1. 1 Landesa theory of change Large Scale Land Acquisition in China: A Tale of Two Companies Li Ping The World Bank Land and Poverty Conference March 25, 2014

2. Landesa’s Work Founded in 1967 by Roy Prosterman Landesa works to secure land rights for the world’s poorest people Partner with developing country governments to design and implement laws, policies, and programs concerning land that provide opportunity, further economic growth, and promote social justice Worked in more than 50 countries and helped 400 million people obtain secure land rights Offices in the U.S., China and India 2

3. 3 Landesa theory of change Overview General Information Fieldwork brief Fieldwork findings Lessons learned

4. 4 Landesa theory of change General Information Demographic data –Rural population: 700 million –Forest landholding per forest farmer: 0.25 ha –Income per forest farmer: $708 (2010) –Income per forest farmer from forest operation: $107 (2010) The twin-track property regime –Collective (or community) ownership –Individual use rights to collectively owned land Individual rights to collective forestland –Legally defined as property rights –For 70 years –Almost full bundle of rights

5. 5 Landesa theory of change General Information Stora Enso – 33,000 ha from farmers in Guangxi, 2002-2009 APP – 700,000 ha from farmers in Yunnan, 2003-2005

6. 6 Landesa theory of change Fieldwork Brief Around 100 farmers in 32 villages of three counties in two provinces –Stora Enso in 12 villages –APP in 20 villages Rapid rural appraisal –Semi-structured –No official present at the interview session

7. 7 Landesa theory of change Fieldwork Findings Strong government intervention + the company staying behind –Stora Enso: Government as the direct acquirer –APP: Government as the front runner of acquisition race Coercive acquisition –Stora Enso: Political pressure, armed police, arrest of contested farmers –APP: Threats, level-by-level admin pressure Universal ignorance of FPIC –Stora Enso: Superficial consultation, no knowledge of transfer terms, no access to the acquisition contract –APP: Merely notification of predetermined terms

8. 8 Landesa theory of change Fieldwork Findings Unfair deals –Stora Enso rental: At least 12 times lower than annual income from the land if not acquired –APP rental: At least 185 times lower than annual income from the land if not acquired, or 10-30 times lower than market rent Ignorance of women and indigenous land rights –Stora Enso: Women’s land rights –APP: Indigenous land rights Farmers’ perception of corporate land acquisition –Stora Enso: Renegotiation of deals –APP: Take the land back

9. 9 Landesa theory of change Fieldwork Findings Lack of effective mechanism to address grievances –Stora Enso: There is a mechanism, but not functional –APP: No mechanism at all Institutions to cure defects of acquisition –Stora Enso: A contract screening and correction mechanism –APP: To be developed

10. 10 Landesa theory of change Lessons Learned LSLBI tends to jeopardize farmers’ property interest in land Government intervention, although saving costs for the company, works to the long-term detriment of the company FPIC may function as a useful buffer if fully enforced CSR is good, but market rules are even more important A functional mechanism to address post-acquisition grievances is a must

11. 11 Landesa theory of change Thank you