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Time for a new focus on corporate power
Peter O’Driscol
Any discussion of corporate
power necessarily departs from a basic paradox of liberal capitalism:
left to their own devices, competitive private firms generate tremendous
wealth, while driving important organizational and technological
innovation. But these achievements have historically been tempered
by unacceptable levels of social exploitation, political manipulation
and environmental degradation that follow from the tendency of unregulated
companies to concentrate wealth and increase income disparity. Because
this paradox has been recognized since the days of Adam Smith, economic
policy has tended to swing like a pendulum between the extremes
of strict state regulation of business on the one hand and a more
“laissez-faire” approach on the other. But the world
is currently experiencing a degree of corporate power the likes
of which have not been seen since the heady days of robber barons
and imperial trading companies a century ago.
This state of affairs has
been brought about by the past twenty years of macroeconomic policy
management. From the Great Depression through the 1970s, the prevailing
development paradigm sought to mitigate the adverse consequences
of business activity by redistributing the private sector’s
income through taxation, and by legislating limits on the social
and environmental externalities produced by corporate activity.
This balance between private and public interests was considered
the best means for achieving economic growth and social improvement.
But by the early 1980s, a
series of systemic shocks had profoundly shaken this vision of the
relative roles of market and state. “Neo-liberal” economists
contended that corruption, inefficiency and ineffectiveness made
government an unworthy partner in the development process. They
certainly saw no role for social movements in shaping development
policy. As a result, followers of the neo-liberal model sought to
dismantle the “welfare state,” reduce the tax and regulatory
burden on business, and establish the private sector as the motor
of development, focusing on economic growth as if social improvement
would inevitably follow.
Global South
For countries of the global
south, this approach translated into controversial lending and aid
programs conditioned on “structural adjustment,” reduced
government spending, reorientation towards production for export
markets, and increased insertion into a global economy. The twin
policies of structural adjustment and trade liberalisation enabled
private companies to assume disproportionate power at the expense
of state and civil society institutions in both northern and southern
countries.
Popular movements that have
sprung up around the world to protest neoliberal economic policies
have tended to focus their energies and reform proposals on the
multilateral institutions responsible for implementing the fiscal
and trade policies that have proven so devastating to the livelihoods
of poor people. But while research and advocacy addressing the World
Bank, International Monetary Fund and World Trade Organization are
clearly still important, it could also be argued that transnational
corporations – the principal beneficiaries of structural adjustment
and trade liberalization – have not received the attention
they deserve from civil society. Social movements need to better
understand how corporations shape global trade and investment policies
if they are to more effectively counteract their anti-democratic
influence.
Agriculture and Food
Industry
While the impacts of corporate
power are apparent in all major sectors of the world economy, the
global food system offers a particularly important illustration.
Thanks to the influence of a handful of transnational agro-food
companies, food is now produced, processed and marketed using industrial
techniques and inputs which raise serious concerns about food safety,
nutrition, and availability, not to mention social and environmental
sustainability. The single most important obstacle to reform of
this system is corporate power – the oligopoly of transnational
agro-food companies that has won control over all major input, processing
and retail markets through a rapid process of concentration in the
industry.
That control is not good
news for more than half of the world's population that still depends
on agriculture as its principal source of income, or for consumers
who need safe, nutritious and accessible food to survive. Through
a complex web of mergers, acquisitions and partnership agreements,
firms at different points on the value chain work together to ensure
vertical integration of the food system—an arrangement that
allows clusters of firms to set prices throughout the production
process. Corporate market power squeezes farmers, both when they
buy expensive inputs like fertilizers and again when they sell their
outputs for less than their cost of production, and ultimately drives
too many of them off the land.
The food industry defends
the egregious level of corporate concentration in the sector (for
example, most major US input and processing markets have four-firm
concentration ratios ranging from 60-80%) by suggesting that consumers
benefit from economies of scale and new technologies that companies
can only harness by consolidating. But the true price of "cheap"
food includes taxpayer subsidies to agro-food companies, and the
long-term cost to society of unsustainable farm practices employed
by corporate industrial agriculture. Oligopoly price-fixing and
other market distortions also add to the cost of food. Moreover,
an increasingly concentrated food industry uses campaign contributions,
lobbyists and government appointments to shape public policy on
everything from regulatory reform to international trade agreements.
