collected snippets of immediate importance...


Showing posts with label agribusiness. Show all posts
Showing posts with label agribusiness. Show all posts

Sunday, April 25, 2010

The trouble with a mandate for GM crops is this: it won't work. A recent report by the Union of Concerned Scientists demonstrates that GM crops don't increase crop yields. USAID has already spent millions of taxpayer dollars developing GM crops over the past two decades, without a single success story to show for it, and plenty of failures. A recent, highly touted partnership between USAID and Monsanto to develop a virus-resistant sweet potato in Kenya failed to deliver anything useful for farmers. After 14 years and $6 million, local varieties vastly outperformed their genetically modified cousins in field trials. Another 10-year USAID project for GM eggplant in India recently met with such outcry -- from scientists and Indian farmers alike -- that the government put a moratorium on its release. Growing insect resistance to genetically modified cotton and corn shows that the technology is already failing farmers and will continue to fail over the long term. Sadly, today's GM obsession shows every indication of duplicating the first ill-fated "Green Revolution" that trapped millions of farmers on a pesticide treadmill while devastating the functioning of the ecosystems on which we depend.

Wednesday, June 17, 2009

Henry Berstein, "V.I. Lenin and A.V. Chayanov: looking back, looking forward"
Journal of Peasant Studies, January 2009

And politics? The political economy in this paper is not deployed in any ‘antipeasant’ spirit or prescriptive stance on petty commodity production. Nor do any of my observations suggest withdrawing political sympathy and support for progressive struggles because they fail to satisfy the demands of an idealised (class-purist or other) model of political action. Rather, I have suggested that part of the problem with the ‘new’ agrarian question sketched is how it posits a unitary and idealised, and ostensibly world-historical, ‘subject’: ‘farmers’ or ‘peasants’ or ‘people of the land’. The point, then, is first, to recognise and, second, to be able to analyse, the contradictory sources and impulses – and typically multi-class character – of contemporary struggles over land and ways of farming that can inform a realistic and politically responsible assessment of them. This means rising to the challenges posed by a re-energised and radical agrarian populism, to engage both seriously and critically with the agrarian movements of the present time, and thereby to recover the spirit of Lenin’s ‘fresh and creative impulses’ of the early 1920s, and of Chayanov’s contributions to ‘practical theory’.

Wednesday, April 29, 2009

In 1965, for instance, there were 53 million American hogs on more than 1 million farms; today, 65 million hogs are concentrated in 65,000 facilities, with half of the hogs kept in giant facilities with 5,000 animals or more.
(...) But what matters more (especially given the continued threat of H5N1) is the larger configuration: the WHO's failed pandemic strategy, the further decline of world public health, the stranglehold of Big Pharma over lifeline medicines, and the planetary catastrophe of industrialized and ecologically unhinged livestock production.

Tuesday, December 2, 2008

notes on capital
chapter 25: the general law of capitalist accumulation

(763-764): a passage critically important to the question of marx's position on absolute immiseration. ceteris paribus, marx is suggesting that periods of buyoant capitalist growth will lead to increased wages, precisely because growth in capitalist demand for labor-power will outstrip the natural growth of its supply. KEY, again, to note that this explains the narrative of the apologists, without becoming it. for first, this eventuality is highly contingent, and can be combated by variegated tactics on the part of capital (in particular, agitating for artificial growth in labor supply through immigration). secondly, it is periodic--in other words, prone to the contradictions of capitalism, more generally. (note, it may make less sense to separate these two points theoretically, than it does in terms of the presentation. that question, perhaps, depends on how one wants to understand the relation of systemic ebbs and flows to class agency). perhaps most importantly, marx is also calling attention to the contradictions immanent in expansive capitalism--namely, that it cements more widely labor's "enslavement to capital... accumulation of capital is therefore multiplication of the proletariat" as oppressed soul.

(766): in passing, it needs to be made explicit that this discussion for the need of an ever-larger permanent "underclass" is a direct response to malthus' "principle of population." (see FN 6)

(769): on the golden chain in the golden age: "a rise in the price of labor, as a consequence of the accumulation of capital, only means in fact that the length and weight of the golden chain the wage-laborer has already forged for himself [sic] is loosened somewhat."

