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Reference ID Created Released Classification Origin
Reference ID Created Released Classification Origin
10UNROME9 2010-01-28 10:32 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY UN Rome
PP RUEHRNVZCZCXRO0206
DE RUEHRN #0009/01 0281032
ZNR UUUUU ZZH
P R 281032Z JAN 10
FM USMISSION UN ROME
TO RUEHC/SECSTATE WASHDC PRIORITY 1265
INFO RUEHC/USAID WASHDC
RUEHRC/USDA FAS WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUCNDT/USMISSION USUN NEW YORK 0463
RUEHBS/USEU BRUSSELS 0297
RUEHGV/USMISSION GENEVA 0359
RUEHKO/AMEMBASSY TOKYO 0137
RUEHDS/AMEMBASSY ADDIS ABABA 0039
RUEHRN/USMISSION UN ROME 1342
UNCLAS SECTION 01 OF 03 UN ROME 000009
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EAGR EAID ECON EINV PREL FAO
SUBJECT: ROME AGENCIES WORKING ON VOLUNTARY "CODE OF CONDUCT" FOR
RESPONSIBLE AGRO-INVESTMENTS
REF: ADDIS 350; 09 ADDIS 2900
¶1. (U) This message is sensitive but unclassified. Not for
dissemination outside the USG.
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Summary and Action Request
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¶2. (SBU) FAO senior staff are leading an effort, in close
coordination with UNCTAD, the World Bank, IFAD, and others, to
address issues related to international investment in
agricultural land (often referred to prejoratively as "land
grabs" in the international media). Continuing work discussed
at last September's UN General Assembly, FAO and its partner
organizations are researching large international land
investments, are developing a "knowledge platform" to provide
public access to information, and are developing a draft
voluntary "code of conduct" for responsible international land
investment. On January 19, the officer at FAO leading the
effort, David Hallam, briefed Mission staff on his work, which
is closely linked with other FAO work to develop "voluntary
guidelines" on responsible governance of tenure of land and
other natural resources (septel). The group, funded in part by
Japan, is preparing a joint statement on its draft "code" and is
looking for an appropriate venue to brief the international
community. The obvious challenge, Hallam conveyed, is to make a
code "operational" at country level. Mission believes a
symposium in Rome on land investments would be useful to ensure
that whatever products or outcomes are developed remain fully
consistent with the country-led principle; help developing
countries attract, assess, and negotiate potential land
investments; and complement U.S. work in the food security
field. We are working with the Japanese mission to co-host an
event in late March/early April, intended to foster developing
country input on this issue. Post appreciates inter-agency
views on how to promote USG policy toward this issue, and how
our proposed Rome symposium can best support U.S. policy
objectives. End summary.
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Background
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¶3. (SBU) During the food price crisis in 2008-09, a number of
international investors initiated or concluded deals to lease or
purchase large tracts of land in developing countries,
particularly in Africa. Largely from net food importing
countries such as China, South Korea, and the Gulf States, these
investors triggered accusations of "land grabbing" - including
charges of exploitation of small holder farmers that were not
politically connected in developing countries (reftel).
Stressing concerns about perceived "neocolonialism," the FAO DG
asked Hallam, FAO's Deputy Director for Trade and Markets, to
lead FAO's work on this issue. A UK-trained economist and
econometrician, Hallam has approached his assignment in a
methodical, research-driven manner and has sought to downplay
inflammatory language bantered about in the press.
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Few Resources at FAO Dedicated to International Land Investments
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¶4. (SBU) Within FAO, Hallam leads a small interdepartmental
working group with four active participants. Hallam collects
and controls sources of funding in Rome and at the field level
UN ROME 00000009 002 OF 003
(e.g. Cairo, Accra) to conduct research on investments,
primarily focused on Africa. For this and related work, Japan
recently provided FAO with USD 3 million in voluntary
contributions.
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FAO, WB, UNCTAD and IFAD Working Closely
-----------
¶5. (SBU) Hallam reported that he works closely with expert
staff of the World Bank, UNCTAD, and IFAD on the land investment
issue. The World Bank, he said, has plenty of resources, but is
maintaining a low profile for "political" reasons. Together,
FAO, UNCTAD, World Bank, and IFAD agreed to produce a joint
research paper on international land investments, to develop a
publicly-accessible "knowledge platform" with information on
land investments, and to create a "Code of Conduct" on
international land investments. Acknowledging the lack of
accurate, detailed land investment research, FAO and the World
Bank are preparing several country case studies focused on
international land investments.
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IDLO Participation
--------
¶6. (SBU) Mission staff strongly encouraged Hallam to
collaborate with the Rome-based International Development Law
Organization (IDLO), as it is already working to strengthen
national legal and investment frameworks within developing
countries. Hallam agreed, noting that he and his colleagues
were already in contact with IDLO as well as with Transparency
International and the Organization of Economic Cooperation and
Development (OECD) in Paris. IDLO had much experience to offer
on legal aspects of agricultural land investments and is
currently developing a food security law initiative that will
include a strategy for assisting legal professionals in
developing countries to negotiate agreements with safeguards.
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Next Steps
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¶7. (SBU) Hallam recognized that the value of any land
investment "code of conduct" will accrue if complemented by
thoughtful adaptation at the country level, especially through
wide consultation with civil society and impacted groups.
Hallam agreed with Mission staff that major international land
investments should be factored into food security country
planning in a holistic manner, and should be as transparent as
possible to minimize corruption and exploitation. FAO staff are
also debating when and where to further brief interested
parties, and are considering an April UNCTAD conference on
investments or a May OECD agriculture trade meeting. Also, as
part of its agreement with the Government of Japan, Hallam will
brief at a March 10-11 FAO seminar in Tokyo, directed largely at
a domestic Japanese audience.
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Making a Code of Conduct "Operational"
UN ROME 00000009 003 OF 003
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¶8. (SBU) Mission is discussing with the Japanese Mission to the
UN Food Agencies in Rome how to address the land investment
issue in a manner that promotes country-led food security
strategies and provides practical resources that help developing
countries attract, assess, and negotiate potential land
investments. To this end, we are looking to co-host with Japan
an expert symposium in Rome in late-March/early-April attended
by experts from the four main agencies cited above, IDLO,
Rome-based diplomats from developing countries and technical
experts from capitals, and key Non-Governmental Organizations
focused on international investments and agriculture
development. The primary goals of such an event will be to help
steer the general debate toward adoption of land investment
"principles," versus an operational "code of conduct," and, to
foster early feedback and input from developing countries on
what related tools are most beneficial to them for their country
food security planning.
COUSIN