large-scale land acquisitions – employment generator or job-killer? presentation at the 16th...
TRANSCRIPT
Large-scale Land Acquisitions – Employment Generator or Job-Killer?
Presentation at the 16th Annual World Bank Conference on Land and Poverty
Linking Land Tenure and Use for Shared Prosperity
The World Bank, Washington DC 25 March, 2015
Martin OstermeierKerstin NolteChristof Althoff
Background
Large-scale land-based investments and employment• Small-scale agricultural farming very labour intensive
Main employment sector in many developing countries
• Commercial farming capital intensive
• Employment amongst the most common commitments investors make to local communities Actual realisation often debated
• Employment as a key component for poverty alleviation National governments often welcome and foster agricultural
Foreign Direct Investment (FDI)
Methodology
Previous approaches
• Employment figures reported by investors
Not officially validated
Different employment types not considered
• Before-and-after comparison using national statistics
Disaggregation level not sufficient
Difficult to isolate effect
Idea
Comparing employment effects of small- and large-scale
farming through labour intensity of certain crops
Methodology
Crops
• According to frequency in
Land Matrix database
Banana
Barley
Cassava (Maniok)
Corn (Maize)
Cotton
Jatropha
Oil Palm
Rice
Rubber
Sorghum
Soya Beans
Sugar Cane
Sun Flower and
Wheat
Methodology
Small-scale farming
Main characteristics
Farm size below 2 hectares
Mainly family and/or subsistence
farming
Labour intensive
Data
Agricultural survey; Household
survey (here: UNHS 2005/06)
Large-scale farming
Main characteristics
Farm size over 200 hectares
Commercial farming
Capital intensive
Data
The Land Matrix Global
Observatory
Crop associations, research
results
Zambia (corn) Ethiopia (cotton)0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Labour Intensity per Crop(mean workers per hectare)
Small-scaleLarge-scale (crop associations)Large-scale (LM_planned)
Descriptives
Corn (maize) Mean workers per hectare
Small-scale 1.83502
Large-scale (crop associations) 0.32599
Large-scale (LM planned) 0.08799
Δ to small-scale
n.a.
-82.2%
-95.2%
Cotton Mean workers per hectare
Small-scale 0.98446
Large-scale (crop associations) 0.27690
Large-scale (LM planned) 0.07446
Δ to small-scale
n.a.
-71.9%
-92.4%
Zambia (corn) Ethiopia (cotton)0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Potential Job Creation (projected employment based on LM)
Small-scaleLarge-scale (crop associations)Large-scale (LM_planned)
Next steps
• Scale up analysis
• Distinction of type of employment E.g. casual worker, domestic or foreign worker, etc.
• Economies of scale• Quality of employment
E.g. security of employment, working hours, remuneration, health and safety
• Backward / forward linkages E.g. further job opportunities through processing, packing,
exporting, etc.
Contact
Martin Ostermeier
GIGA German Institute of Global and Area Studies Neuer Jungfernstieg 21 / 20354 HamburgTel. +49-(0)40-42825-768 Email: [email protected]: Martin-OstermeierHomepage: http://www.giga-hamburg.de