This is turning out to be a bigger entry than I thought it would be, but since I want to put something up today, I'll post it as is and finish it up tomorrow. (Which has since arrived.)
Stephen Gordon is a mainstream liberal economist who used to try to debate economic policy with the lefties on "babble" and "enmasse." I often disagreed with him, to the point of really not liking some of his positions, but on the whole I welcomed his contribution. I've even changed my thinking on a couple of issues due to his facts and analysis. I certainly didn't think he should have been dismissed as a cynical shill for capitalism or as someone motivated and informed by their self-interested position as a member of the ruling elite.
I was at his blog, "
Worthwhile Canadian Initiative" recently though and I came across an older entry that I just had to take issue with. Entitled "
Self-sufficiency in food: always and everywhere a bad, bad idea," it is just simply a dangerously dogmatic doggerel about the virtues of liberal international trade.
Basically, Gordon takes issue with a Globe & Mail editorial "
Everything is Not Peachy" which actually refers to a subject I talked about in a blog-post "
Another Case of Market Failure" about a peach canning facility in Niagara that closed down due to stagnant sales (although it was still profitable).
Most of the meat of the Globe & Mail editorial is in this paragraph about the dangers of specialization a-la "comparative advantage":
As we specialize, we become more dependent on other people, industries and regions in the global economy. That may be fine for non-essential goods such as children's toys and kitchen appliances, but should we depend on others for life's essentials such as food? Also, specialization at the global level tends to reduce the diversity of producers and products - a small number of large, highly efficient producers often comes to dominate the market for specific goods. In complex systems from economies to ecologies, however, lower diversity usually means lower ability to adapt to rapidly changing circumstances. And, finally, all that connectivity among specialized producers around the world makes everyone more vulnerable to cascading system failures: a shock or failure in one part of the global system can propagate through the rest of the system in the blink of an eye, like a row of falling dominoes.
To which Dr. Gordon replied:
This is exactly wrong. Specialisation and trade reduces exposure to catastrophic risk. In countries that insist on self-sufficiency, a bad harvest means starvation. In countries that participate in world markets, a bad harvest means a trade deficit in food.
Which is simply NOT "always and everywhere" true. First, a metaphor: Imagine that you're a poor person who grows their own food in their backyard. A businessman offers to employ you and to pay you enough to buy your food from the supermarket and still have more money left over than if you grew your own food. However, when pressed, the businessman cannot promise you that he'll always have paying work for you, nor can he promise you that the price of food will always stay affordable for you at your salary. On top of this, he offers you the possibility that he can loan you money or food in hard times, so long as you cede to him the deed to your house and any other possessions you own in return.
That's not that far off from what's actually happened to some poorer countries as we'll see. But first, I imagine that Dr. Gordon's reply would be: "Fine. But you're not guaranteed that you'll be successful in every attempt to grow your own food either." To which I can only say that then you'll be in the same supplicant's position as the one that the businessman offered you, except that given your experience, catastrophic results from your backyard farming seems slightly less likely than occasional bouts of unemployment and dependence.
And, the fact of the matter is that while we're having this debate, there's a food-crisis going on in the world, and the insecurity of countries that have abandoned their self-sufficiency in food are suffering greatly.
Let's take the example of
Haiti for instance. As part of the package of neoliberal imperialist snakeoil that Aristide had to agree to the FIRST time he was overthrown by Western monsters, Aristide agreed to "open up" Haiti's markets to heavily-subsidized US agricultural imports, which devastated Haiti's agricultural sector.
By the1990s rice imports outpaced domestic rice production, displacing many Haitian farmers and secondary agricultural workers with few employment opportunities. Haiti's adoption of trade liberalization policies and its environmental problems have played significant roles in the collapse of domestic rice production. These trade liberalization policies at their center have involved the lowering Haiti's tariffs on rice imports. Currently the rice import tariff is 3%, which is much lower than rice import tariffs of all other nations in the Caribbean Community. The Haitian rice market is now flooded with "Miami rice" from the US and some have accused the US of dumping its rice in Haiti.
This case demonstrates how often trade liberalization can have devastating consequences for the rural populations of the developing world. Haiti is now the least trade restrictive country in the Caribbean, but in spite of this openness to trade, Haiti remains the poorest country in the Caribbean. While those in the pro-liberalization camp believe these policies are more helpful than hurtful to Haiti because they have lead to a decrease in the price of rice, this decrease in the price of rice has benefited mostly the relatively wealthy, urban population of the country. Liberalization has been very hurtful to the rural poor who are finding it impossible to earn a decent living in rice production.
"All well and good" would be the reply of a liberal economist. "While subsidies are bad, at least the people of Haiti have cheaper food and can turn their energies to more profitable pursuits." But what, pray tell, would these pursuits be? Cheap labour in Port-au-Prince sweatshops? Are there even enough sweatshop jobs to go around? Obviously not. So, formerly self-reliant Haitian peasants are forced to rely on food imports as many of them languish in unemployment.
Another example of this blindness is in the comments section of this CommonDreams article: "
The Food Crisis and Global Institutions."
This one from commentator "Jay P":
I have a small, 100 acre farm in the midwest that has been in the family for 150 years. Although, because of scale factors, I have a professional sharecropper do the farming because he has the equipment to farm over a thousand acres. Better for him, better for me. We grow soybeans, corn, wheat, millet, and clover on rotation.
With regards to food production, we need to be more consistent with our message, or at least prioritize conflicting agendas.
