A Thirst for Distant Lands

The report examines the rise of foreign land and water acquisitions driven by food, energy, and water security concerns. It highlights a shift from market-driven comparative advantage to 'long-distance farming' to meet home-state needs. The authors analyze how the interaction between domestic law, international investment contracts, and international investment agreements (IIAs) often prioritizes foreign investor rights over local users and sustainable development goals, potentially limiting host governments' ability to regulate for public health, environment, or food security.

• The recent surge in foreign agricultural investment is driven by short-term factors such as the 2008 global food price spikes and export restrictions by 25 countries, as well as long-term concerns regarding food, energy, and water security.
• Water access is a primary driver for these investments, as investors seek to lock in water resources in regions perceived to have surpluses, such as Sub-Saharan Africa, while water-scarce regions like the Gulf states phase out domestic production to preserve reserves.
• Current trends indicate a shift toward 'long-distance farming' where land and water are commodified to meet the home state's needs rather than seeking comparative advantage for global markets, often involving lease periods of 50–99 years and acquisitions exceeding 10,000 hectares.
• There is a critical lack of transparency and public access to actual investment contracts, which undermines government accountability and raises concerns regarding human rights to information and an adequate standard of living.
• The legal framework for these investments often creates a 'layering' effect where international investment agreements (IIAs) and contracts provide 'hard rights' for foreign investors that may prevail over the vague or non-existent land and water rights of local users.
• Stabilization clauses in investment contracts can preclude the application of new regulatory measures or require compensation for them, effectively turning the exercise of normal regulatory powers into a breach of international law.
• International Investment Agreements (IIAs) may prohibit 'performance requirements,' which can prevent host states from imposing obligations on investors to contribute to local community development, such as hiring local workers or sharing revenues.
• Host governments face legal risks under investor-state arbitration if they implement trade measures, such as food export restrictions during a crisis, especially if such measures conflict with contract provisions or IIA protections.

APA

Smaller, C., & Mann, H. (2009). A Thirst for Distant Lands. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/thirst_for_distant_lands.pdf

Chicago

Smaller, Carin, and Howard Mann. A Thirst for Distant Lands. International Institute for Sustainable Development, 2009. https://www.iisd.org/system/files/publications/thirst_for_distant_lands.pdf.

Wikipedia

{{cite report |last1=Smaller |first1=Carin |last2=Mann |first2=Howard |title=A Thirst for Distant Lands |publisher=International Institute for Sustainable Development |date=May 2009 |url=https://www.iisd.org/system/files/publications/thirst_for_distant_lands.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{smaller2009thirst, author = {Smaller, Carin and Mann, Howard}, title = {{A Thirst for Distant Lands}}, institution = {International Institute for Sustainable Development}, year = {2009}, month = may, url = {https://www.iisd.org/system/files/publications/thirst_for_distant_lands.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }