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Arabica Robusta

Argentina and the magic soybean: the commodity export boom that wasn't | Mark Weisbrot ... - 1 views

  • One of the great myths about the Argentine economy that is repeated nearly every day is that the rapid growth of the Argentine economy during the past decade has been a "commodity export boom". For example, the New York Times reported last week:
  • I haven't seen any economists make the claim that Argentina's remarkable economic growth over the past nine years – which has brought record levels of employment and a two-thirds reduction in poverty – has been driven by soybeans or a commodities export boom. Maybe that is because it is not true.
  • It turns out that only 12% of Argentina's real GDP growth during this period was due to any kind of exports at all. And just a fraction of this 12% was due to commodity exports, including soybeans. So Argentina's economic growth from 2002-2010 was not an export-led growth experience, by any stretch of the imagination, still less, a "commodities boom".
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  • there is no plausible story that anyone can tell from the data to support the idea that Argentina's growth over the past nine years was driven by a "commodities boom." Why does this matter? Well, as economist Paul Krugman noted yesterday, "articles about Argentina are almost always very negative in tone ― they are irresponsible, they are renationalizing some industries, they talk populist, so they must be going very badly." Which, he points out, "doesn't speak well for the state of economics reporting." It sure doesn't.
  • The myth of the "commodities export boom" is one way that Argentina's detractors dismiss Argentina's economic growth as just dumb luck. But the reality is that the economic expansion has been < a href="http://www.cepr.net/index.php/publications/reports/the-argentine-success-story-and-its-implications">led by domestic consumption and investment. And it happened because the Argentine government changed its most important macroeconomic choices: on fiscal, monetary, and exchange rate policies. That is what took Argentina out of its 1998-2002 depression and turned it into the fastest-growing economy in the Americas.
  • By defaulting on its debt and devaluing its currency, Argentina was freed to change its most important macroeconomic policies.
Arabica Robusta

Remarks to the World Food Prize Panel on "Stakeholders & synergies: Socio-economic dime... - 0 views

  • Unfortunately, the power of these tools has been blunted. It has been blunted because science—which at its most basic is the careful and systematic study of the world around us, and the consistent testing of our ideas against reality—this wonderful and powerful process has been narrowed too often in discussions of food to mean technology. Technology is but one way to use science; it is only the tip of one particular tool that can be found in the powerful toolbox that is science.
  • Scientifically, these are two different things. We know that what is produced is not the same as how much actually goes to become food for people[1], but too often we forget this. Luckily, this is a place where the toolbox of science can help us, but only if we open it wider to use all of the tools—including social sciences like sociology, anthropology, ecological economics and political ecology.[2]
  • in India, as in many other places, this is tied to the legacies of monoculture, cash crops, and a lack of support for smallholder farmers, household equality, especially gender equality, and agrobiodiversity.[6]
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  • We’ve consistently seen that smallholder farmers very often produce more per unit area than larger farmers. Indeed, the observation is so common that it has been formally named the Inverse Relationship between Farm Size and Productivity.
  • I think the same type of skepticism has quite often accompanied new innovations and new ideas. Skepticism, for example, about the usefulness of biotechnology, should not and has not stopped investigation of how it might be used.
  • We have to be brave enough to ask ourselves, especially about this Inverse Relationship and its implications, whether we may need to move away from large farms and invest more heavily in small farms.[7] We have to ask ourselves if our skepticism may reflect certain biases or a reluctance to engage against the current trends of agricultural consolidation—or whether it reflects the empirical reality, where this relationship is seen, again and again[8].
  • Too often, the diverse crops that smallholders rely on for stability, resilience, and nutritional diversity are defined as “women’s crops.” Traditional crops, and the fact that often they cannot easily be made into large-scale monocultures, can be both a strength and a weakness.
  • Well, estimates put the value of unmarketed ecosystem services at three times the size of the nominal world economic size.
  • And those farmers, especially larger-scale farmers, who make the rational decision to focus on producing only what they’re paid for—just making one crop, and a lot of it—are simply following a rational response in narrowing diversity, separating crops and livestock, and using energy-intensive and unsustainable levels of inputs.
  • We need to keep realizing that science does not simply mean production, and that production does not at all mean food security.
  • So if I am to conclude with one message, it is for us to remember that science is a powerful set of tools, but to use it we must learn about how to use all of its tools. Social, natural and technological—and we must expressly and purposefully use them to support small farmers, especially women farmers, and must never let “social” approaches be the second step in our conversations about feeding the world, but always—in line with the science—be at the forefront of our considerations.
Arabica Robusta

