walden bello on small farmers and free trade:
In advanced capitalist countries like the United States, a deadly combination of economies of scale, capital-intensive technology, and the market led to large corporations cornering agricultural production and processing. Small and medium farms were relegated to a marginal role in production and a minuscule portion of the work force.
(...) The Soviet Union, meanwhile, took to heart Karl Marx's snide remarks about the “idiocy of rural life” and, through state repression, transformed farmers into workers on collective farms. Expropriation of the peasants' surplus production was meant not only to feed the cities but also to serve as the source of the so-called “primitive accumulation” of capital for industrialization.
(...) Asian governments placed the burden of industrialization on the peasantry during the phase of so-called developmentalist, industry-first policies. In Taiwan and South Korea, land reform first triggered prosperity in the countryside in the 1950s, stimulating industrialization. But with the shift to export-led industrialization in 1965, there was demand for low-wage industrial labor, so government policies deliberately depressed prices of agricultural goods. In this way, peasants subsidized the emergence of Newly Industrializing Economies. Peasant incomes declined relative to urban incomes, and the resulting stagnation of a once-vibrant countryside led to massive migration to the cities and a steady supply of cheap labor for factories.
(...) In China, millions of peasants died of starvation during the Great Leap Forward as the government requisitioned grain surplus to finance Mao Zedong's super-industrialization drive. The chaos of the Cultural Revolution allowed peasants to regain a degree of control over production because the government was in crisis. Following the death of Mao in 1976, Deng Xiaoping dealt with the crisis by introducing the “household contract responsibility system.” Each family was given a piece of land to farm, along with the right to sell what was left over after a fixed proportion of the produce was sold to the government at a state-determined price. This led to peasant prosperity that, as in Taiwan, stimulated industrial production to fulfill rural demand.
(...) Currently, the various tiers of the Chinese government foist a total of 269 different taxes on farmers, along with often-arbitrary administrative charges. Not surprisingly, in many places, taxes now eat up 15% of farmers' income, three times the official national limit of 5%. Not surprisingly, too, while the economy has been growing at 8-10% a year, peasant income has stagnated, so that urban dwellers now have, on average, six times the income of peasants. True indeed is the observation of the rural advocates Chen Guidi and Wu Chuntao that the urban industrial economy has been built “on the shoulders of peasants.”
(...) The forcing of peasants to subsidize industrialization was indeed harsh. But at least trade policies at the time helped to mitigate the pain by barring agricultural imports that were even cheaper than local commodities. Practically all Asian countries with agricultural sectors tightly controlled imports via quotas and high tariffs. This protective shield, however, was severely eroded when countries signed the Agreement on Agriculture (AOA) and began joining the World Trade Organization (WTO) starting in 1995.
(...) As a result, the level of subsidization of agriculture actually increased in developed countries in the first decade of the WTO. The total amount of agricultural subsidies provided by the OECD's member governments rose from $182 billion in 1995 to $280 billion in 1997, $315 billion in 2001, $318 billion in 2002, and almost $300 billion in 2005. The United States and the European Union (EU) were spending $9-10 billion more on subsidies in the early 2000s than they were a decade earlier. For every $100 of agro-exports from the United States, government subsidies accounted for $20-30. In the case of the EU, the figure was $40-50. While unsubsidized smallholders in the developing world had to survive on less than $400 a year, American and European farmers were receiving, respectively, an average of $21,000 and $16,000 a year in subsidies.
(...) As the Food and Agricultural Organization (FAO) notes, instantaneous import surges following the adoption of the AOA in a number of developing countries led to “consequential difficulties” for “import-competing industries.” The report continued, “Without adequate market protection, accompanied by development programs, many more domestic products would be displaced, or undermined sharply, leading to a transformation of domestic diets and to increased dependence on imported foods.” This historic shift to dependence on food imports was, needless to say, accompanied by the displacement of millions of peasants.
(...) In China, tens of thousands of farmers, including those growing soybeans and cotton, have been marginalized with China's entry into the WTO. Indeed, to maintain and increase access for its manufacturers to developed countries, the government has chosen to sacrifice its farmers.