There are thus important social, environmental and political reasons
for reforming the structure of the food system.
Challenging the system
Far from going unnoticed,
the dangers of corporate concentration in the food system have been
documented by academics and experts, by farmers and workers, by
environmentalists and anti-trust lawyers, by policy analysts and
nutritionists, by investors and consumer groups. Each of these constituencies
has developed important public education and advocacy strategies
that promise necessary systemic reform, despite the level of political
and economic power wielded by food industry interest groups. Yet,
as impressive as existing efforts to challenge control of the food
system have been, key constituencies are sometimes unaware of each
other's efforts, of ways in which their strategies could be mutually
reinforcing, and of new opportunities for reform advocacy that are
not currently being exploited.
The Agribusiness Accountability
Initiative (AAI) sees in that circumstance an opportunity to build
a "whole" response to corporate power in the food system
that is "greater than the sum of its parts." AAI (www.agribusinessaccountability.org)
is conceived as an open and ongoing forum for sharing research,
advocacy ideas, networks and public education strategies to challenge
the disproportionate impact of transnational agro-food corporations
on the livelihoods and food security of producers, workers, consumers,
and communities around the world. AAI is an explicit effort to build
on the work of groups that have identified corporate concentration
in the food system as a priority concern. We would be very interested
to hear from African organizations who wish to collaborate on these
issues with their colleagues around the world.
*Peter
O’Driscol is the Coordinator of the Agribusiness Accountability
Initiative
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Monsanto pushes GM wheat to secure future
access to lucrative African Markets
Mariam Mayet
On the 19th January 2004,
Monsanto SA (Pty) Ltd stunned South Africans when it announced that
it was seeking a food and feed safety clearance for its genetically
modified (GM) Roundup Ready wheat to expedite future imports. This
application must be seen against the backdrop to the fact that GM
wheat is not grown commercially in any part of the world and is
years away from regulatory approval in Canada and the United States
of America (US) where research and experiments are still continuing
and no approval has yet been granted.
Once Monsanto obtains such
approval, the legislative weakness in the South African biosafety
law expressly excludes future importers of Roundup Ready wheat from
the need to obtain import permits. Biosafety oversight will in that
event, effectively cease to exist. Such future importers of the
Roundup Ready wheat would then have carte blanche to import the
Roundup Ready wheat into South Africa, and thereby not have to comply
with the biosafety oversight procedures in the Cartagena Protocol
on Biosafety (Biosafety Protocol). Crucially, approval from the
South African authorities will provide Monsanto with an enormous
political coup to convince other African countries that its Roundup
Ready GM wheat is “safe”. It will also go a long way
towards laying the groundwork for control over the very lucrative
wheat market in Africa.
In this context it is worth
noting that Africa imports approximately 30 million tons of wheat
per year. The US government has targeted Africa as a major market
for its wheat, especially since competition from the European Union
(EU) and Russia is not as fierce owing to dwindling wheat exports
from these countries. The US expects its exports to climb to 30
million tons during 2004, an 8-year high, and “sales to Africa
will be a major reason.”
Monsanto's Difficulties with
obtaining approval in Canada and the US Monsanto Canada and Monsanto
Corporate have applied for regulatory approval for its Roundup Ready
GM wheat in both the USA and Canada. However, to date, neither the
Canadian Food Inspection Agency, nor Health Canada, have granted
approvals for general cultivation and human safety respectively.