Manufacturing a Food Crisis - 0 views

  • an intriguing question escaped many observers: how on earth did Mexicans, who live in the land where corn was domesticated, become dependent on US imports in the first place?
  • The Mexican food crisis cannot be fully understood without taking into account the fact that in the years preceding the tortilla crisis, the homeland of corn had been converted to a corn-importing economy by "free market" policies promoted by the International Monetary Fund (IMF), the World Bank and Washington. The process began with the early 1980s debt crisis. One of the two largest developing-country debtors, Mexico was forced to beg for money from the Bank and IMF to service its debt to international commercial banks. The quid pro quo for a multibillion-dollar bailout was what a member of the World Bank executive board described as "unprecedented thoroughgoing interventionism" designed to eliminate high tariffs, state regulations and government support institutions, which neoliberal doctrine identified as barriers to economic efficiency. Interest payments rose from 19 percent of total government expenditures in 1982 to 57 percent in 1988, while capital expenditures dropped from an already low 19.3 percent to 4.4 percent. The contraction of government spending translated into the dismantling of state credit, government-subsidized agricultural inputs, price supports, state marketing boards and extension services. Unilateral liberalization of agricultural trade pushed by the IMF and World Bank also contributed to the destabilization of peasant producers. This blow to peasant agriculture was followed by an even larger one in 1994, when the North American Free Trade Agreement went into effect. Although NAFTA had a fifteen-year phaseout of tariff protection for agricultural products, including corn, highly subsidized US corn quickly flooded in, reducing prices by half and plunging the corn sector into chronic crisis. Largely as a result of this agreement, Mexico's status as a net food importer has now been firmly established.
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    an intriguing question escaped many observers: how on earth did Mexicans, who live in the land where corn was domesticated, become dependent on US imports in the first place? * Related * Also By * Haiti on the 'Death Plan' Subscribe Globalization Reed Lindsay: Protesters decry high food prices--and the savage cost of "free trade" agreements. * Manufacturing a Food Crisis Agriculture Walden Bello: How "free trade" is destroying Third World agriculture--and who's fighting back. * The World Food Crisis Globalization John Nichols: We must rein in the global food giants who reap profits at the expense of the planet and the poor. * Democratizing Capital Globalization Sherle R. Schwenninger: New Deal progressives believed the economy should exist to serve society, not the other way around. * Milk Wars Agriculture David E. Gumpert: As struggling dairy farmers seek profits by responding to rising consumer demand for raw milk, regulators are taking a hard line. * Banana Kings Agriculture Emily Biuso: The history of banana cultivation is rife with labor and environmental abuse, corporate skulduggery and genetic experiments gone awry. * The Big Yam China John Feffer: Chinese hearts, minds and pocketbooks get a lot of attention from the Eastern and Western consumer markets. » More * Manufacturing a Food Crisis Agriculture Walden Bello: How "free trade" is destroying Third World agriculture--and who's fighting back. * Microcredit, Macro Issues Peace Activism Walden Bello: The Swedish Academy bestowed this year's Nobel Peace Prize to Muhammad Yunus, the father of microcredit. It's easy to believe Yunus's low-interest loans to the poor are a silver bullet against global economic injustice. But it's not that simple. * Letter From the Philippines Su
Arabica Robusta

