Foreign Direct Investment in Agriculture: Land Grab or Food Security Improvement?

“Large-scale acquisition of land by foreign investors” is the correct term for a process where the verdict of guilt is often quicker than the examination. But is there something really new about land grab except in its extent? In comparison with colonial and post-colonial plantation operations, should foreign investors today behave differently? We generally accept coffee and banana exports as pro-growth and pro-development, just as for cars, beef and insurance. What then is wrong with an investment contract allowing the holder to buy a farm and to export wheat to Saudi Arabia, or soybeans and maize as cattle feed to Korea, or to plant and process sugar cane and palm oil into ethanol for Europe and China? Assuming their land acquisition was legal, should foreigners respect more than investment contracts and national legislation? And why would they not take advantage of the legal protection offered by international investment law and treaties, not to speak of concessional finance, infrastructure and technical cooperation by a development bank, or the tax holidays offered by the host state? Remember Milton Friedman’s often-quoted quip: “The business of business is business!” And why would the governments signing those contracts not know whether and which foreign investment projects are best for their country, and how to attract them? This chapter tries to show that land grab, where it occurs, is not only yet another symptom of regulatory failures at the national level and a lack of corporate social responsibility by certain private actors. National governance is clearly the most important factor. Nonetheless, I submit that there is an international dimension involving investor home states in various capacities. The implication is that land grab is not solely a question whether a particular investment contract is legal or not. This chapter deals with legal issues which seem to have largely escaped the attention of both human rights lawyers and, especially, of investment lawyers. I address this fragmentation between different legal disciplines, rules, and policies, by asking two basic questions: (i) Do governments and parliaments in investor home countries have any responsibility in respect of the behaviour of their investors abroad? (ii) What should they and international regulators do, if anything?

The story of Community preference for food security

"Préférence communautaire" is an in-built notion of the CAP since its inception with the Treaty of Rome (1957). Its’ simple objective laid down at the Stresa Conference in 1958 is to prefer community produce over imports wherever possible, while at the same time promoting agricultural exports and FDI (“vocation exportatrice de l’Europe”). Does this contrast or correlate with the notion of “food sovereignty” which originated in 1996 as a notion of small farmer self-sufficiency (Via Campesina), and which now has found its way into the official EC discourse? Recent CAP reforms indeed seem to continue banking on border protection and on the occasional export subsidy. Nonetheless, coming together with claims to mitigate climate change, “food sovereignty” à la CAP fails to acknowledge efficiency losses at home and negative spillover effects on the right to food of food exporting developing countries. This chapter asks whether new non-tariff and domestic support measures are just new wine in the old cask of fortress Europe, together with the FDI promotion instruments of the FED and others. Might the increasing dynamics and new challenges of agricultural trade and investment lead to lower market and production shares for European farms? It concludes that in the medium term the WTO Green Box has the only legal and effective tools to promote EU agriculture and food.

Offene Darlegung der Gefahren, welche mit den vorgeschlagenen künstlichen Finanz-Operationen, dem Mobilmachen der Capitalien verbunden sind, und der Prinzipien, nach denen der Kampf zwischen Arbeit und Capital zu beurtheilen und zu lösen sei

Boberach: Die staatliche Wirtschaftspolitik soll u.a. durch Senkung der Steuern, Förderung des Exports und Verbesserung des beruflichen Bildungswesens, aber nicht durch Subventionen einen Ausgleich schaffen zwischen den Forderungen der Arbeiter nach einem ausreichenden Lohn und der Besitzer von Kapital und Boden nach angemessener Rendite

Drivers of nitrogen leaching from organic layers in Central European beech forests

Background and Aims: The response of forest ecosystems to continuous nitrogen (N) deposition is still uncertain. We investigated imports and exports of dissolved N from mull-type organic layers to identify the controls of N leaching in Central European beech forests under continuous N deposition. Methods: Dissolved N fluxes with throughfall and through mull-type organic layers (litter leachate) were measured continuously in 12 beech forests on calcareous soil in two regions in Germany over three consecutive growing seasons. Results Mean growing season net (i.e. litter leachate – throughfall flux) fluxes of total dissolved N (TDN) from the organic layer were low (2.3 ± 5.6 kg ha −1 ) but varied widely from 12.9 kg ha −1 to –8.3 kg ha −1 . The small increase of dissolved N fluxes during the water passage through mull-type organic layers suggested that high turnover rates coincided with high microbial N assimilation and plant N uptake. Stand basal area had a positive feedback on N fluxes by providing litter for soil organic matter forma- tion. Plant diversity, especially herb diversity, reduced dissolved N fluxes. Soil fauna biomass increased NO3−-N fluxes with litter leachate by stimulating mineralization. Microbial biomass measures were not related to dissolved N fluxes. Conclusions Our results show that dissolved N exports from organic layers contain significant amounts of throughfall-derived N (mainly NO3−-N) that flushes through the organic layer but also highlight that N leaching from organic layers is driven by the complex interplay of plants, animals and microbes. Furthermore, diverse understories reduce N leaching from Central European beech forests.

A New Family of High-Affinity Transporters for Adenine, Cytosine, and Purine Derivatives in Arabidopsis

In many organisms, including plants, nucleic acid bases and derivatives such as caffeine are transported across the plasma membrane. Cytokinins, important hormones structurally related to adenine, are produced mainly in root apices, from where they are translocated to shoots to control a multitude of physiological processes. Complementation of a yeast mutant deficient in adenine uptake (fcy2) with an Arabidopsis cDNA expression library enabled the identification of a gene, AtPUP1 (for Arabidopsis thaliana purine permease1), belonging to a large gene family (AtPUP1 to AtPUP15) encoding a new class of small, integral membrane proteins. AtPUP1 transports adenine and cytosine with high affinity. Uptake is energy dependent, occurs against a concentration gradient, and is sensitive to protonophores, potentially indicating secondary active transport. Competition studies show that purine derivatives (e.g., hypoxanthine), phytohormones (e.g., zeatin and kinetin), and alkaloids (e.g., caffeine) are potent inhibitors of adenine and cytosine uptake. Inhibition by cytokinins is competitive (competitive inhibition constant Ki = 20 to 35 μM), indicating that cytokinins are transported by this system. AtPUP1 is expressed in all organs except roots, indicating that the gene encodes an uptake system for root-derived nucleic acid base derivatives in shoots or that it exports nucleic acid base analogs from shoots by way of the phloem. The other family members may have different affinities for nucleic acid bases, perhaps functioning as transporters for nucleosides, nucleotides, and their derivatives.

Special Tax Treatment as Trade Policy: A Database on Export Processing and Special Economic Zones

Many countries treat income generated via exports favourably, especially when production takes places in special zones known as export processing zones (EPZs). EPZs can be defined as specific, geographically defined zones or areas that are subject to special administration and that generally offer tax incentives, such as duty‐free imports when producing for export, exemption from other regulatory constraints linked to import for the domestic market, sometimes favourable treatment in terms of industrial regulation, and the streamlining of border clearing procedures. We describe a database of WTO Members that employ special economic zones as part of their industrial policy mix. This is based on WTO notification and monitoring through the WTO’s trade policy review mechanism (TPRM), supplemented with information from the ILO, World Bank, and primary sources. We also provide some rough analysis of the relationship between use of EPZs and the carbon intensity of exports, and relative levels of investment across countries with and without special zones.

Export Promotion through Exchange Rate Policy: Exchange Rate Depreciation or Stabilization?

