Why is Globalized Agriculture Leaving 1 Billion People Hungry?

All of us have probably seen movies lampooning the ditzy beauty pageant contestant and her selfless desire to see the "end of world hunger". All jokes aside, the steady march of global hunger is actually gaining strength, while our every attempt to fight back is encumbered by either a lack of coordination, fresh ideas, or both. The number of people in the world designated as hungry has reached a mind-blowing 1 billion. There are 100 million more people who are identified as hungry than last year, consuming fewer than 1,800 calories a day. Not surprisingly, sub-Saharan Africa has the highest rate of hunger in the world.

There are no easy answers to solving hunger in the world, but at least one thing should be obvious---what we have done up until now hasn't worked.As I explained in an earlier post on the 2008 global food crisis, people around the world aren't hungry because there isn't enough food, or even simply because of bad economic policy (although this is an important factor). The very design of globalized agriculture has unfortunately contributed to a lop-sided model that has enriched a few at the expense of many of the world's poorest.

The Impact of the Economic Crisis

Despite the good intentions of policymakers, activists and aid agencies, the economic crisis has only worsened the hunger problem, moving poor nations further away from the aim of food security. The near future looks even bleaker in light of an expectation that international food prices will be exceptionally high well into the next decade. The Organization for Economic Cooperation and Development and the U.N. Food and Agricultural Organization, released a report which predicts crop prices will be 10 to 20 percent higher during the next decade than during the previous 10 years. The current economic crisis has reduced access to food by the poor. FAO Director-General Jacques Diouf had this to say about the fall-out of the recession on the world's most vulnerable,

"A dangerous mix of the global economic slowdown combined with stubbornly high food prices in many countries has pushed some 100 million more people than last year into chronic hunger and poverty...The silent hunger crisis — affecting one sixth of all of humanity — poses a serious risk for world peace and security. We urgently need to forge a broad consensus on the total and rapid eradication of hunger in the world and to take the necessary actions."

More and more, the urban poor in the developing world are completely dependent on food that they not only can't produce, but that is produced farther away and by fewer and fewer sources. The end result is that poor families are left vulnerable to wild price fluctuations in the global market. When jobs are lost and incomes dried up there is virtually little recourse for protection. Under the status-quo, many governments are unlikely to initiate any kind of price controls on key food sources to offer some security when prices do sky-rocket.




Is Uneven Development to Blame?

There is a strong argument vocalized in the global South that the world's productive and financial resources for farming are concentrated in the hands of too few agricultural oligopolies in North America, Europe, and in Australia. In this view, the economic crisis did not create the world's hunger problem, but only exposed inherent structural weaknesses in the architecture of globalized agriculture.

The Third World Forum in Dakar, Senegal explains the uneven nature of global food production in the world lucidly in an article called, "The new agrarian question : What alternatives for the Third World peasant societies?"

"Capitalist agriculture governed by the principle of return on capital, which is localised almost exclusively in North America, in Europe, in the South cone of Latin America and in Australia, employs only a few tens of millions of farmers who are no longer “peasants”. But their productivity, which depends on mechanisation (of which they have monopoly worldwide) and the area of land possessed by each farmer, ranges between 10.000 and 20.000 quintals of equivalent cereals per worker annually..........

The ratio of productivity of the most advanced segment of the world agriculture to the poorest, which was around 10 to 1 before 1940 is now approaching 2000 to 1 ! That means that productivity has progressed much more unequally in the area of agricultural-food production than in any other area. Simultaneously this evolution has led to the reducing of relative prices of food products (in relation to other industrial and service products) to one fifth of what they were fifty years ago."

The majority rural farmers in the global South simply can't compete with the highly capital-intensive techniques of subsidized farmers in rich countries without support. In the developing world, peasant farmers are rarely supported with the appropriate technologies and processes to fight crop disease, and climate change among other external factors. Ultimately, these families are priced out of the local market for agricultural foods, which can be produced cheaper in America or Europe and with higher-yield varieties due to genetic modification. Furthermore, colonialism and later structural adjustment policies from the International Monetary Fund and World Bank coordinated the whole sale abandonment of large scale domestic agricultural production for a "competitive advantage" in the extraction of cheap natural resources or labor.