(...) In India, tariff liberalization, even in advance of WTO commitments, has translated into a profound crisis in the countryside. Indian economist Utsa Patnaik has described the calamity as “a collapse in rural livelihoods and incomes” owing to the steep fall in the prices of farm products. Along with this has come a rapid decline in consumption of food grains, with the average Indian family of four consuming 76 kg less in 2003 compared to 1998 and 88 kg less than a decade earlier. The state of Andra Pradesh, which has become a byword for agrarian distress owing to trade liberalization, saw a catastrophic rise in farmers' suicides from 233 in 1998 to over 2,600 in 2002. One estimate is that some 100,000 farmers in India have taken their lives owing to collapsing prices stemming from rising imports.
(...) India's rural electoral revolt was part of a global phenomenon that put governments on notice that the countryside would no longer accept policies that sacrifice farmer interests. In Asia, protests in the form of land occupations, hunger strikes, violent demonstrations, and symbolic suicides made rural distress a pressing issue. In China, what the Ministry of Public Security calls “mass group incidents” -- in other words, protest actions -- increased from 8,700 in 1993 to 87,000 in 2005, most of them in the countryside. Moreover, the incidents are growing in average size, from 10 or fewer persons in the mid-1990s to 52 people per incident in 2004. Not surprisingly, the current leadership increasingly sees the countryside as a powder keg that needs to be defused.
(...) Committed under a banner that read “WTO Kills Farmers,” Lee's suicide was designed to draw international attention to the number of suicides by farmers in countries subjected to liberalization. He succeeded only too well. The event shocked the WTO delegates, who observed a minute of silence in Lee's memory. By adding to what was already a charged atmosphere, Lee’s act was certainly a key factor in the unraveling of the talks.
(...) Both Lee and the Korean farmers protesting in Hong Kong were members of Via Campesina, an international federation of farmers established in the mid-1990s. Since its founding, Via Campesina -- literally translated as the Peasants' Path -- has become known as one of the most militant opponents of the WTO and bilateral and multilateral free trade agreements.
(...) The main battle cry of Via Campesina, whose coordinating center is located in Indonesia, is “WTO Out of Agriculture” and its alternative program is food sovereignty. Food sovereignty means first and foremost the immediate adoption of policies that favor small producers. This would include, according to Indonesian farmer Henry Saragih, Via's coordinator, and Ahmad Ya'kub, Deputy for Policy Studies of the Indonesian Peasant Union Federation (FSPI), “the protection of the domestic market from low-priced imports, remunerative prices for all farmers and fishers, abolition of all direct and indirect export subsidies, and the phasing out of domestic subsidies that promote unsustainable agriculture.”
(...) his is why Jose Bove's justification for dismantling a MacDonald's resonated widely in Asia: “When we said we would protest by dismantling the half-built McDonald's in our town, everybody understood why -- the symbolism was so strong. It was for proper food against malbouffe [awful standardized food], agricultural workers against multinationals. The extreme right and other nationalists tried to make out it was anti-Americanism, but the vast majority knew it was no such thing. It was a protest against a form of production that wants to dominate the world.”
(...) Many economists, technocrats, policymakers, and urban intellectuals have long viewed small farmers as a doomed class. Once regarded as passive objects to be manipulated by elites, they are now resisting the capitalist, socialist, and developmentalist paradigms that would consign them to ruin. They have become what Karl Marx described as a politically conscious “class-for-itself.” And even as peasants refuse to “go gently into that good night,” to borrow a line from Dylan Thomas, developments in the 21st century are revealing traditional pro-development visions to be deeply flawed. The escalating protests of peasant groups such as Via Campesina, are not a return to the past. As environmental crises multiply and the social dysfunctions of urban-industrial life pile up, the farmers' movement has relevance not only to peasants but to everyone who is threatened by the catastrophic consequences of obsolete modernist paradigms for organizing production, community, and life.
(...)