Investment in agriculture and food systems is essential for achieving food security and adequate nutrition. Lack of investment in agriculture over decades has led to low productivity and inefficient food systems in many developing countries. In recent years, apparently “vacant” or “underutilized” land in developing countries has attracted national and international investors resulting in the transfer of ownership of vast amounts of land, based upon the promise of jobs, infrastructure development, access to markets and increased food production. Yet experience has shown that many of these benefits have failed to materialize. Transaction prices and rental levels are often minimal and have encouraged widespread speculation with little or no development taking place; jobs are often seasonal and poorly paid, infrastructure development has been insubstantial; and food production, where it has increased, has often failed to reach local markets. Of even greater significance are the negative impacts that can be caused by these investments. Legitimate tenure rights have been overridden, families have lost their homes and livelihoods, in some cases environmental damage has taken place and disputes over tenure rights have escalated to violent conflicts resulting in deaths and political unrest.

Weak government policy, legal frameworks and institutions have played a significant part in this failure. Countries striving to transition into developed market economies have struggled with the complex requirements of modern land governance systems. Despite often ambitious economic development plans, many countries are constrained by historic land policies and laws, insufficient budgets, low professional and technical capacities, conflicting institutional responsibilities and resistance to change by local elites.

The endorsement of the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (VGGT) in May 2012 provided, for the first time, a reference point to guide governments towards the responsible and sustainable management of their country’s natural resources. It achieves this by promoting the application of globally recognized principles at the national level, based upon the recognition and protection of legitimate tenure rights, multistakeholder consultation and safeguarding vulnerable groups and the environment.

This technical guide elaborates on specific aspects of the VGGT relating to agricultural investments by providing detailed guidance to government authorities and others on actions they can take to help them to create an enabling environment for responsible and sustainable investments. In following this guidance and applying the principles of the VGGT, governments will be more likely to achieve their economic development goals by maximizing the shared benefits of both private and public investments and mitigating negative impacts. In addition, by creating incentives for inclusive business models that share value with local farmers and that do not imply the transfer of large areas of land, governments will be instrumental in achieving better living conditions and greater social justice for their people – a prerequisite for peace and stability.