Asian countries and Western corporations are buying up land

The famous American writer and wit Mark Twain once called on his contemporaries to buy land because it is "the only product that is no longer produced." It seems that 150 years later, his words take on new meaning.

The crisis has forced many to think that the negative trends in the economy may lead to a collapse of the food. This primarily affect those countries that depend on imports of agricultural products. The solution was found quickly.

Back in 2008, a number of Asian countries, as well as some Western investment companies have been actively buying up farmland outside their territories. This trend has been observed before, but only recently has it become a really large scale.

The most attractive from the point of view of the conclusion of cheap land deals Africa. Due to low prices, weak land laws generally is to protect the interests of local residents, and a small production costs, the region of greatest interest to the "buyers."

For example, in 2008, the Indian company Karaturi Global buying huge plantations in Ethiopia at $ 1.25 per hectare. Later, the price has risen to $ 6.75 (for comparison, one hectare of farmland in Brazil and Argentina, worth $ 6.5 million) This local land agents say that some leaders can agree, and simply for a bottle of whiskey.

According to the report, Oakland Research Institute (USA), in 2008, foreign companies have acquired or taken a long term lease in Africa more than 60 million hectares of land — larger than that of France or Ukraine. Prior to 2008, bought no more than 4 million hectares per year. Given this fact, the statement that a new "Scramble for Africa" seems could not be more true.

However, if the XIX and XX centuries, Africa tried to divide a number of European countries, which then joined the U.S. and to some extent, the Soviet Union, now the list of players has increased considerably. And in many ways set the pace of the race, the Asian countries, writes rosbalt.ru

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