 |
TAPER: Ethiopian farmers lose when foreign companies buy up farmland in Africa, according to new report. Among the investors is also Norway. Reuters |
By Pernille Dvergedal
(AP) The new report concludes that Norway oil fund gives foreign companies control of the topsoil at the expense of locals.
 |
NOT SUSTAINABLE: Wenche Fone Church Aid
believes there is an urgent need for review
of the consequences of "land grabbing". Reuters |
- The Fund will promote sustainable development and this can hardly be called that. But we see that they invest in many companies that are climate worst in the world. Here they have a way to go, says Wenche Fone and development policy leader NCA.
Norway will be one of the world's leading countries when it comes to development in poor countries, however, we support companies that work against sustainable development, according to a new U.S. report. We take from the poor and give to ourselves. For where large companies from USA, Europe, North Africa and Asia, serving on the purchase of cheap African soil, they lose their local farmers both jobs and food security, according to a series of reports about the sale of agricultural land from Oakland Institute. And investors are your savings in the form of oil fund.
Fone believes it is a great need for a review of the consequences of what is called "land grabbing":
- It is very unfortunate. Large capital of driving small farmers. We do not generally believe that this is local small farmers to succeed. They lose the right to their own soil. The very serious in a situation of food crisis. They are already suffering instability and high food prices.
- Can not think of anything
Petroleum Fund's Advisory Council on Ethics has excluded some companies because of unethical activity, but none of these have been linked to investments in agricultural land in Africa. It is not something they are considering currently.
- We can not think of everything all the time. We have selected some sites that we think are particularly important, such as child labor, climate and water management, where we believe we can make a difference, says Øystein Sjolie from Norges Bank, which is responsible for the operational management of the Fund.
He would not comment on individual companies that are involved in land acquisition, or what kind of dialogue, Norges Bank has with them, but says that it is difficult to have a complete overview of all the companies' activities. The acquisitions have a negative effect on development in the countries he is skeptical.
- In general, good for a country to get investment from foreign companies that have greater expertise. It has also been considerable economic growth in the poorest parts of the world in recent years. It is difficult to imagine that it has nothing to do with foreign investment to do.
- They invest in almost all
Andrew P. Krog Lund, Head of Environment and Development Organization in DevelopmentDoes not agree with Sjolie:
- I have never been told about such success stories. It would surprise me if there were such cases. It is one of the reasons that the world community is concerned about the issue. In principle, countries need the land itself, to cook for themselves.
He believes we take with one hand and give with the other.
- They invest in almost anything. It was a great political battle to get through the Oil Fund would be subject to ethical guidelines. Now the second phase of the struggle that the Fund says it is impossible to go through the individual companies.
Director General of Treasury, Martin Skancke, says there is a continuous evaluation of the ethical considerations that should be taken, but that "land grabbing" is not one of them so far:
- In sum, we have a good and robust system that is a good example for many. I have not seen the report and could not comment on individual companies, but we have a very high ethical threshold in relation to other companies.
Desperate sellers
High prices for food and other commodities, as well as a matunderskudd in many countries agricultural land in Africa an attractive investment for Norway. The average price for land is one-tenth of what it is in Brazil or Argentina. African leaders desperate for foreign capital.
Through the Fund invests in companies in Norway that could lead to the local peasants are the losers and undermine food security in countries that already have too little food. Environment and scarce water resources are either not taken into account, writes Oakland Institute. In addition, there is a lack of transparency surrounding land purchases. Farmers who use the land are in many cases not asked and do not know about the deal before the bulldozers driving into the area.
The reports covers the purchase of agricultural land in Ethiopia, Mali, Mozambique, Sierra Leone, South Sudan, Tanzania and Zambia. The Norwegian oil fund has stakes in several companies that are discussed, including Indian Ruchi Soya which controls 250,000 goal in the region Gambell in Ethiopia for the production of soybeans.
- It is difficult to see how any major investment in the country from foreign companies can really be beneficial to local communities - what is needed is investment in local agriculture, says one of the authors, Joan Baxter, to forskning.no