(769): in essence, marx is demanding that we orient our analysis around "the absolute law" of capitalist production: the production of surplus-value. in this sense, the imperfections of the apologists' narrative can themselves be systematized and made coherent. the abiding question, of course, is how we retain this analysis in the face of the alleged success of Capital in the golden age. in other words, that question, again, of whether capitalism has proved more resilient than marx imagined. though i think 1968 often puts paid to those questions, no?

(770): constructing the rate of accumulation as always the independent variable--in this sense, while exploding malthus' principle, marx is, more generally, endeavoring to demonstrate the contingency of all dynamics putatively "natural."

(771): lambasting the currency school, but revealing, in the process, the contingency of his own analysis. for it is certain that monetary phenomenon have become more central to the dynamics of 21st century capitalism--how do we integrate that fact into his argument here? and still, i am tempted to suggest that his scorn here can show the way toward more holistic analyses of the monetary world.

(771-772): the critical passage: roughly, marx is suggesting that the process of capital accumulation, and the process of the growth of the working-class, cannot be theorized independently. rather, the latter follows the ebbs and flows of the former. in the sense that, if capital accumulation proceeds swimmingly, capital requires (by demanding) more laborers at factories (more hands needed to utilize additional capacity, to valorize the additional capital). if, however, profits are low and accumulation is stop-start or stagnant, capitalism corrects itself--a comparatively smaller amount of "paid" labor is needed as a consequence of the slow-down, and wages fall (because labor supply now exceeds demand). [reminder: this is all a "special case", in that marx has not introduced the notion of the decline in the composition of capital]

(772): "just as man is governed, in religion, by the products of his own brain, so, in capitalist production, he is governed by the products of his own hand."

(773): this commitment to complicate the relationship between the extent of the means of production and the increasing productivity of labor--this assertion that the decreasing organic composition of capital is both the cause of as well as the consequence of the increasing productivity of labor--affirms harvey's attempts to foreground marx' refusal to theorize these dynamics in strictly causal terms. the dynamism of a dialectical framework, if invigorated by history and science, refutes the tired positivism of the liberals.

(776): the endlessness, the limitlessness: "every accumulation becomes the means of new accumulation."

(776-777): here, an exposition of the contingent relationship between the proccesses of accumulation and concentration. concentration, marx is arguing, is not a necessary result of the process of accumulation; rather, it can be interrupted and repelled by the intervention of alternative dynamics. though he admits the tendency to concentration (in the sense that these increases in individual capitals are the very bases of the corresponding capitalist enterprises), they meet with limits. here he names two: (1) "the degree of increase of [presumambly others'] social wealth," which i interpret to refer to the competition of other capitalists as well as, perhaps, the increasing demands made by a progressively better-fed, clamoring under-class. and (2) "the part of the social capital domiciled in each particular sphere of production"--in other words, the impact of laws of inheritance and intra-familial competition on individual capitals. none of this, it must be said, contradicts the general readiness to associate accumulation with concentration (see the succeeding paragraph), but, again, it opens up the general theoretical framework to challenges by specific histories (and, in a sense, immunizes it from the entrepreneurial sorts who, while seizing on these various opportunities (or 'moments), inveigh against the "awful universalisms" of marx' analysis). NB: it would be important, i think, to assess all this with more recent theories of monopoly capitalism in mind.

(777): in fact, here marx seems to suggest an alternative term, centralization, in order to refer to the "transformation of many small into few large capitals." while i have always understood this as concentration, this passage defines concentration, instead, as something akin to the consolidation of capitalist relations--i.e., the concentration of the means of production, which begin as scattered in a medley of capitalist and pre-capitalist relations of production (the intermediate forms, let's say), in the hands of individual capitalists. centralization refers to "the next stage", in a very definite sense, where "capital grows to a huge mass in a single hand in one place, because it has been lost by many in another place." needless to say, this triplet of accumulation, concentration, and centralization is critical (but also confusing, given the tendency to use the second to signify the third). (see 779, where engels clarifies the definitions: centralization as concentration in fewer hands, concentration as "another name for reproduction on an extended scale")

(777): barriers to entry, economies of scale--it's all here.

(778-779): further discussion of the triplet. important to complicate my primitive observations above.

(780): centralization as pooling of capitals, not simply cannibalization: "the world would still be without railways if it had had to wait until accumulation had got a few individual capitals far enough to be adequate for the construction of a railway"

(781-782): the dynamics underlying the creation of a "relatively redundant working population"--have to better understand what is necessary and what is contingent in this process. but it is all here, of course.

