brad brace contemporary culture scrapbook

August 1, 2008

Fuel price increase squeezes transport sector

Filed under: General,global islands,png,resource,solomon islands,vanuatu — admin @ 4:45 am

Throughout the country goods and services cost more, thanks to the increase in the global fuel price, which is being passed on to businesses and consumers, according to the Bank of Papua New Guinea. In 2007, the fuel price per litre was around K2 (US$0.72) compared with K5 ($1.82) now.

Many remote communities in Papua New Guinea are not accessible by road so air service is vital to their local economies. However, some small airlines, including Madang-based Airlink, have cut back or ceased operations because of higher fuel costs. National flag carrier Air Niugini continues to increase fuel surcharges because of the high cost of aviation fuel.

In Bougainville, an autonomous island which is still an integral part of Papua New Guinea, taxis charge K100 ($36.45) for a three-hour ride to and from mainland Bougainville to Buka Island and another K2 ($0.72) just to make a three-minute crossing by boat to and from Buka Island. The whole trip used to cost only K20 ($7.00), a price that was quite affordable for a worker who earns an average of K300 ($100) a fortnight. The price increases really hurt, workers say.

One vehicle owner, Francis Baru, said, “We sympathise with passengers travelling in our vehicles but at the same time we also need to make enough money to repay our loans and look after our families.

“If fuel prices continue to rise,” he said, “we will be forced to pass on these additional costs to our passengers, but we hope they will fall … that will be really good for all of us,” Baru said.

In Manus, an island province north of Port Moresby, the capital, fares are even higher as people are dependent on boats, which are particularly costly to run.

Linus Pokanau, a fisherman and boat owner from Manus Island, said the price of zoom (petrol mixed with oil) was the most expensive and many boats now were anchored as fishermen could not afford the fuel.

Thomas Abe, chief executive officer for a consumer watchdog group, Independent Consumer and Competition Commission (ICCC), expects fuel prices to continue rising due to global demand. The ICCC regulates the pricing formulae of petroleum products in the country.

Even though Papua New Guinea is a crude-oil producing country, once the oil is refined by InterOil, a Canadian petroleum company, consumers pay a rate closely pegged to the world rate.

Deputy Prime Minister and Minister for Mining, Puka Temu, in June announced that the government would start subsidising fuel prices on 1 September 2008, by reducing the excise duties on fuel products, which would cut the prices of petroleum products significantly.

“Eliminating the excise tax on zoom will be of particular assistance to those that use small boats for transportation and for fishing in rural areas,” he said.

“Reducing the excise on diesel will also help PMV [taxi] drivers, transport companies and those who run power generators, while reducing excise on petrol will help all those drivers who dread having to fill up at the petrol station. This government says it is working with key stakeholders to see if there are other ways that the price of fuel at the pump can be minimized,” Temu said.

July 31, 2008

ALBA

Filed under: General,global islands,intra-national,nicaragua,resource — admin @ 3:57 am

The Bolivarian Alternative for the People of Our America (Spanish: Alternativa Bolivariana para los Pueblos de Nuestra América or ALBA – which also means ‘dawn’ in Spanish) is an international cooperation organization based upon the idea of social, political, and economic integration between the countries of Latin America and the Caribbean.

The agreement was initially proposed by the government of Venezuela as an alternative to the Free Trade Area of the Americas (FTAA or ALCA in Spanish) proposed by the United States. While the ALBA itself has not yet become a hemispheric-wide trade agreement, Venezuela, Cuba, Nicaragua and Bolivia have entered into a Peoples’ Trade Agreement (Spanish: “Tratado de Comercio de los Pueblos” – TCP) which aims to implement the principles of ALBA between those four nations. However, Nicaragua is also a member of the Central America Free Trade Agreement (CAFTA).

The adjective Bolivarian refers to general Simón Bolívar, who is revered as a hero throughout much of Latin America for his leadership of independence movements in South America against Spanish colonial power. In addition, Bolívar is a major figure in Venezuelan President Hugo Chávez’s hemispheric ideology Bolivarianism.