Exchange rate movements affect exports in two ways -- its depreciation and its variability (risk). A depreciation raises exports, but the associated exchange rate risk could offset that positive effect. The present paper investigates the net effect for eight Asian countries using a dynamic conditional correlation bivariate GARCH-M model that simultaneously estimates time varying correlation and exchange rate risk. Depreciation encourages exports, as expected, for most countries, but its contribution to export growth is weak. Exchange rate risk contributes to export growth in Malaysia and the Philippines, leading to positive net effects. Exchange rate risk generates a negative effect for six of the countries, resulting in a negative net effect in Indonesia, Japan, Singapore, Taiwan and a zero net effect in Korea and Thailand. Since the negative effect of exchange rate risk may offset, or even dominate, positive contributions from depreciation, policy makers need to reduce exchange rate fluctuation along with and possibly before efforts to depreciate the currency.

Mexico: A new heavy weight in a global world

In the last three decades, obesity has been gaining recognition as a serious public health problem in Mexico. This epidemic developed insidiously in a country that was still focused on chronic under-nutrition in the population. During that same period, macro-economic reforms projected Mexico into the global economic arena. Foreign investments, trade in goods and services, and technological transfers were promoted through participation in numerous trade agreements between Mexico and other countries. The North American Trade Agreement (NAFTA), signed in 1994, promised an integrated market between the three North American countries: Canada, the United States, and Mexico. Although these trade policies were likely to have effects on the available food supply in Mexico, this association has not been elucidated. In this case study, we examine how these trade liberalization policies may have influenced the food supply in Mexico.^ Information on the trade of food commodities between the United States and Mexico and the nature of foreign investment in Mexico was compiled using public data available through American, Mexican, and other international published reports for 1986 through 2011. After the implementation of NAFTA, an increase in trade and investments was observed between Mexico and its two North American partners, but most of the trade increase occurred between the US and Mexico. Since the liberalization of trade policies between these counties, exports of fruit and vegetables into the U.S. from Mexico have increased, while exports of cereals, fats, vegetable oils, meat, dairy products and processed foods from the U.S. into Mexico have increased. During this same time period, there has been an increase in the foreign direct investment in the food industry in Mexico, as well as changes in the types and amounts of dietary energy available on a population level. Specifically, between 1990 to 2006, the dietary energy supply per person has increased 6.1% available animal protein has increased 35.8%, and available fat has increased 18.9%.^ Thus, this case study suggests that the recent changes in food-related industries through foreign direct investment and market liberalization may be likely contributors to the obesogenic food environment in Mexico. Although this initial case study provides interesting data, whether trade liberalization policies should be considered hazardous for health as a distal determinant of the obesity epidemic needs to be further examined using a more stringent study design or further follow up of the US Mexico trade data.^

Dimensiones que caracterizan el consumo potencial de alimentos orgánicos en la Región del Maule, Chile

La demanda creciente por alimentos orgánicos presenta ventas por encima de los cinco mil millones de dólares por año a nivel mundial. Esta demanda también se extiende a los países en desarrollo como es el caso chileno, el cual exporta el 90% de su producción, generando un mercado interno poco desarrollado para este tipo de productos. La presente investigación intenta identificar los constructos que caracterizan los potenciales consumidores de alimentos orgánicos. Para el desarrollo del estudio se aplicó una encuesta a una muestra de 422 consumidores de la Región del Maule en Chile central (N. C. = 95,5%; e = 3,0%). La información posteriormente fue analizada a través de la técnica multivariante denominada análisis factorial de componentes principales. Los resultados de la investigación revelan la existencia de cuatro dimensiones o constructos: (1) beneficios de la agricultura orgánica; (2) alimentación sana; (3) estilos de vida y (4) atributos de los productos orgánicos. Estas dimensiones influyen en la actitud e intención de compra por parte de los consumidores hacia los alimentos orgánicos y son elementos clave para formular estrategias de comercialización para productos orgánicos.