Monsanto Canada's failure to obtain such approval is partly due
to the groundswell of resistance from farmers and farmer organisations
in Canada. Two years ago, the organic farmers of Saskatchewan filed
a class action lawsuit to stop Roundup Ready wheat. On 27th May
2003, the Canadian Wheat Board (CWB), a farmer-controlled grain
marketing agency called on Monsanto Canada to withdraw its environmental
safety assessment. Recently, Agriculture Canada announced that it
was abandoning its long running project involving GM wheat it had
been developing in partnership with Monsanto. Jim Bole from the
government Department of Agriculture Canada said that this decision
reflected the concerns of Canada's wheat customers.
In the US, the Food and Drug
Administration (FDA) is still in the throes of conducting a voluntary
safety review of Monsanto Corporation's Roundup Ready wheat for
human and animal consumption. Monsanto Corporation is still awaiting
approval from the US Department of Agriculture (USDA) and the Environmental
Protection Agency (EPA.) The FDA, USDA and EPA share regulatory
oversight for GM crops in the US where there is no overarching comprehensive
biosafety legislation.
Paying Lip Service
to Biosafety
The central question that
the South African government must answer, is what data exactly,
will it use to consider, assess and evaluate Monsanto's application,
particularly since the field trials and safety evaluations are still
taking place in the US and Canada? Why is it that Monsanto is so
confident so as to seek a food and feed safety clearance from the
South African government? South Africa's bias in favour of GMOs
is well documented. Its biosafety laws pay lip service to the notion
public biosafety concerns. It has long since been described by environmental
and development lawyers as showing “a cynical disregard for
contemporary international and national environmental principles,
as well as for the development imperatives of South Africa”.
Monsanto's application also has implications for the integrity of
the Biosafety Protocol. The First Meeting of the Parties to the
Protocol will take place in Malaysia from 23rd to 27th February,
a momentous event in global genetic engineering regulation since
the Protocol entered into force only on 11th September 2003.
South Africa is a Party to
the Biosafety Protocol but it has not yet revised its GMO Act, to
give effect to the Biosafety Protocol. South Africa's Constitution
does, however, make it clear that the Biosafety Protocol is binding
on South Africa.
However, the safety approval
sought by Monsanto is in respect of non-existent GM wheat, whereas
the Biosafety Protocol applies to real situations of cross border
trade in genetically modified organisms (GMOs) and not to speculative
trade in respect of non existent GMOs. An early decision now in
favour of the import of Monsanto's GM wheat relieves South Africa
of the obligation later, to abide by the regulatory requirements
of the Biosafety Protocol, including its critically important Precautionary
Principle. Such a pre-emptive move by Monsanto is clearly calculated
to undermine the spirit, intention, principles and objectives of
the Biosafety Protocol.
Pre-emptive Bid For
Control Over Lucrative African Wheat Market
Monsanto Corporation needs
the lucrative African wheat market. Its loss widened to $97 million
it its fiscal first quarter in 2003, and this excludes its $69 million
goodwill write off related to its global wheat business. North Africa
imports approximately 18 million tons of wheat per year, and Sub-Saharan
Africa approximately 10 million tons. South Africa itself is a net
wheat importer, having imported 1.2 million tons of wheat during
2003, owing to the worst crop in a decade. The provision of wheat
as food aid is also an important factor for the push for the African
wheat market. For instance, Ethiopia, the centre of diversity of
wheat, imported 600, 000 of wheat last year as food aid from the
US and EU.
Safety clearance will greatly
assist Monsanto to convince key African importers who have already
voiced concern over GM wheat, to accept it as being safe. Consider
for example the following statements:
“On January 5, Algeria, which imports large amounts of durum
wheat from the United States, announced that it would not import
any genetically modified wheat. Egypt and Saudi Arabia are taking
a similar tack with respect to wheat”
“If you have just one
grain in a thousand which is genetically modified, the consumer
is going to refuse it.”
Thus, it is evident from
the above that the granting of the application sought by Monsanto
will greatly assist it to capture the African wheat market. South
Africa is hence, the entry point for the export of GE wheat into
the rest of Africa that will be forced to succumb in a domino effect.
