil crops), which are usedin the transport sector as well as for thermalenergy generation (heat and power). Fuels fromagricultural waste and residues are less controversialand not included in this definition.Source: GTZ.Foreign Direct Investment (FDI)Foreign investment involves a lasting interest ineffective management control over an enterprise.Foreign direct investment can include buyingshares of an enterprise in another country, reinvestingearnings of a foreign owned enterprise inthe country where it is located, and parent firmsextending loans to their foreign affiliates. InternationalMonetary Fund (IMF) guidelines consideran investment to be a foreign direct investment ifit accounts for at least 10 % of the foreign firm’svoting stock of shares. However, many countriesset a higher threshold because 10 % is often notenough to establish effective management controlof a company or demonstrate an investor’s lastinginterest.Source: World Bank.Contract farmingContractual partnership between small farmersand a processing and/or marketing firm for thepurpose of commercial production, frequently atpredetermined prices. Depending on the termsof contract, small farmers may receive technicalassistance, seeds, agro-chemicals and some creditfrom their contract-partners, and are ensured ofguaranteed markets, secure income and employment.Source: HU Berlin; SLE.FDI in LandFDI in land by a foreign company or state that isbased on a lasting interest in taking control overland use rights. The transaction includes eitherrights of land use or land-ownership. The landuse rights are generally valid for a limited periodand can possibly be extended. Source: (Owndefinition following the general definition of FDI).Increased access to FDI is seen as one of the keybenefits of globalization because it is thoughtto lead to capital formation, technology andknowledge transfer, higher wages and greater jobopportunities. The UN Conference on Financefor Development argues that FDI, along withinternational financial stability, are vital componentsto national and international developmentefforts. Many other international policy documentsstress the value of FDI but critics areconcerned that its benefits are very unequallydistributed, both globally and within societies.Source: WHO.Forest AreaForest area is the land spanning more than 0.5 hawith trees higher than 5 metres and a canopycover of more than 10 %, or trees able to reachthese thresholds in situ. It does not include landthat is predominantly under agricultural or urbanland use. Forest is determined both by the presenceof trees and the absence of other predominantland uses. The trees should be able to reach aminimum height of 5 metres (m) in situ. Areasunder reforestation that have not yet reached butare expected to reach a canopy cover of 10 % anda tree height of 5 m are included, as are temporarilyunstocked areas, resulting from human interventionor natural causes, which are expected toregenerate. It includes: areas with bamboo andpalms provided that height and canopy covercriteria are met; forest roads, firebreaks and othersmall open areas; forest in national parks, naturereserves and other protected areas such as those ofspecific scientific, historical, cultural or spiritual
65interest; windbreaks, shelterbelts and corridorsof trees with an area of more than 0.5 ha andwidth of more than 20 m; plantations primarilyused for forestry or protective purposes, such as:rubber-wood plantations and cork, oak stands.It excludes: tree stands in agricultural productionsystems, for example in fruit plantations andagroforestry systems. The term also excludes treesin urban parks and gardens.Source: FAO.Sovereign Wealth Funds (SWFs)Sovereign wealth funds are government investmentvehicles that are funded by foreign currencyreserves but managed separately from officialcurrency reserves. Basically, they are pools ofmoney governments invest for profit.Source: U.S. Department of the Treasury.Sustainable DevelopmentAccording to the United Nations World Commissionon Environment and Development (1987),sustainable development is “development thatmeets the needs of the present without compromisingthe ability of future generations to meettheir own needs.” According to the more operational(practice-oriented) definition used by theWorld Bank, sustainable development is “a processof managing a portfolio of assets to preserve andenhance the opportunities people face.” Sustainabledevelopment includes economic, environmental,and social sustainability, which can beachieved by rationally managing physical, natural,and human capital.Source: World Bank.Sustainable land useLand use that achieves production sufficient tomeet the needs of present and future populationswhile conserving or enhancing the land resourceson which that production depends.Source:World Agroforestry CentreTransnational corporations (TNCs)Transnational corporations are incorporated orunincorporated enterprises comprising parententerprises and their foreign affiliates. A parententerprise is defined as an enterprise that controlsassets of other entities in countries other than itshome country, usually by owning a certain equitycapital stake. An equity capital stake of 10% ormore of the ordinary shares or voting power for anincorporated enterprise, or its equivalent for anunincorporated enterprise, is normally consideredas the threshold for the control of assets. A foreignaffiliate is an incorporated or unincorporatedenterprise in which an investor, who is a residentin another economy, owns a stake that permits alasting interest in the management of that enterprise(an equity stake of 10% for an incorporatedenterprise, or its equivalent for an unincorporatedenterprise).Source: World Investment report 2009
Page 2 and 3:
ImprintPublished by:Deutsche Gesell
Page 4 and 5:
4Acknowledgement:List of figures an
Page 6:
6PrefaceLand acquisitions by foreig
Page 9 and 10:
9Definition of FDI in landFDI in la
Page 11 and 12:
11The third restriction concentrate
Page 13 and 14: 13• Climate change (due to weathe
Page 15 and 16: 15they usually set up investment co
Page 17 and 18: 17• The access to logistic infras
Page 19 and 20: 19In the context of land use rights
Page 21 and 22: 21developing countries as well as t
Page 23 and 24: 23However, such lands are often imp
Page 26 and 27: 26scale, with 0 being the best scor
Page 28 and 29: 28MADAGASCAR MADAGASCAR MADAGASCAR
Page 30 and 31: 30Table 3: Country profile Madagasc
Page 32 and 33: 32Table 4: Demand for FDI in Madaga
Page 34 and 35: 34MALI MALI MALI MALI MALI MALI MAL
Page 36 and 37: 36Table 5: Country profile Republic
Page 38 and 39: 38market, the other example present
Page 40 and 41: 40LAOS LAOS LAOS LAOS LAOS LAOS LAO
Page 42 and 43: 42Table 7: Country profile LaosPatt
Page 44 and 45: 44The screening of the submitted pr
Page 46 and 47: 46COOPERATIONS DRIVING FACTORS WEAK
Page 48 and 49: 48Table 10: Country profile Cambodi
Page 50 and 51: 50To acquire land use rights, forei
Page 52 and 53: 525. Conclusions and recommendation
Page 54 and 55: 54distribution of land and on event
Page 56 and 57: 56Regarding the principles of inter
Page 58 and 59: 58ReferencesAlexandratos, N. (2009)
Page 60 and 61: 60Gopinath, M., Pick, D., and Vasav
Page 62 and 63: 62U.S. Department of State (2009e):
Page 66 and 67: 66Reported FDI in land (2000-2009)
Page 76: Deutsche Gesellschaft fürTechnisch
show all

Foreign Direct Investment (FDI) in Land in developing countries

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?