Unlike neoliberal free trade agreements, the ALBA represents an attempt at regional economic integration that is not based primarily on trade liberalization but on a vision of social welfare and mutual economic aid.

The Cuba-Venezuela Agreement, which was signed on December 14, 2004 by Presidents Hugo Chávez and Fidel Castro, was aimed at the exchange of medical resources and petroleum between both nations. Venezuela delivers about 96,000 barrels of oil per day from its state-owned petroleum operations to Cuba at very favorable prices and Cuba in exchange sent 20,000 state-employed medical staff and thousands of teachers to Venezuela’s slums.

President Evo Morales of poor but gas-rich Bolivia joined the TCP on April 29, 2006, only days before he announced his intention to nationalize Bolivia’s hydrocarbon assets. Newly elected President Daniel Ortega of Nicaragua, signed the agreement in January 2007; Venezuela agreed to forgive Nicaragua’s $31 million debt as a result. On February 23, 2007 Ortega visited Caracas to solidify Nicaragua’s participation in ALBA. Rafael Correa, the president of Ecuador, signed a joint agreement with Hugo Chávez, to become a member of ALBA once he becomes president, but as of 2008 Ecuador has not joined the organization.

The Prime Minister of Antigua and Barbuda, Baldwin Spencer, has hailed the signing of the trade agreement with Venezuela as a significant historical milestone in relations between the Caribbean and Latin America. He along with the Prime Ministers of Dominica and St. Vincent and the Grenadines signed onto ALBA.

In January 2008, Dominica, a small island in the Caribbean, joined ALBA.

July 22, 2008

The Shortage Isn’t Food, It’s Democracy

Filed under: corporate-greed,General,government,human rights,resource — admin @ 4:13 am

Progress on food security issues will only come when we begin to ask the right question and challenge the myths that trap us.
by Frances Moore Lappe

News broadcasts report a horrific “world food crisis.” But there is no food shortage. In fact, there’s more than enough food to make us all chubby—even counting only the “leftovers,” what remains after turning more than a third of the world’s grain and fish catch into feed.

The forecast for world cereal production in 2008 stands at a record 2,164 million metric tons, says the U.N.’s Food and Agriculture Organization. That’s an increase of 2.6 percent over last year, the previous global high.

Again: The shortage is not of food. It is one of democracy. At its heart, democracy means power distributed so that citizens’ interests—our values and our common sense—show up in policies.

Yet, can you imagine citizens anywhere setting things up so that just one company, controlling a huge share of the entire world’s grain trade, could enjoy a 65 percent profit surge last year, while at the same time food price hikes are pushing 100 million more people into poverty and hunger? (The most recent quarterly Archer Daniels Midland profit surge came largely from the company’s financial division that makes money on price volatility via commodity futures trading.)

Or think about this: In a world where even before this historic price climb almost a billion people couldn’t afford enough to eat, what citizen would say, “Why don’t we start shifting prime farmland into agrofuel production and push prices still higher!?”

Neither could happen if citizens had real power. Each violates our common sense and our hardwired human need for fairness.

So this crisis makes me ask: Why are we playing Monopoly when we could be living democracy? In today’s deadly global Monopoly game, the biggest money players get ever bigger while most others get progressively knocked out of the game. We’ve seen it in the housing market and now we’re seeing it in the food market. In this game, what does growth mean? The 1990s saw considerable economic expansion, but for every $100 in growth only 60 cents went toward ending poverty. In Monopoly, after many long hours the game finally ends, and all but one player goes to bed “broke.” Everybody’s had fun. But in real life, it’s not fun. The outcome is premature death for millions of our fellow humans.

FOR 40 YEARS I’ve been asking why it is so hard for humans to see the needless misery we’re generating. Gradually I came to see that in large measure the answer is the power of ideas. One very dangerous idea perpetuating our global democracy crisis is this: We humans are so flawed that we have to turn over our fate to an infallible, almost mystical force: The Market. The danger is that this idea leaves us feeling powerless. We’re blind to the obvious fact that left to its own devices, unguided by democracy, a market inexorably concentrates wealth and power so tightly that it infects political decision-making. So we end up with, in effect, “privately held” government.

