Is capitalism crumbling?

Stephen Muchiri, head of the Eastern Africa Farmers Federation, stated recently that: “The amount of money used for the bailouts in the U.S. and Europe — people here are saying that money is enough to feed the poor in Africa for the next three years.” This estimate seems to be rather conservative as, according to this month’s Socialist Standard Editorial, “The sums of money hastily committed to increase banks’ liquidity and stabilise the sector would – if used to meet real human needs - ensure not one person need die of hunger for the next 23 years.”

Capitalism has gotten bad press in the last few months. Countless commentators have given more than a passing consideration to the question, will capitalism collapse? Whilst this hopeful question could be expected to emanate from excitable journalists, and from the rump of what remains of the left-wing throughout the world, it should be noted that the likes of Bill Gates and Nicolas Sarkozy have been asking similar questions.

The real challenge to capitalism however is not so much a challenge to its on-going operation – it will carry on in some shape or form regardless. The last few months are after all nothing other than a “market correction”, albeit a pretty big and widespread one. Rather, the challenge to capitalism is one that is of more interest to world socialists.

For us worthwhile social change cannot come about blindly in knee-jerk reaction to events, nor in the role of passive bystanders as events unfold around us. What has become crystal clear over the last few weeks is the extent to which the experts of capitalism, the self-styled “Masters of the Universe” were flying by the seat of their silk monogrammed pants, with little idea what they were actually buying and selling.

Genuine social change will require more than just restricting executives’ bonuses, or trying to improve regulation of the financial services sector, as many are calling for. Even when it is working right, even when it is booming, the market system fails miserably to do the one thing it claims as its unique selling point. Far from efficiently sending market signals between supply and demand, between producer and consumer, the market system sends confused, unreliable and skewed information.

And of course there are some areas of demand that the economic system is just not interested in even supplying – because of the low profit returns available. World hunger is one example illustrating how the market operates on the basis of profit, not human need. There can surely be few clearer signs of the priorities of capitalism than the contrast between the painfully slow progress made to address world hunger over the last few decades, and the haste with which politicians around the world have responded to the banking crisis. The sums of money hastily committed to increase banks’ liquidity and stabilise the sector would – if used to meet real human needs - ensure not one person need die of hunger for the next 23 years.

Capitalism won’t collapse of its own accord. But for many millions it has never functioned to start with. Instead the market system must be dismantled intellectually, ideologically and democratically. A genuine alternative society must be agreed before capitalism can start to be dismantled in reality, with alternative mechanisms emerging to replace both the market and the state.

If we want to get rid of capitalism we will need to work at it. That’s why we exist: to try and help as one small part of that massive process. If you want to help out in that process – if you want to become humanity to become a “master” of its universe – then please make contact, and the sooner we may succeed.

I’m Prepared To Give My Life For This Or Any Country

[Satire from ONN]

As a true patriot, I would gladly die in battle defending my homeland. I love my country more than my own life. But I would also be more than willing to give my last breath in the name of, say, Mexico, Panama, Japan, or the Czech Republic. The most honorable thing a man can do is lay down his life for his country. Or another country. The important thing is that it’s a country.

Like those heroes who spilled their blood fighting for independence against the British Empire, I, too, would forfeit everything to win for my countrymen the right to be governed by politicians in our own capital instead of in a capital located further away. Nothing is more profound or more sacred than to die for one’s country, an adjacent country, or some other, foreign country.

The truth is, there are a lot of countries, each of which is the most noble cause possible to die for. I only regret that I have but one life to lose for but one country.

I would not hesitate to give my life for or against any other noble nation. Come to think of it, I would even die for a neutral third party caught in the crossfire during a heroic peacekeeping effort, just so long as my death would be in some way related to a country of some kind. That’s how committed I am to the concept of nationalism.

The bottom line is that the current boundaries of a nation are worth protecting at all costs. Otherwise, what would so many brave and patriotic souls have lost their lives for?

I was lucky enough to be born in one of the 200 greatest countries in the world, and I promised myself long ago that I would never forget it. I can only hope to someday have the privilege of protecting this great land against whomever may seek to do it harm. Or to defend some other country against whomever may seek to do it harm. And vice versa.

