Agricultural outsourcing : a two-headed coin?Agricultural outsourcing : a two-headed coin?
Faculty of Applied Economics
Faculty of Law
Faculteit Toegepaste Economische Wetenschappen
Global and planetary change. - Amsterdam
100(2013), p. 20-27
Since two decades ago, when China's economic strength has made this most populated country as a leading global agricultural outsourcer, there have increasingly been hot debates on whether such outsourcing is destructive or constructive, especially for host countries. Some critics pessimistically call it land grabs or neocolonialism that should be prevented while others optimistically appreciate it as a development opportunity that should be promoted. The first group interprets the outsourcing as a winloss process while the second considers it as a winwin deal. This study tries to show the possible gains and losses of both outsourcers and host countries. Accordingly, this paper introduces four different situations; i.e. lossloss; winloss; losswin; and winwin. The first situation is understood as a red-deal which should urgently be stopped. The second and third situations are called yellow-deal which should be adjusted to come up with the last situation which we call green-deal that addresses the benefits of both outsourcers and outsourcees. The paper concludes that in order to understand the main impacts of such deals, we still need to create more evidence for each situation in the framework of a series of risk assessment studies on the bases of both country-case and crop-case.