The result? Hunger-generating policies that no assemblage of real citizens would dream up.

For several decades, for example, countries in the Global South were encouraged by international lending, aid, and trade agencies to let go of the goal of food independence. While in the North many extol the goal of oil independence, comparable food independence was somehow deemed a bad idea. Aid was often proffered on conditions that undermined local producers. In 1986 John Block, Ronald Reagan’s agriculture secretary, called the idea of poor countries feeding themselves an “anachronism of a bygone era.”

Within a generation, countries in the Global South that had been food exporters became massive food importers. And today, as food prices jumped by almost half in nine months, poor people are living—or, more accurately, dying—from the consequences of this disastrous policy.

Peeling away the layers to grasp the roots of needless hunger, we find them in people’s lack of power—the lack of capacity to act on our values and in our interests. If hunger results from extreme power imbalances in human relationships, the questions before us are:

How do we empower more and more people, starting with ourselves?

How do we reshape relationships so everyone has the power to live in dignity and to meet their needs?

Through this new lens, removing the influence of money in political decision-making is not a separate political matter; it is essential to ending hunger on this abundant planet. In the past decade, for example, U.S. agribusiness spent almost $1 billion lobbying our government for policies, including massive farm subsidies, that are in many cases undermining poor people’s capacities to feed themselves. Such subsidies, for example, undermine smallholders, from corn growers in Mexico to cotton growers in Mali.

Many Americans have given up on reclaiming democracy from moneyed interests. They should not. It can be done; it is being done. We must crack open the best-kept secret in America: that public financing of elections is working statewide in three states. We can take that success national. (Visit www.just6dollars.org.) Simulta­ne­ously, we can get behind candidates in this election year who commit to shifting support to family-scale sustainable farmers in all aid and trade legislation, domestic as well as in foreign, and who are willing to halt the deadly agrofuel program. (One third of U.S. corn production will go to ethanol this year.)

Through the lens of remaking power relationships, we also see food as a right of citizenship, one now inscribed—either for all citizens or for children—in 22 national constitutions. We know how to make this right real. And we can build on the proven anti-hunger policies of progressive taxation, a legal minimum wage that is a living wage, anti-monopoly enforcement, and protection of the rights of trade unions. In the same vein, we can back policies that encourage producer and consumer cooperatives, the kind that already create more jobs worldwide than do multinational corporations.

To prevent future crises, we can embrace the goal of food independence, as much as possible, at both the local and national levels. For how can any people feel free if they remain at the mercy of international market vagaries and mani­pulation?

Today’s food price rises are predictable outcomes of policies flowing from decades of anti-democratic decision-making. Each of us can explain to our friends, neighbors, co-workers, and legislators that our crisis is human-made. Food scarcity is a myth; the deeper scarcity is of democracy. And we can spread the good news, too, that we each have the power to be part of creating real, living democracy.

Frances Moore Lappé, cofounder of the Small Planet Institute, is the author of 16 books, including, most recently, Getting a Grip: Clarity, Creativity, & Courage in a World Gone Mad.

June 4, 2008

Papua New Guinea Forests Being Cut and Burned Away

Filed under: General,global islands,png,resource — admin @ 11:24 am

At the same time that the government of Papua New Guinea is seeking compensation for conserving the carbon-trapping capacity of its the world’s third largest expanse of tropical forests, destruction of these forests is occurring so fast that by 2021 most of the areas accessible to loggers will have been cleared or degraded, a new report based on satellite images reveals.

The images are contained in an extensive report, “The State of the Forests of Papua New Guinea,” produced by scientists at the University of Papua New Guinea Remote Sensing Centre and their colleagues at the Australian National University.

Scientists at the UPNG Remote Sensing Centre discovered that even in so-called conservation “protected areas” forest destruction is occurring at the same pace as in unprotected regions.
Where roads extend through virgin Papua New Guinea forests, loggers are on their way.