*This
article appeared in Pambazuka News, an electronic newsletter for
social justice in Africa, www.pambazuka.org" and is reproduced
with their kind permission
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Bottom Bananas: Noboa, Del Monte, Walmart,
Tesco
Alistair Smith
Alistair Smith traces some
of the current developments in the international banana industry
and argues that Latin America’s plantation workers and their
trade unions are the first losers in an accelerating ‘race
to the bottom’ now being led by the supermarkets.
Although the banana sector
has had a higher level of trade union organisation than any other
private industry in Latin America, unions and their members are
under attack in every country, as both national and multinational
banana companies seek to cut costs in the race to produce a ‘cheap’
banana. This is especially the case in Ecuador, where the country’s
biggest company continues to flout national and international law;
and where even a progressive government has failed to bring the
Noboa Corporation to book over flagrant violations of basic union
rights.
But two new factors are speeding
up this ‘race to the bottom’, and even Ecuador’s
appalling wages and conditions may be undercut by others: one is
the fast-growing buying power of the handful of supermarket buyers
who sell a high proportion of all bananas to consumers; the other
is that the world’s most profitable banana market, the European
Union, is set to undergo changes which are already leading to a
restructuring of production.
Noboa: market leader
in union-busting
Three years into a concerted
organising campaign in the world’s leading banana exporting
country, Ecuadorian unions have come up against a man who is determined
to quash all attempts by his workers’ to organise for better
conditions. As this article goes to press, Alvaro Noboa, owner of
the giant Noboa Group, which includes Ecuador’s biggest banana
producing and exporting company, has sacked 333 workers from four
plantations in Los Ríos province for having participated
in a training workshop organised by the federation of small farmers,
indigenous peoples and rural workers’ unions, (FENACLE). Unlike
their colleagues at Los Alamos in Guayas province, they had not
even got as far as forming unions!
The struggle at Noboa’s
Los Alamos plantation makes grim reading. Since reaching the attention
of the international media in May 2002 when several hundred paramilitaries
hired by Noboa stormed the plantation in the middle of the night
to break a ten-day old strike, the company has excelled itself in
its use of union-busting tactics. Not only have there been three
successive waves of sackings of union leaders since the strike,
but the company has met none of its promises to improve even some
of the most basic provisions like toilets and lunches, and the company’s
legal representatives have consistently failed to turn up to meetings
convened by the Labour Ministry. Following the presentation of a
collective bargaining agreement by the three unions in June, 70
more union leaders were sacked. A hunger strike by workers outside
the Labour Ministry offices in July did succeed in getting bigger
severance packages than ever before, but it didn’t get them
their jobs back. To prevent any unfortunate recurrence of union
organising in Los Alamos, Noboa increased the number of phantom
sub-contracting companies operating inside the plantation from three
to 25! Conveniently, each one employs a few less than the 30 needed
to register a new trade union in Ecuador.
Immunity from the
law?
The government had even threatened
to get the police to bring Noboa’s lawyer to the negotiating
table, but the company’s immunity prevailed. Indeed, it is
rumoured that the last Minister of Agriculture, who resigned in
October just before a producers’ strike, was pushed by Noboa.
It is likely that the company was worried by threats of real sanctions
by the government against exporters who failed to pay the legal
minimum price fixed by government to growers. The new incumbent
sells his bananas to Noboa, so may be less likely to give them trouble.
Although the government has
committed itself – both to the ILO and the US government -
to complete criminal proceedings against those who attacked workers
on their peaceful and legal strike in May 2002, there have been
no convictions to date. Even a President who beat Alvaro Noboa to
the job in last November’s elections has proved unable to
deal with the power of a man who told US Congressmen that “I
don’t like unions; I will fight them!.” FENACLE is now
pinning its hopes on the Bush administration deciding to withdraw
Ecuador’s trade preferences under the labour rights clause
of the Andean Trade Preferences and Drug Eradication Act.
British supermarkets
driving the ‘race to the bottom’
Britain is one of the food
retail markets most heavily dominated by big chains of supermarkets.