(782-783): marx here highlights how the pejorative consequences of capitalism's dynamism--the "violent fluctuations"--conspire to produce, "temporarily", a surplus population. importantly, though each of these moments is individually fleeting, their systemic origins means that the assemblage of redundancies they represent is emphatically permanent. it is in the failure to substantively theorize the latter fact, i think, that lies the rub.

(783): the tragedy of simple reproduction: "the working population therefore produces both the accumulation of capital and the means by which it is itself made relatively superfluous; and it does this to an extent which is always increasing"

(784): repudiating, again, malthusian attempts to pinpoint a 'natural' law of population increase. this is, of course, monumentally obvious--one cannot understand the relationship of man to nature (or, rather, humans to their reproduction) without history. but critical to re-assert against the population planners.

(784): the latent question, i suppose, remains: how does one understand the fact of this necessity of an industrial reserve army while also appreciating the fervent honesty of these ideologues fixated on population control? as always, i suspect this is not really a question for the economists, but rather a topic to be tackled by the theorists of conscoiusness. why do well-meaning people hold--really hold--patently mistaken beliefs?

(785-786): here marx mentions the relationship between the formation of this reserve army and the industrial cycle, but not in much detail. there is some confusion, i think, over what he identifies as the independent variable--though perhaps we're moving past causal-talk, in general? (there is much to close-read here, i think--especially in conjunction with volume III)

(786): clearly, these pages lay the groundwork for theorizing emigration in capitalism: while a source of bolstering this reserve army, of course, it interacts in complicated ways with the sanctitiy of identities which sustain capitalist hegemony by feeding forms of false-consciousness. indeed, in the latter dynamic, contradictory forces are at play: on the one hand, the immigration of non-nationals threatens the stability of that national identity (through diffusion, assimilation, cross-national solidarity)--this may be a boon for workers, in a long-term sense, but in the short-term it surely appears as any number of individual injustices ("they're stealing our jobs!"). in this way, it helps divide and rule. on the other hand, the restriction of immigration, marx is pointing out, threatens the very fabric of capitalist production--the existence of a reserve army is foundational to the healthy functioning of the system. this bewildering skein of competing considerations (along with whatever i have ommitted), of course, implies a masterful agency, the likes of which it would impossible to track, i suspect (this, in a sense, is the abiding impression of this section--there is an overriding logic to the system's operation which is at once rational and efficient yet also decidedly destructive and violent (NB: even the former is not at all the neoclassical narrative)).

(788): under capitalism's watch, the 'natural' limits to population growth are malleable, moulded to its aims.

(789-790): overwork and enforced idleness as twin symptoms of the same systemic patterns.

(791-792): an explicit critique of bourgeois analysis, arguing that the ideologues extrapolate from a local rise in wages to claim the infallibility of capitalist production, whereas the pattern really needs to be theorized and understood in the context of its place in the overall assemblage (i.e., its definitively local origins and ramifications--which sphere of production, etc.). in other words, "local oscillations" are mistaken for universal, timeless trends.

(793-794): there are here some interesting (though fragmentary) observations on the process of working-class 'awakening'--not chronologically, exactly, but more systemically. marx speaks also of the role that the iron, objective laws of capital play in stifling this tendency to subjective organization. and where these alliances can't be stifled objectively (and this industrial reserve army formed naturally), he alludes, Capital calls summons the Iron Fist ("forcible means"). (see also 808)

(796): Marx deploys these concepts in order to theorize the migration of masses from rural to urban areas, as "capitalist agriculture takes possession of agriculture." Needless to say, this is immensely relevant to the present plight of the Third World--in fact, the whole dialectics of technology (as presented in this and earlier chapters) presage the approach most suited to tackling the corporatization of rural areas today. We simply must be directly concerned with labor absorption.

(797): "along with the surplus population, pauperism forms a condition of capitalist production, and of the capitalist development of wealth"--it is important to note here that Marx's theory of modern poverty (pauperism under capitalism) is inextricably linked to this fact of the necessity of a relative surplus population. Can our classless neoclassicals even compete?!

(798): a summary of "the absolute general law of capitalist accumulation"

(798): underlying all this is the uneasy question of what an "actually-existing" socialist society might do with the question of population.

