International Land Acquisitions and Hal Varian’s Concept of Fairness

Prices of, specifically, primary foods spiked during the global food crisis of 2007–2008. This motivated governments with food security concerns and profit-seeking investors to engage in large-scale land acquisitions (LSLA) in mainly least developed countries (LDCs). In economic terms, this reaction is desirable for two reasons: (1) more efficient production lowers food prices and increased food production improves food security; on the other hand, (2) least developed host countries benefit from development opportunities. Drawing on Hal Varian’s (1974) concept of fairness, this article contributes an ethical perspective on the matter: particularly based on the analysis of 81 investment contracts, this partial analysis understands LSLA into Sub Saharan LDCs as a socio-economic reform. It focuses only on two affected groups when land is redistributed from LDCs’ local smallholders to foreign investors. It concludes that LSLA predominantly contradict Varian’s concept in practice as they hardly if at all improve the situation of local smallholders who might in extreme cases even suffer human rights violations.