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23 - A new investment deal in Asia and Africa: Land leases to foreign investors

from Part V - Engagement with cross-cutting issues

Published online by Cambridge University Press:  05 December 2011

Chester Brown
Affiliation:
University of Sydney
Kate Miles
Affiliation:
University of Sydney
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Summary

Introduction

In the last decade, Ethiopia has made a concerted effort to attract foreign direct investment. The website for the Ethiopian Investment Commission, a federal government agency tasked with promoting Ethiopia as an investment destination, boasts of Ethiopia's ‘abundant natural resources: such as land, water, minerals, and population of over 70 million potential consumers’. While Ethiopia touts the availability of surplus lands for investors and offers investment incentives such as exemption from export custom duties, the United Nations World Food Programme provided food to 10 million individuals in 2009 and expected to provide food to 9.5 million individuals in 2010.

‘Free investment’, like ‘free trade’, has been embraced as a panacea for States lagging behind in the world economy. Yet as the idea of ‘free investment’ follows ‘free trade’, citizens in many of the poorest States are increasingly emerging on the losing end of the globalisation spectrum. It seems that in spite of global rhetoric of ‘raising the floor’ for all citizens, ‘free investment’ policies and the laws that support these policies may in fact hurt the very communities the investment is putatively intended to help.

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Chapter
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Publisher: Cambridge University Press
Print publication year: 2011

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References

Larson, G.‘Awakening Africa's sleeping giant: Prospects for commercial agriculture in the Guinea Savannah and beyond’World Bank and FAO Agricultural and Rural Development Note 48 2009 1Google Scholar
Dregne, H. E.Chou, N.-T.‘Global desertification dimensions and costs’Dregne, H. E.Degradation and Restoration of Arid LandsLubbock, TexasInternational Center for Arid and Semiarid Land Studies 1992 249Google Scholar
Lee, J.‘Underlying legal theory to support a well-defined right to a healthy environment as a principle of customary international law’Columbia Journal of Environmental Law 25 2000 283Google Scholar
Üllenberg, A.Foreign Direct Investment (FDI) in Land in MadagascarEschbornDeutsche Gesellschaft 2009 33Google Scholar
Smith, W.‘Unleashing entrepreneurship’Brainard, L.Transforming the Development Landscape: The role of the private sectorWashington DCBrookings Institution Press 2006 33Google Scholar
Mabey, N.McNally, R.Foreign Direct Investment and the Environment: From pollution haven to sustainable developmentWorld Wildlife Fund UK 1998 33Google Scholar
Franck, T.Fairness in International Law and InstitutionOxford University Press 1998 23CrossRefGoogle Scholar

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