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Corporations, Investors Grabbing Land Overseas

For related articles and more information, please visit OCA's Environment and Climate Resource Center page and our Politics and Democracy page.

As a growing population stresses the world's food and water supplies, corporations and investors in wealthy countries are buying up foreign farmland and the freshwater perks that come with it.

From Sudan to Indonesia, most of the land lies in poverty-stricken regions, so experts warn that this widespread purchasing could expand the gap between developed and developing countries.

Investors from seven countries - the United States, United Arab Emirates, India, United Kingdom, Egypt, China and Israel - accounted for 60 percent of the water acquired under these deals.The "water grabbing" by corporations amounts to 454 billion cubic meters per year globally, according to a new study by environmental scientists. That's about 5 percent of the water the world uses annually.

Most purchasers are agricultural, biofuel and timber investors. Some of the more active buyers in the United States, which leads the pack in number of deals, include multinational investors Nile Trading and Development, BHP Billiton, Unitech and media magnate Ted Turner, according to the study published last month.

Wendy Wolford, a professor at Cornell University who studies political and social impacts of international land deals, said while it is difficult to tease out investor motives, they "don't grab land in places without access to water." Some countries - including Indonesia, the Philippines and the Democratic Republic of Congo - had large amounts of water rights grabbed because they're countries with a lot of rainfall.

Since 2000, 1,217 deals have taken place, which transferred over 205 million acres of land, according to the public database Land Matrix. About 62 percent of these deals were in Africa - totaling about 138 million acres, roughly the size of two Arizonas.

For countries reliant on farming and already suffering from poverty, the potential impacts are huge, said Paolo D'Odorico, a University of Virginia professor and co-author of the new report that estimates the water supplies at stake. About 66 percent of the total deals are in countries with high hunger rates.


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