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.
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Robert
Zoellick's 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).
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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 admits
(pdf) 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.
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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.
|
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.
Note: The above article was circulated by Information Clearing
House. Writer, activist and academic Raj Patel (http://www.rajpatel.org/)
is the author of Stuffed and Starved: Markets, Power and the Hidden
Battle for the World's Food System. Click
here to order the book.