trading away the rights to food. 2 paradox the world has never produced so much food and food has...

Trading Trading away the away the rights to rights to

Food Food

Trading Trading away the away the rights to rights to

Food Food

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ParadoxParadoxThe world has never

produced so much food and food has never been so cheap yet the number

of hungry people has risen in 47 countries of the developing world.

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Hunger exists because of huge inequalities in the distribution of wealth.

In 1998 the world’s richest 225 billionaires

were worth $1 trillion — equal to the annual

income of 2.7 billion people.

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Among the top wealthiest Among the top wealthiest entities in the worldentities in the world

4949 are countries and are countries and

5151 are are ??????

Among the top wealthiest Among the top wealthiest entities in the worldentities in the world

4949 are countries and are countries and

5151 are are ??????

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AgribusinessAgribusinessAgribusinessAgribusiness

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Corporate Market Power Corporate Market Power and the and the

Food Production ChainFood Production Chain

Corporate Market Power Corporate Market Power and the and the

Food Production ChainFood Production Chain

oil and natural gas chemicals, machinery, seeds

capital (banking) crop production

food processing distribution

retailing

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What percentage of What percentage of the average price of a the average price of a loaf of bread goes to loaf of bread goes to

the farmer?the farmer? Less than 10%

Approximately 25% Slightly more than 50%

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Mega Hog BarnsMega Hog Barns

can produce up to 200,000 hogs for market a year

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What’s wrong with What’s wrong with big business dominating big business dominating the agricultural sector?the agricultural sector?

What’s wrong with What’s wrong with big business dominating big business dominating the agricultural sector?the agricultural sector?

2. little investment in or ties to communities

1. environmental and working conditions

3. cash export crops

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WhyWhy are governments are governments of developing countries of developing countries

encouraging encouraging the export the export of cropsof crops

when there is not enough food when there is not enough food for their own peoplefor their own people

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DebtDebt

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The World Bank

The International Monetary Fund

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Structural Adjustment Structural Adjustment Policies of the IMFPolicies of the IMF

1. A reduction in spending on social programs

2. The selling off, or privatization, of government assets

3. The elimination of subsidies

4. The insistence on export or cash crops

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ParadoxParadoxThe world has never

produced so much food and food has never been so cheap yet the number

of hungry people has risen in 47 countries of the developing world.

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What effect does What effect does the growth the growth

of cash export crops of cash export crops have on world food prices?have on world food prices?

a) They go up.

b) They go down

21More and more land is used for export crops.

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““Dumping”Dumping”SubsidiesSubsidies

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Subsidies for FarmersSubsidies for Farmers

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In 1999 rich countries spent In 1999 rich countries spent more than more than twice as muchtwice as much for for

agricultural agricultural subsidiessubsidies as developing as developing countries countries earned from earned from crop exports!crop exports!

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Subsidies Per DollarSubsidies Per DollarTo FarmsTo Farms

11 centsCanada

48 centsUnited States

56 centsEuropean Union

Top 7%get 50%

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28 ?““DumpingDumping””

WhyWhy

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Subsidies for Subsidies for TransportationTransportation

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ParadoxParadoxThe world has never

produced so much food and food has never been so cheap yet the number

of hungry people has risen in 47 countries of the developing world.

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TariffsTariffs

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Free Trade Free Trade MechanismsMechanisms

1. Unilateral agreements

2. Treaties

3. The World Trade Organization

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National Farmers’ UnionNational Farmers’ Union

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WTO dining on the WorldWTO dining on the World

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Reasons for Hunger Reasons for Hunger and Food Insecurityand Food Insecurity

1. The redistribution of wealth from poor to rich

2. Corporate Market Power

3. The debt crisis and the IMF

4. Food Subsidies and Dumping

5. Trade Rules and the WTO

6. The increasing corporate influence on government

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So So whatwhat

can can we dowe do to make to make

a a differencedifference?