Five bananas out of every six sold nationally are traded by one
of a dozen retail companies. Tesco, the biggest and most international
player, sells one in every four bananas in Britain, making an estimated
£1 million pounds per week (over US$1.5 million) from the
sale of its single biggest contributor to annual profits.
In August 2002, the third
biggest chain Asda, now owned by US giant WalMart, started a banana
retail price war in a bid to get new customers through its doors.
Consumer prices for loose bananas have since come down in all the
big five chains by over 25%. Asda is exclusively supplied since
just before the first price cut by Del Monte. This exclusive supply
deal with Del Monte, renewed for a further 2 years in May 2003,
was initially contracted at a ‘ridiculously low price’,
according to industry sources; the new price is thought to be 10%
lower. Del Monte now supplies Asda with bananas from the world’s
cheapest sources: over half of them come from Cameroon, where wages,
labour and environmental conditions are very poor, and prices are
one third cheaper than Ecuador. Much of the rest come from Del Monte’s
new plantations in Northeast Brazil, where wages are also rock bottom.
Cut the double-speak
on labour rights!
The price Tesco pay their
suppliers has fallen by 30% since the beginning of 2002, to the
point where only very cheap bananas from unsustainable sources can
be supplied at a profit. Independent growers in countries like Costa
Rica – Britain’s leading source of bananas (23% of imports
in 2002) – cannot now sell to Tesco or Asda unless they are
prepared to make a loss or flout the legal minimum price! Imagine
what this means for wages in the plantations. Or ask the workers
in the Bribri plantation in Costa Rica who supply Tesco about the
current attempts to quash trade union organisation there and get
the leaders deported back across the border to Panama. The El Ceibo
consortium which owns Bribri threatened in November to close the
plantation if workers didn’t give up their union membership.
The time has come for the
supermarkets to acknowledge that they are taking the lion’s
share of the profits along the chain and driving a ‘race to
the bottom’ which directly damages the hardest-working and
worst-remunerated players in the chain… and which directly
goes against the spirit and the letter of the commitments they have
made – and the good public relations they seek - by being
members of the Ethical Trading Initiative. No company can continue
to pretend to be promoting ethical trade along its supply chains
when it slashes supplier prices to the point where growers who pay
a living wage, treat their workforce with respect and make environmental
improvements are cut out of the market. It is time these highly
profitable retail giants incorporated the economic dimension into
their much-vaunted ethical policymaking.
The European Union:
doing the WTO’s bidding
The other factor which is
already having the effect of accelerating the ‘race to the
bottom’ in the banana industry is the proposed elimination
of the quota and licence system controlling banana imports to the
EU. The Council of Ministers, as a result of the eight-year long
dispute in the GATT/WTO agreed to change its banana import regime
from January 2006 at the latest. The proposal to do away with quotas
will inevitably mean a collapse in prices in the EU market, unless
the tariff which replaces the quota and licence arrangements is
quite high. This is however politically unlikely, given the pressure
from the US and Ecuador to keep it as low as possible. Banana companies
have therefore started preparing for this change by shifting their
sourcing – and in some cases their own production –
to countries with the lowest costs of production. By definition,
this means production from countries where wages and benefits are
lowest and where unions have not been able to organise. Del Monte
has moved to Brazil, and others like Dole are rumoured to be following;
all three big multinationals are shifting from the unionised Atlantic
region of Guatemala to the low-wage, non-union Pacific coast. The
future for Panama, Colombia and Costa Rica looks bleak as companies
relocate to low-cost Ecuador. Dole, for example, appears to see
Ecuador as a good long-term bet, as it has invested heavily in a
private port facility and 2000 hectares of land there.
All this flies in the face
of the EU’s commitments to sustainable development and support
for international labour standards. Ideas for social clauses in
trade agreements do not even get a look-in in this brave new world
where everything has to be compatible with WTO rules. The Latin
American trade unions, with an eye to the potentially disastrous
effects of the end of quotas in 2006, are not however sitting on
the sidelines. But they and their allies will have our work cut
out if we are to convince the EU to implement a policy which does
not further encourage the current unsustainable trends.
