Dr. Sen
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The global food price crises between 2008 and 2009 led countries that bore the brunt of the catastrophe to look elsewhere for agricultural land to mitigate the effects.
In 2008 prices of some foods, including wheat, soared by 130% in a single year and the United Nation’s Food and Agriculture Organisation’s food price index shot up 40%.
The result was a frenzied scramble that saw countries acquire an estimated 40 million hectares of land in foreign countries, most of it in Africa.
India is the biggest investor in land in Ethiopia. A great deal of attention has been paid to the role of the US, the largest investor in land in the world, China and Middle Eastern countries. Much less attention has been given to the role of India. A global land monitoring initiative, Land Matrix, ranks India as one of the top 10 investors in land abroad. It is the biggest investor in land in Ethiopia, with Indian companies accounting for almost 70% of the land acquired by foreigners after 2008.
Indian land deals in Ethiopia are the result of the strong convergence in the two countries’ domestic political-economic policies. Both advocate the privatisation of public assets and increasing reliance on free trade and open markets.
India’s investment in land has been driven by the need to obviate the effects of spiralling food prices by outsourcing food supply. Ethiopia’s decisions are driven by its development policy based on commercialisation of agriculture and reliance on foreign investments.
Rough estimates suggest Indian firms have acquired roughly 600,000 hectares of land in Ethiopia. This is more than ten times the size of land acquired by firms in India under the country’s special economic zonespolicy. India is followed closely by Saudi Arabian firms, with 500,000 hectares of land, in Ethiopia.
What drives Indian firms to Ethiopia?
India’s ability to feed its 1.22 billion people is under increasing strain. This is due to a rapidly growing population, low agricultural productivity, reductions in farm sizes, declining water tables, increasing control of the seed sector by multi-nationals and a gradual withdrawal since the 1990s of the farm support system.
India introduced special economic zones in 2005 hoping it would lead to agricultural development through the consolidation of land holdings. The intention was that this would lead to industrialisation.
But the policy exposed the oldest contradiction of capitalism – primitive accumulation which includes privatisation of land, the forced expulsion of peasant populations and the conversion of common, collective and state property rights to exclusive property rights.
Widespread resistance movements began in many states, stalling some of the biggest zones, most notably in Nandigram. The protests led to the fall of the Left Front state government of West Bengal in 2011 after 34 years in power.
To meet consumption needs the Indian government started encouraging firms to seek land abroad for growing crops. This was driven by two factors: it was struggling to make more land available for investors and the spike in global food price crisis in 2008.
The lesser known story of India’s role in Ethiopian land deals - Quartz
In 2008 prices of some foods, including wheat, soared by 130% in a single year and the United Nation’s Food and Agriculture Organisation’s food price index shot up 40%.
The result was a frenzied scramble that saw countries acquire an estimated 40 million hectares of land in foreign countries, most of it in Africa.
India is the biggest investor in land in Ethiopia. A great deal of attention has been paid to the role of the US, the largest investor in land in the world, China and Middle Eastern countries. Much less attention has been given to the role of India. A global land monitoring initiative, Land Matrix, ranks India as one of the top 10 investors in land abroad. It is the biggest investor in land in Ethiopia, with Indian companies accounting for almost 70% of the land acquired by foreigners after 2008.
Indian land deals in Ethiopia are the result of the strong convergence in the two countries’ domestic political-economic policies. Both advocate the privatisation of public assets and increasing reliance on free trade and open markets.
India’s investment in land has been driven by the need to obviate the effects of spiralling food prices by outsourcing food supply. Ethiopia’s decisions are driven by its development policy based on commercialisation of agriculture and reliance on foreign investments.
Rough estimates suggest Indian firms have acquired roughly 600,000 hectares of land in Ethiopia. This is more than ten times the size of land acquired by firms in India under the country’s special economic zonespolicy. India is followed closely by Saudi Arabian firms, with 500,000 hectares of land, in Ethiopia.
What drives Indian firms to Ethiopia?
India’s ability to feed its 1.22 billion people is under increasing strain. This is due to a rapidly growing population, low agricultural productivity, reductions in farm sizes, declining water tables, increasing control of the seed sector by multi-nationals and a gradual withdrawal since the 1990s of the farm support system.
India introduced special economic zones in 2005 hoping it would lead to agricultural development through the consolidation of land holdings. The intention was that this would lead to industrialisation.
But the policy exposed the oldest contradiction of capitalism – primitive accumulation which includes privatisation of land, the forced expulsion of peasant populations and the conversion of common, collective and state property rights to exclusive property rights.
Widespread resistance movements began in many states, stalling some of the biggest zones, most notably in Nandigram. The protests led to the fall of the Left Front state government of West Bengal in 2011 after 34 years in power.
To meet consumption needs the Indian government started encouraging firms to seek land abroad for growing crops. This was driven by two factors: it was struggling to make more land available for investors and the spike in global food price crisis in 2008.
The lesser known story of India’s role in Ethiopian land deals - Quartz
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