Investment Contracts for Agriculture : Maximizing Gains and Minimizing Risks
Private investment in agriculture in developing countries, both domestic and foreign, has been on the rise for nearly two decades. This paper focuses on large-scale agricultural projects in developing countries, involving the lease of farmland, whi...
| Main Author: | |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC
2015
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/06/24680795/investment-contracts-agriculture-maximizing-gains-minimizing-risks http://hdl.handle.net/10986/22085 |
| id |
okr-10986-22085 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-220852021-04-23T14:04:07Z Investment Contracts for Agriculture : Maximizing Gains and Minimizing Risks World Bank COPYRIGHT CLEARANCE VIRTUOUS CYCLE EQUIPMENT DISCLOSURE OF INFORMATION COUNTRY MARKET FOREIGN INVESTORS VALUATION PUBLIC DISCLOSURE INCOME INTEREST CORPORATE PERFORMANCE INVESTMENT POLICIES OPTION GOVERNMENT REGULATION CONTINGENCY PLANS DEVELOPING COUNTRIES REVENUES ENVIRONMENTAL ISSUES COPYRIGHT CLEARANCE CENTER PRICE JOINT VENTURES TREATIES SUSTAINABLE DEVELOPMENT DISCLOSURE BANKRUPTCY INVESTMENT PROCESS FREE TRADE AGRICULTURAL INVESTMENTS DEVELOPING COUNTRY INSTRUMENTS BUDGET LEGAL FRAMEWORKS INTERNATIONAL FINANCE ARBITRATION LACK OF TRANSPARENCY EXTENSIVE CONTRACT ENFORCEMENT HOST COUNTRIES CONTRACTS LOCAL BUSINESS OPTIONS MARKETS PRIVATE INVESTMENT ENVIRONMENTAL IMPACT LOCAL GOVERNMENT RETURN SETTLEMENT POLLUTION BUSINESS PRACTICES INVESTMENT CONTRACT NATURAL RESOURCES LEGAL TOOL ENVIRONMENTAL CONCERN GAINS DUE DILIGENCE INVESTMENT RISKS LEGAL FRAMEWORK FINANCE INVESTMENT CONTRACTS TAXES ACCESS TO INFORMATION INTERNATIONAL STANDARDS INVESTORS VALUATIONS GOOD INVESTOR INTEREST TRANSPARENCY ENVIRONMENTAL MANAGEMENT HOME COUNTRY MARKET CONDITIONS TURNOVER FUTURE BUSINESS DEVELOPMENT VALUE ENVIRONMENTAL IMPACTS BUDGETS PURCHASING POWER FOREIGN INVESTMENT RURAL INFRASTRUCTURE CONTRACT INCOMES PROPERTY RESPONSIBLE INVESTMENT JOB CREATION MARKET COMMERCIAL INVESTMENTS INVESTMENT POLICY NEW MARKETS EXCESSIVE RISK LEASE AGREEMENT BUSINESS INVESTMENTS GOVERNANCE EXPOSURE ENFORCEMENT LABOR STANDARDS MODEL CONTRACT ECONOMIC DEVELOPMENT HUMAN RIGHTS TRADE INTERESTS COMPANY MANAGEMENT GOODS INVESTOR LANDOWNERS SECURITY HOST GOVERNMENT TECHNOLOGY TRANSFER INVESTMENT HOST COUNTRY HOST GOVERNMENTS POVERTY FINANCE CORPORATION TREATY PRIVATE INVESTORS REVENUE INVESTMENTS INTERNATIONAL LAW CHILD LABOR COMMUNICATION LAND HOLDER HOST ECONOMIES WORLD INVESTMENT REPORT SOCIAL ISSUES BUSINESS PLANNING PRICES DOMESTIC INVESTOR GUARANTEE DEVELOPMENT BANK FAIR PRICE LAND POLICY INVESTING Private investment in agriculture in developing countries, both domestic and foreign, has been on the rise for nearly two decades. This paper focuses on large-scale agricultural projects in developing countries, involving the lease of farmland, which rose sharply after the food crisis of 2008. It is important that such investments are sustainable not only in the long term, but also beneficial in the short term with minimal risks or negative effects. This paper looks at one approach to achieving this namely, carefully devised contracts with investors, and in doing so offers a number of concrete solutions. This paper marries two substantial bodies of research to show how investment contracts can be set up to promote sustainable development. The paper presents the top five positive outcomes and the five downsides from private sector investments in large scale agricultural projects. This is derived from empirical evidence gathered by the United Nations Conference on Trade and Development (UNCTAD) and the World Bank after visiting large-scale agricultural projects (UNCTAD and World Bank 2014). The paper then proposes legal options to maximizing the main positive outcomes and minimizing the main downsides through better drafting of contracts between investors and governments for the lease of farmland. This derived from work conducted by the International Institute for Sustainable Development (IISD), which studied almost 80 contracts and produced a guide to negotiating contracts for farmland and water, including a model contract. 