Presentation by Graham Dixie (GROW Asia) for the Second Regional Land Forum, 2018

1. ASEAN Guidelines on Promoting Responsible
Investment in Food, Agriculture and Forestry
Bangkok, 29 May

2. Objective
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To create a reference point
which becomes the foundation
for more inclusive business
models by larger scale
agricultural investors in the
ASEAN region

3.  High risk investments
 Particular causes of failure
 Differences between business models,
 Some investments transformational
 Loss = irresponsible, Profit  responsible
 Established & profitable = communities supportive
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Distilled Lessons from 178 agribusiness investments
over 50 years in Africa and Asia

4. Range of perceptions by surrounding community.
Share of positive / negative impacts +3 : -1
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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Investor
Positive impact Negative impact
Average= 73%

5. Positives = jobs, markets, infrastructure, outgrowers,
Pain = Land, followed by environmental issues

6. Investment
The
challenges
Food security
Land rights
Jobs & livelihoods
Climate change & environment
Government capacity
Project failure & investor-state
contracts
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7. Focus and
scope of the
guidelines
 Lessons
 technology & innovation
 climate change & natural disasters
 regional approaches
 home/host country dimensions
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Consistent with CFS-RAI, adapted to
ASEAN – emphasis on:

8. Focus and
scope of the
guidelines
 Large-scale private sector investment,
 SMEs participation
 Addressed to AMS govts
 Plus responsibilities other actors.
 WHAT (principles) & HOW (action)
8Key considerations include:

9. Overview of the guidelines
1. Food security, food safety &
nutrition
2. Economic development &
poverty eradication
3. Women & young people
4. Tenure
5. Natural resources & forests
6. Technology
7. Climate change & natural
disasters
8. Governance & rule of law
9. Assessing impacts &
accountability
10. Regional approaches
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10. Roles and
responsibilities
of other
stakeholders
Large-scale investors / Agribusinesses
Smallholders and SMEs
Communities
Civil Society
Financial sector actors
Home states
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11. 11
Multiple Revisions &
Refinements
1st Public
Consultation
2nd Public
Consultation
1st AMS
Consultation
Agri
Committee
Review
SOM
Review
AMAF
Adopt
Longer Term Funding
Awareness Capacity
Building
SDC & WB Funding
ASEAN Process and Timetable

12. Thank you
questions, comments, feedback?
For a copy of the guidelines, please email:
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13.  Level of risks is very high – especially for green field sites, 7-9 years to
play out, often bought & sold many times
 Causes of failure – Flawed concept, bad management and issues – that
are beyond the control of the investor
 Significant differences between business models, Out growers & large
farms the most risky, next processing operations. Nucleus Estates the least
because the business model well understood, and limited processed
crops
 A small proportion of large scale agribusiness investments can be
transformational
 When established & profitable the opinions of surrounding communities
is supportive
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Distilled Lessons from 178 agribusiness investments over 50
years in Africa and Asia