Облік і фінанси (Dec 2021)
Responsible Land-Based Investment in Ukraine: International Regulatory Practice
Abstract
In 2021, a free agricultural land market was opened in Ukraine. So, an increase in investments in the acquisition of agricultural land in Ukraine is expected, which actualizes social problems, particularly guaranteeing the rights of peasants, small producers and small farmers, vulnerable groups of the population, women, and rural youth to own and use land. The risks of land investments for the Ukrainian economy are associated with the loss of a small landowner, the displacement of the farming system, an increase in rural unemployment, violation of the rights of rural communities, and the destruction of the rural living environment. The purpose of the study is to substantiate recommendations for Ukraine based on an analysis of international experience in regulating the processes of attracting responsible land investment and highlighting the basic principles of responsible investment in agriculture and food systems. The main international documents on responsible investments in the implementation of large-scale land projects were analyzed. It has been established that foreign investment in land tenure and land use in Ukraine is associated with high demand due to the availability of supply of agricultural land and the opening of a land sale and purchase market, the transformation of natural resources into commercial assets, a corruption component, and uncertainty with the value of the land. The necessity of the following steps has been substantiated: а) development of recommendations for responsible investment in land tenure and land use; b) introduction of the concept of “responsible land investment” into the national legislative field; c) development of a system for regulating investment activity based on international standards. The author suggested recognizing family farmers, small owners, and small producers, especially women, rural youth, rural residents, as the main responsible investors in the field of land use in Ukraine.
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