2015-06-30T18:54:32Z 2015-06-30T18:54:32Z 2015-06 Working Paper http://documents.worldbank.org/curated/en/2015/06/24680795/investment-contracts-agriculture-maximizing-gains-minimizing-risks http://hdl.handle.net/10986/22085 English en_US Agriculture Global Practice discussion paper,no. 3; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work Economic & Sector Work :: Other Agricultural Study |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
COPYRIGHT CLEARANCE VIRTUOUS CYCLE EQUIPMENT DISCLOSURE OF INFORMATION COUNTRY MARKET FOREIGN INVESTORS VALUATION PUBLIC DISCLOSURE INCOME INTEREST CORPORATE PERFORMANCE INVESTMENT POLICIES OPTION GOVERNMENT REGULATION CONTINGENCY PLANS DEVELOPING COUNTRIES REVENUES ENVIRONMENTAL ISSUES COPYRIGHT CLEARANCE CENTER PRICE JOINT VENTURES TREATIES SUSTAINABLE DEVELOPMENT DISCLOSURE BANKRUPTCY INVESTMENT PROCESS FREE TRADE AGRICULTURAL INVESTMENTS DEVELOPING COUNTRY INSTRUMENTS BUDGET LEGAL FRAMEWORKS INTERNATIONAL FINANCE ARBITRATION LACK OF TRANSPARENCY EXTENSIVE CONTRACT ENFORCEMENT HOST COUNTRIES CONTRACTS LOCAL BUSINESS OPTIONS MARKETS PRIVATE INVESTMENT ENVIRONMENTAL IMPACT LOCAL GOVERNMENT RETURN SETTLEMENT POLLUTION BUSINESS PRACTICES INVESTMENT CONTRACT NATURAL RESOURCES LEGAL TOOL ENVIRONMENTAL CONCERN GAINS DUE DILIGENCE INVESTMENT RISKS LEGAL FRAMEWORK FINANCE INVESTMENT CONTRACTS TAXES ACCESS TO INFORMATION INTERNATIONAL STANDARDS INVESTORS VALUATIONS GOOD INVESTOR INTEREST TRANSPARENCY ENVIRONMENTAL MANAGEMENT HOME COUNTRY MARKET CONDITIONS TURNOVER FUTURE BUSINESS DEVELOPMENT VALUE ENVIRONMENTAL IMPACTS BUDGETS PURCHASING POWER FOREIGN INVESTMENT RURAL INFRASTRUCTURE CONTRACT INCOMES PROPERTY RESPONSIBLE INVESTMENT JOB CREATION MARKET COMMERCIAL INVESTMENTS INVESTMENT POLICY NEW MARKETS EXCESSIVE RISK LEASE AGREEMENT BUSINESS INVESTMENTS GOVERNANCE EXPOSURE ENFORCEMENT LABOR STANDARDS MODEL CONTRACT ECONOMIC DEVELOPMENT HUMAN RIGHTS TRADE INTERESTS COMPANY MANAGEMENT GOODS INVESTOR LANDOWNERS SECURITY HOST GOVERNMENT TECHNOLOGY TRANSFER INVESTMENT HOST COUNTRY HOST GOVERNMENTS POVERTY FINANCE CORPORATION TREATY PRIVATE INVESTORS REVENUE INVESTMENTS INTERNATIONAL LAW CHILD LABOR COMMUNICATION LAND HOLDER HOST ECONOMIES WORLD INVESTMENT REPORT SOCIAL ISSUES BUSINESS PLANNING PRICES DOMESTIC INVESTOR GUARANTEE DEVELOPMENT BANK FAIR PRICE LAND POLICY INVESTING |
| spellingShingle |
COPYRIGHT CLEARANCE VIRTUOUS CYCLE EQUIPMENT DISCLOSURE OF INFORMATION COUNTRY MARKET FOREIGN INVESTORS VALUATION PUBLIC DISCLOSURE INCOME INTEREST CORPORATE PERFORMANCE INVESTMENT POLICIES OPTION GOVERNMENT REGULATION CONTINGENCY PLANS DEVELOPING COUNTRIES REVENUES ENVIRONMENTAL ISSUES COPYRIGHT CLEARANCE CENTER PRICE JOINT VENTURES TREATIES SUSTAINABLE DEVELOPMENT DISCLOSURE BANKRUPTCY INVESTMENT PROCESS FREE TRADE AGRICULTURAL INVESTMENTS DEVELOPING COUNTRY INSTRUMENTS BUDGET LEGAL FRAMEWORKS INTERNATIONAL FINANCE ARBITRATION LACK OF TRANSPARENCY EXTENSIVE CONTRACT ENFORCEMENT HOST COUNTRIES CONTRACTS LOCAL BUSINESS OPTIONS MARKETS PRIVATE INVESTMENT ENVIRONMENTAL IMPACT LOCAL GOVERNMENT RETURN SETTLEMENT POLLUTION BUSINESS PRACTICES INVESTMENT CONTRACT NATURAL RESOURCES LEGAL