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Tim Odd

Potato Growers Strike in Colombia as Peace Talks Continue | North American Congress on ... - 0 views

nacla.org/...-colombia-peace-talks-continue

Soft Commodities Hard Commodities labour Columbia Dutch Disease

shared by Tim Odd on 21 May 13 - No Cached
  • The underlying cause for the 120,000 potato-growers’ protests in the areas of Boyacá, Cundinamarca, Nariño, and Antioquia is the decline of the agricultural sector due to cheaper potato imports from the United States, Europe, Canada, and Argentina.
    • Tim Odd
      Tim Odd on 21 May 13
       
      Potato imports are cheaper due to the increase in labour costs from the Soft and Hard commodity markets competing for labour.
  • The Dutch Disease is the result of the windfall of revenues that distorts manufacturing and agricultural production for sale on the global markets by increasing the price of the local currency. In Colombia’s case, the rapid growth of the extractive sectors (oil, coal, gold, nickel, and emeralds) and foreign direct investments associated with these sectors and with bio-fuels and ethanol production have consolidated the grip of the Dutch Disease on the political economy.
  • Effects of the Dutch Disease can be seen in Cundimarca, where labor is scarce due to the availability of jobs in the extractive sector. The higher rate of mining activity in Cundinamarca impacts wages for agricultural workers, as the industries compete for labor.
  • ...3 more annotations...
  • The Dutch Disease also applies to the price of land, which has increased due to the expansion of mining concessions combined with speculative land investments made by local and international entrepreneurs
    • Tim Odd
      Tim Odd on 21 May 13
       
      High land prices are especially damaging to farmers, who need a large area to farm in.
  • In Europe or Argentina the average costs of producing one kilo gram (kg) of potatoes is between 15 cents to 19 cents respectively—while in Colombia it costs 25 cents. This puts local small and medium sized producers at a great disadvantage.
  • This strike and other protests are expected  to  follow suit  are revealing that the lethal combination between a rentier model of capitalism and trade liberalization without safety nets and policies designed to protect local production.
  • Tim Odd on 21 May 13
     
    The Hard Commodities Market in Columbia has destroyed the Soft Commodities Market through a process known as 'The Dutch Disease'. The opportunity costs for working in the Soft Commodities market are too high, and all of the country's resources are shifting to take advantage of the Hard Commodities Market.
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