Factors that influence the decision to produce exportables in the Chilean agricultural sector

This study analyzes there lative importance of the factors that influence the decision to produce for foreign markets in the Chilean agricultural sector. Using data obtained from personal interviews with 368 farmers, the market/production decision was estimated using a multinomial logit model. Three market/production alternatives were analyzed: production aimed for the external market, production for the internal market but with expectations of being exported, and production targeted only for the internal market. Marginal effects, odds ratios and predicted probabilities were used to identify the relevance of each variable. The results showed that a producer that is male, with a higher educational level, that does not own the land, but rents it, whose farm has irrigation and is located in an area that has a high concentration of exporting producers, will have a high probability of producing exportables. However, the factor that has the highest impact on producing for the external market is the geographic concentration of exporting producers, that is, an export spillover effect. Indeed, when the concentration change from 0 to its maximum (0.26), the odds of producing exportables rather than producing traditional products increases by a factor of 70 (against a factor of 10 in the case of irrigation).

Argentina frente a Estados Unidos : la no intervención y el fin del proteccionismo (La Habana, 1928)

Este artículo analiza el enfrentamiento entre Argentina y Estados Unidos en la Sexta Conferencia Panamericana, realizada en La Habana en 1928. Con profusa documentación de las cancillerías argentina y estadounidense, se estudia uno de los episodios más conflictivos de la relación bilateral en la década de 1920, cuyo trasfondo era el rechazo argentino al creciente proteccionismo estadounidense que afectaba las exportaciones agropecuarias al país del norte. En esta Conferencia, Argentina pretendió también encabezar el reclamo latinoamericano por establecer en el continente el principio de no intervención, doctrina central para poner freno a la política expansiva e intervencionista que desplegaba Estados Unidos en América Central y el Caribe.

Particle fluxes at sediment traps AU9701, south of Australia

Sediment trap moorings were deployed from September 21, 1997 through February 21, 1998 at three locations south of Australia along 140°E: at -47°S in the central Subantarctic Zone (SAZ) with traps at 1060, 2050, and 3850 m depth, at -51°S in the Subantarctic Front with one trap at 3080 m, and at -54°S in the Polar Frontal Zone (PFZ) with traps at 830 and 1580 m. Particle fluxes were high at all the sites (18-32 g/m**2/yr total mass and 0.5-1.4 g organic carbon/m**2/yr at -1000 m, assuming minimal flux outside the sampled summer period). These values are similar to other Southern Ocean results and to the median estimated for the global ocean by Lampitt and Antia [1997], and emphasize that the Southern Ocean exports considerable carbon to the deep sea despite its 'high-nutrient, low chlorophyll' characteristics. The SAZ site was dominated by carbonate (>50% of total mass) and the PFZ site by biogenic silica (>50% of total mass). Both sites exhibited high export in spring and late summer, with an intervening low flux period in December. For the 153 day collection period, particulate organic carbon export was somewhat higher in all the traps in the SAZ (range 0.57-0.84 gC/m**2) than in the PFZ (range 0.31-0.53), with an intermediate value observed at the SAF (0.60). The fraction of surface organic carbon export (estimated from seasonal nutrient depletion, Lourey and Trull [2001]) reaching 1000 m was indistinguishable in the SAZ and PFZ, despite different algal communities.

Figures and related data of a review of the "Global and Russian energy outlook up to 2040"

The Global and Russian Energy Outlook up to 2040, prepared by the Energy Research Institute of the Russian Academy of Sciences and the Analytical Center for the Government of the Russian Federation, analyses the long-term changes in the main energy markets and thereby identifies the threats to the Russian economy and energy sector. Research has shown that shifts in the global energy sector, especially in hydrocarbon markets (primarily the development of technologies for shale oil and gas extraction), will result in a slowdown of Russia's economy by one percentage point each year on average due to a decrease in energy exports comparison with the official projections. Owing to the lack of development of an institutional framework, an outdated tax system, low competition and low investment efficiency, Russia will be the most sensitive to fluctuations in global hydrocarbon markets among all major energy market players within the forecast period.