[Reader-list] UN Warns of food neo-colonialism

[Ananth S]

UN warns of food 'neo-colonialism'
By Javier Blas in London
Published: August 19 2008 23:37 | Last updated: August 19 2008 23:37

http://www.ft.com/cms/s/0/3d3ede92-6e02-11dd-b5df-0000779fd18c.html

The race by food-importing countries to secure farmland overseas to  
improve their food security risks creating a "neo-colonial" system,  
the United Nations' top agriculture official has cautioned.

The warning by Jacques Diouf, director-general of the Food and  
Agriculture Organisation, comes as countries from Saudi Arabia to  
China plan to lease vast tracts of land in Africa and Asia to grow  
crops and ship them back to their markets.

"The risk is of creating a neo-colonial pact for the provision of non- 
value-added raw materials in the producing countries and unacceptable  
work conditions for agricultural workers," Mr Diouf said.

Financial investors and food companies were also looking to invest in  
overseas farmland, raising some concerns, officials said.

The pursuit of foreign farm investments is the latest sign of how the  
global food crisis, which has seen record prices for commodities such  
as wheat and rice, is reshaping the politics of agriculture.

This year big providers of agriculture commodities – including India,  
Russia, Argentina and Vietnam – have restricted exports to keep local  
markets supplied.

Joachim von Braun, director of the International Food Policy Research  
Institute, said importing nations realised that dependence on the  
international market made them vulnerable – not only to surging prices  
but, crucially, also to an interruption in supplies. "They want to  
secure the supply lines of food," he said.

The recent drop in agricultural commodity prices had not altered this  
view, as food prices remained well above historical levels, analysts  
said.

Middle Eastern and North African countries, which import most of their  
food, are leading the race to invest overseas. Countries such as  
Sudan, Ethiopia and Ukraine are opening their doors. Meles Zenawi,  
prime minister of Ethiopia, said recently its government was "very  
eager" to provide hundreds of thousands of hectares of agricultural  
land for investment.

Referring to recent investment, Mr Diouf said: "Some negotiations have  
led to unequal international relations and short-term mercantilist  
agriculture." His warning is important as he has been a strong  
supporter of joint ventures between countries with money to invest and  
those with land and water resources. It reflects unease among  
diplomats about the race to lock in land and food supplies overseas.

The upward trend in leasing such farmland has also caused alarm among  
western agriculture officials, who worry about countries such as Sudan  
and Zimbabwe gaining more geopolitical leverage following investment  
in their agriculture.

The FAO has launched a task force to analyse potential problems  
connected to this, including land rights and the question of how much  
food would be left for the host country. Behind closed doors, UN  
officials are discussing whether a scheme similar to the Extractive  
Industries Transparency Initiative – the programme that helped the oil  
and minerals industry to tackle corruption and improve governance –  
could be useful.

Copyright The Financial Times Limited 2008