Start with a universally held idea: The world's population is growing, therefore, food production must increase.There are only two ways to increase production: Increase productivity and/or increase land used for agriculture.
Here is the problem. At the same time we recognize the need to increase production, some are trying to deny the tools to do so, and are actively removing crops from the food chain, diverting it to fuel. These actions will result in famine. We must decide which is more important, feeding people, non-disturbance of nature, or biofuel. Any one to benefit must necessarily negatively impact the other two.
To increase productivity, we need insecticides, herbicides, large farms, high production seed, and irrigation. At the same time, we are demanding organically grown crops, genetically unmodified foods (actually a false claim since all domesticated foods have been modified through selective breeding), [what drivel. as if gene-splicing is the same thing as cross-breeding!!...thwap] break up of large farms to be given to peasants, and we protest against construction of dams and for keeping unused land to stay untouched. We are highly subsidizing corn to ethanol to burn in our cars, which in net result produces a marginal amount of energy and would be uneconomical without the subsidies (plus many vehicles get as much as 15% less mpg with a 10% ethanol blend!).
These artificially imposed constraints are in direct conflict with the need to feed the world. In an exaggerated example, suppose all oil were replaced with biofuel. We would then be facing a choice: Do we fill our gas tanks or do we allow someone to eat for the week. If we fill the tank, someone
dies.
Whenever prices of something are not what consumers, producers, or governments desire, they try to correct the perceived inadequacy by taking money from one group and giving it to another. This is a seriously flawed approach because it distorts the supply-demand curves and always makes the prices worse, whether worse is considered higher or lower.
Handing money out to poor people does not get around the constraints we are imposing on ourselves. It raises prices, requiring more money to be handed out to those who were just priced out by the action of handing out money. The only answers are to increase supply or decrease demand. The only way to decrease demand is to decrease population. If we are not going to do that, then we must increase supply.
Let's not over constrain ourselves. I believe that people are more important than any fish in a stream or any weed in a valley. Improper use of chemicals may slightly increase lifetime risks of some kinds of diseases, but that is irrelevant to someone who is going to die of starvation by the end of the week. For those concerned, increase variety. At my farm, corn yield per acre has increased over 60% since 1970 using these tools.
Some believe peasants should be given control of the land they work, but I have seen these results first hand in a developing country. Sure, it buys votes, but it decreases production. Give the peasant a job, an education, and something to eat instead of reducing economic scale. And for the sake of everyone, let's stop this corn to ethanol madness. It does not work.
An no, we cannot have our cake and eat it
too.
And this bit of self-congratulatory nonsense from one "marc melchiori":
Jay P. Fellow farmer here in Mt. Olivet KY. Don't sharecrop, do most of it myself. Third generation strong and hope to pass everything I know to my boy and girl. You hit it dead on brother. Dead on. I could not have said it better myself. except, you forget one thing. A lota folks in this forum who would not know the ass end of a steer like to give a lota advice and directions withou knowing a GD thing. Reminds me of my 7 year old. Most of these folks outa but out of the picture and leave feeding the world to folks who know how to do it.Hope the rains are frequent, the sun is shining and the spirit is strong. God bless
That's all I have time for today. I'll finish it tomorrow.
And, here I is.
I take issue with both Jay P. and marc melchiori because their arguments, while internally consistent, fail totally to address the reality that it is precisely those arguments (become policy) that have failed the people of the impoverished countries. Some of them have become dependent on subsidized Western farmers, either as importers of their products, or through being made reliant on US government controlled "food aid," which as this
NY Times op-ed states , is deliberately used as a political weapon:
The Sudan aid authorization, which was included in Congress's final budget bill at the urging of the State Department and National Security Council officials, is an open acknowledgment of what has long been a hidden truth behind food aid. From the beginnings of the federal Food for Peace program in the late 1950's, food aid has been viewed in Washington as a political weapon, a stick disguised as a carrot. South Vietnam was one of the first beneficiaries of the program.
So there's that to worry about as a country allows it's self-sufficiency in food to wind down in the expectation that foreign sources will always be a dependable, unproblematic food alternative. A genuine loss in political autonomy.
A healthy agricultural sector is vital for any developing country. Opening up one's agricultural sector to heavily-subsidized developed-countries' products tends to devastate the rural population.
In the European industrial revolution, innovations in agriculture preceded industrialization. Furthermore, industrial jobs became available because Europe had (by fair means and foul) come to dominate international trade in manufactures. What we're asking the poor countries to do is to allow their agricultural sector to be destroyed, pushing farmers off of the land and into the cities, where, as opposed to the European case, there are no dependable, domestic world-leading mass-production industries to absorb the redundant peasantry.
If we don't do that, we foist "green revolutions" on these countries, which means expensive petro-chemicals, machinery, and large-scale irrigation and other corporate farming techniques. These programs do raise productivity, but it only benefits the wealthiest, most politically-connected farmers. The result is the same as before; the redundancy of the peasantry. Whether in
Mexico or
India, the social damage is
severe.
Jay P. stated above:
Some believe peasants should be given control of the land they work, but I have seen these results first hand in a developing country. Sure, it buys votes, but it decreases production. Give the peasant a job, an education, and something to eat instead of reducing economic scale.
This is true if only one ignores the fact that generally, when peasants are finally given any access to land, they are not given the financial assistance necessary to do anything with it. Contrary to "green revolution" evangelists, the diversity and organic independence of peasant agriculture has
untapped potential.
Regardless, Jay P.'s petro-agricultural model is rapidly coming to the end of the line.
That's all that I've got time for today.