BBC NEWS | Science/Nature | Brazil president defends biofuels - 0 views

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    Food prices were going up, he said, because people in developing countries like China, India and Brazil itself were simply eating more as their economic conditions improved.
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    Biofuel as an export crop: Lula says it is no problem
Arabica Robusta

Battling the 'Monsanto law' in Ghana -- New Internationalist - 0 views

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    "'The Plant Breeders Bill aims to replace traditional varieties of seeds with uniform commercial varieties and increase the dependency of smallholders on commercial varieties,' says the Ghana National Association of Farmers and Fishermen. 'This system aims to compel farmers to purchase seeds for every planting season.' Across the world, farmers have got in to dangerous levels of debt at the hands of companies which have come to control their seed supply. 'The economic impact on the lives of farmers will be disastrous,' says Duke Tagoe of Food Sovereignty Ghana. 'The origin of food is seed. Whoever controls the seed control the entire food chain.' "
Arabica Robusta

Mark Weisbrot, "Argentina and the Magic Soybean: The Commodity Export Boom That Wasn't" - 0 views

  • One of the great myths about the Argentine economy that is repeated nearly every day is that the rapid growth of the Argentine economy during the past decade has been a "commodity export boom."  
  • I haven't seen any economists make the claim that Argentina's remarkable economic growth over the past nine years -- which has brought record levels of employment and a two-thirds reduction in poverty -- has been driven by soybeans or a commodities export boom.  Maybe that's because it's not true.
Arabica Robusta

Pambazuka - A new Philanthro-Capitalist Alliance in Africa? - 0 views

  • Elegantly simple in its proposal and presentation, AGRA is the global face of a renewed international effort to revive Africa’s sagging agricultural research institutions and introduce new Green Revolution products across the sub-Sahara. The complex array of institutional and financial interests lining up behind Gates and Rockefeller include multilateral and bilateral aid organizations, national and international research institutes, and the handful of powerful multinational seed, chemical, and fertilizer monopolies upon which the entire financial future of the new Green Revolution ultimately rests.
  • That same week in Davos, the soon-to-retire president of Microsoft put his money where his mouth was by giving another $306 million to AGRA. That’s a lot of recognition, by anyone’s standards. Clearly, the “halo effect” created by the Bill and Melinda Gates Foundations’ altruism will benefit everyone associated with AGRA—from the CGIAR to Monsanto, DuPont and Syngenta.
  • as a creative capitalist, what—or for whom—is AGRA’s market-based reward? Recognition for Microsoft? Undeniable, but not significant or necessary for a company who already has all the recognition it wants. Gates’ financial interests in genetic engineering? These investments pale behind AGRA itself. The answer is; there is no market-based reward. Rather, the prize is political. AGRA, backed by Gates’ enormous philanthropic power, bolstered by the best world-renown diplomats and CEOs money can buy, and driven by the sheer financial and institutional momentum of the industrial players within the Green Revolution, is a political machine of immense proportions. AGRA allows the Gates foundation unprecedented influence not only in setting the national food and agricultural policies of many African governments, but in the agenda-setting of continental agreements (like NEPAD), multilateral development institutions (e.g. FAO), the strategies of agricultural research centers (e.g. WARDA), and the political economic re-structuring of Africa’s food systems in general. The Alliance for a Green Revolution for Africa is the Gates’ Foundations bold foray into big philanthropy’s latest incarnation: philanthro-capitalism.
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  • A logical extension of current of neo-liberal hegemony, philanthro-capitalism sees unregulated markets not only as engines for creating wealth, but as the ultimate drivers of social change. In this view, governments are too bureaucratic and corrupt, and social movements too unruly and inefficient. Only the market can save us from… well, the market.
Arabica Robusta

