Friday, July 16, 2010

Value, Use Value, Exchange Value



Haitian peasants march against Monsanto Company for food and seed sovereignty

On June 4th about ten thousand Haitian peasants marched to protest US-based Monsanto Company’s ‘deadly gift’ of seed to the government of Haiti. The march was seven kilometers from Papaye to Hinche, in a rural area on the central plateau, and was organized by several Haitian rural social movements that are proposing a development model based on food and seed sovereignty instead of industrial agriculture. Slogans for the march included “long live native maize seed” and “Monsanto’s GMO & hybrid seed violate peasant agriculture.”

The poorest country in the Western Hemisphere, Haiti shares the Caribbean island of Hispaniola with the Dominican Republic. About 65 percent of Haiti’s population lives in rural areas and are subsistence farmers. On January 12 2010, a devastating earthquake leveled Haiti’s capital city Port au Prince, and 800,000 urban refugees migrated to rural areas. According to Chavannes Jean-Baptiste, coordinator of the Papaye Peasant Movement (MPP) and a member of La Via Campesina’s international coordinating committee, “there is presently a shortage of seed in Haiti because many rural families used their maizeseed to feed refugees.”

With sales of $11.7 billion in 2009, US-based transnational corporation (TNC) Monsanto Company is the world’s largest seed company, controlling one-fifth of the global proprietary seed market and 90 percent of seed patents from agricultural biotechnology. In May Monsanto announced that it had delivered 60 tons of hybrid seed maizeand vegetables to Haiti, and over 400 tons of its seed (worth $4 million) will be delivered during 2010 to 10,000 farmers. The TNC United Parcel Service is providing transport logistics, While Winner, a $127 million project funded by the US Agency for International Development (USAID) and focused on “agricultural intensification”, is distributing the seed.1 According to Monsanto, the decision to donate seed to Haiti was decided at the World Economic Forum in Davos, Switzerland: “CEO Hugh Grant and Executive Vice President Jerry Steiner attended the event and had conversations with attendees about what could be done to help Haiti.”2 It is unclear whether any Haitians were included in the conversations in Davos.

Some have charged that the Monsanto representative in Haiti is Jean-Robert Estimé, who served as foreign minister during the brutal 29-year Duvalier family dictatorship.3 While Monsanto vehemently denies this claim4, Estimé is included in an email exchange about the donation between Elizabeth Vancil, Director of Global Development Partnerships at Monsanto and Emmanuel Prophete, a Haitian agronomist working for the Minister of Agriculture.5 The domain for Estimé’s email address is for Winner (www.winner.ht).6

Many Haitians consider Monsanto’s seed donation to be part of a broader strategy of US economic and political imperialism. "The Haitian government is using the earthquake to sell the country to the multinationals," stated Jean-Baptiste. Vancil stated that opening up Haitian markets to Monsanto’s products “would be good.”7

Monsanto is emphasizing that the donated seed is hybrid and not genetically-modified (GM)8. However, hybrid seed will not increase Haitian farmers’ food sovereignty or self-reliance; Monsanto acknowledges that they will be unable to save seed to plant in the future9, and that although the seed is being provided free of charge, farmers will pay for it. “Providing an outright donation of seed would undercut one of the basic pieces of Haiti’s agricultural and economic infrastructure,” says Monsanto10, which is donating the seed to the government to sell to farmers. Winner is distributing the seed through farmer association stores, which will use the revenue to reinvest in other inputs, and help “farmers decide whether to use additional inputs (including fertilizer and herbicides) and…how to handle next year’s planting season.” 11

Haiti’s agricultural sector has already been decimated by US interference. In 1991, Jean Bertrande Aristide, Haiti's first democratically-elected president, was removed in a US-supported military coup. As a condition for his return, the US, IMF and World Bank required that Aristide open up Haiti to free trade. Tariffs on rice (Haiti’s staple grain) were reduced from 35% to 3%, government funding was diverted away from agricultural development to the nation's foreign debt, and subsidized rice from Arkansas (it was the Clinton administration) flooded the Haitian market. Haitian rice farmers were decimated12, and today almost all of the rice consumed in Haiti is imported. Sacks marked ‘US Rice’ are everywhere in the markets and neighborhood stores, on peoples’ heads and the backs of mules.

The US is now undermining Haiti’s food system from the ground. A letter from the Haitian Minister of Agriculture to Monsanto implies that GM seed may have been offered in addition to hybrid. “In the absence of a law regulating the use of genetically-modified organisms (GMO) in Haiti, I am not at liberty to authorize the use of Roundup Ready seed or any other GMO material,” stated Juanas Gue, Haitian Minister of Agriculture, in a letter to Monsanto13, which has already proven the length it will go to open new markets in developing countries for its GM seed and toxic chemicals. In 2005, Monsanto was found guilty by the US government of bribing high-level Indonesian officials to legalize GM cotton. Evidence indicates that in Brazil in 2004, Monsanto sold a farm to a senator for one-third of its value in exchange for his work to legalize glyphosate, the world’s most widely used herbicide (sold by the corporation as Roundup).14

According to Paulo Almeida, 31, a member of the Brazilian Movement of Landless Rural Workers who has been in Haiti since 2009 on a solidarity brigade organized by Via Campesina-Brasil, Monsanto also encouraged Brazilian farmers to illegally plant Roundup Ready soybeans. “They want to implant the technological package of the Green Revolution, which isn’t possible here in Haiti. There is no way to survive with monoculture here.”