The researchers spent five years analyzing satellite images that document 30 years of destruction in an area that contains a major portion of the world’s third largest tropical forest. Only the Amazon and Congo forests are bigger.

The scientists estimate that in 2001, Papua New Guinea’s accessible forests were being cleared or degraded at a rate of 362,000 hectares a year – amounting to a combined annual rate of deforestation and degradation of 1.41 percent.

At that pace, by 2021, the authors estimate that 83 percent of the country’s accessible forest – and 53 percent of its total forested area – will be gone or severely damaged.

The forests are under pressure from industrial logging, agricultural expansion and forest fires, the satellite images show.

“Government officials may claim that they wish rich countries to pay them for conserving their forests, but if they are allowing multinational timber companies to take everything that’s accessible, all that will be left will be lands that are physically inaccessible to exploitation and would never have been logged anyway” said Phil Shearman, the report’s lead author and Director of the UPNG Remote Sensing Centre.

“It’s fair to wonder why the government should be compensated after encouraging this industry for so long in the past, or why they should get paid in the future to conserve forest that cannot be reached,” Shearman said.

The report concludes that the data on forest destruction justifies curtailing current logging industry activities and scrapping new large-scale projects.

It also calls for the government and international development partners to reorient conservation and commercial forestry activities so that they respect the rights of local communities that legally own the forest, and enable members of those communities to better use and conserve the forest for their own development needs.

“The unfortunate reality is that forests in Papua New Guinea are being logged repeatedly and wastefully with little regard for the environmental consequences and with at least the passive complicity of government authorities,” Shearman said.

Dr. Julian Ash from the Australian National University said that “by providing an objective, realistic picture of what is actually taking place, the study can offer an opportunity to institute genuine and verifiable programs that will lead to real conservation, sustainable forestry and meaningful participation in carbon trading markets.”

In order to avoid further damage, Shearman and his colleagues say that any new forestry programs should involve small and medium-scale, locally-owned and managed operations where commercial activities are more likely to be environmentally sustainable and the benefits are more likely to flow to forest communities.

“Papua New Guinea is still one of the most heavily forested countries in the world,” Shearman said. “For the first time, we have evidence of what’s happening in the PNG forests. The government could make a significant contribution to global efforts to combat climate change. It is in its own interest to do so, as this nation is particularly susceptible to negative effects due to loss of the forest cover.”

June 2, 2008

Nicaraguans launch anti-hunger march

Filed under: corporate-greed,General,nicaragua,resource — admin @ 6:05 pm

World Food Program (WFP) summons an anti-hunger demonstration in Nicaragua to bring greater attention to the issue in this Latin nation.

Held in the northeastern city of Matagalpa Sunday, the demonstration was attended by senior government officials including ministers of agriculture, education, health and foreign affairs, local media reported, according to Xinhua.

More than 1,000 children from Matagalpa, one of the departments hardest hit by hunger and high rates of chronic bad nutrition, also participated in the march.

Agriculture Minister Ariel Bucardo vowed to push forward the program “Zero Hunger,” a government-sponsored program which aims at aiding close to 75,000 poor families to overcome poverty by providing livestock like pigs or production subsidies.

The World Food Program (WFP) initiated more anti-hunger demonstrations in 70 other cities around the world.

Expressing support for the rally, president of the WFP’s Nicaragua branch William Hart said that it could help the country on its way to eliminate hunger.

WFP Nicaragua is helping feed more than half million people in the country, including 400,000 elementary school students in Matagalpa.

About 6 million children die each year from bad nutrition in the world, while 840 million people are struggling with hunger, according to the WFP.

May 9, 2008

Global Poverty: More Big Business is Not the Solution

Filed under: corporate-greed,human rights,resource,wealth — admin @ 8:43 am

By most accounts, UK Prime Minister Gordon Brown is genuinely passionate about reducing global poverty.

But he is not willing to challenge the structures of the global economy that generate poverty, or the corporations that build, benefit from and maintain those structures.

