Tag Archives: sugar

Risk calculation and blood sugar – Can CSR arguments get a handle on the global land-rush?

by Rhodri C. Williams

The nearly 18 months that have passed since David Pred wrote in this blog about industrial sugarcane production and land-grabbing in Cambodia have been dramatic ones in the area of corporate social responsibility (CSR).

Perhaps most notably, the tragic and entirely predictable collapse of the Rana Plaza garment factory in Dhaka, Bangladesh last May galvanized a process of negotiating binding arbitration agreements between corporations and labor unions with participation by the International Labor Organization (ILO). The resulting “Accord on Fire and Building Safety in Bangladesh” was described by Peter Spiro in Opinio Juris as “a signal episode in the continuing evolution of global corporate regulation”:

The template: a legal agreement between non-state parties facilitated and nominally hosted by an international organization. No governments involved, at least not as parties to the agreement. If it works, look for more of the same in other contexts. The ILO ‘s profile will surely rise in the face of this episode and the growing global awareness of worker rights issues.

For better and for worse, the Rana Plaza disaster also generated competing models, with a group of North American retailers unveiling a non-legally binding alternative to the mainly European ‘Accord’ in July. While critics alleged that the latter plan amounted to an attempt by large corporations such as Walmart to co-opt the global CSR movement, US corporations condemned the Accord as rigid, insensitive to the realities of the global textiles market, and (perhaps most tellingly), a potential floodgate for litigation.

These developments indicate that the protracted debate over effective social regulation of global markets (beautifully summarised in this essay by Richard M. Locke) has lurched forward, but is far from over. While experts have raised technical concerns about the arbitration procedures espoused in the Accord, it has nevertheless clearly introduced a new paradigm, planting a new, binding standard in a field dominated by voluntary codes of conduct. However, the competing North American initiative demonstrates the persistence of non-binding commitments that rely on states to regulate the conditions of production, rather than giving workers recourse to the corporations that sit astride global production chains.

Meanwhile, the debate over large-scale acquisition of land in developing countries by foreign states and corporations – the ‘global land rush’ – has rumbled on. In particular light of the extent to which corporations have been actors in the land rush, early indications that the land tenure governance debate would converge with the broader CSR debate appear to have been more than borne out.

Most notably, the UN Food and Agriculture Organization (FAO) recently adopted a well-received set of “Voluntary Guidelines on the Responsible Governance of Tenure“. Though these are frequently referred to generically as ‘land grab guidelines’, they actually focus on the ‘supply side’, setting out duties of care for the authorities that dispose over land subject to investment (for more on the Guidelines, see this dedicated edition of the Land Tenure Journal). Meanwhile, a corresponding set of ‘demand side’ due diligence guidelines for investors – the “Principles for Responsible Agricultural Investments” is currently slated for adoption in 2014.

A similar pattern has emerged in advocacy with, for instance, the Rights and Resource Initiative (RRI) recently having reframed the ‘supply side’ question of State neglect of local tenure rights as a ‘demand side’ problem of corporate risk:

In examining the evidence, a pattern emerges. Many investors and operators have committed time, money and effort without understanding some considerable risks, ones usually considered externalities in the normal course of business. …. Property rights in many emerging markets are dysfunctional to the point that ownership of land can be granted to an investor without the tens of thousands of people living on, or dependent on, that land knowing about it. …. By themselves, delays caused by land tenure problems can inflate a project’s expenditures by an order of magnitude – and in some cases these losses have even been great enough to endanger the future of the corporate parent itself.

Meanwhile, more concerted efforts are being put into gauging the genuine scale of the problem, most notably through the development of a Land Matrix, a public online database of land deals. However, getting a handle on the scale of the problem, with its often murky and frequently unreported (or reported but unconsumnated) deals remains difficult. Nevertheless, two recent and overlapping insights have involved the extent to which the land rush has penetrated – and destabilized – South-East Asia and the role of the sugar industry and sugarcane in driving large scale land investment.

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Is the European Commission sweet on land grabbing? Trade benefits, sugarcane concessions and dispossession in Cambodia – UPDATED

by David Pred

David Pred is co-founder and managing associate of Inclusive Development International (IDI), an association working to make the international development paradigm more just and inclusive.

Before you reach for that Tate and Lyle sugar packet to sweeten your coffee, you might want to think twice.  While most Tate and Lyle sugar packets carry the Fair Trade label, Cambodian farmers who were displaced and dispossessed by their suppliers say that if you are buying this product, you are buying their blood. Earlier this month, representatives of affected communities called for a consumer boycott of companies selling sugar grown on stolen land, including Tate and Lyle Sugars.

Over the past several years, hundreds of thousands of Cambodians have been uprooted from their homes, farmlands, and forests by companies that have been granted concessions for the development of agro-industrial plantations.

The sugarcane industry has been one of the worst offenders in this land-grabbing crisis. In the last five years, land concessions totaling tens of thousands of hectares have been granted to private companies for industrial sugarcane production.  These concessions have led to the destruction of protected forests and the pollution of water sources. Local farmers’ crops have been razed and their animals shot. Homes have been burned to the ground. Thousands of women and children have been left destitute.  Some have been thrown in jail for daring to protest.

Despite the abundant evidence of these crimes, none of the responsible individuals and companies have been held to account. As if that wasn’t scandalous enough, this ‘blood sugar’ is being exported to Europe, where it receives special trade benefits under the EU’s Everything But Arms (EBA) initiative.  Through this preferential trading scheme, the world’s least developed countries are able to export goods to the EU with zero tariffs or quotas, and in the case of sugar, at a guaranteed minimum price.

It should be a crime to peddle goods produced on stolen land, but instead the land-grabbers are awarded special trade privileges.

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