Food scare sparks Third World land rush

Foreign investment may result in improved productivity and more income for residents, said the report, but it also can be seen as an intrusion and a threat to local food output.

An attempt by a South Korean company to buy 1.3 million hectares in Madagascar "reportedly played a role in the political conflicts" before a government overthrow last month, the report said.

IFPRI recommended a code of conduct for investors and host governments.

"Free, prior and informed consent is the standard to be upheld" in deal-making, said the report, with "particular efforts" towards fair treatment of land users who have traditional access to land but do not own it.

The World Bank has said it will soon publish guidelines to help investors and countries make mutually beneficial deals.

"The majority of agricultural land in Africa is not titled," said Ruth Meinzen-Dick, a senior research fellow at IFPRI. "If these rights are not respected in these transactions, the livelihoods of millions of people will be put at risk."

The report is available in full at www.ifpri.org

(Reporting by Charles Abbott; Editing by Christian Wiessner)