Nor, apparently, is he immune to gimmicky notions of corporate leadership to support development, or the lure of high-profile summits to shed light on new plans to do — very little.

Thus, earlier this week the UK was treated to the spectacle of the Business Call to Action summit, which Brown’s office co-sponsored with the UN Development Program. More than 80 CEOs of large companies gathered with Brown and other luminaries to discuss how they could help meet the Millennium Development Goals, which aspire to reduce global poverty by half by 2015. Roughly two dozen of these CEOs — from Anglo American, Bechtel, Citigroup, Coca-Cola, De Beers, Diageo, FedEx, Goldman Sachs, GE, Merck, Microsoft, SAB Miller, Wal-Mart and others — have signed the Business Call to Action, which states, “as leaders from the private sector, we declare our commitment to meet this development emergency.”

The premise of the event, as Gordon Brown said, was to advance “a new approach — moving beyond minimum standards, beyond philanthropy and beyond traditional corporate social responsibility — important though they are — to develop long-term business initiatives that mobilize the resources and talents that are the central strengths of global business.”

The mantra of the event was for corporations to “explore new business opportunities that use their core business expertise” and that also help spur development.

Taken at its face value, this was, um, not exactly inspiring. Says Peter Hardstaff of the UK-based World Development Movement, the CEOs “have all agreed — to do more business.”

But the problem goes way beyond the fact that business as usual — or even a little bit of new business initiative with a development-conscious orientation — is not going to do much to reduce global poverty. The real problem is that business as usual is a central part the problem.

“Instead of holding these companies to account for their actions,” says John Hilary, executive director of War on Want, a UK-based anti-poverty group. “Gordon Brown has allowed them to portray themselves as allies in the fight against poverty. The prime minister should be working to address the poverty and human rights problems caused by business, not giving the companies a free ride.”

War on Want focused attention on the harmful development impacts of many of the corporations signing the Business Call to Action. The group has campaigned against mining giant Anglo American. It has documented how Anglo American has benefited from human rights abuses associated with civil wars in Colombia and the Democratic Republic of Congo (DRC). Local mining communities in Ghana and Mali have seen little economic benefit from Anglo American’s operations (or the spike in the price of gold); instead, says War on Want, the company’s mines harm their environment, health and livelihoods.

Other corporate signatories to the Business Call to Action have directly hurt poor people through their “core business” more than can be offset by development-tinged ventures (even assuming such ventures succeed). Wal-Mart contracts with sweatshops. Bechtel tried to price-gouge and rip-off Bolivian consumers and the Bolivian state through control of the country’s privatized water system. Merck refuses to license life-saving medicines for cheap generic production.

Simultaneous with Brown’s business summit, Action Aid UK pointed to a major systemic abuse by multinational corporations that undermines development: They don’t pay their taxes. The group released a report looking at tax payments of 14 corporate signers of the Business Call to Action. It found that these companies combined are underpaying taxes by more than $6 billion a year, as compared to what they would pay if they paid at the statutory rate in the United States and UK. The group did not suggest any illegal activities by the companies — there are plenty enough legal tax avoidance strategies.

Money lost to developing countries through capital flight and tax avoidance is many times greater than aid flows into poor countries, says Jesse Griffith, the lead author of the Action Aid UK report.

Tax avoidance is a key issue because it strips money from national treasuries that would otherwise be available for social investment, and because it reflects structural problems that could and should be cured without any need for global philanthropy or aid.

But tax avoidance is only one of many ways that corporations exploit and perpetuate economic policies and institutional arrangements that contribute to poverty or inhibit authentic development.

The World Development Movement issued a 10-point challenge to corporations that claim an interest in promoting global development. It called on companies to stop using their political influence to promote policies that undermine development. It urged companies to: stop lobbying to open up developing country markets, and let developing countries “use the same trade policy tools industrialized countries used to get rich;” stop demanding rich country-style patent rules for the poor; support radical government action, starting in rich countries, to address climate change; support binding codes of conduct for multinationals, including respect for labor rights; end support for privatization and deregulation, including particularly financial deregulation; stop lobbying for and exploiting tax loopholes; and other measures.

