Abstract
Land grabbing is global issue affecting smallholder farmer’s livelihood. With the objective of evaluating the impact of large scale agricultural Investments on the livelihoods of rural communities, this paper uses literatures on land grabbing supplemented by data from FAOstat and tries to identify the root causes of land grabbing and driving forces behind the agricultural investment in the country. It tries to assess the problems created due to introduction of large scale agricultural investment by foreign companies and its consequences on local communities. The remedial measures that should be used by the government to tackle the problems created due to high demand for agricultural land acquisitions were discussed for alternative policy option. Keywords: Land grabbing, Agricultural investment, Smallholders DOI: 10.7176/JPID/56-02 Publication date: November 30 th 2020
Highlights
Ethiopia is one of the least developed countries with annual GDP accounted 72 billion USD (NBE, 2016)
Agricultural Investment in Ethiopia It is assumed after several decades of under investment in the agricultural sector in developing countries, the late 2000s witnessed a surge in foreign direct investment (FDI) in primary agricultural production (FAO, 2013b)
It is designed to operationalize the comprehensive agricultural development program (CAADP) Compact signed by the Government of Ethiopia and its development partners in line with the GTP
Summary
Ethiopia is one of the least developed countries with annual GDP accounted 72 billion USD (NBE, 2016). Agriculture contributes 45% of the GDP, 80% of the employment opportunity, 90 % of the foreign exchange (MOA, 2013). According to MOA (2010) report, only about 11.7 million hectares of land (about 20% of arable area) and nearly 55 per cent of all smallholder farmers operate on one hectare or less. Demand oriented projections of USDA show about 36 million people (35.2% of the population) of Ethiopia are food insecure in 2016 (USDA, 2016). This indicates how much series the food insecurity status of the country is
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