Profit at the Expense of Local Communities and the Environment: A Firm Level Analysis of the Impact of Birr Farm Investment On The Local Communities, Amhara Region, Ethiopia
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Date
2019-06
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Addis Ababa University
Abstract
Significant increments of Large-Scale Agricultural Investments in Ethiopia were sparked in this
past decade primarily ignited by the world food price crisis in 2007/8. Agricultural investments
commenced following this year were hoped by both the government and investors to provide
decent employment, transferring technology, food security and infrastructure development to the
local communities. However, allocations have been subject to controversy in terms of negative
impacts on rights and livelihoods of local communities as confirmed by most researchers
interested on this.
Yet, while full effects of such investments may materialize many years after their establishment,
there is a dearth of literature that examine the effects of long-established farm investments in
Ethiopia. Given this and many other concerns, this study examined the impact of one of the longestablished
farm investments in Ethiopia, Birr Farm Investment. In so doing, the study has
adopted sustainability as a theoretical framework and employed qualitative research approach.
Data were collected from Federal level institutions, Woreda and communities in the vicinity of
the farm using FGDs, interviews, and observations as principal data collection instruments. The
study has also made use of secondary data that were crucial for this study.
The study found out that Birr farm investment has little meaningful effect in terms of
employment, technology transfer and infrastructural development. Livelihoods of local
communities are being jeopardized by the farm investment, at the same time; resistances from
the local communities are adversely affecting the farm investment. Examination of working
conditions and welfare system inside Birr farm also revealed that profit motive attitude of the
investment has kept workers in the vicious cycle of poverty and the violation of basic human
rights as well. Furthermore, massive impacts on the environment were also noted. Hardly any
positive effects on the ground by Birr farm investment has been found in this study. From a
sustainability perspective, this study underscores the need to take into account the impact of
farm investments upon local communities rights, livelihoods and the environment. The need to tie
down investors with contractual obligations to deliver social services and regular monitoring
and evaluation of such investments to employ sustainable agricultural investing is also
emphasized.
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Profit at the Expense of Local Communities and the Environment: A Firm Level Analysis of the Impact of Birr Farm Investment On The Local Communities, Amhara Region, Ethiopia