This is not exactly an agenda that global business leaders are likely to take up soon.

On the other hand, it’s not exactly likely that global business leaders are going to lead the way to end global poverty.

Among other things, that’s going to take a global movement, led from the Global South, to implement the policies implicit in the World Development Movement call.

May 5, 2008

Bangladesh: A food crisis further complicates the army’s exit strategy

“Our politicians were corrupt, but we had enough money to buy food,” says Shah Alam, a day labourer in Rangpur, one of Bangladesh’s poorest districts, nostalgic for the days before the state of emergency imposed in January last year. He has been queuing all day for government-subsidised rice. Two floods and a devastating cyclone last year, combined with a sharp rise in global rice prices, have left some 60m of Bangladesh’s poor, who spend about 40% of their skimpy income on rice, struggling to feed themselves.

In the capital, Dhaka, a debate is raging about whether this is a famine or “hidden hunger”. The crisis is not of the army-backed interim government’s own making. But it is struggling to convince people that the politicians it locked up as part of an anti-corruption drive would have been equally helpless. They include the feuding leaders of the two big political parties, the former prime ministers Khaleda Zia of the Bangladesh Nationalist Party and Sheikh Hasina Wajed of the Awami League.

The state of emergency, imposed to silence riotous politicians and repair corrupted institutions, can barely contain the growing discontent. This week thousands of garment workers went on strike for higher pay to cope with soaring food prices. The crisis has emboldened the political parties, which have been calling more loudly for the release of their leaders.

The army’s main headache is Sheikh Hasina, whose party is widely expected to win the election. Her detention on corruption charges has made her more popular than ever. Senior leaders of the League say it will boycott the election if the courts convict her. The threat might be empty. But it is a risk the army cannot afford to take. The patience of Western governments, which backed the state of emergency, is wearing thin. Human-rights abuses continue unabated. And they fear the political vacuum might be filled by an Islamist fringe, whose members this week went on a rampage to protest against a draft law giving equal inheritance rights to men and women.

The election will almost certainly take place. And, unlike in the past, rigging it will be hard. Bangladesh has its first proper voters’ list. Criminals will be banned from running. But to hold truly free and fair elections, the army will need to reach an accommodation with the parties. There is talk of a face-saving deal allowing Sheikh Hasina to go abroad for medical treatment, in return for a promise that the League will not boycott the election. Hardliners in the army will not like it. But they have largely been sidelined. With food prices likely to remain high and rice yields half those of India, Bangladesh desperately needs to secure food aid, investment and trade.

It also badly needs to sustain the rising flow of billions of dollars in remittances, which have lifted millions of Bangladeshis out of poverty. This complicates the government’s stated plan of considering prosecution of those who assisted the Pakistani army in a campaign that left 3m Bengalis dead in the country’s liberation war in 1971. Saudi Arabia, which accounts for 40% of total remittances, objects to an international war-crimes tribunal. If the two big political parties had their way, a large number of leaders of Jamaat-e-Islami, Bangladesh’s largest Islamist party, would stand trial.

It appears unlikely that the army will walk off the pitch and let the politicians run the country without altering the rules of the game. The interim government has already approved, in principle, the creation of a National Security Council, which would institutionalise the army’s role in politics. Last month the army chief, General Moeen U Ahmed, extended his term by one year in the “public interest”. His term now runs out in June 2009. But many Bangladeshis still doubt that he will go down in history as that rare general who gave up power voluntarily.

