Egypt's golf chief Omar Hisham Talaat elected to Arab Golf Federation board    Egypt extends Eni's oil and gas concession in Suez Gulf, Nile Delta to 2040    Egypt, India explore joint investments in gas, mining, petrochemicals    Egypt launches National Strategy for Rare Diseases at PHDC'25    Egyptian pound inches up against dollar in early Thursday trade    Singapore's Destiny Energy to invest $210m in Egypt to produce 100,000 tonnes of green ammonia annually    Egypt's FM discusses Gaza, Libya, Sudan at Turkey's SETA foundation    UN warns of 'systematic atrocities,' deepening humanitarian catastrophe in Sudan    Egypt's Al-Sisi ratifies new criminal procedures law after parliament amends it    Egypt launches 3rd World Conference on Population, Health and Human Development    Cowardly attacks will not weaken Pakistan's resolve to fight terrorism, says FM    Egypt's TMG 9-month profit jumps 70% on record SouthMed sales    Egypt adds trachoma elimination to health success track record: WHO    Egypt, Latvia sign healthcare MoU during PHDC'25    Egypt, India explore cooperation in high-tech pharmaceutical manufacturing, health investments    Egypt, Sudan, UN convene to ramp up humanitarian aid in Sudan    Egypt releases 2023 State of Environment Report    Egyptians vote in 1st stage of lower house of parliament elections    Grand Egyptian Museum welcomes over 12,000 visitors on seventh day    Sisi meets Russian security chief to discuss Gaza ceasefire, trade, nuclear projects    Egypt repatriates 36 smuggled ancient artefacts from the US    Grand Egyptian Museum attracts 18k visitors on first public opening day    'Royalty on the Nile': Grand Ball of Monte-Carlo comes to Cairo    VS-FILM Festival for Very Short Films Ignites El Sokhna    Egypt's cultural palaces authority launches nationwide arts and culture events    Egypt launches Red Sea Open to boost tourism, international profile    Qatar to activate Egypt investment package with Matrouh deal in days: Cabinet    Omar Hisham Talaat: Media partnership with 'On Sports' key to promoting Egyptian golf tourism    Sisi expands national support fund to include diplomats who died on duty    Madinaty Golf Club to host 104th Egyptian Open    Egypt's PM reviews efforts to remove Nile River encroachments    Al-Sisi: Cairo to host Gaza reconstruction conference in November    Egypt will never relinquish historical Nile water rights, PM says    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Answering the food security colonial conundrum?
Published in Daily News Egypt on 10 - 11 - 2009

In international relations the security discourse is often monopolised by those with a myopic view of security as focusing disproportionately on military matters. Other factors, be they economic, social or environmental, whilst perhaps considered important, have a tendency of being relegated firmly to the second tier of concerns ahead of the simple, brutish realities of the military balance.
This kind of position is taken by those known as classical realists. However, even the staunchest realist might pause for thought if they were to hear that by some estimates the State of Qatar imports around 95 percent of its food from abroad. This is an exceedingly high figure and highlights the critical level of dependence that Qatar has on its food importers. This situation is repeated to varying degrees across the Arabian Peninsula.
In recent years, states such as Qatar, Saudi Arabia and the United Arab Emirates have sought to rectify this situation by buying often huge swathes of land in (usually) developing countries. Billions of dollars and millions of hectares of land have changed hands in countries ranging from Indonesia to Ethiopia and from Pakistan to Cambodia and countless others besides.
Yet it is not just arid, rich Gulf countries that are buying up land abroad. Countries with burgeoning populations such as India, Egypt and China as well as Western private investment banks and institutions are also significantly entering the fray.
Unsurprisingly, there has been a vociferous reaction to these practices. The buying of land to produce foodstuffs primarily (and usually exclusively) for exporting from impoverished countries can be seen as anything from unfair to wrong or even immoral and has been widely dubbed as neo-colonialism. The most egregious example of this occurred when in 2008 Daewoo, a conglomerate from South Korea (GDP per capita $27,000), bought roughly half of the arable land in Madagascar (GDP per capita $1000). This decision contributed to a change in leadership in the African island state and the cancellation of the deal in March this year.
Now it appears that one of the former 'neo-colonialist' states, Qatar, has heeded this backlash and is looking to pursue its food security in a different manner. The Qatari Investment Authority has established Hassad Foods with an endowment of $100m to invest in or buy up agricultural companies around the world instead of buying the land. Aside from appearing less 'neo-colonial', there are other advantages to this type of programme. By buying up established companies the set-up costs will be less than starting from scratch. Also, from Hassad's point of view, with the world markets still struggling at the moment, there ought to be some bargains around and, given that food will only ever be needed to a greater degree in the longer term, such investments would appear to be sound.
So far, Hassad has entered into a $68.5m joint venture with an Omani poultry firm and has signed an agreement with Russian grain processing firm PAVA to cultivate land in Sudan. After a modest start, there is potential for the Sudanese joint venture to expand to cultivate up to a quarter of a million acres of land.
Yet one must ask if arrangements such as these are really that much better. Like in the 'neo-colonial' arrangement the transport infrastructure and/or the port where the goods will be exported from will be renovated by the importing country. This is, of course, a good thing for the host country. Yet, one must not forget that the foodstuffs produced will still be exported. The international market can and will offer a better price than the domestic one and that is the price at which the food will be sold. It seems unlikely, therefore, that the host country will benefit in terms of food production from this arrangement unless there is some kind of stipulation embedded into the contracts stating that a percentage must be sold domestically.
Indeed, it seems likely that in the newer type of deal (a post-neo-colonial deal?) instead of South Korea or Qatar paying Sudan or Cambodia money directly for their land it will instead go to a private company. Also, could it not be argued that when the deal is at a governmental level there is more scope for provisions for less profitable domestic sales to be included than with two companies both looking to their profit margins as the be all and end all?
Overall, aside from thorny semantic questions to do with territorial rights or sovereignty of the land in question, it appears as if there is precious little difference between the neo-colonial and the post-neo-colonial deals.
David B Roberts is a doctoral student at the University of Durham, UK. He has written for Daily News Egypt, the Kuwait Times and Asia News Online. His blog can be found at www.thegulfblog.com.


Clic here to read the story from its source.