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Corruption and large-scale land acquisitions: an analysis of the role ...

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working on this case. Throughout this dispute, Comp<strong>an</strong>y B has continued to clear <strong>the</strong> l<strong><strong>an</strong>d</strong> taken from <strong>the</strong>ethnic minority villagers <strong><strong>an</strong>d</strong> pl<strong>an</strong>ted crops, despite continued protests from <strong>the</strong> community <strong><strong>an</strong>d</strong> a courtorder dem<strong><strong>an</strong>d</strong>ing <strong>the</strong> comp<strong>an</strong>y cease operations until <strong>the</strong> case is resolved.Analysis <strong>of</strong> <strong>the</strong> relationship between corruption <strong><strong>an</strong>d</strong> l<strong><strong>an</strong>d</strong> grabbingThese two case studies provide examples <strong>of</strong> <strong>the</strong> breadth <strong><strong>an</strong>d</strong> depth <strong>of</strong> ways in which corruption interrelateswith l<strong><strong>an</strong>d</strong> grabbing, specifically in <strong>the</strong> three areas this paper focuses on: corruption <strong>of</strong> decisionmaking over <strong>the</strong> allocation <strong>of</strong> l<strong><strong>an</strong>d</strong>; corruption <strong>of</strong> accountability <strong><strong>an</strong>d</strong> legal redress mech<strong>an</strong>isms available toaffected communities; <strong><strong>an</strong>d</strong> how l<strong><strong>an</strong>d</strong> grabs consolidate elite capture <strong>of</strong> <strong>the</strong> state. These are summarisedbelow:a) <strong>Corruption</strong> enabling comp<strong>an</strong>ies to ignore legal safeguards <strong><strong>an</strong>d</strong> due process with impunity in orderto gain rights to illegal <strong><strong>an</strong>d</strong> / or excessive areas <strong>of</strong> l<strong><strong>an</strong>d</strong>: Comp<strong>an</strong>y A being able to retain control <strong>of</strong> more th<strong>an</strong> 30 times <strong>the</strong> legal limit <strong>of</strong> l<strong><strong>an</strong>d</strong> concession<strong><strong>an</strong>d</strong> not be held to account for failing to follow <strong>the</strong> law (eg. ignoring requirements to consultwith potentially affected communities or protect forested areas); Comp<strong>an</strong>y B being able to purchase ethnic minority l<strong><strong>an</strong>d</strong> through threats, deception <strong><strong>an</strong>d</strong> fraud.b) Judicial <strong><strong>an</strong>d</strong> accountability mech<strong>an</strong>isms being corrupted through corporate power <strong><strong>an</strong>d</strong> influence: Comp<strong>an</strong>y A working with government enforcement agencies to issue threats, arrest <strong><strong>an</strong>d</strong> detainactivists from <strong>the</strong> affected communities, in order to protect <strong>the</strong> comp<strong>an</strong>y’s commercial assets; Repeated <strong><strong>an</strong>d</strong> institutionalised failure <strong>of</strong> numerous judges to investigate proceedings broughtagainst Comp<strong>an</strong>y B by those who lost <strong>the</strong>ir l<strong><strong>an</strong>d</strong>. The judicial system allegedly givingpreferential treatment to criminal proceedings brought by Comp<strong>an</strong>y B against <strong>the</strong> villagers,despite being filed long after <strong>the</strong>ir own lawsuit. Lawyers for <strong>the</strong> community being threatenedby government <strong>of</strong>ficials <strong><strong>an</strong>d</strong> prevented repeatedly from meeting with <strong>the</strong>ir clients.c) L<strong><strong>an</strong>d</strong> grabs enabling <strong>the</strong> fur<strong>the</strong>r consolidation <strong>of</strong> power, influence <strong><strong>an</strong>d</strong> elite capture <strong>of</strong> <strong>the</strong> state: Since gaining rights to <strong>the</strong> l<strong><strong>an</strong>d</strong>, Comp<strong>an</strong>y B has gained control <strong>of</strong> a number <strong>of</strong> o<strong>the</strong>reconomically signific<strong>an</strong>t development projects, has streng<strong>the</strong>ned his relationship with <strong>the</strong> mostsenior levels <strong>of</strong> government <strong><strong>an</strong>d</strong> is increasingly acting as <strong>the</strong> local partner in lucrativeinternational joint ventures.4) What needs to ch<strong>an</strong>ge?From Global Witness’ perspective (based on nearly two decades <strong>of</strong> experience working on corruption in <strong>the</strong>natural resources sector), <strong>the</strong> first step towards tackling corruption in l<strong><strong>an</strong>d</strong> investments is to underst<strong><strong>an</strong>d</strong> itsdynamics. This paper provides a typology <strong>of</strong> how corruption <strong><strong>an</strong>d</strong> l<strong><strong>an</strong>d</strong> grabbing interrelate, <strong>an</strong> <strong>an</strong>alysis <strong>of</strong>two case studies <strong><strong>an</strong>d</strong> recommendations for how this corruption <strong><strong>an</strong>d</strong> its consequences c<strong>an</strong> be addressed.This typology <strong><strong>an</strong>d</strong> <strong>the</strong> potential solutions presented should be considered a work in progress, <strong>the</strong>y need tobe fur<strong>the</strong>r tested, updated <strong><strong>an</strong>d</strong> improved.As c<strong>an</strong> be seen from <strong>the</strong> case studies presented, a number <strong>of</strong> stakeholders c<strong>an</strong> ei<strong>the</strong>r facilitate or tacklecorrupt l<strong><strong>an</strong>d</strong> deals. Recommendations are <strong>the</strong>refore targeted to three stakeholder groups: governmentsreceiving <strong>large</strong>-<strong>scale</strong>, commercial l<strong><strong>an</strong>d</strong> investments; <strong>the</strong> comp<strong>an</strong>ies involved in <strong>the</strong>se investments; <strong><strong>an</strong>d</strong>international institutions.There are three key recommendations for governments receiving <strong>large</strong>-<strong>scale</strong>, commercial l<strong><strong>an</strong>d</strong>investments. Firstly, <strong>the</strong>y must adopt <strong><strong>an</strong>d</strong> enforce <strong>an</strong>ti-corruption legislation, supported by parliamentary__________________________________Global Witness <strong>Corruption</strong> <strong><strong>an</strong>d</strong> Large-Scale L<strong><strong>an</strong>d</strong> Acquisitions, Global Witness, October 2012 Page 8 <strong>of</strong> 10

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