April 27, 2008

Food Sovereignity

Filed under: corporate-greed,General,resource,usa — admin @ 6:01 am

The only surprising thing about the global food crisis to Jim Goodman is the notion that anyone finds it surprising. “So,” says the Wisconsin dairy farmer, “they finally figured out, after all these years of pushing globalization and genetically modified [GM] seeds, that instead of feeding the world we’ve created a food system that leaves more people hungry. If they’d listened to farmers instead of corporations, they would’ve known this was going to happen.” Goodman has traveled the world to speak, organize and rally with groups such as La Via Campesina, the global movement of peasant and farm organizations that has been warning for years that “solutions” promoted by agribusiness conglomerates were designed to maximize corporate profits, not help farmers or feed people. The food shortages, suddenly front-page news, are not new. Hundreds of millions of people were starving and malnourished last year; the only change is that as the scope of the crisis has grown, it has become more difficult to “manage” the hunger that a failed food system accepts rather than feeds.

We must rein in the global food giants who reap profits at the expense of the planet and the poor.

The current global food system, which was designed by US-based agribusiness conglomerates like Cargill, Monsanto and ADM and forced into place by the US government and its allies at the World Bank, the International Monetary Fund and the World Trade Organization, has planted the seeds of disaster by pressuring farmers here and abroad to produce cash crops for export and alternative fuels rather than grow healthy food for local consumption and regional stability. The only smart short-term response is to throw money at the problem. George W. Bush’s release of $200 million in emergency aid to the UN’s World Food Program was appropriate, but Washington must do more. Rising food prices may not be causing riots in the United States, but food banks here are struggling to meet demand as joblessness grows. Congress should answer Senator Sherrod Brown’s call to allocate $100 million more to domestic food programs and make sure, as Representative Jim McGovern urges, that an overdue farm bill expands programs for getting fresh food from local farms to local consumers.

Beyond humanitarian responses, the cure for what ails the global food system–and an unsteady US farm economy–is not more of the same globalization and genetic gimmickry. That way has left thirty-seven nations with food crises while global grain giant Cargill harvests an 86 percent rise in profits and Monsanto reaps record sales from its herbicides and seeds. For years, corporations have promised farmers that problems would be solved by trade deals and technology–especially GM seeds, which University of Kansas research now suggests reduce food production and the International Assessment of Agricultural Science and Technology for Development says won’t end global hunger. The “market,” at least as defined by agribusiness, isn’t working. We “have a herd of market traders, speculators and financial bandits who have turned wild and constructed a world of inequality and horror,” says Jean Ziegler, the UN’s right-to-food advocate. But try telling that to the Bush Administration or to World Bank president (and former White House trade rep) Robert Zoellick, who’s busy exploiting tragedy to promote trade liberalization. “If ever there is a time to cut distorting agricultural subsidies and open markets for food imports, it must be now,” says Zoellick. “Wait a second,” replies Dani Rodrik, a Harvard political economist who tracks trade policy. “Wouldn’t the removal of these distorting policies raise world prices in agriculture even further?” Yes. World Bank studies confirm that wheat and rice prices will rise if Zoellick gets his way.

Instead of listening to the White House or the World Bank, Congress should recognize–as a handful of visionary members like Ohio Representative Marcy Kaptur have–that current trends confirm the wisdom of the Institute for Agriculture and Trade Policy’s call for “an urgent rethink of the respective roles of markets and governments.” That’s far more useful than blaming Midwestern farmers for embracing inflated promises about the potential of ethanol–although we should re-examine whether aggressive US support for biofuels is not only distorting corn prices but harming livestock and dairy producers who can barely afford feed and fertilizer. Instead of telling farmers they’re wrong to seek the best prices for their crops, Congress should make sure that farmers can count on good prices for growing the food Americans need. It can do this by providing a strong safety net to survive weather and market disasters and a strategic grain reserve similar to the strategic petroleum reserve to guard against food-price inflation.

Congress should also embrace trade and development policies that help developing countries regulate markets with an eye to feeding the hungry rather than feeding corporate profits. This principle, known as “food sovereignty,” sees struggling farmers and hungry people and says, as the Oakland Institute’s Anuradha Mittal observes, that it is time to “stop worshiping the golden calf of the so-called free market and embrace, instead, the principle [that] every country and every people have a right to food that is affordable.” As Mittal says, “When the market deprives them of this, it is the market that has to give.”