Ideally, I’d like to die for a country that was at least in the Western hemisphere but it’d be just as heroic to expire bravely on the end of a pointed stick deep in the jungles of Africa. My wife would be widowed and my children orphaned, but they would take solace in the knowledge that I had given my life to a cause that the people of some nation believed in.

I only ask that I be given a soldier’s funeral so that I may be buried holding the flag or flags of wherever it was I was fighting for.

There comes a time when all of us, no matter who we are, heed the call to the battlefield. It is a call we cannot and should not ignore, no matter where it is coming from. And if I must die, in the service of this or that country, I only hope I can at least take as many of the enemy with me as possible before I fall and breathe my last. Unless of course, they’re also fighting for a country. In which case, their deaths, at my hands, will have been honorable—because they, like me, would have died for a country.

Without nationalism, our deaths in the countless wars we constantly wage to defend our own nations against others defending their own nations against us would seem arbitrary, almost meaningless. But as long as we have a higher purpose—the love of whatever country we happen to be fighting for—we will always know we did not lose our lives in vain.

Portland - Marxian Economics for Workers

Title: Portland - Marxian Economics for Workers

Location: Portland, OR

Description: WSP member FN Brill will present a workshop on .."Marxian Economics for Workers.." at the Portland Radical Bookfair. Liberty Hall, 311 N Ivy, Portland, OR

Start Time: 12:00

Date: 12-6-2008

End Time: 17:00

For more info contact: wsppdx@yahoo.com

Economic Roots of WW2

Chopping up history is a common method of distorting it and preventing anything being learned from it. Chopped-up history comes to us as a series of largely self-contained, unconnected and accidental events which were crucially influenced by the personalities of the leaders of the time. The implication is that there is no overall pattern in what happens in the world, that things would have been different had other people been in charge or if certain events had not coincided. It follows from this that there is no need to make any fundamental changes in society because a bad historical accident at one time can be redressed by a good one at another time.

Mad Dictators versus The Democracies?

The popular account of the last world war goes something like this. After 1918 the victorious Allies made two big mistakes. Firstly, they did not ensure that Germany had been properly finished off as a military power. Secondly, they imposed the Versailles Treaty, a settlement so stringent as to cause a lingering resentment among the German people which was too easily exploited by Hitler, an unusually mad dictator whose consuming ambition was to lead Germany into a conquest of the entire world. Hitler was in league with Mussolini, another mad dictator who was also comical because his belligerent strutting and posturing were a facade behind which the Italian people were disinclined to go to war. His other ally —Japan — was a different matter, for the people there were tradition-bound into a disciplined savagery. These three countries regarded the persecution and murder of human beings as necessary and progressive and they were intent on extending their rule over the entire world. Other countries — Britain, France and America — were democracies. Their leaders were not dictators, they allowed free speech and free association and they treated their people in a humane way. The democracies could not stand aside and allow the dictatorships to take over the world and so, after a few years delay caused by their natural inability to grasp the enormity of Hitler's madness and their laudable reluctance to plunge the world into hostilities, they eventually had no choice out to go to war. After six years of bloodshed which cost at least 15 million dead the dictatorships were beaten, the world recovered from some very nasty historical accidents and all was well.

One of the most obvious flaws in this version is the fact that on the side supposedly fighting for democracy was one of the world's most fearsome dictatorships When Stalin's Russia was forced into the war on the Allied side it had become enduringly notorious for its iron repression of its people, for its ruthless policy of mass murder and for the brutal and cynical way in which Stalin disposed of any opposition among the leadership — normally by killing them off. The fact that "communist" Russia was supposed to be a sworn enemy of Nazi Germany did not stop the two countries, in a typical example of the dirty game called diplomacy, signing just before the war began, a pact of non-aggression guided, they said, "…by the desire to strengthen the cause of peace between the USSR and Germany…" The pact — which, although it was supposed to last for ten years, did not stop Germany attacking Russia in June 1941 — also carved up part of Eastern Europe: Lithuania. Poland, Bessarabia. Russia was not the only dictatorship fighting on the side of "freedom". Poland and Greece could hardly be described as democracies and they too were in the Allied camp.