TOOL ENVIRONMENTAL CONCERN GAINS DUE DILIGENCE INVESTMENT RISKS LEGAL FRAMEWORK FINANCE INVESTMENT CONTRACTS TAXES ACCESS TO INFORMATION INTERNATIONAL STANDARDS INVESTORS VALUATIONS GOOD INVESTOR INTEREST TRANSPARENCY ENVIRONMENTAL MANAGEMENT HOME COUNTRY MARKET CONDITIONS TURNOVER FUTURE BUSINESS DEVELOPMENT VALUE ENVIRONMENTAL IMPACTS BUDGETS PURCHASING POWER FOREIGN INVESTMENT RURAL INFRASTRUCTURE CONTRACT INCOMES PROPERTY RESPONSIBLE INVESTMENT JOB CREATION MARKET COMMERCIAL INVESTMENTS INVESTMENT POLICY NEW MARKETS EXCESSIVE RISK LEASE AGREEMENT BUSINESS INVESTMENTS GOVERNANCE EXPOSURE ENFORCEMENT LABOR STANDARDS MODEL CONTRACT ECONOMIC DEVELOPMENT HUMAN RIGHTS TRADE INTERESTS COMPANY MANAGEMENT GOODS INVESTOR LANDOWNERS SECURITY HOST GOVERNMENT TECHNOLOGY TRANSFER INVESTMENT HOST COUNTRY HOST GOVERNMENTS POVERTY FINANCE CORPORATION TREATY PRIVATE INVESTORS REVENUE INVESTMENTS INTERNATIONAL LAW CHILD LABOR COMMUNICATION LAND HOLDER HOST ECONOMIES WORLD INVESTMENT REPORT SOCIAL ISSUES BUSINESS PLANNING PRICES DOMESTIC INVESTOR GUARANTEE DEVELOPMENT BANK FAIR PRICE LAND POLICY INVESTING World Bank Investment Contracts for Agriculture : Maximizing Gains and Minimizing Risks |
| relation |
Agriculture Global Practice discussion paper,no. 3; |
| description |
Private investment in agriculture in
developing countries, both domestic and foreign, has been on
the rise for nearly two decades. This paper focuses on
large-scale agricultural projects in developing countries,
involving the lease of farmland, which rose sharply after
the food crisis of 2008. It is important that such
investments are sustainable not only in the long term, but
also beneficial in the short term with minimal risks or
negative effects. This paper looks at one approach to
achieving this namely, carefully devised contracts with
investors, and in doing so offers a number of concrete
solutions. This paper marries two substantial bodies of
research to show how investment contracts can be set up to
promote sustainable development. The paper presents the top
five positive outcomes and the five downsides from private
sector investments in large scale agricultural projects.
This is derived from empirical evidence gathered by the
United Nations Conference on Trade and Development (UNCTAD)
and the World Bank after visiting large-scale agricultural
projects (UNCTAD and World Bank 2014). The paper then
proposes legal options to maximizing the main positive
outcomes and minimizing the main downsides through better
drafting of contracts between investors and governments for
the lease of farmland. This derived from work conducted by
the International Institute for Sustainable Development
(IISD), which studied almost 80 contracts and produced a
guide to negotiating contracts for farmland and water,
including a model contract. |
| format |
Working Paper |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Investment Contracts for Agriculture : Maximizing Gains and Minimizing Risks |
| title_short |
Investment Contracts for Agriculture : Maximizing Gains and Minimizing Risks |
| title_full |
Investment Contracts for Agriculture : Maximizing Gains and Minimizing Risks |
| title_fullStr |
Investment Contracts for Agriculture : Maximizing Gains and Minimizing Risks |
| title_full_unstemmed |
Investment Contracts for Agriculture : Maximizing Gains and Minimizing Risks |
| title_sort |
investment contracts for agriculture : maximizing gains and minimizing risks |
| publisher |
Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/06/24680795/investment-contracts-agriculture-maximizing-gains-minimizing-risks http://hdl.handle.net/10986/22085 |
| _version_ |
1764450216862285824 |