Pambazuka - Food crisis in the Sahel: Real problem, false solutions - 0 views

  • Tidiane Kassé cautions that by tackling the consequences rather than the causes of the crisis, the region’s people are likely to remain vulnerable to hunger.
  • In contrast with other former French colonies in Africa, where independence parades have been held in a manner devoid of substance and sense (and built on the failings which have reinforced the links of subject to metropole and other examples of power –political, economic, etc), Niamey’s authorities are to limit themselves to a military parade on 3 August. With symbolism put aside, the reality needs to be faced up to: some 8 million Nigeriens – or half the country’s population – are affected by the famine.
  • In addition to the 8 million affected Nigeriens are some 1.6 million Chadians and 500,000 Malians. These statistics are only, however, the visible aspect that institutions and international non-governmental organisations display. They suffer from the limits around reading data on Africa, notably on rural areas and a region of the Sahel in which pastoral traditions and a nomadic lifestyle are a prominent feature.
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  • n the face of empty granaries, Niger’s people have begun to develop a strategy for survival. ‘In Niger, women cover a desert-like environment in search of anthills in order to dig up and retrieve grains of millet, corn and other crops that the ants have collected,’ tells Charles Bambara, in charge of communications for Oxfam GB in Dakar. In the north of Mali, farmers, keen to allow their livestock to drink, have taken to using the water points actually intended for elephants (in a bid to protect the last pachyderms alive in the country).
  • The disorder of the world food crisis in 2008 did not become hazy, and this new peak comes to remind us that, in the Sahel, the crisis results from an endemic problem. This is a problem that, as the thrust of recurrent fever testifies, is more a question of structure than conjuncture, that these are the failings of agricultural policies that impose their own tough realities, and that the recommended solutions are not different from those pushed in the 1980s with the establishing of structural adjustment programmes (SAPs) which sounded the death knell of Africa’s agricultural policies.
  • The reduced investment imposed by the International Monetary Fund (IMF) and the World Bank had then destroyed the base of an agriculture geared towards food sovereignty. Industrial cultures were promoted which washed the soil (leading to greater soil erosion, the use of pesticides and chemical fertiliser) and disrupted the balance of the systems of production behind subsistence and the generation of complementary revenues on the strength of access to local markets. From this point it was a question of food security, no matter where stocks came from. This was the period in which food aid poured in. Africa was to produce no longer, with African stomachs wagered on agricultural surpluses from Europe, the US and elsewhere. As a result, since 1980 sub-Saharan Africa has been the only region of the world where average per capita food production has continued to decline over the last 40 years.[3]
  • African agriculture has suffered a series of difficulties which, over 30 years, have left it vulnerable to the smallest of changes on both the international market and climatically. Agricultural policies applied by states, under donors’ pressure, have in effect turned their back on policies which, formerly, assured technical assistance to producers, backed up by a price-stabilisation mechanism and subsidies for commodities.
  • We could go even further towards the worst of it and look at the development of biofuels and the extent to which more and more land is being diverted away from food production. Essentially, we will be growing to power cars rather than fill granaries. And in July this year, Burkina Faso has inaugurated its first industrial unit of production, while the country remains vulnerable in the face of a food crisis.
  • ‘Today, in the smallest village, people eat bread, milk and coffee… This wasn’t part of our customs; we used to eat maize-based dough, sorghum and millet. But when you can’t live anymore from your field and you’re reliant on others (neighbours, food aid), you eat what you’re given.
  • The foundation of real food sovereignty lies in the promotion and consolidation of family agriculture, as well as the development of an agro-ecology which offers the best antidote to the wasting-away of fragile ecosystems at the mercy of deregulation.
Arabica Robusta

Op-Ed Contributor - The Rich Get Hungrier - Op-Ed - NYTimes.com - 0 views

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    The recent rise in food prices has largely been caused by temporary problems like drought in Australia, Ukraine and elsewhere. Though the need for huge rescue operations is urgent, the present acute crisis will eventually end. But underlying it is a basic problem that will only intensify unless we recognize it and try to remedy it.
Arabica Robusta