Meanwhile, neither the "democracies" nor the dictatorships were completely united. Mussolini's government was alarmed by Germany's expansion, in particular the occupation of Czechoslovakia which they saw as undermining their interests in Central and South East Europe. They did consider developing closer ties with Britain and France but instead asserted that the Balkans and the Eastern Mediterranean were Italian spheres of influence and annexed Albania. The French were mistrustful of British policy which, as the pressure from Germany mounted, did not rule out a settlement through offering Germany some colonies, which the French saw as a potential threat to their interests in the Middle East.

The British Empire

More important —more influential — was the antagonism between American and British interests. One of the reasons for the opposition in America to that country joining the war was the well-founded suspicion that American power would be used to protect British possessions and so shore up the British Empire, which with its system of Imperial Preference hampered American industry's exports to valuable markets and its access to vital raw materials. The "aid" which flowed from America to Britain was thickly festooned with strings. In August 1940 the "gift" of 50 US destroyers (which were in any case well past their prime as death-dealing machines) was conditional on American occupation of 8 bases on British territory, from Newfoundland to what was then British Guiana. Purchases of American war equipment were to be paid for by the liquidation of overseas assets and lend-lease was agreed to only on the condition that the British ruling class had exhausted all other ability to pay. In August 1941 the Atlantic Charter was exultantly publicised as a declaration of faith in the war for democracy and the well-being of the human race. In reality it was an undertaking to ensure self-determination and free trade in the post-war world — which effectively meant the end of Imperial Preference.

So the objectives of the war were not as chivalrous and humane as its supporters would have us believe. Of course it is true that Nazi Germany was a vicious dictatorship where all opposition was ruthlessly stamped out and where millions of people were systematically killed simply because they were Jews or gypsies or homosexuals or handicapped. And of course the Allied victory did mean the end of the extermination camps — at any rate in Germany, for genocide, atrocities and mass political murders did not end in 1945. But these were not the objects of the war, except to those who chop up history. The war came as an episode in an established and continuing system of international relations which were an inevitable result of the social system we live under — of capitalism.

Germany's defeat in the First World War, the Russian revolution and America's withdrawal from the post-war settlements left Britain and France dominant, with the onus to strike a balance between the elite powers. As an outcome of the war these two states, already possessing huge empires, also absorbed former German and Turkish colonies so that Great Britain controlled a quarter of the world and, with France, a third of it. "We have got most of the world already, or the best parts of it" was how it was described in 1934 by the First Sea Lord. The fact that the advantages of empire were largely illusory for the ruling class — and wholly illusory for the working class, who were nevertheless so proud and ready to die for their masters wealth and possessions — did not prevent imperialism being seen as vital to everyone's interests. The "have-not" states — Germany. Japan and Italy — demanded to be let into the power system, to expand to be a part of the balance. "As a result of restrictions our economic situation is such that we can only hold out for a few years… There is nothing else for it, we have to act", said Hitler in August 1939.

These demands were given an emphatic political voice, and a great deal of energy, by the Nazis in Germany and the Fascists in Italy. In many ways the policies of both were, to put it mildly, bizarre; they not only hampered the full development of each state's power but also gave the Allies, when the war came, a brilliant propaganda theme which they worked for all it was worth. Telling us all about the racism of Nazi Germany, they forgot troublesome facts like the collusion and encouragement the Nazis had received from so many respected and bellicose British politicians and the persecution of blacks in America.

German Industry and Commerce

he Nazis were not the first post-war German government to work for the overturn of the Versailles Treaty and the re-establishment of Germany as a major European power. These policies had also been expounded by the politicians of the Weimar Republic and the implications were the same for them as they were for the Nazis — the annexing of Austria, perhaps also of Czechoslovakia and the extension of Germany's sphere of influence into eastern Europe and the Balkans. Behind the policy stood German commerce and industry with their insistent need to throw off the shackles of the post-war settlements and to expand. When Nazi Germany moved militarily the country's commercial and industrial interests eagerly followed the victorious armies. German banks quickly took over their competitors in Austria and Czechoslovakia and the industrial combine IG Farben did the same to its rivals in those countries so that it became the dominant chemical concern in South East Europe.

