Hello all,
Below is a copy of my presentation “outline”.
If you would like to see this as a “Word – like” document,
go to
http://writer.zoho.com/public/jmflahiff/Pax-Christi—Hunger-(10-12-09)
Any questions (including any challenges accessing the above), just let me know.
Peace Be With Us!
Janice
jmflahiff@yahoo.com
Relationship between Free Trade, Current Food Policy and World Hunger (along with a few talking points for our representatives)
This presentation will focus on
(1) Current hunger crisis overview
(2) Factors affecting this crisis, as demand, fuel costs, biofuels, govt agricultural policies, free trade, IMF policies, agribusiness
(3) Talking points for our representatives
(4) Personal level options
(1) Current hunger crisis affects more than 900 million (of 6.5 billion) people (about 1 of 7). This is happening despite (in at least
recent years) that food production is believed to be adequate for the world’s people. It is not only straining budgets of families
worldwide, but of the assistance programs. The average family meal in El Salvador has 40 percent fewer calories now than
in May 2006. The cost of providing a meal to a child in Kenya has almost doubled (9 cents to 16 cents).
Many hungry people live in countries that cannot produce enough food, must import it (lack of arable land in their country, drought, do not own enough land.
(2) Prices have gone up due to many factors (am going to focus those under human control)
Fuel costs/biofuels
Oil prices have risen rapidly in recent years, driving up agriculture prices, esp those dependent on petroleum (everything from fertilizers, pesticides, gasoline for transportation, )
Biofuels ..food products (for humans/livestock) are increasingly being used for fuel
”The price of grain is now directly tied to the price of oil” …Lester Brown, pres of Earth Policy Institute
for example this year, 1/4 of US corn crop will e sent to ethanol plants…so chickens eat corn…price of eggs go up
More corn planted, less soybeans planted, fewer acres left fallow
Biofuels are renewable,and may be affordable in future, presently this is affecting choices in what to plant, food prices, and world hunger
Rising demand for nonlocal & “grain dense” food
Growing demand for food in developing world (as China, India), with their higher incomes they are for the first time enjoying more diverse diets
This includes rising demand for meat (and grain to feed livestock…ties in with biofuels)
Government agricultural policy (individual countries)
Subsidies (US Japan, EU) applied to one crop directly affect that crop’s production in another country that doesn’t have subsidies…and can affect hunger
Example….because of govt subsidies, AZ grows cotton where water is scarce (cotton requires a lot of water), this is at expense of farmers in countries as Mali, who then can’t sell their product at a price to feed their family
Prohibition or restrictions on exports
Presently applies to wheat (Russia, Ukraine, Argentina)…and rice (China, Indonesia, India)
Keep in mind that about 70% of so called developing countries are net importers of food…
Upshot is a country as Bangladesh cannot buy rice because prices are so high
Free trade
Under agreements as NAFTA, import quotas have been reduced or abolished, and tariffs increasingly dismantled
(Keep in mind import quotas/tariffs meant to protect local production (as food) from cheaper imports)
(Case in point, Mexico and corn..at the surface…seems helpful if their is a shortage, but it is at expense of local production
jobs, improving local production in long run)
Introduction of global agribusiness – Free trade agreements open up lands and markets to outside corporations which
can…for example…plant high value crops for Western supermarkets (think ..perhaps Chilean grapes, gourmet foods)
at expense of foods part of native’s diet, what they can afford
World Bank and IMF Monetary Fund (since 70’s, increasingly since 80’s)
Structural adjustment policies , set of policies imposed on national governments as condition for receiving loans…
basically these are long term policy changes so a country can resume growth…as market liberalization (esp opening
up to international trade), privatization of state run enterprises…end aid, credits, and advice to small farmers…reduce/
eliminate government market intervention (price fixing)….
Belief is if these countries are more like those of the North, economy will improve ( not the same conditions!)
Instead…argued…made it easier for multinational corporations to go in, easier for richer countries and multinationals
to extract goods at cheap prices and export cheap foodstuffs and other products…
Agribusiness
(Corporations outside the so called developing countries..as ADM [anyone watch NewsHour?), Cargill, Nestle)
A few large companies dominate world's food system, large share of international markets for grains,
fertilizers, pesticides, and seeds
Agricultural commodities are pretty much a monopoly,they are making record profits
Cargill's went up 86% in quarter ending Feb 2008 (it controls 25% of US wheat exports, operates in 66 countries)
2004, settled suit of price fixing in corn sweetener market,
ADM- also operates in corn sweetener market, owns shipping/trucking subsidiaries as well as mills/storage facilities
worldwide 1993 found guilty of price fixing , fined $100 million by US govt, 2002 & '03 find for massively violating environmental air quality laws (just cost of business???, )
Remember, the very poor peform most farm work, whether on their own plots or in agro-industrial farms...their low labor cost
making it possible for us to eat well, (too well), while their educational, social, and political opportunities are minimal
Not only is modern agribusines dependent on cheap labor, but also cheap energy, water, soil overuse (fertilizer dependence)
Food processing is also in hands of fewer and fewer large corporations (as Nestle),
(3) Talking points/policy rethink
Energy conservation
Lately there is much private sector research and products to alternative sources of energy (solar, wind energy production, smaller cars,hybrid/electric cars).
However, not much government policy to overall energy reduction (energy use by new buildings/houses, computers [gaming takes a lot of energy], label info (how many energy units went into processing something) )
What role should the govt have in overall energy reduction? How much should be voluntary private sector driven? How much by
standards organizations?
Population….
What should our govt policy be to aiding other countries in stabilizing populations
(family planning, “spacing children”, birth control,etc)
Biofuels
What should be our govt policy in regards to biofuels? Should they be encouraged?
Food Aid
Some say that aid for the hungry is often the dumping of surpluses by rich counries, undercutting local producers and even driving them out of business…Credits offtered to poor countries for agricultural imports can boost indebtedness and can create import dependency..
How would your government policies address this?
What do you think about offering agricultural extension services (both in our country and in other countries) that are based on listening to the farmer and what works best…
before offering ideas on based on our “best practices” and current research?
Agribusiness
What responsibility do US based agriculture corporations have towards the farmers and others they employ directly or indirectly?
What responsibility to they have to the land and natural resources they directly or indirectly use?
Should these companies be regulated, and if so, to what degree in our countries policies, laws, as well as free trade agreements we sign with other countries.
Lastly…
Should food be considered just another commodity (to be stocked privately, to be accepted as a product for speculation, hedging, etc) or is it a basic human right that should be treated differently.
If yes to the latter, how?
(4) Personal level options
Think about consumption levels, how often do I need to eat meat? how much? how often?
Think about how often I need to eat out of season food, gourmet food,processed food
Think about if and how to incorporate more organic and/or locally grown food into my diet
Think about buying more quality goods in which worker gets fair wage/price
Think about “chatting people up” about these things without being preachy
(St. Francis said, preach…use words if you must)
References
James Paul and Katarina Wahlberg. July 2008. http://reliefweb.int/rw/lib.nsf/db900SID/PANA-7HRDHY?OpenDocument
Grain. April 2008. http://www.grain.org/nfg/?id=565
Michael Learner. (Bread for the World Background Paper). June 2008. www.bread.org/learn/background-papers/2008/june-08-background-paper. pdf
Esther Vivas. 2006. http://www.monthlyreview.org/mrzine/vivas200608p.html