Unions feeling the
cold wind of unfettered markets
Across Latin America, workers
are feeling the effects of this race to the bottom. In Nicaragua,
wages have fallen to the lowest anywhere in the banana world –
at an incredible $1.20 a day and unions have been driven out of
the majority of plantations - in a country with a banana industry
which once boasted 100% union membership. In Guatemala and Honduras,
collective agreements with the multinational banana companies are
under serious pressure as Dole, Chiquita and Del Monte try to negotiate
away clauses which have been won over recent decades. In Colombia,
home of the world’s biggest banana trade union, workers are
facing a tough negotiation next year now that a new law has been
passed preventing any worker from earning double the minimum wage;
banana workers are currently paid above that as a result of an industry-wide
collective agreement.
Meanwhile, in Cameroon, where
a trade union and collective bargaining agreement are in place in
Del Monte plantations, even the above-average wages paid to workers
amount to less than US$2 a day. In future, it is only countries
like Cameroon, Brazil – maybe even India, if it decides to
start exporting - that will be able to afford to supply the world
market… unless the trade unions and their allies can put a
stop to this suicidal race started by the big banana companies,
but now being driven by the WalMarts of this world.
*Alistair
Smith is the International Co-ordinator of Banana Link
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Fighting
corporate power in agriculture should be a priority
Rangarirai Machemedze
“Only when the last tree has died and the last river been
poisoned and the last fish been caught will we realise we cannot
eat money,” famous comment of the Cree Chief Seattle.
The power of Transnational Corporations (TNCs) must never be underestimated.
Corporate power has increased poverty and reduced many people to
mere spectators in the development processes of their countries.
The International Monetary Fund (IMF), the World Bank (WB) and the
World Trade Organization (WTO) have been presented as the multilateral
institutions designed to shape the financial and economic policies
of the world “for a better life for everyone”. But they
are the main architects of policies that have impoverished the third
world.
Corporate power has long been a global phenomenon where there is
no global government accountable to the people of every country
to oversee the globalisation process in a mode comparable to the
national governments’ guided nationalisation processes.
Indeed the IMF and the WB, through forcing recipient nations to
adopt a wide range of neo-liberal policies including reduction of
trade regulations, privatization, tariff reductions and export-led
growth are promoting the exploitative nature of TNCs.
In the mid 1990s, trade and investment agreements like those of
the WTO have been signed codifying new corporate rights. At the
WTO, for example, trade agreements have been negotiated that enforces
and raise commercial interests above governments' rights to set
their own policies relating to trade, regulation, investment, purchasing
and other areas, regardless of social or environmental considerations.
For example, the WTO Agreement on Agriculture removes barriers to
agricultural markets, generally favouring industrial countries rather
than the developing world. Not surprisingly, huge, market-distorting
agribusinesses themselves are not seen as barriers to free markets.
Globalization has been offered as the solution to poverty. However,
its processes such as privatization of water, patenting of seeds
and alienation of land, contradicts the above assertion.
On the other hand the United Nations, which many thought was a more
democratic institution and sensitive to the needs of the people
came up with its own strategy of poverty reduction. However, there
are concerns about MDGs being an effective poverty reduction strategy.
MDGs rely heavily on neo-liberal policies of promoting foreign direct
investments (FDIs). FDIs are corporate led investments where a few
TNCs play the leading role. Whether they bring development is a
contentious issue. It is known that they compromise the rights of
workers, damage the environment and usurp the power of nation states.
TNCs are driving the economic agenda of multilateral institutions,
hence the globalization process. For instance, industrial agriculture
has become the dominant model for producing food. This has the danger
of marginalising small family oriented agricultural production.
Economic concentration and biotechnology
A key aspect of the industrial food system is that it is an outgrowth
of a long and on-going process of economic concentration that allows
the agribusiness corporations to define and control the modern food
system. Worldwide, the top ten seed firms now control 30% of the
multi billion dollar seed market, with the top three being DuPont,
Monsanto and Syngenta. The top ten agrochemical corporations control
84% of the $30 billion agrochemical market with the top three being
Syngenta, Monsanto and Bayer (Skip Spitzer).