Although the Versailles Treaty was supposed to have sorted out the world's problems (for what else were those millions of workers killed in the first world war?) the stresses and crises which followed in peacetime produced a clutch of other treaties, each attempting to deal with a separate point of tension. But the diplomatic edifice erected in the 1920s was severely damaged by the world economic collapse. Collective action became distinctly unfashionable as each country scrambled to protect the wealth and the standing of its ruling class. Tariff barriers went up and Britain abandoned free trade in favour of imperial preference. The industrial powers suffered massive unemployment, with up to a third of their workforces being idle. The despair and disillusionment with parliamentary democracy which this caused undoubtedly helped the Nazis rise to power as they could blame the economic collapse on alleged corruption and bungling of tne Weimar republic and assert that it would not have happened in a racially pure, virile and disciplined Nazi dictatorship.

In 1931. in response to the slump, Britain went off the gold Standard — that is, declared that the pound was no longer convertible into gold. As a result a number of ad hoc arrangements for international payments emerged with the "outsider" powers such as Germany and Japan entering into bilateral trading deals. This effectively divided the world into two antagonistic blocs — the gold—possessing states and those now reliant on barter. The German ruling class fought their side of the conflict by dumping exports, importing through bulk buying, currency controls and the like. The British government fought back with export guarantees and in 1938 buying up the entire wheat crop of Rumania in an effort to prevent that country being absorbed into Germany's sphere of influence. In general the Germans made the running in this race and British and French capital became more and more excluded from eastern Europe.

For the British and French capitalists the German threat to Poland was the sticking point, beyond which there could be no further attempts at diplomatic appeasement or economic warfare. The invasion of Poland left the Allies with no choice but to try by military means to force Germany back into "normal" trading relationships. Behind all the talk about a war to defeat dictatorships and to liberate Europe from the Nazi thrall the real war aim of the Allies was to restore the financial and trading arrangements which benefitted their ruling classes. In July 1944, while some of the war's fiercest battles were being fought, the bloodless battle of Bretton Woods settled a lot about the economy of the post-war world The Conference set up the International Monetary Fund and the World Bank as the main instruments of a new international payments system based on currencies convertible at fixed rates into gold and, as the Daily Express complained for years afterwards, was another large nail in the coffin of Imperial Preference.

Far from being an historical aberration the Second World War was a predictable episode in capitalism; it was normal to a social system which throws up rivalry and conflict all the time. Those who chop up history, treating the war as if it were a separate incident, unique because of the personalities of the leaders at the time — lunatic Hitler, conceited Mussolini, and Chamberlain — spread confusion and misunderstanding. To understand why that war happened is to understand a lot about society today, and about why it operates as it does. This is a matter of great urgency, if we are to organise the world so that war is abolished. After all, those millions who were killed in the war were supposed to have given their lives to make the world safe for peace yet look at what has happened since 1945…

Ivan. Socialist Standard. September 1989

Another Fraud

“For as long as man has worshiped a god, there have been forgers, crafty hucksters who seize on a believer’s desire to possess material proof of the divine. In Jerusalem, it is a bountiful trade. The old adage is that if all the splinters of the True Cross were gathered from across Christendom, it would yield a wooden crucifix the size of a Manhattan skyscraper. Even back in the Middle Ages, pilgrims visiting Jerusalem told of hawkers who sold counterfeit bones and relics of saints. But indisputable historical evidence that Jesus Christ, or any of the other Biblical prophets, truly existed is something that eludes religious scholars. There was therefore much excitement in 2001 when a reclusive Tel Aviv collector, Oded Golan, announced that a stone reliquary had come into his possession inscribed with the words “James, son of Joseph, brother of Jesus.” The discovery of the ossuary was hailed in some quarters as a spectacular archaeological find — solidly circumstantial proof, at last, of Christ’s existence. For it would have held the remains of the Apostle James, who was killed in A.D. 62 and is described in the Bible as Jesus’ brother. When the James ossuary toured Canada in October 2002, it attracted thousands of the curious and faithful. Some visitors knelt in quiet prayer. But back in Israel, police detectives, along with a growing posse of biblical scholars, were growing skeptical of the ossuary’s authenticity. After a two-year investigation, police in December 2004 charged the antiquities collector and four others of forgery, alleging that the James ossuary was a clever fake and that Golan had masterminded an international ring of thieves that over the past 20 years had duped major museums and collectors out of millions.”

