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Agricultural Development and Food Security in Africa

Agricultural Development and Food Security in Africa

Renu Modi | Fantu Cheru

(2013)

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Abstract

The subject of food security and land issues in Africa has become one of increased importance and contention over recent years. In particular, the focus has shifted to the role new global South donors - especially India, China and Brazil - are playing in shaping African agriculture through their increased involvement and investment in the continent. Approaching the topic through the framework of South-South co-operation, this highly original volume presents a critical analysis of the ways in which Chinese, Indian and Brazilian engagements in African agriculture are structured and implemented. Do these investments have the potential to create new opportunities to improve local living standards, transfer new technology and knowhow to African producers, and reverse the persistent productivity decline in African agriculture? Or will they simply aggravate the problem of food insecurity by accelerating the process of land alienation and displacement of local people from their land? Topical and comprehensive, Agricultural Development and Food Security in Africa offers fresh insight into a set of relationships that will shape both Africa and the world over the coming decades.
Fantu Cheru received his PhD in political economy from Portland State University. He is a socio-economist who specialises in rural development, small-scale enterprise environmental planning and resource management, urban and regional planning, participatory research methods, and institutional building and training. His latest publications include The Rise of China and India in Africa: Challenges, Opportunities and Critical Interventions (co-edited with Cyril Obi, 2010) and Africa and International Relations in the 21st Century (co-edited with Scarlett Cornelissen and Timothy M. Shaw, 2011). Renu Modi is a senior lecturer and former director (2008-10) of the Centre for African Studies, University of Mumbai. She is a political scientist who graduated from the Lady Shri Ram College for Women, Delhi University. She received her PhD from the School of International Studies, Jawaharlal Nehru University (JNU), New Delhi. Her recent books are Beyond Relocation: The Imperative of Sustainable Resettlement (editor, 2009) and South-South Cooperation: Africa on the Centre Stage (editor, 2011), and she has published on issues relating to India-Africa economic relations from a historical as well as a contemporary perspective in reputed journals. She has also served as the social development consultant with the Inspection Panel of the World Bank.
'Global power structures are changing at an ever rapid pace. Now more than ever, our concepts and understandings are playing a game of catch-up to reality. Agricultural Development and Food Security in Africa offers unsentimental and timely analyses of new forms of South-South integration, subordination and alienation. Cheru and Modi demonstrate how land - with its double dimensions as territory and property - is at the heart of these dynamics.' Christian Lund, University of Copenhagen 'Agriculture is the most important field in Africa and peasants have played a key role in both decolonization and current social life. In the context of globalization, foreign investment in African agriculture, especially from emerging countries such as China, India and Brazil has drawn criticism from the Western media and many African civil society organizations. How to assess the effect of this kind of investment? This book analyses the interaction between emerging countries and Africa, offers insightful views on the issue, and leaves some questions to think about.' Li Anshan, Peking University 'This is a timely and insightful book. As Brazil, China and India increase their role in Africa's agriculture, fine-grained analyses about the patterns, drivers and impacts of that involvement are particularly welcome. And while much debate on "land grabbing" has been dominated by Western writers, this book presents a mosaic of perspectives from Southern authors. The result is a thought-provoking read for anybody interested in understanding the changing landscape of African agriculture.' Lorenzo Cotula, Institute for Environment and Development

