Resource information
The recent surge in food and fuel prices
has prompted countries with high dependence on food imports
to try and lock in future food supplies through direct
investment in agricultural production in other countries.
The price surges also led to a wave of proposals to invest
in biofuels investments in agricultural land. While such
investment can provide large benefits, it also carries
considerable risks both to investors and citizens in the
locality of the investment. To ensure that investments
provide broad benefits and effectively contribute to larger
development outcomes, enforceable property rights and
contractual agreements in many developing countries need to
be strengthened. This note considers how development
partners can help countries create the pre-conditions for
investment and proposes a governance framework to establish
minimum standards for it.