(799): an explicit normative appraisal of the situation of the worker in capitalist society: "it follows therefore that in proportion as capital accumulates, the situation of the worker, be his payment high or low, must grow worse." the objections to this claim seem obvious. yet, in marx's defense, one has to (a) situate this in the context of the importance of dialectics to his general argument, and (b) clarify that he is here employing a much more holistic normative measures than GDP/capita allows. Yet perhaps it is important to complicate his observation, not simply empirically but also theoretically?

(799, FN 23): this prefigures the implications of development-of-underdevelopment analyses, insofar as Marx is here emphasizing the 'modernity' of misery and poverty--it is not that these are symptoms of backwardness waiting to be swept away, but rather that they are emphatically 'modern' phenomenon which are indelible features of a modern capitalist economy.

(800): some words from an apologist, who celebrates the parasitism of his ilk: "'it seems to be a law of Nature that the poor should be to a certain degree improvident... that there may always be some to fulfil the most servile, the most sordid, and the most ignoble offices in the community. The stock of human happiness is thereby much increased, whilst the more delicate are not only relieved from drudgery... but are left at liberty without interruption to pursue those callings which are suited to their various dispositions" (Rev. J. Townsend, A Dissertation on the Poor Laws. By a Well-Wisher of Mankind).

(812): prefiguring, in fragmentary form, the relationship between capital accumulation and space--between development and slum-dwelling. the "developing" city has no place for its poor. (in the pages that follow, he explores this in depth--needless to say, on the "planet of slums," the underlying theoretical framework and consequent empirical investigation are both immensely relevant.)

(815): this continues, as Marx substantiates again the claim that the liberal doctrine of equal rights masks the deep asymmetries at the heart of capitalist society: while the rich displaced by railways and industry receive comfort and compensation, the poor working-classes are indicted for crowding in alternate locations as a result!

(822): lest anyone need be reminded, Marx is under no illusions that the industrial working-class is uniform; here he speaks explicitly of an "aristocracy" of the working-class. though this isn't exactly the michael albert objection, this observation suffices, i think, to show that albert battles a straw-man.

(827): whole working families live worse than sailors, soldiers, and even prisoners (this is Belgium, where the State has not yet interfered with the freedom of Capital).

(833): important section for exploring Marx and the agrarian question--other than the fact that he explicitly complicates the narrative of linear progress (not just by highlighting its non-linearity but also by demonstrating its space-less-ness), he here very directly excoriates the effects of 'labor-saving' technologies on the agricultural populations of 18th and 19th century England. (see particularly 848-849, where all this is tied directly to the concept of the relative surplus population--"there are always too many agricultural labourers for the ordinary needs of cultivation, and too few for exceptional and temporary requirements")

(840): reminder that the study of migration is not as simple as the study of the exodus from country to city, but also must theorize the changes occuring within rural areas (be it intra-rural migration or reconfiguration of rural areas)--again, this only re-emphasizes, against the lie of the modernists, the fact that everything is "modern" (backwardness, rurality, etc.).

(861-862): all this is applied specifically to Ireland and the mass emigrations of the mid-19th century--Marx is tracking the growth of the relative surplus population, and the consequences of this process for the average Irish laborer (much of this is the story of the transition, in Ireland, from arable to pasture land--to a less labor-intensive method of production. as Marx puts it, "the revolution in agriculture has kept pace with emigration").

(866): the comparative argument here (between the distinct roles of the surplus agricultural populations in industrial England and agricultural Ireland) begets a further comparison, for the contemporary third world. in Ireland, Marx argues, though the relative surplus population accumulates in the towns, it is constantly needed in the fields (at harvest time or boom time). crudely put, the story of the contemporary third world is not too distinct, with one exception--the agricultural revolution having proceeded farther (the corporatization of farming, etc.) in this day and age, we see instead a burgeoning informal sector (and mass under and un-employment). the similarities are striking, of course: as in 19th century ireland, the relative surplus population in towns across the third world plays a dual role, depresing urban wages while also filling shortages at harvest time (having said that, one needs to think about where, specifically, this labor comes from at harvest time--this can further complicate the schema, requiring a distinct appraisal of emigration to larger and smaller cities). in sum, i suppose, one again needs--as Marx has demonstrated throughout this chapter--a concrete assessment of hard data pertaining to a particular place and time.