Table of Contents

Section Title Page Action Price
Cover Front cover
Africa Now i
About the editors ii
Title iii
Copyright iv
Contents v
Tables, boxes and figures vii
Abbreviations ix
Preface xi
Introduction: peasants, the state and foreign direct investment in African agriculture 1
Neocolonialism or new opportunity? 3
The glass is neither ‘half full’ nor ‘half empty’: the need for pragmatism 4
Scope of the book 5
Changing course: harnessing foreign direct investment to transform African agriculture 9
PART I Overview 13
1 Catalysing an agricultural revolution in Africa: what role for foreign direct investment? 15
Introduction 15
Transforming African agriculture: new opportunities 17
Box 1.1 CAADP priorities 18
Additional dimensions to consider 21
Progress in the implementation of CAADP 23
Attracting Southern FDI to develop productive potential 24
1.1 Foreign direct investment inflows by region, 1990–2010 (%) 25
The role of FDI in African agriculture: overcoming the burden of history 25
Harnessing new partnerships with China, India and Brazil 26
China, India and Brazil in African agriculture: an overview 27
Box 1.2 Chinese support for African agriculture 28
Table 1.1 Chinese-aided agricultural technology: demonstration centres in Africa 29
Table 1.2 African countries receiving assistance under the FAO South–South Cooperation initiative 30
Box 1.3 First India–Africa Forum Summit (2008) 31
Box 1.4 Second India–Africa Forum Summit (2011) 32
Measuring the contribution of FDI to African agriculture: technology, finance, knowledge and know-how 33
Sharing experience on the institutional imperatives of an agricultural revolution 35
Conclusions 36
2 Agrarian transformation in Africa and its decolonisation 38
Introduction: peasantries and agrarian transformation 38
Accumulation by dispossession in Africa: historical and contemporary trends 39
The post-independence experience in agrarian reforms 40
Agrarian reforms in the structural adjustment period of the 1980s 41
The consequences of neoliberal agricultural reform for food security 43
Table 2.1 Number of tractors and harvester-threshers in selected African countries 44
Table 2.2 Value of imports and exports of cereals: world versus Africa 45
Table 2.3 Consumption of key commodities by sub-regions of Africa in 2004 46
Capitalist crisis, ‘third-wave’ ‘land grabbing’ and peasant incorporation 47
Table 2.4 Agricultural land acquisitions in Africa (2011) 50
Agrarian resistance to neoliberalism: the case of Zimbabwe 51
Table 2.5 Estimated landholdings by farmer groups in Zimbabwe (1980, 2000 and 2010) 52
Conclusion 55
PART II India 57
3 India and Africa: new trends in sustainable agricultural development 59
Introduction 59
India–Africa cooperation in agriculture: scope and content 59
Table 3.1 Proposed locations of agriculture-related institutes in Africa (2012) 63
Table 3.2 Africa–India trade growth in eight main agricultural commodities 66
Table 3.3 Beneficiaries of India’s DFTP scheme (2012) 68
Table 3.4 Agricultural and related projects funded through LOCs from EXIM Bank (2003–12) 69
The current scenario: how sustainable is the Indian approach of promoting food security through land leases? 71
Indian investments in Africa: historical and contemporary trends 72
Conclusion 74
4 India’s strategy for African agriculture: assessing the technology, knowledge and finance platforms 76
India’s economic miracle: from food-deficient to food-sufficient country 76
4.1 Major imports of agricultural commodities in India 78
4.2 India’s total imports and agricultural imports 79
Table 4.1 India’s imports and exports of agricultural commodities compared with total national imports/exports 80
Table 4.2 Africa’s share of India’s top food imports 81
Indian investments in the agricultural sector of Africa 82
Case studies of Indian enterprises 83
Table 4.3 Impact of KBL on the output of rice in Senegal (2011) 84
Export-Import Bank of India in Africa 88
Table 4.4 Distribution of the Indian government’s LOCs among world regions (30 August 2012) 88
4.3 Distribution of the Indian government’s LOCs among world regions 89
Conclusion 89
Table 4.5 EXIM Bank LOCs extended to African countries and regions 90
5 Up for grabs: the case of large Indian investments in Ethiopian agriculture 93
Introduction 93
Policy shift: from peasant farms to large-scale agriculture 94
The turn to foreign capital 96
Land and foreign capital 98
Table 5.1 Land available for investment with the Federal Land Bank of Ethiopia (2010) 99
Table 5.2 Indian agricultural investments in Ethiopia (2007–12) 102
The balance sheet 103
6 Indian agricultural companies, ‘land grabbing’ in Africa and activists’ responses 107
New trends in global 'land grabbing' 107
The role of India in the global ‘land grab’ 110
Review of five contracts with Indian agricultural companies in Ethiopia 113
Activism against the trend 116
Conclusion 121
PART III Brazil 123
7 Brazil’s cooperation in African agricultural development and food security 125
Introduction 125
Table 7.1 Official amounts of Brazilian international cooperation (2003–09) 130
Technology transfer and capacity building in food crop and biofuel production 130
Family farming for food security and sovereignty: policy dialogue and technical cooperation across the value chain 137
Conclusion 142
8 Brazil, biofuels and food security in Mozambique 145
Introduction 145
Brazilian agricultural development and relations with Africa 146
Biofuels, land use and food security in Mozambique 148
Policy versus practice in Mozambican biofuel projects and effects on food security 154
Conclusions: Brazilian ambitions, African economies and defining development 156
9 South–South cooperation in agriculture: the India, Brazil and South Africa Dialogue Forum 159
Introduction 159
South–South science and technology cooperation 159
The India–Brazil–South Africa Dialogue Forum 161
9.1 IBSA’s institutional mechanisms 162
Achievements and challenges 163
IBSA–Africa cooperation in agriculture 164
IBSA Fund for Alleviation of Poverty and Hunger: the case of Guinea-Bissau 167
Conclusions and the way forward 168
PART IV China 171
10 China’s food security challenge: what role for Africa? 173
Introduction 173
10.1 Global food price hikes (2008 and 2011) 173
Rising demand in China 174
10.2 China’s large and increasingly urban population (1950–2050) 174
10.3 China’s increasing food consumption (kilograms/litres consumed per capita) 176
Increasing strains on agricultural supply 176
China’s agricultural supply response 177
Domestic agricultural production 177
10.4 Household income inequality in China 178
10.5 China’s equilibrium in major markets, plus stockpiles 178
Box 10.1. Agriculture in the Twelfth Five-Year Plan 179
Trade 180
10.6 The rise in China’s food imports 181
10.7 Chinese agricultural imports from Africa 182
Aid and outward investment 183
Table 10.1 Selected Chinese agricultural and agribusiness SOEs operating in Africa (2010) 186
Conclusion 188
11 China’s agricultural and rural development: lessons for African countries 190
Introduction 190
Agriculture in China’s post-1978 economic transformation 190
Agricultural and rural development in China since the reform era 192
11.1 Growth in grain production in China (1978–2010) 194
Table 11.1 Share of gross output by sector in China 196
11.2 Percentage share of gross output value by sector in China 197
11.3 Employment and output values of TVEs in China (1978–2010) 200
China’s broad-based agricultural development strategies 201
Box 11.1 Lessons from China’s agriculture-led industrialisation experience 204
Conclusions: the lessons for African countries in agricultural development 207
12 Conclusions and the way forward 211
South–South cooperation in agriculture: opportunities and challenges 212
Areas of tensions 214
Box 12.1 Land and Africa’s development: recommendations of the eighth African Development Forum 220
The way forward 222
Notes 224
About the contriburors 228
References 230
Index 253