Finding Alternative Solutions to the Hunger Problem

The natural response to the global hunger crisis by most is simply more investment coupled with liberalization. The assumption being that increased spending on productive capacity, and an expansion of market access will help small-holder farmers increase productivity and income. However, this status quo approach does not address the fundamental structural deficit that developing nations have inherited. US Secretary of State, Hillary Clinton wrote an article in the Huffington Post laying out the Obama Administration's plan to fight hunger. Her policy prescriptions were more of the same market responses to the problem that has characterized at least the last 30 years i.e. "increase agricultural productivity", "stimulate the private sector", and "increase trade".

There are important organizations in the US investigating alternative responses to the growing problem of world hunger which go beyond free- market mechanisms alone. The Institute for Food and Development Policy is a think-tank in Oakland, California which, "believe(s) a world free of hunger is possible if farmers and communities take back control of the food systems presently dominated by transnational agri-foods industries." The IFDP sees the solution to global hunger as a three-pronged approach including building local agri-food systems, forging food sovereignty for farmers, and democratizing the development process.

A host of think-tanks like the Institute for Food and Development Policy, the Third World Forum and mass social movements in the global South are rightly asking for a re-organization of globalized agriculture to meet the needs of the world's poor. However, the dominant policy discourse on hunger in the US hasn't yet acknowledged the uneven structure of globalized agriculture and the need for serious transformation within the system. It seems highly unlikely that the battle against world hunger can be won without conscious policy changes in the US, Europe and other rich nations. There are 1 billion people and counting waiting for that to happen.

Climate Change May Starve Africa to Death

Let us all demand that Europe and America finally commit themselves to giving financial assistance to African countries, who are baring the brunt of richer country's carbon emissions. A pretty grim article today in IRIN, warns that climate change might literally wipe out many of Africa's staple food sources in the next 10 years.

The Intergovernmental Panel on Climate Change (IPCC), an international scientific body, has predicted that food production in Africa could halve by 2020 as global warming pushes temperatures up and droughts become more intense.

The article details the increasing likelihood that African farmers will find themselves unable to produce traditional food staples like maize. Unless significant action is taken by African governments to develop climate change resistant crop varieties, the continent could face its worst battle with food insecurity in recent memory. Western governments should save the lectures about the onslaught of global climate change and put the money where their mouths are.

Meet Africa's Cuba: Eritrea

Many Americans are knowledgable about the island nation of Cuba, which despite an economic embargo and political isolation by the US government, has remained one of the global South's success stories in social development. Cuba's universal healthcare system was featured prominently by Michael Moore in his popular film "Sicko".

Less of us however, have heard about a small country thousands of miles away in Africa called Eritrea, that in many ways continues to be just as controversial as Cuba to political analysts.

Eritrean guerrillas organized against the Ethiopian government in 1961 to liberate their nation through armed struggle. 18 years later the nation is perceived as a thorn in the side of the United States military and global financial institutions which are prevalent throughout East Africa.

America's closest strategic ally Ethiopia is Eritrea's sworn enemy and its former occupier. While Eritrea has no formal embargo on it imposed by the US, there has been an offical blockade of arms sales. Despite persistent threats, America has not yet added Eritrea to the list of State Terrorist Sponsors to which Cuba belongs.

For supporters, Eritrea's President Isaias Afwerki is a symbol of anti-imperialim and self-reliance, but critics say he is an autocrat whose government stifles internal dissent and supports armed resistance movements in neighboring countries. An East African bloc within the United Nations went as far as calling for sanctions agains Eritrea because of its alledged support of rebels in nextdoor Somalia. The Eritrean government refutes the claims.

The parallels between Cuba and Eritrea are not lost on Eritrea's President, Isaias Afwerki, aformer guerilla leader who fought in a decades long liberation war against Ethiopia. In a recent statement to the press Afwerki remarked,

"I don't know Cuba, but I admire their resilience...Being near the United States, and the United States blockading this country for so many decades, how were they able to do it? How was it possible for them to have the best scientists in biotechnology, the best health services?"