(TIME, 16 October)

This is Capitalism

“The ranks of low-wage working families increased by 350,000 between 2002 and 2006, raising their numbers to nearly 9.6 million, or more than one in four of the nation’s working families with children. The report by the Working Poor Families Project, an advocacy group that analyzed census data, defined low-wage families as those earning less than double the poverty rate. For a family of four, that would have been an annual income of $41,228 or less in 2006. The report’s author, Brandon G. Roberts, attributed the increase to the growth in low-paying jobs, from health-care aides to cashiers, that form an increasing share of the nation’s service-based economy. Many of those families struggle to pay for basics, such as health care, food and housing, a battle that Roberts said has grown more acute in the past two years as the economy has stagnated. “The stark reality is that too many American families have been in economic crisis long before this year,” said Roberts, director of the non-partisan Working Poor Families Project, which advocates for state policies to improve the lives of low-income working families. “Even before this year’s economic crisis, the conditions for working families were getting worse, not better.” The report adds to the growing body of data illustrating that the dynamics of the modern economy have been unkind to many working Americans. Even as the economy grew at a generally robust pace from 2002 to 2006, fewer jobs were created than in previous economic expansions. And some 4.7 million of the jobs that were created paid salaries that would leave a family of four in poverty, according to the report. Overall, the report said, more than one in five jobs in 2006 paid poverty-level wages.”

Washington Post, October 15, 2008

Food, Inc.

In 1921 36 companies were responsible for 85 percent of US grain exports. By the end of the 70s six companies controlled 90+ percent of Canadian, European, Australian and Argentinian grain and currently Cargill and Continental each control 25 percent of the world's grain trade. While 37 nations have been plunged into food crisis Monsanto has had record sales from herbicides and seeds and Cargill's profit increased by 86 percent. On the one hand these corporations use, wherever there is a perceived advantage, the poorer countries for cash crops, manufacturing using cheap labour, cheaper processing and they take advantage of huge subsidies for which they lobby constantly, and on the other show indifference to the employees and labourers in these countries. Wages are kept as low as can be managed and conditions of employment are almost non-existent. Long working hours, enforced, often unpaid, overtime, no sick-pay non-existent or poor compensation for accidents and no pension.

Of the world's people as a whole, 70 percent earn their livelihood by producing food, their own included. From these a growing number are now producing crops for fodder or alternative fuels, reducing the amount of land available for human food production and thereby increasing its cost. Profit is the bottom line.

Monsanto is huge in soy bean production having a virtual monopoly with their 'Roundup Ready' seeds. Genetically modified seeds grown to be used for cattle feed, fish feed, all manner of industrial uses plus 80 percent of processed foods contain soy bean. Why would you promote an oil-seed that has a relatively low oil yield – 18 percent, compared with coconut (75 percent), groundnut (55 percent) and sesame (50 percent), if it wasn't simply linked to your ownership of the means of their production? The health risks associated with soy bean consumption are becoming clearer, especially an oestrogen problem. One test revealed that soy-based infant formula yields a dose of oestrogen equivalent to 8-12 contraceptive pills daily.

Monsanto (originators of Agent Orange) acquired Unilever's European wheat-breeding business in 1998. They have a large stake in India's largest seed company and have also bought Cargill's international seed operations in Central and Latin America, Europe, Asia and Africa thus virtually monopolising production, limiting choice and pushing genetically engineered wheat. Their intellectual property scams, internationally infamous, banning the saving and trading of seed (something done for thousands of years with no problems of ownership attached) have been followed by many court cases usually to the detriment of small farmers in both poor and 'developed' world. The infamous 'terminator' gene which makes plants' seeds infertile has perhaps been the most cynical invention, forcing farmers into buying seed every year, putting them in hock to the big corporations and resulting in penury.

