Land grabbing as a symptom of state dysfunctionality

In the last fi ve years we are witnessing a new trend in the global economy, in relation to the rural land trade on the international market, defi ned as land grabbing. The buyers are represented by rich well organized states and the sellers are failed states of Africa, Asia and Latin America. This new type of business is in relation to a very high level of instability of the World economy. It leads to continues changes of the institutional framework manifested by a lack of regulations and a monitoring system.This in turn creates moral hazard performed by countries-buyers. Such transactions take a form of neo colonialism. It’s a situation where one party deliberately takes advantage of the weakness of the other. Disfunctionality of the seller is used for maximizing profi ts of the buyer. This chapter presents case studies which are exemplifi cation of the phenomena of land grabbing