ROME AGENCIES WORKING ON VOLUNTARY "CODE OF CONDUCT" FOR

UNCLAS SECTION 01 OF 03 UN ROME 000009 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EAGR EAID ECON EINV PREL FAO SUBJECT: ROME AGENCIES WORKING ON VOLUNTARY "CODE OF CONDUCT" FOR RESPONSIBLE AGRO-INVESTMENTS REF: ADDIS 350; 09 ADDIS 2900 ¶1. (U) This message is sensitive but unclassified. Not for dissemination outside the USG. -------------- Summary and Action Request -------------- ¶2. (SBU) FAO senior staff are leading an effort, in close coordination with UNCTAD, the World Bank, IFAD, and others, to address issues related to international investment in agricultural land (often referred to prejoratively as "land grabs" in the international media). Continuing work discussed at last September's UN General Assembly, FAO and its partner organizations are researching large international land investments, are developing a "knowledge platform" to provide public access to information, and are developing a draft voluntary "code of conduct" for responsible international land investment. On January 19, the officer at FAO leading the effort, David Hallam, briefed Mission staff on his work, which is closely linked with other FAO work to develop "voluntary guidelines" on responsible governance of tenure of land and other natural resources (septel). The group, funded in part by Japan, is preparing a joint statement on its draft "code" and is looking for an appropriate venue to brief the international community. The obvious challenge, Hallam conveyed, is to make a code "operational" at country level. Mission believes a symposium in Rome on land investments would be useful to ensure that whatever products or outcomes are developed remain fully consistent with the country-led principle; help developing countries attract, assess, and negotiate potential land investments; and complement U.S. work in the food security field. We are working with the Japanese mission to co-host an event in late March/early April, intended to foster developing country input on this issue. Post appreciates inter-agency views on how to promote USG policy toward this issue, and how our proposed Rome symposium can best support U.S. policy objectives. End summary. -------------- Background -------------- ¶3. (SBU) During the food price crisis in 2008-09, a number of international investors initiated or concluded deals to lease or purchase large tracts of land in developing countries, particularly in Africa. Largely from net food importing countries such as China, South Korea, and the Gulf States, these investors triggered accusations of "land grabbing" - including charges of exploitation of small holder farmers that were not politically connected in developing countries (reftel). Stressing concerns about perceived "neocolonialism," the FAO DG asked Hallam, FAO's Deputy Director for Trade and Markets, to lead FAO's work on this issue. A UK-trained economist and econometrician, Hallam has approached his assignment in a methodical, research-driven manner and has sought to downplay inflammatory language bantered about in the press. -------------- Few Resources at FAO Dedicated to International Land Investments -------------- ¶4. (SBU) Within FAO, Hallam leads a small interdepartmental working group with four active participants. Hallam collects and controls sources of funding in Rome and at the field level UN ROME 00000009 002 OF 003 (e.g. Cairo, Accra) to conduct research on investments, primarily focused on Africa. For this and related work, Japan recently provided FAO with USD 3 million in voluntary contributions. -------------- FAO, WB, UNCTAD and IFAD Working Closely -------------- ¶5. (SBU) Hallam reported that he works closely with expert staff of the World Bank, UNCTAD, and IFAD on the land investment issue. The World Bank, he said, has plenty of resources, but is maintaining a low profile for "political" reasons. Together, FAO, UNCTAD, World Bank, and IFAD agreed to produce a joint research paper on international land investments, to develop a publicly-accessible "knowledge platform" with information on land investments, and to create a "Code of Conduct" on international land investments. Acknowledging the lack of accurate, detailed land investment research, FAO and the World Bank are preparing several country case studies focused on international land investments. -------------- IDLO Participation -------------- ¶6. (SBU) Mission staff strongly encouraged Hallam to collaborate with the Rome-based International Development Law Organization (IDLO),as it is already working to strengthen national legal and investment frameworks within developing countries. Hallam agreed, noting that he and his colleagues were already in contact with IDLO as well as with Transparency International and the Organization of Economic Cooperation and Development (OECD) in Paris. IDLO had much experience to offer on legal aspects of agricultural land investments and is currently developing a food security law initiative that will include a strategy for assisting legal professionals in developing countries to negotiate agreements with safeguards. -------------- Next Steps -------------- ¶7. (SBU) Hallam recognized that the value of any land investment "code of conduct" will accrue if complemented by thoughtful adaptation at the country level, especially through wide consultation with civil society and impacted groups. Hallam agreed with Mission staff that major international land investments should be factored into food security country planning in a holistic manner, and should be as transparent as possible to minimize corruption and exploitation. FAO staff are also debating when and where to further brief interested parties, and are considering an April UNCTAD conference on investments or a May OECD agriculture trade meeting. Also, as part of its agreement with the Government of Japan, Hallam will brief at a March 10-11 FAO seminar in Tokyo, directed largely at a domestic Japanese audience. -------------- Making a Code of Conduct "Operational" UN ROME 00000009 003 OF 003 -------------- ¶8. (SBU) Mission is discussing with the Japanese Mission to the UN Food Agencies in Rome how to address the land investment issue in a manner that promotes country-led food security strategies and provides practical resources that help developing countries attract, assess, and negotiate potential land investments. To this end, we are looking to co-host with Japan an expert symposium in Rome in late-March/early-April attended by experts from the four main agencies cited above, IDLO, Rome-based diplomats from developing countries and technical experts from capitals, and key Non-Governmental Organizations focused on international investments and agriculture development. The primary goals of such an event will be to help steer the general debate toward adoption of land investment "principles," versus an operational "code of conduct," and, to foster early feedback and input from developing countries on what related tools are most beneficial to them for their country food security planning. COUSIN