Around the world farmers have been pressured by large companies to grow cash crops. Cotton started to displace food crops in India after trade liberalisation was introduced in 1991. Aggressive advertising campaigns were conducted by Monsanto, for one, to introduce hybrid cotton seed which, being more vulnerable to pest attack, required the use of more pesticide than the varieties traditionally grown. Having borrowed on credit for both seed and pesticide and finding themselves in unresolvable debt following crop failures, according to Vandana Shiva in Stolen Harvest, many hundreds of farmers committed suicide by ingesting the very pesticides that were supposed to have protected their crops. Suicide deaths of Indian farmers continue to be a huge problem.

Ecologically unsound

There are ecological issues surrounding the current world food system. Here there are many links between this and the previous section. In their pursuit of profit worldwide mega-corporations have been responsible for some of the worst degradation of land, water, air and sea. Particularly relevant to food production, however, it is being recognised in more quarters that industrial farming damages the environment (as well as concentrating profits in fewer hands) and that small farms are actually more productive and much less damaging. Only this year a UN commission of 400 agricultural experts concluded that the world needs to shift from current agribusiness methods to a more ecological and small-scale approach. It comes as no surprise to learn that neither the US government nor agribusiness agreed to endorse the recommendations. A US dairy farmer allied to Via Campesina which is a global movement of peasant and farm organisations said words to the effect that at last it's recognised that industrial GM crops and globalisation methods have led to more hungry people but why hadn't they listened to farmers instead of corporations in the first place? Good question, to which we know the answer.

The (mainly GM) soy bean comes in for another attack here. To produce its oil requires solvents – bad for the environment; producing it creates saturated fats – bad for health. To ensure that maximum benefit (i.e. maximum profit, not maximum nutrition) is derived from the humble soy bean a US company is now also producing look-alike pulses, lentils etc from some of this bulk. Mono-crops and intensive farming by their very nature create havoc with the land, with the soil, requiring an input of fertilizer to fulfil the role that mixed farming does automatically. The soil gradually becomes impoverished leading to the necessity for more fertilizer, itself a problem from leaching into and contaminating water. Fertilizers, herbicides and pesticides all alter the nature of the soil, the ecological balance, ultimately denuding the area of the very plants, microbes, insects, worms, birds, small animals etc that determine its replenishment in a natural cycle. Traditional farming is shown to be far superior both for the health of the soil and also for crop yield. Animals manure the land, worms and other creatures turn and aerate it, insects assist pollination, other insects, birds and small animals dispose of many of the pests naturally whilst also replenishing the soil with nutrients and crops of different types in rotation take nutrients from and return nutrients to the soil. In many parts of the world the 'weeds' that grow among crops are crops themselves, not to be sprayed and killed but to be picked and eaten by humans and animals or else to be ploughed back into the ground returning natural organic matter.

One obvious negative effect of growing mono-crops for export or as non-food products such as biofuels is that it impacts on the amount of land available for growing food for local consumption, pushing small farmers off the land altogether or to patches of less productive land. Aggressive growth in agricultural exports has been linked to increasing poverty and hunger in the exporting country. Examples include the Philippines where the acreage for growing cut flowers was massively increased with a corresponding decline in acreage for food staples resulting in the destruction of approximately 350,000 livelihoods and increasing rice imports by a factor of ten; Brazil, when soy bean exports increased dramatically (1970s) as animal feed for Japan and Europe, hunger increased from one third to two thirds of the population. By the 90s Brazil became the third largest exporter of soy bean having increased acreage by 37 percent over 15 years displacing millions of small farmers and decreasing rice production by 18 percent further exacerbating hunger and poverty. On this topic Vandana Shiva gets right to the point, "The food security of the US and other wealthy food-importing countries depends largely on the destruction of other people's security" (in Alternative Globalization, ed. By John Cavanagh and Jerry Mander),