Sunday, August 17, 2008

weisbrot on bolivia:
Morales had promised to regain control over the country's hydrocarbon - mostly natural gas - resources. This was accomplished and has brought in an extra $1.5 billion of revenue to the public treasury. (For comparison, imagine an extra $1.6 trillion, or four times the current U.S. federal budget deficit, in the United States.)
(...) These provinces produce about 82 percent of Bolivia's natural gas, and get nearly three times the gas revenue per person as do the other five provinces. The Media Luna states have a per capita income that is about 40 percent higher than the other five states. Their population is also much less indigenous: ranging from 16 percent (Pando) to 38 percent in Santa Cruz, as compared to 66-84 percent in the other states.
(...) The Media Luna states also have the big landholdings that give Bolivia one of the most concentrated land distributions in the entire world. Well under one percent of landowners have two-thirds of the country's farm land. These include the big soybean producers of Santa Cruz, Bolivia's largest province and bulwark of the Media Luna alliance. Some of the big landowners are leaders of the political opposition.
(...) With forty percent of the labor force in agriculture and more than three-quarters of rural Bolivians in poverty, a redistribution of arable land is not only a central demand of the voters, but an important part of an economic development strategy that can boost employment and income in the countryside.

Tuesday, July 1, 2008

the principles of food sovereignty:

So, how do we traverse this jungle? Like all forest dwellers, it is important to equip ourselves with a set of simple guidelines before setting on the journey. In our view, there are five basic guidelines, or principles, that must form the basis of any food policy. These are:

1. The Principle of food sovereignty. This is not the same as “food security”. A country can have food security through food imports. Dependence on food imports is precarious and prone to multiple risks -- from price risks, to supply risks, to conditionality risks (policy conditions that come with food imports). Food sovereignty, on the other hand, implies ensuring domestic production and supply of food. It means that the nationals of the country (or at the very least nationals within the region) must primarily be responsible for ensuring that the nation and the region are first and foremost dependent on their own efforts and resources to grow their basic foods.

2. The Principle of priority of food over export crops produced by small farms sustained by state provision of the necessary infrastructure of financial credit, water, energy, extension service, transport, storage, marketing, and insurance against crop failures due to climate changes or other unforeseen circumstances.

3. The Principle of self-reliance and national ownership and control over the main resources for food production. These are land, seeds, water, energy, essential fertilizers and technology and equipment (for production, harvesting, storage and transport).

4. The Principle of food safety reserves. Each nation must maintain, through primarily domestic production and storage systems (including village storage as well as national silos) sufficient stocks of “reserve foods” to provide for emergencies.

5. The Principle of a fair and equitable distribution of “reserve foods” among the population during emergencies.

Sadly, and with dire consequences, the above quite commonsensical and, we believe, reasonable principles have not been followed by many governments in the South. They have been grossly violated through five main reasons, among other minor ones:

1. Distorted state policies on production and trade (e.g. removal of tariffs that made local producers vulnerable to imported food from rich countries that subsidized their own food production and exports).

2. Land grab by the rich commercial farmers, thus disempowering small producers and rendering them vulnerable to “market attacks.”

3. Effective loss of control over resources of food production, including land (even where nationals “owned” land) because of imported seeds, imported fertilizers, imported machinery, imported technical assistance, and imported banks, and also loss of control over water and energy through surrendering these to foreign corporations attracted by the lure of so-called FDIs (foreign direct investments).

4. Donor aid dependence, and bad advice that came with it from donors including the World Bank and the IMF during the heyday of the “Washington Consensus” (1975-2005).

5. Disruption of the infrastructure of food production (as described above) that came as a consequence of the above four factors.

