Food security and large-scale land acquisitions by sovereign wealth funds: a systematic review of the literature from 2012 to 2023

Abstract

Many countries that have large surplus financial resources but contend with limited land and water resources use large-scale land acquisitions (LSLAs) in foreign countries to ensure national food security and earn long-term returns on their investments. LSLAs can provide positive direct and indirect benefits in countries where investment occurs by increasing access to financial and technical resources. On the other hand, LSLA critics state inequitable and unsustainable resource use practices are common, and that negative impacts tend to disproportionately impact local communities. Using the PRISMA systematic literature review approach, we conducted a literature review of 49 articles published between 2012 and early 2023 to understand if LSLAs contribute to food security, if national sovereign wealth funds invest in LSLAs, and to what extent the environmental, social, and governance impacts of LSLAs are evaluated. We find that most articles in our review state LSLAs do not improve food security in the country where the investment occurs or in the country where the investment originates. We also find that sovereign wealth funds were not prevalent LSLA investors during the study period, despite becoming a top contributor to agri-food sector investments during the same time. Finally, we find that the environmental, social, and governance impacts of LSLAs are not equally considered. Specifically, governance impacts are poorly understood. Improving the governance mechanisms associated with LSLAs could increase the equitability and sustainability of LSLAs, thus ensuring the public’s best interest in the immediate and long-term and reassuring investors about the long-term financial viability of their investment.