Other ecologically unsound farming practices such as raising animals intensively leads to massive problems for the animals, for the humans raising them and eating them and for the environment in which they are kept. For instance, as fish farms have become more extensive in acreage and more intensive in production bacterial infections have spread to fish in the wild. Whereas it used to be recommended to eat fish regularly as part of a healthy diet there are now warnings to limit drastically intake of farmed fish. Shrimp farming is known as a 'rape and run' industry because of its unsustainability and the inevitability that after a handful of years the site will be ecologically devastated and susceptible to massive outbreaks of disease, leaving hectares of former good fishing coastline unfit and unable to supply locals with a catch of any kind – coastal wastelands.

Shrimp farms and fish farms require more wet fish, processed into meal, pro rata than they ultimately produce, consuming more resources than they produce. The fish caught by trawling and purse-seining for the production of meal deprives people of both food and livelihood, depletes fish stocks drastically, kills all kinds of aquatic life – and this to provide shrimp for people living a long way from the devastation and knowing little about it. Mangroves, crucial in many coastal areas for protection against storms, preventing erosion and recognised as important habitat for much marine life have been devastated around the world in order that some of us may eat shrimp. Sri Lanka lost nearly half their mangrove area in 10 years; Vietnam lost more than 100,000 hectares in 4 years; most of Ecuador's shrimp comes from former mangrove swamps; a third of Thailand's lost mangroves was as a result of shrimp farming over 30 years up to 1993. Ecological and environmental man-made disasters. Intensive shrimp farming also leads to permanent salinisation of groundwater and has created water famine in formerly water abundant areas in India, causing death of cattle and gradual contamination of former productive rice paddies. Because of intensive shrimp production in Bangladesh rice production fell from 40,000 to only 36 (not 36 thousand) metric tonnes between 1976-86 with similar losses reported in Thailand. Shrimp and prawn have been 'farmed' traditionally in India for hundreds of years without this serious adverse effect on the ecology. The traditional methods have proved effective and have produced good income for farmers combining paddy growing in the monsoon season with shrimp 'farming' in other seasons when the fields are filled temporarily with saline water. Whether aquaculture or agriculture, natural methods prove to be more economical in terms of input, more productive in terms of output showing biodiversity and labour intensification to be both more efficient and sustainable.

The deregulated global market

There is a raft of trading practices stacked against the poorer 'developing' countries, which incorporate the majority of the world's population, in favour of corporations in the 'developed' countries. The international monetary organisations, World Bank, World Trade Organisation, International Monetary Fund all function to ensure maximum returns flow into the coffers of and trans-national corporations including agribusinesses. All loans have to be paid back with interest. Aid is tied to agreements, purchases and long-term commitment to remittances back to the donor country. Subsidies to agriculture flow freely in the 'developed' world, especially to agribusiness; in the poor world subsidies are called a barrier to free trade and have to be removed. Markets must be open – to subsidised products from the rich. Traditional local production systems have been consistently undermined to favour global corporations causing increased landlessness in the process. Many of these landless, former farmers now work for poverty wages in factories sub-contracted to big-name sportswear labels, unable to grow any food of their own now, just part of the growing number of consumers struggling to buy enough food to put on the table.

Vandana Shiva commented aptly on the root causes of hunger and poverty in 2007 thus, "A combination of loss of land and loss of control of local resources like water, seeds and bio-diversity. All of these are basic to farming communities but are now in the hands of global corporations." IMF loans to poor countries are channelled into export subsidies for US agribusinesses thus further assisting multinationals to dominate smaller, local businesses whether domestic or foreign.

The main goal of the WTO and its allies has been to remove all and any obstructions which may hamper corporations. National laws, standards and environmental protection rules have been subsumed by the WTO's rulings resulting in laxer rules across the board, reduced labour, environmental, food and health regulations. In effect deregulation has led to decreased local control, a worsening general environment, an increase in poverty and hunger whilst concentrating power, wealth and influence among the global corporations.

