Key drivers and effects of land grabbing in Serbia

Aliance for Land, Food and Natural Resources Sovereignty

PALIĆ, 25th September, 2013

Prepared by: Maja Gavrilovic with Aleksandra Knez-Milojkovic

Why is land grabbing a public policy issue?

What do we mean by land grabbing? (1)

Land grabbing refers to an acquisition and control of vast areas of land and other natural resources

(ie. agricultural land, water, minerals, forests etc.) for the purposes of

exploitation and profit-making, for transnational and/or local needs

(Borras et. al, 2012).

)

What do we mean by land grabbing? (2)

• Land grabbing is best understood from the perspective of political economy, whereas concentrated control of land, enables the land-owners to make decisions about how our critically important resources ought to be used now and in the future.

How land grabbing happens?

• The sale of land is typically organized via a non-transparent and secretive process, with a minimum consultation with local community and traditional owners/users of land

• Land is typically sold without adequate socio-economic and environmental cost-benefit analysis

• Sale agreements rarely contain any detailed information about investment activities, employment agreements, and general benefits for the citizens (The International Land Coalition, 2011)

What is the scale of land grabbing?

• An estimated 227 million hectares have been sold and/or leased to transnational corporations and governments by 2011 (Oxfam, 2012)

• In Europe land ownership is gradually becoming markedly unequal: in 2011, for example, 3% of large farms (100 ha+) govern over 50% of agricultural land (Transnational Institute, 2013)

What drives land grabbing?

• This is not a new phenomenon, but since the 2007-2008 3F Crisis, it has considerably intensified

• There are a number of drivers that shape an increasing interest in agricultural (land) investments across developing countries

Drivers:

• Financial investments• Economic

developments• Energy security• Food security

Land grabbing in Serbia

• Land grabbing has been an ongoing problem in Serbia for a decade, however, the issue is still not on the policy agenda and it is ignored by policymakers

• Land grabbing kicked-off with the first wave of privatizations of socially-owned land and agricultural enterprises, but since 2009 it has particularly intensified with further liberalization agenda supported by the World Bank and the EU accession process

Land grabbing in Serbia

• According to national experts, currently 500,000 hectares of state and cooperative-owned land has illegally been sold to transnational corporations and local taycoons

Land grabbing in Serbia

• Despite legal and constitutional restrictions, vast tracts of agricultural land have been sold to international companies (eg. Al Dahra corporation from the United Arab Emirates has recently bought 14,000 ha)

• Serbia also faces a problem of land concentration and rapidly increasing inequality in land ownership (eg. four taycoons in Serbia own more than 100,000 hectares)

Effects

Ecological insecurity

• Industrial model of agriculture based on resource extraction and exploitation (eg. monoculture, deforestation etc.) and use of chemicals (eg. pesticids) has a very negative effect on the environment (destroying the biodiversity, water safety, soil erosion etc.)

Economic impacts

• Industrial/corporate model of agriculture is likely to have a crowding out effect on small-holder agriculture

• Broader implications for local community include unemployment, social problems, labour migration etc.)

• For example, in Serbia over 65,000 people have lost their jobs as a result of ilegal privatization deals since 2000

Food insecurity

• Transnational capital’s control over our food system affects people’s access to affordable and good quality food (ie. non-GMO food)

• In Serbia, 12% of citizens live below food poverty line (daily diet of 10,000 children depend on soup kitchens)

New wave of land grabbing in Serbia

• There are important indications that land grab, particularly by transnational corporations is likely to intensify in the next 10 years

• According to the Agreement for Stabilization and Accession (SSP) which Serbia has signed with the EU, the country will be obliged to allow EU citizens to buy land and other type of real estate

• Unlike neighboring countries (eg. Croatia, Hungary) Serbia so far has not engaged in negotiations with EU seeking to postpone this aspect of the agreement

Why land grabbing must be stopped?

• Considering the role that land plays for people’s food security and livelihoods, as well as broader poverty reduction, land grab must be urgently stopped

• According to the FAO experts food price hikes are very likely to continue, with some estimates predicting food price increases by 40% over the next 10 years

• Consequently, the phenomenon of land grabbing in Serbia must be placed as a top priority policy issue

Aliance for Common Good

Aliance for Land, Food and Natural Resources Sovereignty

Our campaign

Aliance for Common Good

The Aliance was initiated by ordinary citizens and various non-government organizations spanning ecological, agricultural, social protection organizations and independent experts

• The Aliance has been launched on 14th August, 2013

Declaration for Common Good3 key goals:

1. The suspension of the controversial article 63.2 of the SSP

2. The annulment of all ilegal privatisations of land and agricultural enterprises

3. Formulation of the new national agricultural and rural development strategy based on the principles of solidarity economy, agroecology, and sustinable development

Key activities

• Undertook surveys with citizens and parlamentarians

• Launched a petition – so far 4,000 people have signed

• Organizing a public hearing in the Serbian Parliament for mid-November, 2013

• A series of round-table and forum events

• Social event to mark the International Day Aagainst Hunger (16 october)

• Currently formulating a policy and programming on solidarity economy and agriculture

Join us!

ALIANCE FOR COMMON GOOD, SERBIA

otimacina.zemlje.stop@gmail.com

Alijansa za Zajednicko Dobro