Reality Check - 0 views

  • the WDR 2008 correctly stresses the need to promote farmer-led technologies and calls for extending the Green Revolution to subsistence farmers in less favorable regions yet avoids grappling with the increasing monopolistic control of biotech firms and agrochemical TNCs over genes, seeds, plant varieties, fertilizers and other associated inputs for their propagation. It acknowledges the importance of improving poor farmers’ access to productive assets but favors market-based land reform and water management which more often than not has resulted in increasing, rather than decreasing, inequities and further marginalization of subsistence farmers. It stresses the state’s role in providing core public goods such as infrastructure and research and development but does not consider how the benefits of such “public goods” are disproportionately captured by richer farmers and agribusiness corporations while the social and environmental costs are disproportionately borne by landless and subsistence farmers, indigenous people and rural women.
    • Arabica Robusta
       
      World Bank failure to reconcile proclamations of 'poverty alleviation' with free market economic ideology.
Arabica Robusta

Asia Times Online :: Asian news and current affairs - 0 views

  • The global food crisis is a monetary phenomenon, an unintended consequence of America's attempt to inflate its way out of a market failure. There are long-term reasons for food prices to rise, but the unprecedented spike in grain prices during the past year stems from the weakness of the American dollar. Washington's economic misery now threatens to become a geopolitical catastrophe.
    • Arabica Robusta
       
      . . . but are not U.S. subsidized food crops made cheaper by the weaker dollar? Certainly the biofuels demand affects this, but the argument is more complex than just this opinion. On the other hand, a simplistic statement seems rational: "when old food (oil) becomes scarce, people need to burn new food (grain, etc)."
Arabica Robusta

Let them eat ethanol - 0 views

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    Now, the law of supply and demand has dictated that the market for biofuels should reduce the production of corn for food by 25 percent in the U.S., triggering a rise in corn prices that has encouraged speculators to hoard crops...
Arabica Robusta

Pambazuka - Land grabs: Africa's new 'resource curse'? - 0 views

  • In Madagascar, a 99-year lease on 3.2 million acres of land – 50 per cent of Madagascar’s arable land, granted to multinational Daewoo ‘ensuring food security’ for South Korea, lead to a coup. ‘In the constitution, it is stipulated that Madagascar’s land is neither for sale nor for rent, so the agreement with Daewoo is cancelled,’ said current president Andry Rajoelina, a baby-faced former DJ, backed by the army – and allegedly, the majority of Malagasys, 70 per cent of whom depend on farmland for income. ‘One of the biggest problems for farmers in Madagascar is land ownership, and we think it’s unfair for the government to be selling or leasing land to foreigners when local farmers do not have enough land,’ an official from Madagascar’s Farmer’s Confederation revealed to Reuters.
  • The mentality of ‘grabbers’ could not be more different. ‘We are not farmers…’ stated an official from SLC Agricola, Brazil’s largest ‘farm’ corporation. ‘The same way you have shoemakers and computer manufacturers, we produce agricultural commodities.’
  • But with Africa losing an estimated US$148 billion in development finance each year, 60 per cent as a result of multinational mispricing, in addition to the direct servicing of odious debts – (amounting to a global figure of US$560 billion per annum of an outstanding US$2.9 trillion), little or no rents derived from the liquidation of exhaustible resources is redistributed in intangible capital. This is precisely because across Africa citizens are not required to finance the state budget – as occurs in high-income countries through intangible capital – they lack the political representation necessary to influence policies and usurped power structures.
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  • The terms differ from country to country, with the bulk of Ghana’s leased land allocated for export, in contrast to Ethiopia’s mixed status, but the issue remains one of control and exploitation, whether it is over local food monopolies or exported crops.
  • over 100 known specialised land funds and investments firms have embarked on ‘private sector’ land grabs, including well-known entities such as Morgan Stanley. Facilitating this process is the International Finance Corporation (IFC), the private sector arm of the World Bank group, ensuring for investors the ‘enabling environments’ and positive ‘investment climates’ required for the extractive industries, such as repatriation of profits and tax ‘competition’. From 1991-2002, deregulation proposed by IFIs composed 95 per cent of changes implemented in host countries.
  • development finance siphoned from Africa, whether through the extractive industries, or land grabs, are unlikely to be revealed as the IMF scrapped mandatory information exchange. Global watchdogs, such as the Financial Action Task Force (FATF) remained beholden to high-income nations as a ‘subsidiary’ unit in the Organisation of Economic Co-operation and Development (OECD). Meanwhile, the International Accounting Standard Board (IASB), founded and finance by the ‘big four’ accounting firms – maintaining units in secrecy jurisdictions such as the Cayman Islands – prefers multinationals to self-regulate trade via arms length transfer. What this effectively does is enable multinationals, conducting 60 per cent of global trade within rather than between corporations, to determine the future of entire continents such as Africa, where primary commodities – extracted by corporations, account for 80 per cent of exports.
  • Studies by the International Institute for Environment and Development (IIED) revealed, ‘Many countries do not have sufficient mechanisms to protect local rights and take account of local interests, livelihoods, and welfare. Moreover, local communities are rarely adequately informed about the land concessions that are made to private companies. Insecure local land rights, inaccessible registration procedures, vaguely defined productive use requirements, legislative gaps, and other factors all too often undermine the position of local people vis-à-vis international actors.’[1]
Arabica Robusta