According to the latest World Health Organization report, life expectancy for Eritrean females has increased from 53 years in 1990 to 65 years in 2007. Amongst Eritrean males the expected life span increased from 28 years to 61 years. The drastic improvement in life expectancy can be attributed to the end of the conflict with Ethiopia, but an increase in disposible income is also an important factor. Eritrea has made significant gains in the areas of health and education.

The government has also mobilized a concentrated effort to eradicate poverty and to ensure food security. In an East African region where most countries share close strategic military and economic relationships with the United States, the Government of Eritrea pursues strict adherence to the principle of self-reliance.

Throughout Africa, economic policies are usually designed by foreign investors and technocrats through the World Bank or International Monetary Fund. In Eritrea, economic policy is largely determined by mandate from the leading political party, People's Front for Democracy and Justice (PFDJ).The strength of Eritrea's committed strategy of "self-reliance" is reinforced by statements from the US Agency for Interntional Development (USAID).

"The ability of Eritrea to pursue developmental programs in the midst of conflict, massive population displacement, and drought is due primarily to intense national commitment, reinforced with an approach to development assistance designed to enhance self-reliance."

On May 24th, Eritreans will celebrate 18 years of political and economic independence. Love or hate the nation's politics, it is hard to deny the symbol Eritrea represents in the context of East Africa. Like Cuba in Latin America, Eritrea is Africa's hard-headed son who defies all conventional wisdom in international politics--- against incredible odds.

Food Crisis for Thought: Neoliberalism Fails to Deliver Food Security

For decades technocrats and politicians in Washington D.C. have paraded Milton Friedman and Robert Nozick's 'minimal-state' as the undisputed champion of modern political economy---the narrow path to prosperity and increased living standards in post-colonial countries in the developing world. But the Washington Consensus has failed to deliver the most basic human necessities to the poor and the current food crisis in the global South is a text-book example of what Egyptian economist Samir Amin has identified as a "Liberal Virus".

Sky high food prices, climate change, an increasingly nugatory dollar, and Western subsidies towards the production of biofuels have created a "perfect storm" against the poor world-wide. There is no part of the developing world left unblemished by the current food crisis and countries as diverse as Afghanistan, Argentina, Haiti, and Senegal have reported riots and other forms of social upheaval in response.

Facing pressure from their populations, many nations are fasting from vulgar classical economic liberalism to alleviate the effects of global market-failure by protecting their own domestic food industries. In Asia some of the largest rice exporters in the world including India, Cambodia, China and Vietnam, are either dramatically cutting back or have completely banned exports of rice in a last ditch effort to provide some semblance of food security for their citizens.

In Africa however, there is no such option. A food crisis that may be new for some in the global economy has been intrinsic in this continent for decades and has only worsened in recent months. The structural adjustment policies of the World Bank and International Monetary Fund demanded the whole sale abandonment of large scale domestic agricultural production for a "competitive advantage" in the extraction of cheap natural resources such as oil, diamonds and fish. African nations, dependent on food imports and aid from the West are reeling with social unrest and riots as the poor and middle-classes simply cannot afford enough food for daily consumption. In Sierra Leone the price of food has risen by 300 percent.

The World Bank has been obliged to join the growing chorus of international organizations warning of a deepening global crisis over the rising cost of food. The current head of the World Bank Robert Zoellick has asked rich nations to commit at least $500 million to the UN World Food Program to fight hunger in emergencies. Zoellick said prices of rice have risen a whopping 75 percent over the last two years.

“This is about recognizing a growing emergency, acting and seizing opportunity, too. The world can do this. We can do this. We can have a new deal on global food policy."

The "New Deal", referred to by Zoellick is needless to say a call for agrarian sectors in emerging countries to be more productive and competitive in global markets. But the broken record skipping from zonked Bretton Woods institutions is likely to be cut in the coming months ahead by post-colonial nations in Asia and Latin America looking to avoid political unrest---offering temporary concessions to the poor in the form of price controls and export protections. For the Bush Administration the food crisis will add fuel to a fire of domestic and Latin American hostility to the proposed Colombian-U.S. free-trade deal--- currently stalled for a vote in the Congress by Speaker of the House Nancy Pelosi.