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06-03: Is there Scope for Inclusive Agribusiness Models?
Legal Empowerment in Agribusiness Investments
IIED, United Kingdom
A recent wave of private sector investments in tropical agriculture has raised both hopes and fears for rural livelihoods and development prospects in low and middle-income countries. Evidence shows that, while investment in agriculture can be a force for good, ill-designed or implemented investments can undermine local livelihoods.
Interactions between governments, companies and affected people play an important role in shaping the terms and the outcomes of the deals. Yet these interactions often involve major asymmetries in capacity, resources, influence and negotiating power.
Legal empowerment interventions seek to strengthen the rights and voices of affected people, and their ability to get a fair deal. The spectrum of possible actions is broad, ranging from grassroots-level legal advice and representation through to linking local voices to international processes.
This paper distils insights from experiences with legal empowerment in agricultural investments. Drawing on selected examples, it conceptualises the spectrum of actors, actions and entry points, and explores the conditions affecting the effectiveness of the interventions. The paper also provide pointers for the design and implementation of legal empowerment interventions in the context of agricultural investments.
Land and Landscape Governance in Responsible Agri-supply chains in Africa
Natural Resources Institute, University of Greenwich, United Kingdom
This paper explores the propositions that sound land governance is a fundamental to responsible investment in agri-food chains, and to foster sustainable and inclusive, local economies, land governance must be operationalised at a landscape or meso-territorial scale. We present findings of preliminary, literature-based research on current understandings and outcomes of market based, and hybrid governance approaches to both land and global value chains in the landscape or territorial context. Whereas land governance has taken a vertical, “flow-based” turn (Sikor et al 2014), emphasizing adoption of voluntary private standards aligned with global principles of the VGGT, landscape approaches at the forest frontier have begun to focus on cross-scalar interaction of governance instruments, and the potential of hybrid approaches combining voluntary private standards and stronger regulation. Although some authors promote jurisdictional landscape approaches, and territorially embedded value chain collaboration, discussion has privileged environmental issues, with little attention to land governance or distributional outcomes of land-use decisions and business models adopted. To help address policy knowledge gaps we propose research on the extension of hybrid land governance arrangements to the landscape scale, linked to a set of business-civil society agri-investment partnerships in African countries, and establishment of a broader coalition of research initiatives.
Ensuring Sustainable Agriculture Investment Through A Regional Model Contract
The best guarantee to achieve positive benefits from foreign investment is a solid foundation of domestic laws that are properly enforced. In many developing countries, however, the necessary domestic laws may not be in place or may not be sufficiently detailed. To its efforts to improve the legal framework for responsible investment in agriculture, the East African Legislative Assembly (EALA) perceive regional model contract as a innovative and sound instrument that represents a vehicle for the modernization and harmonisation of national laws and practices related to sustainable investment in the agriculture sector.
This instrument is flexible enough to allow States to adjust the text of the model contract to accommodate local requirements that vary from system to system and deals.
This paper presents key findings of a review of the legal and policy framework related to agricultural investment in the five East African Community partners States undertook by IISD. It presents the East african regional model contract for agriculture.
Palm Oil Financial Risks and Mitigation Tools
Climate Advisers, United States of America
Palm oil is an inexpensive and highly versatile oil derived from the fruit of the oil palm tree, a native of West Africa's tropical forests. It is found in half of all consumer goods on the shelves today in Western grocery stores. Palm kernel oil is also used as a bioeful to power vehicles, heat homes, and manufacture plastics. Due to its high yields and many uses, palm oil is the most actively traded edible oil in the world, with annual sales of $50 billion.
Indonesia and Malaysia have expanded their plantations and tripled production over the past 15 years, and today they account for 85 percent of global production. In Sub-Saharan Africa and Latin America, large-scale palm oil production is growing rapidly. For decades, however, the palm oil business has been criticized for its links to corruption, extinction, social injustice, and deforestation.
The paper will present financial case studies on:
• Supply and demand trends
• Corporate No Deforestation, No Peat, No Exploitation commitments
• Corporations losing buyers for not achieving supply chain commitments
• Producers’ revenue-at-risk for poor supply chain management
• Approaches to ESG screening by asset owners / managers
• Joint venture expansions into Latin America and Africa
• Government procurement policies
• Biofuel mandates
• Proxy voting|
Delivering Transformation: The Status and Prospects of Emerging Tools to Leverage Commodity Supply Chains to Support Community Land Tenure
Rights and Resources Initiative, United States of America
The world is better equipped than ever to leverage the power of the private sector to support secure local land tenure. But the complexities of addressing land tenure issues at the operational and investment level have largely limited private sector and CSO efforts to shift operations and investments to respect local rights and implement high level commitments.
Some individual companies and investors have demonstrated progress, but one-off examples and case studies will not provide sufficient basis to support collective action by a critical mass of private sector organizations to transform supply-chains and sectors. Unless the development world is able to demonstrate rapid, concrete results, companies and investors may revert to the ‘status quo’ of land acquisition and operations.
This presentation will provide an update on the status, progress, and next steps of the Interlaken Group and the IAN Risk Platform, two of the leading efforts to create ‘pre-competitive’ networks and practical tools to transform the supply chains of companies and investors in land-based sectors to support secure community land tenure.