1 Landesa theory of change Large Scale Land Acquisition in China: A Tale of Two Companies Li Ping...
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Transcript of 1 Landesa theory of change Large Scale Land Acquisition in China: A Tale of Two Companies Li Ping...
1Landesa theory of change
Large Scale Land Acquisition in China:
A Tale of Two Companies
Li Ping
The World Bank
Land and Poverty Conference
March 25, 2014
Landesa’s Work• Founded in 1967 by Roy
Prosterman
• Landesa works to secure land rights for the world’s poorest people
• Partner with developing country governments to design and implement laws, policies, and programs concerning land that provide opportunity, further economic growth, and promote social justice
• Worked in more than 50 countries and helped 400 million people obtain secure land rights
• Offices in the U.S., China and India
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3Landesa theory of change
Overview
• General Information
• Fieldwork brief
• Fieldwork findings
• Lessons learned
4Landesa theory of change
General Information• Demographic data
– Rural population: 700 million– Forest landholding per forest farmer: 0.25 ha– Income per forest farmer: $708 (2010)– Income per forest farmer from forest operation: $107 (2010)
• The twin-track property regime– Collective (or community) ownership– Individual use rights to collectively owned land
• Individual rights to collective forestland– Legally defined as property rights– For 70 years– Almost full bundle of rights
5Landesa theory of change
General Information• Stora Enso – 33,000 ha from farmers in Guangxi, 2002-2009• APP – 700,000 ha from farmers in Yunnan, 2003-2005
6Landesa theory of change
Fieldwork Brief• Around 100 farmers in 32 villages of three counties in two
provinces– Stora Enso in 12 villages– APP in 20 villages
• Rapid rural appraisal– Semi-structured– No official present at the interview session
7Landesa theory of change
Fieldwork Findings• Strong government intervention + the company staying
behind– Stora Enso: Government as the direct acquirer– APP: Government as the front runner of acquisition race
• Coercive acquisition– Stora Enso: Political pressure, armed police, arrest of
contested farmers– APP: Threats, level-by-level admin pressure
• Universal ignorance of FPIC– Stora Enso: Superficial consultation, no knowledge of transfer
terms, no access to the acquisition contract– APP: Merely notification of predetermined terms
8Landesa theory of change
Fieldwork Findings• Unfair deals
– Stora Enso rental: At least 12 times lower than annual income from the land if not acquired
– APP rental: At least 185 times lower than annual income from the land if not acquired, or 10-30 times lower than market rent
• Ignorance of women and indigenous land rights– Stora Enso: Women’s land rights– APP: Indigenous land rights
• Farmers’ perception of corporate land acquisition– Stora Enso: Renegotiation of deals– APP: Take the land back
9Landesa theory of change
Fieldwork Findings• Lack of effective mechanism to address grievances
– Stora Enso: There is a mechanism, but not functional– APP: No mechanism at all
• Institutions to cure defects of acquisition– Stora Enso: A contract screening and correction mechanism– APP: To be developed
10Landesa theory of change
Lessons Learned• LSLBI tends to jeopardize farmers’ property interest in land
• Government intervention, although saving costs for the company, works to the long-term detriment of the company
• FPIC may function as a useful buffer if fully enforced
• CSR is good, but market rules are even more important
• A functional mechanism to address post-acquisition grievances is a must
11Landesa theory of change
Thank you