As seen on the New Agriculturalist

Companies that ignore issues of land tenure expose themselves to substantial” even extreme financial risks” according to a new report. Presenting evidence from high profile land conflicts from around the world” The Financial Risks of Insecure Land Tenure: An Investment View highlights the massively increased operational costs and greater risk of project abandonment when pre-existing or customary local land rights are ignored. “Even more troubling”” notes Lou Munden” Chief Executive of The Munden Project” which authored the report” “the escalation of risk can be extremely rapid and irreversible. Conventional approaches to understanding and mitigating risk do not apply; they need to be ramped up to sufficiently reflect the true risks associated with unclear and insecure local land tenure.”

A second report” Landowners or Laborers: What choice will developing countries make? by the Rights and Resources Institute (RRI)” is critical of national governments that opt to put land and forests into the hands of industrial investors” hoping for fast-paced growth” rather than choose what it describes as a 'sustainable path' based on respect for citizens' rights. “It is unfortunate to see national governments still embracing failed development models” especially when the evidence is so overwhelming”” says Andy White” coordinator of RRI. “In this equation” political stability” democracy and long-term economic gain is often sacrificed for short-term cash.”

A planned oil palm development in Liberia has been disrupted by tenure disputes because of inadequate community consultation and compensation. © RRI

The report cites conflict in Kachin” in northern Myanmar” where mining” logging and a hydropower project have threatened the land rights of indigenous people. “Rarely have local communities – and ultimately their national governments – prospered through this development model”” adds White. “It's even more astounding given that investors often fail to prosper as well… The conflict in Kachin shows that Myanmar could be the next country to fail with this approach.”

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