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(...) It is estimated that up to 15 million Mexican farmers and their families (in particular indigenous peoples) may have been displaced from their livelihoods as a result of the North American Free Trade Agreement (NAFTA) and competition with subsidized American maize.
(...) Just 10 corporations, including Aventis, Monsanto, Pioneer and Syngenta, control one third of the $23 billion commercial seed market and 80% of the $28 billion global pesticide market. Another 10 corporations, including Cargill, control 57% of the total sales of the world's leading 30 retailers and account for 37% of the revenues earned by the world's top 100 food and beverage companies.
(...) In an increasingly liberalizing (globalizing) world, Transnational Corporations (TNCs) have increased their control over the supply of water, especially in the South. In many cases, private sector participation in water services has been one of the “aid conditionalities” of the so-called “donor assistance” (ODAs) from donor countries and the IMF and the World Bank. Just three companies, Veolia Environnement (formerly Vivendi Environnement), Suez Lyonnaise des Eaux and Bechtel (USA), control a majority of private water concessions globally.
(...) The biofuels industry is inherently predatory on land and resources, especially if it is generated out of food such as maize and Soya beans. It is estimated that to produce 50 litres of biofuels to run a car for one day’s long trip or three days city-run, it would consume about 200 kg of maize -- enough to feed one person for one year. This does not even take into account the cost of energy, water and other resources that go into biofuels production.
(...) The heavy production and export subsidies that OECD countries grant their farmers - more than $349 billion in 2006 or almost $1 billion per day - mean that subsidized European fruit, vegetables lower grade meat, and chicken wings can be found in markets all over West Africa at lower prices than local produce.
Those other “Singapore” issues (named after the site of a 1996 WTO summit) include investment protection (so future policies don’t hamper corporate profits), competition policy (to break local large firms up) and government procurement (to end programmes like South Africa’s affirmative action). These were removed from the WTO by African negotiators during the Cancun summit in 2003, but have re-emerged through EPA bilaterals.
According to Gyekye Tanoh of Third World Network in Accra, “The key thing for Mandelson is to gain exclusive preferential market access. Europe is gaining 80% of our markets in exchange for what is effectively just 2% of theirs.”
(...) Already, says Tanoh, “The effect of trade liberalisation on African agriculture is a disaster, with only one sector anticipated to grow: agro-processing. That’s the one that most easily invites European capital to scale up investments in joint ventures. Agricultural output would only increase by 1%, our studies show. But the big contradiction is in the export of cash crops, at a time of severe pressure on food products.”
(...) African farmers’ ability to sell on the local market will be undercut by rapid trade liberalisation that opens the way to surges of cheap, often subsidised imports. Women are most adversely affected.
(...) [delinking] As Walter Rodney observed, “It is typical of underdeveloped economies that they do not -- or are not allowed to -- concentrate on those sectors of the economy which in turn will generate growth and raise production to a new level altogether, and there are very few ties between one sector and another so that, say, agriculture and industry could react beneficially on each other.”
(...) Added Senegalese scholar Cherif Salif Sy, “Most of Africa has an electricity crisis, and yet to get economies of scale for European agro-processing companies if they locate in Dakar, they require vast amounts of electricity. And they come with the power to demand a lower price, which puts much more stress on our grid and causes the price to go up for local buyers, and the supply to be redirected.”
(...) African firms cannot compete in this sector, as they lack the brand names, skills and marketing structures that European companies enjoy. The same firms have also no access to EU support in the forms of straight subsidies, tax incentives, research and development funding or concessional credit.
(...) Rodney might agree, as he criticised “the minority in Africa which serves as the transmission line between the metropolitan capitalists and the dependencies in Africa ... The presence of a group of African sell-outs is part of the definition of underdevelopment. Any diagnosis of underdevelopment in Africa will reveal not just low per capita income and protein deficiencies, but also the gentlemen who dance in Abidjan, Accra and Kinshasa when music is played in Paris, London and New York.” (And now, with EPAs and the WTO, add Brussels and Geneva.)