From Food Crisis to Food Sovereignty: The Challenge of Social Movements | Books | AlterNet - 0 views

  • efforts to bring agrarian advocacy to farmer-to-farmer networks have run up against the historical distrust between development NGOs implementing sustain- able agriculture projects and the peasant organizations that make up the new agrarian movements. Aside from having assumed many of the tasks previously expected of the state, NGOs have become an institutional means to advance social and political agendas within the disputed political terrain of civil society.
  • Though the MST initially promoted industrial agriculture among its members, this strategy proved unsustainable and economically disastrous on many of its settlements. In 1990 the movement reached out to other peasant movements practicing agroecology, and at its fourth national congress in 2000, the MST adopted agroecology as national policy to orient production on its settlements.
  • Like its predecessor, the new Green Revolution is essentially a campaign designed to mobilize resources for the expansion of capitalist agriculture.
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  • The alternative, smallholder-driven agroecological agriculture, was recognized by the IAASTD as the best strategy for rebuilding agriculture, ending rural poverty and hunger, and establishing food security in the Global South. To be given a chance, however, this strategy requires a combination of strong political will and extensive on-the-ground agroecological practice to overcome opposition from the well-financed Green Revolution.
Arabica Robusta

Pambazuka - Successful African alternatives to corporate 'green revolutions' - 0 views

