World Investment Report 2009: Transnational Corporations - Unctad

Page
b. Outward FDI: moderate but a widespread decline.....................................................................82
2. Sectoral trends: robust FDI growth in the primary sector................................................................83
3. Policy developments ........................................................................................................................84
��� ��������������������������������������������...................................................................................86
PART TWO
TNCs, AGRICULTURAL PRODUCTION AND DEVELOPMENT
INTRODUCTION...............................................................................................93
CHAPTER III. TNCs AND AGRICULTURAL PRODUCTION
IN DEVELOPING COUNTRIES .....................................................................95
A. INTRODUCTION...............................................................................................................95
B. AGRICULTURE IN DEVELOPING COUNTRIES: CHARACTERISTICS,
SIGNIFICANCE AND SALIENT ISSUES.......................................................................96
1. Characteristics of agricultural production........................................................................................96
a. A diverse industry.......................................................................................................................96
b. Agricultural inputs, technology and institutions ........................................................................99
(i) Land, water and other inputs ......................................................................................................99
(ii) Technology and R&D.................................................................................................................99
(iii) Institutional support..................................................................................................................100
c. Environment and biodiversity ..................................................................................................100
��� ������������������������������������������������������ ................................................................101
a. General importance ..................................................................................................................101
b. Agriculture as a neglected motor for development ..................................................................102
��� ��������������������������������������������������� ......................................................................103
a. The food crisis and the drive for food security.........................................................................103
b. Investment to meet MDG targets .............................................................................................104
c. The rise of biofuel production ..................................................................................................104
C. TNC PARTICIPATION IN AGRICULTURE: HISTORICAL AND
CONCEPTUAL INSIGHTS.............................................................................................105
1. Historical developments: from plantations to value chain coordination........................................105
2. Conceptual overview......................................................................................................................106
D. TRENDS IN FDI AND OTHER FORMS OF TNC
PARTICIPATION IN AGRICULTURE.......................................................................... 110
1. FDI trends and patterns .................................................................................................................. 111
a. FDI............................................................................................................................................ 111
b. Cross-border M&As .................................................................................................................113
c. Geographical patterns...............................................................................................................115
2. Contract farming ............................................................................................................................117
3. Trends in South-South investment in agriculture...........................................................................121
E. MAJOR TNCs IN AGRICULTURE AND RELATED ACTIVITIES..........................122
1. Agriculture-based TNCs ...............................................................................................................123
2. TNCs from other segments of the value chain...............................................................................125
3. New investors in agriculture ..........................................................................................................127
F. CONCLUSIONS................................................................................................................128
ix