Biofuels

Biofuels were originally heralded as the wonder fuel, something to challenge fossil fuels and a way to save the world from its dependence on oil, a greener product, sustainable and easily grown around the world. David Moberg, in an August 2008 article "Let them eat free markets" in ,These Times, writes, "once seen as a way of using up European and US surpluses biofuels are now threatening to become a global, corporate-controlled, industrial farming and export business that could put US SUVs in competition with food for poor people in other countries whilst degrading tropical forests." So, here again is monoculture on a grand scale, degradation of the environment, cash crops taking the place of food crops and small farmers forced off the land to increase production and profit. A further downside to biofuels and a good reason to take another look at the topic for those who still believe it to be a 'green' fuel is that it actually takes something like 18 percent more energy to process the fuel than will be available in the finished product. Not best use of agricultural land, resources or manpower.

Buying Power

Simple buying power – or rather lack of it – is a fifth factor.. If you're not growing your own food it has to be bought. One way or another customers have to pay. When half or more of your income is already spent on food, as it is for the majority world, then rising prices of basics like rice and wheat are an immediate threat. The priority becomes what can I eat? Not what can I cut out in order that might eat, just what is there I can afford to eat? In 2007 the price of rice on the world market rose 16 percent. Between January and April of 2008 it rose a further 141 percent. Rice is the staple diet of Haitians, Haiti, being one of the poorest nations on the planet, is also one of the countries that was devastated from the loss of domestic farm incomes when highly subsidised US rice was dumped on them following WTO instructions. There is a photograph showing a Haitian woman sitting on the ground mixing and spreading out row upon row of biscuits to dry in the sun. Biscuits made of clay, salt and vegetable fat. Let them eat cake!

Similar stories from around the world reveal how previously solvent farmers have been reduced to penury. Mexicans cannot compete with US maize and cotton. Jamaican dairy farmers can't compete with EU subsidised milk powder. Mali, Benin, Burkino Faso etc. have lost double from the fall in cotton prices than they receive in US foreign aid. All of these and similar unfair practices drastically reduce the buying power of millions of people. According to the environmental pressure group, the International Forum on Globalisation, "The ultimate sustainable agricultural solution is transition to non-corporate, small-scale organic farming as practised for millennia."

Cause and Effect

What we have seen here are the effects of a system that is structured for the benefit of a few corporations at the expense of the many. Inevitably the food crisis will continue to grow for an ever-increasing number of the world's population unless and until the causes of the crisis are eliminated. Politicians of diverse leanings, human rights advocacy groups and pundits of various persuasions offer a medley of fixes. Level the playing field. Fair trade, not free trade. Restore national sovereignty to international trade. Limit the power of global corporations. Strengthen human rights laws to prevent eviction of people from their land. Allow landless peasants access to and ownership of privately owned, unused land. Make the international institutions more accountable to citizens not to capital. Increase regulation of outsourcing. Force companies despoiling the environment to clean up the mess and pay compensation. Implement tougher environmental standards at all levels.

The problem common to these and other 'solutions' is that none of them are comprehensive, none are for all time and none are for all people. There is already a UN charter for human rights which, in theory, covers all possible scenarios, which is ostensibly for the protection of the well-being of all but which, in practice, cannot work because it is not controlled by the democratic will of the people but by a few strong countries pursuing the economic policies of their elites.

The principles underlying socialism, whilst not offering an immediate panacea, do address all the issues of the rights of all individuals, "by the conversion into the common property of society the means of production and distribution and their democratic control by the whole people." Unlike the UN and numerous international agreements, multi-lateral accords and protocols which are repeatedly undermined by one or more powerful states consistently overruling decisions and agreements the ethic of socialism is rooted in the people. As more and more of the common wealth is taken from the people more and more people experience the food crisis first hand. Cause and effect. Removing money, the incentive and purpose of accumulation (the raison d'être of capitalism) and transforming world society into one of free access and common ownership – the world belonging to all and to none – will be to eliminate the causes of hunger and to effect an end to further speculation about a world food crisis.

JANET SURMAN

Socialist Party of Great Britain