Investment policy

Agricultural investments involving the acquisition of long-term rights over large areas of land in developing countries have been the focus of much debate in recent years. Many have welcomed the renewed momentum for private investment in agriculture, but trends towards large-scale land acquisitions raise major social, economic and environmental concerns. While calls for more inclusive investment models have multiplied, there is limited understanding of what works and under what conditions. For many recent agricultural investments, it is just too early to assess socio-economic outcomes.

Over the past few years, agribusiness, investment funds and government agencies have been acquiring long-term rights over large areas of land in Africa. Together with applicable national and international law, contracts define the terms of an investment project, and the way risks, costs and benefits are distributed. Who has the authority to sign the contract and through what process greatly influences the extent to which people can have their voices heard. Yet very little is known about the exact terms of the land deals.

This guide discusses options to structure investment contractsin ways that maximise the investment's contribution to sustainable development. The focus is on foreign investment in the natural resource sector and on lower- and middle-income countries. The guide draws on test trainings in Ghana and Central Asia and aims to provide up-to-date and comprehensive learning material for both host governments and civil society. It can be used as a background document for training sessions, but it may also be used by readers accessing the material on their own.

This publication brings together the core recommendations of the UN Millennium Project. By outlining practical investment strategies and approaches to financing them, the report presents an operational framework that will allow even the poorest countries to achieve the Millennium Development Goals by 2015.