Ethiopia and Foreign Agricultural Investment

Globalization has indeed changed the ways things are done. Nowadays, countries no longer need to set aside lands within their borders for agricultural purposes so as to feed their population. They can lease large plots of fertile land in another country for such purposes and this is what some countries like Ethiopia has exploited to get foreign direct investment (FDI). Ironically, despite being the “food-producers” for the world, Ethiopians are among the world’s most malnourished people. To make matters worse, many Ethiopians have been displaced as their villages lie in areas leased out to these foreign firms. Does it mean that Ethiopia should abandon this strategy of getting FDI?

Not necessarily because it is a good strategy in general. The devil lies in the details. With a couple of twists and improvements, this strategy can potentially aid the growth of its economy. For example, the Ethiopian authorities can demand that these foreign firms bear the costs of the displacements. With a bit of negotiating skills, they can get these firms to build new villages complete with basic facilities such as schools and medical centres. They can also persuade the firms to hire the locals to work in their farms. In response to the claims that foods are not reaching the Ethiopians, the authorities can work out some mutually beneficial agreements where the Ethiopians get access to food grown in their country and the firms do not incur any losses.

There are other countless possibilities to turn this strategy into one that is more inclusive towards the Ethiopian society. What we see now is the results of Ethiopian authorities who are not assertive enough to fight for the rights of their citizens, not a fundamental flaw in the strategy.