Agribusiness corporations are now commercialising genetically engineered
crops. Unlike conventionally bred plants, genetically modified organisms
(GMOs) contain DNA in which bioengineers have inserted one or more
genes selected from the pool of all known life.
Mariam Mayet in the second article of this Bulletin explains how
Monsanto is seeking an approval of commercially producing genetically
modified wheat in South Africa despite the fact that some experiments
are still being carried out in the US and Canada to determine whether
it should be produced on a commercial scale.
The advent of GMOs has tightened corporate control of food by increasing
economic concentration and strengthening patent rights around seeds.
The development and marketing of agricultural biotechnology prompted
new rounds of mergers and acquisitions of seed, agrochemical and
biotechnology companies. The latest being the move by Cargill to
combine its fertilizer business with Lake Forest, Ill.-based IMC
Global. The deal would bolster Cargill's ability to tap the capital
markets significantly, and fund future growth.
The top seven agricultural biotechnology companies are now also
the top agrochemical corporations and rank among the top ten seed
corporations. Using new intellectual property rights, these companies
are patenting "new forms of life" and licensing biotech
seeds rather than selling them. Licensing agreements typically outlaw
the farmers’ use and breeding of second generation seeds and
pose other requirements.
Concentration in the inputs sectors exposes farmers to artificially-high
cost of seed, chemicals and other farming products, while concentration
in commodity markets artificially lowers farm-gate prices, thereby
squeezing farmer profits. As a result, small farms are disappearing.
In the Third World, agribusiness development and the opening of
markets to heavily subsidised, foreign farm products is causing
even more extensive displacement of small farmers.
Fighting the system
As the problems of industrial agriculture become clearer, farmers
in many countries should build on the rich heritage of traditional
and indigenous farming systems. For example, small farms, which
generally exhibit many of the features of sustainable farming, are
extremely productive when considering total food production, rather
than how much of a single crop can be produced. During the land
reform process in Zimbabwe, it was demonstrated that smaller farms
can produce 200 to 1000% more in maize output than larger ones,
per unit of capital input.
A transition to genuinely sustainable alternatives, however, must
confront the problem of corporate power. The growth of the corporate
sector and the accumulation of extraordinary amounts of private
wealth have radically transformed the role of corporations. They
have become more powerful than national governments and their influence
transcends most sectors of the society.
This fight should not be left to farmers alone. Other stakeholders
such as civil society and governments should join the fight against
corporate power in agriculture and the food industry. TNCs should
be held accountable of their actions and governments should put
in place laws and policies that regulate their operations.
Alistair Smith in the third
article of this Bulletin, traces some of the current developments
in the international banana industry and argues that Latin America’s
plantation workers and their trade unions are the first losers in
an accelerating ‘race to the bottom’ now being led by
the supermarkets. The companies are using their power at the top
of global supply chains to put pressure on workers, particularly
women who work longer hours in poor conditions.
The Agribusiness Accountability
Initiative (AAI) that Peter refers to in the first article of this
Bulletin should be a good starting point in fighting corporate power
in the agriculture and food industry. From January 27 – 31
2004 a number of civil society representatives from across the world
met in Brussels to find ways and means of fighting corporate power
in the agriculture and food industries under the banner of AAI.
AAI is reaching out to activists around the world to consolidate
a global research and action network, capable of educating the public
about the impact of the agribusiness oligopoly, as well as launching
global campaigns that seek to promote accountability in the companies
themselves.
In order to have a more balanced, sustainable and democratically
controlled food system, the promotion of mechanisms for effective
regulation of food companies must be coordinated with efforts to
scale up alternative, sustainable systems for the production, trade
and distribution of food.
This is where corporate - led globalisation is failing to lift people
out of poverty and support development. There should be a stop to
corporate power.
top*Rangarirai machemedze
is a Senior Analyst with SEATINI
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