Blazing a trail towards responsible investment

The world's population is growing, along with the global demand for food. Additional investment in agriculture is needed to address this challenge. And the decisions made here have far-reaching implications given that short-term, unsustainable investments can exacerbate the problems of hunger, poverty and climate disasters. To prevent the latter from happening, the United Nations Committee on World Food Security (CFS) endorsed the Principles for Responsible Investment in Agriculture and Food Systems in 2014. They are primarily intended to serve as guidance for governments and private investors, helping them ensure that the investments made in their countries are sustainable and that priority is given to the food security of the poorest.

The ten points include guidelines on respecting land tenure and land use rights when making investments: these are intended to protect smallholders against unfair land grabbing. Empowering women and young people involved in agriculture, and climate protection measures also feature.

Switzerland chaired the negotiations in Rome in 2012. "Developing principles like these was a real milestone," says Christina Blank of the SDC, who headed the working group in Rome. "But once that had been achieved, we had to ask ourselves how this global framework could be put into practice to ensure it ultimately benefited the most vulnerable sections of the population." Although the principles are recognised worldwide, they are voluntary and not legally binding.

That is why awareness especially needs to be raised among members of governments and parliaments, the legal framework for agricultural investments in developing countries must be strengthened and the private sector addressed. Switzerland is one of the countries that is strongly committed to implementing the principles. To this end, it works closely with the International Institute for Sustainable Development (IISD), an international think tank dedicated to sustainable development governance. Among other things, it advises and trains government representatives and parliamentarians from countries of the Global South in putting the CFS principles into practice.

Sean Woolfrey, a senior adviser at the IISD, explains: "We develop legal and policy instruments, such as model agreements, with which government representatives can ensure that private investment is socially and environmentally responsible."

This may sound dull, but it can influence groundbreaking decisions, as an example from Burkina Faso shows. In 2018, the country adopted a new Agricultural Investment Code aimed at promoting responsible investment in livestock, fisheries, forestry and animal husbandry. Together with local partners, the IISD advised Burkina Faso's Ministry of Agriculture and Food Security on drafting this new law and ensured that it complies with the CFS principles. It also made recommendations, in particular regarding investors' rights and obligations and the management of natural resources, which were incorporated into the wording of the Code.

While the IISD provides legal support to government representatives, it also wants to raise awareness at the parliamentary level. "Once members of a parliament have understood why responsible investment in agriculture is important and what it involves, they are more willing to push their governments to improve the laws," says Woolfrey.

That's why the IISD joined forces with the Food and Agriculture Organization of the United Nations (FAO) to develop a practical handbook for parliamentarians that serves as a guide to responsible investment in agriculture. It also helped establish the ECOWAS Network of Parliamentarians that seeks to promote gender equality and sustainable investment in agriculture and food systems in West Africa.

One of the conclusions reached by Woolfrey in recent years is that "although the guidelines are universal, it's still helpful to adapt them to different contexts." Thus, with the support of the SDC, the FAO and Grow Asia, the IISD was involved in developing the ASEAN guidelines for Asian countries, the first regional version of the CFS principles. Following adoption of the guidelines, it has been working with the governments of ASEAN member states, the private sector and civil society on putting them into practice.

However, Woolfrey admits that fully implementing the guidelines will be a long process. "In some cases, the results of our work will only become apparent years later, for example when a government has passed a new law or successfully negotiated with private investors." But he is convinced that "investing in a sound legal and policy framework leads to long-term success."