April 22, 2008

Drought hits millions in Thai rice region

Filed under: global islands,resource,thailand,weather — admin @ 6:09 am

More than 10 million people in parts of Thailand’s rice bowl region have been hit by drought, the government said Monday, causing further concerns as prices of the staple grain soar.

Thailand’s Disaster Prevention and Mitigation department reported that 55 of the kingdom’s 76 provinces were struggling with drought, mostly in the central, north and northeastern regions.

More than 151,000 rai (60,000 acres) of farmland has been affected, they said in a statement, including half of the key central rice growing provinces.

Vichien Phantodee, a member of the Thai Farmers Association, said rice farmers have been trying to exploit soaring prices and an increased global demand for the grain.

“Farmers want to plant more rice because the price is so good,” Vichien told AFP. “But the drought does affect rice production, particularly for farmland outside the irrigation areas.”

The first rice harvest of the year in Thailand, the world’s biggest rice exporter, traditionally ends in late March or early April. Farmers then let the fields recover, before planting a second harvest in May.

But as export and domestic rice prices hit record highs, many farmers are trying to plant a third crop or move their second harvest forward to take advantage of the boom.

The benchmark Thai variety, Pathumthani fragrant rice, was priced on April 9 at 956 dollars per tonne for export, up about 50 percent from a month earlier, the Thai Rice Exporters Association said in its price survey.

April 20, 2008

A man-made famine

There are many causes behind the world food crisis, but one chief villain: World Bank head, Robert Zoellick.

For anyone who understands the current food crisis, it is hard to listen to the head of the World Bank, Robert Zoellick, without gagging.

Earlier this week, Zoellick waxed apocalyptic about the consequences of the global surge in prices, arguing that free trade had become a humanitarian necessity, to ensure that poor people had enough to eat. The current wave of food riots has already claimed the prime minister of Haiti, and there have been protests around the world, from Mexico, to Egypt, to India.

The reason for the price rise is perfect storm of high oil prices, an increasing demand for meat in developing countries, poor harvests, population growth, financial speculation and biofuels. But prices have fluctuated before. The reason we’re seeing such misery as a result of this particular spike has everything to do with Zoellick and his friends.

Before he replaced Paul Wolfowitz at the World Bank, Zoellick was the US trade representative, their man at the World Trade Organisation. While there, he won a reputation as a tough and guileful negotiator, savvy with details and pushy with the neoconservative economic agenda: a technocrat with a knuckleduster.

His mission was to accelerate two decades of trade liberalisation in key strategic commodities for the United States, among them agriculture. Practically, this meant the removal of developing countries’ ability to stockpile grain (food mountains interfere with the market), to create tariff barriers (ditto), and to support farmers (they ought to be able to compete on their own). This Zoellick did often, and enthusiastically.

Without agricultural support policies, though, there’s no buffer between the price shocks and the bellies of the poorest people on earth. No option to support sustainable smaller-scale farmers, because they’ve been driven off their land by cheap EU and US imports. No option to dip into grain reserves because they’ve been sold off to service debt. No way of increasing the income of the poorest, because social programmes have been cut to the bone.

The reason that today’s price increases hurt the poor so much is that all protection from price shocks has been flayed away, by organisations such as the International Monetary Fund, the World Trade Organisation and the World Bank.

Even the World Bank’s own Independent Evaluation Group that the bank has been doing a poor job in agriculture. Part of the bank’s vision was to clear away the government agricultural clutter so that the private sector could come in to make agriculture efficient. But, as the Independent Evaluation Group delicately puts it, “in most reforming countries, the private sector did not step in to fill the vacuum when the public sector withdrew.” After the liberalisation of agriculture, the invisible hand was nowhere to be seen.

But governments weren’t allowed to return to the business of supporting agriculture. Trade liberalisation agreements and World Bank loan conditions, such as those promoted by Zoellick, have made food sovereignty impossible.

This is why, when we see Dominique Strauss-Kahn of the IMF wailing about food prices, or Zoellick using the crisis to argue with breathless urgency for more liberalisation, the only reasonable response is nausea.

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