Saturday, June 28, 2008

africa's unnatural disaster:
The World Bank's continued market fundamentalism is difficult to understand, especially in light of the fact that after more than 25 years of imposing these policies in Africa and Latin America, success stories are few and far between. Those countries that do have productive agricultural sectors (almost none of which are in Africa) either rely on huge landholders to be productive (Brazil, Argentina, Chile) or on massive subsidies (India) or both (U.S., EU). The countries that have eliminated their subsidies and privatized their grain boards, including many in Africa, are those that are doing the poorest.
(...) If one is willing to look at the events of the last 30 years without the quasi-religious belief that free markets lead to development and growth, one would undoubtedly find that the opposite is true. In his groundbreaking work Kicking Away the Ladder (2003), Ha Joon Chang documents the development of every industrialized country, showing that protectionist policies were a fundamental part of development strategy in almost every case. The process of development that emerges from this story is not maximizing comparative advantage (for if so, the U.S. would be a sparsely populated country of fur traders and fisher people) but rather shifting comparative advantage to high value goods through calculated market distortions. In the case of the U.K. and the United States, those market distortions originally came in the form of colonialism and slavery. But market distortions continue in the U.S. today in the form of agriculture and steel subsidies, not to mention the tremendous government spending on biotechnology and defense, which largely serves as a subsidy for those sectors.
(...) The report does point out that a few countries (Brazil and Chile are the examples given) have successfully used agriculture to increase growth, but in Brazil and (to a lesser extent) Chile, small farmers are all but extinct, and agriculture is big business. Given the preoccupation with small farmers and poverty alleviation in other parts of the document, the examples are odd.
(...) Since about 1970, the World Bank, other international financial institutions and the private sector have succeeded in completely transforming agriculture from a primarily local affair to a complex industrialized process. Monocropping, over-reliance on chemical pesticides and fertilizers and trans-genetic manipulation have in some cases increased yields; but these practices have not led to a significant reduction in the number of hungry people in the world. The recommendations of the Alliance for a Green Revolution in Africa and the World Bank amount to insanity - recommending more of the same and expecting better results.
(...) In the United States, Europe and elsewhere, many are beginning to understand that industrialized agriculture benefits neither those who produce nor those who consume food. In the current food crisis, more than 25 countries and the European Union have imposed tariffs, subsidies, price controls or other measures to protect consumers from the global free market. So why the double standard when it comes to Africa?
(...) For those interested in solutions, the organic and local movements aren't far off the mark. What producers and consumers in many parts of the world are beginning to understand is that the way that farmers have been growing food for millennia is more or less a good system. While there may be room for technology, (drip irrigation systems, for example) that innovation should not alter the food product nor add layers of cost. Many parts of Africa have an advantage in that they have never really lost their traditional relationships with the land. The problem has been that cheaper food from Europe and the United States is often dumped on African countries, undercutting the possibility for farmers to earn a living from their production. In the case of Africa, all that may be needed is a sensible trade policy to protect those who already grow enough food for all Africans.

Friday, June 27, 2008

survival of the fattest:
"The United States had doled out $27 billion in federal subsidies to its `farmers' in the last fiscal year. That's Rs. 135,000 crores." Just the top 10 per cent of America's farm owners collared close to two-thirds of this largesse. That includes "multi-million dollar corporations".

(...) The needy farmers thus rescued include media baron Ted Turner, a Rockefeller and other assorted struggling billionaires. Turner is "one of the largest landowners" in the U.S.. He owns ranches in Montana, South Dakota and Florida. And his companies raked in $1,90,000. That's Rs. 95 lakhs. David Rockefeller, who owns a 3,000-acre farm, got $146,000. A modest Rs. 73 lakhs. He is a former Chase Manhattan Bank chairman and grandson of John D.
(...) There were at least 20 "Fortune 500" companies among yet other poor farmers pulled back from the brink. Including Chevron, Caterpillar, IBP and Archer Daniels Midland.
(...) These included, as the AP report written by John Kelly put it: "more than 1,200 universities and government farms, including state prisons". They got cash from programmes "touted by politicians as a way to prop up needy farmers. Subsidies also went to real estate developers and absentee landowners in big cities from Chicago to New York".
(...) Well, "63 per cent of the money went to the top 10 per cent of recipients". Many of whom "don't fit the image of the struggling family farm". In Iowa in 1998, I saw small holdings go bust that did fit the image of the struggling family farm. How did those families read their misfortune? Many felt they were victims of wasteful spending on welfare, affirmative action and immigrants. In truth, they were just squeezed out by big corporate farmers. Farm corporations who also held great control over input prices. And government subsidies. In fact, it all sounds a bit like home — only on a scale unthinkable in India. Top Indian business houses have plundered fertiliser subsidies worth thousands of crores of rupees for years. Of course, their amounts, crushing by Indian standards, look trifling next to the largesse doled out in the citadel of neo-liberal market economics.
(...) At the bottom end of this food chain, the average "real" farmer got about $16,000 each. These are perhaps the "needy" ones in the U.S.. And that's still Rs. 8 lakh per farmer. Compare that with the Indian small holder, relieved to have seen off another year when he's earned $80 from an acre.
(...) What happens if Africa, Latin America and Asia increase their share of world markets by just one percent? An Oxfam report says that 120 million people could beat the poverty trap. But that won't happen in the field of agriculture. Not while corporations — with billions of dollars of subsidies behind them — rule theworld.
(...) Lawmakers want to restrict "information about who receives federal farm subsidies". Why? Beats me.