Trends and impacts of foreign investment in developing country agriculture: evidence from case studies

Substantial increases in agricultural investments in developing countries are needed to combat poverty and realize food security and nutrition goals. There is evidence that agricultural investments can generate a wide range of developmental benefits, but these benefits cannot be expected to arise automatically and some forms of large-scale investment carry risks for host countries. Although there has been much debate about the potential benefits and risks of international investment, there is no systematic evidence on the actual impacts on the host country and their determinants. In order to acquire an in-depth understanding of potential benefits, constraints and costs of foreign investment in agriculture and of the business models that are more conducive to development, FAO has undertaken research in developing countries. The research aims to provide better knowledge on the trends and impacts of foreign direct investment on host communities and countries, to gather evidence on inclusive business models, to identify good practices and to develop guidance for host governments.