  • AGRA proposes exactly the kind of agriculture the panel of agricultural experts (from South Africa, Nigeria, Uganda, Morocco, Brazil, Mexico, Japan, China and more) rejected: Monoculture of one or two crops with the goal of increasing yields through the high use of fossil fuels, chemicals (fertilisers, pesticides) and biotechnology (patented genetically modified seeds).
  • As the demand for agrofuels seems to be insatiable, global corporations are noticing Africa for its extensive land masses, while not seeing the hungry. Calling Africa the ‘green OPEC’, they assert that 15 countries in Africa have a total combined land area greater than all of India ‘available’ for agrofuel production, not bothering to explain what ‘available land’ means in the context of a food deficit continent.[2]
  • the amount of plant material needed is massive. Lester Brown offers the comparison that the amount of grain required to fill the 90-litre petrol tank of a 4 × 4 vehicle once with maize ethanol could feed one person for a year. The grain it takes to fill the tank every two weeks over a year would feed 26 people.[3]
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  • Exporting crops for overseas consumption while Africans go hungry is a historical pattern all too familiar on the continent. It is certainly not the hope of 21st century African agriculture.
  • Both Namibia and South Africa are moving towards expropriation of land as a necessary means to correct this economic apartheid. Southern Africa is learning from the negative experience of land grabs in Zimbabwe, yet the commodity market approach can be similarly inequitable and destructive of livelihoods.
  • ‘Agroecology [sustainable mixed cropping] is a knowledge-intensive approach. It requires public policies supporting agricultural research and participative extension services. States and donors have a key role to play here. Private companies will not invest time and money in practices that cannot be rewarded by patents and which don’t open markets for chemical products or improved seeds.’[7]
  • There are about 18 recognised farming systems in Africa that can be grouped as a maize-dominated system, a cereal/root crop system, a root crop system and an agro-pastoral millet/sorghum system, all within overall mixed cropping. Part of Africa's food heritage, this genetic wealth offers important contributions towards making Africa a well-nourished continent.
  • Stories of stolen genetic treasures echo across the continent. Like traditional story tellers, when a botanist or agronomist ends his or her account of the latest theft, another joins in to give yet another account, often in voices of anguish and despair.
  • Today, the North American Tuli Association promotes the breed as follows: ‘NATA intends to expand their activities by spreading the benefits of the Tuli cattle to many countries within the Western hemisphere….the Tuli breed can provide the missing link to bridge the gap in cattle genetics, the gap being adaptation to heat and nutritional stress combined with carcass merit.’[10] Neither the government of Zimbabwe nor the foreign cattle associations consulted with the local communities or recognised their contribution in any way. NATA has even usurped the name of ‘tuli.’
  • A major discussion in the process of domesticating farmers' rights will be determining the relationship between individual rights of private property and social rights of farmers.
  • The WTO gives no recognition to social rights, only to private property rights, while the CBD, the ITPGRFA and the AU Model Legislation all recognise the rights of groups (farmers and communities) as equal to those of individuals (persons and corporations).
  • The AU model legislation also directly addresses the issue of biopiracy, such as the Tuli cattle case, by adopting the CBD principle of prior informed consent (PIC)
  • Because the wealth of the existing biodiversity is the basis for the future of agricultural Africa, it is essential that those who care about this wealth, and work toward improving its potential for use, are acknowledged.
Arabica Robusta

World Bank investment on Assam's tea plantations: hearing the voices of workers? | open... - 0 views

  • In accordance with its dual mandate of reducing poverty and boosting shared income equality, the IFC aims to implement a sustainable ‘worker-shareholder’ model. In theory, when workers become shareholders, they gain decision-making power in a company’s operations and lift themselves out of poverty. Yet in this case, seven years on, not only has the IFC investment failed to yield meaningful changes for workers, but APPL continues to breach a number of national laws (most notably the Plantations Labour Act, 1951) and is expected to be found in breach of the World Bank’s own standards.
  • While there are several unions offering membership in Assam, only one union – the Assam Chah Mazdoor Sangha (ACMS) – is recognised by the state as having to the right to negotiate with the tea industry through collective bargaining agreements. ACMS’ dominance stems from its close relationships with both tea plantation management and the political establishment.
  • Firstly, the complainants cited concerns about labour rights violations, including long working hours, poor sanitation and health conditions, and a lack of freedom to associate. They questioned the worker-shareholder programme, contending that many workers were pressured into buying shares, often without proper information about the nature and risks of investment. Secondly, the complainants argued that the IFC violated its standard on Indigenous Peoples, claiming that APPL threatens the
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  • or instance, several workers have faced retaliation for voicing their concerns to the CAO team visiting APPL gardens during the investigation process. Moreover, many plantation managers exert tight control over workers by restricting access to non-residents and non-workers, in violation of the Plantations Labour Act, 1951, which provides for open access to the housing areas.
  • These restrictions have hindered the ability of workers and workers’ representatives to meet freely, for instance with the purpose of raising awareness about their rights under relevant laws and regulations.
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