The hybrid seed maize donated by Monsanto was treated with the fungicide Maxim XO, and the calypso tomato seed were treated with thiram, a chemical so toxic that the US government requires agricultural workers to wear protective clothing when handling seed treated with the fungicide. Monsanto's communications to the Ministry of Agriculture contains no explanation of the danger of these chemicals, or any offer of special clothing or training for Haitian farmers.15

Development of industrial agriculture in Haiti is related to plans to develop an export-oriented agrofuels industry in the country. In 2007 USAID published a report on the ‘prospects for solid and liquid biofuels in Haiti’16, while the Inter-American Development Bank’s Haiti strategy document for 2007-2011 states that removing “obstacles to export of agricultural products are a top priority,” and that “biofuel promotion is being explored specifically.”17

The Obama administration has a hypocritical and inconsistent policy on Monsanto and GM crops. When the Obamas moved into the White House they planted an organic garden, and one can only assume they did not plant GM or hybrid seed. In the US Monsanto monopolizes 60 percent of the entire seed maizemarket and 80 percent of the GM seed maizemarket. In March the administration convened public anti-trust hearings on competitiveness in the US seed market, and has yet to publish its conclusions. Yet the Obama administration is strongly promoting the interests of US agricultural biotechnology TNCs abroad. At the Biotechnology Industry Organization's annual convention in May, Jose Fernandez, assistant secretary for the Bureau of Economic, Energy and Business Affairs, stated that the US State Department (which controls USAID) will aggressively confront critics of agricultural biotechnology.18

Meanwhile, the US Supreme Court is presently deliberating Monsanto Co. vs Geertson Seed Farms, a case about the ecological and economic effects of genetic contamination of organic seed from GM pollen. A favorable decision for Monsanto will lead to the widespread contamination of organic alfalfa, which will destroy the organic milk industry in the US. Though Monsanto’s GM pollen has been contaminating Mexican corn for a decade, the corporation recently received license from the country’s government to conduct open field trials of GM maize in four states. Mexico is the cradle of maize, with thousands of native varieties. Contamination of Haitian maize with pollen from Monsanto’s hybrid corn will also occur, and could render the Haitian varieties unusable for saving and replanting, forcing farmers to become dependent upon the corporation.

“The entrance of Monsanto into Haiti will spell the disappearance of the peasants,” said Doudou Pierre Festil, a member of the Peasant Movement of the Congress of Papaye and coordinator for the National Haitian Network for Food Sovereignty and Security. “If Monsanto’s seed come into Haiti, the seed of the peasants will disappear. Monsanto’s seed will create problems of health and for the environment. Thus it is necessary for us to struggle against this project of death to do away with the peasants.”

“If the US government truly wants to help Haiti, it would help the Haitians to build food sovereignty and sustainable agriculture, based on their own native seed and access to land and credit. That is the way to help Haiti,” says Dena Hoff, a diversified organic farmer in Montana and member of Via Campesina’s international coordinating committee.

The United Nations estimates that 75 percent of the world’s plant genetic diversity has been lost as farmers have abandoned their local seed for genetically-uniform varieties offered by TNCs, and as GM and hybrid seed have contaminated native varieties. Genetic homogeneity increases farmers’ vulnerability to sudden changes in climate and the appearance of new pests and diseases, while seed agrobiodiversity, adapted to different microclimates, altitudes and soils, is fundamental for adapting to climate change.

Critics of Monsanto’s donation argue that the best way to ensure enough seed for Haiti is through the collection, conservation and propagation of local, native varieties in community seed banks. Haiti’s native seed varieties have developed and adapted to the different regions of Haiti over generations, in tandem with its people. Saving and replanting seed strengthens crops’ genetic plasticity, e.g. their capacity to adapt rapidly over generations to changing growing conditions, and also increases agrobiodiversity.

Island nations are particulalry vulnerable to climate change. If the US does not get its’ policy for Haiti right this time, there will not be another chance. Given the extent of food insecurity and environmental degradation in Haiti, the country must adopt a policy for food sovereignty in order for its people and biodiversity to survive. Ninety-eight percent of Haiti’s original tropical forest cover has been lost, there is widespread soil erosion, and desertification is increasing. Haiti cannot sustain further ecological destruction from the imposition of industrial agriculture. Alternatively, if the Obama administration supports a policy of food sovereignty in Haiti, the country could construct a model food system that could feed all Haitians healthy food, increase biodiversity and ecological resilience, and contribute to local, sustainable economic development. Recent research by agroecologists at the University of Michigan shows that sustainable, small-scale farming is more efficient at conserving and increasing biodiversity and forests than industrial agriculture.19 In order to implement a policy for food sovereignty, Haiti must develop without Monsanto’s seed.

Fortunately, Haitian peasants have a long history of resistance and struggle. Haiti was the first colony in the Western Hemisphere to have a successful slave revolt that resulted in an independent nation in 1804. Haiti became a global pariah to the emerging global powers, especially the US. “We defend peasant agriculture, we defend food sovereignty, and we defend the environment of Haiti until our last drop of blood,” states the Final Declaration of the march against Monsanto. “We commit to unite our forces to change this anti-peasant, anti-national state. We want to construct another kind of state, a state that defends peasant agriculture, a state that assists the rural men and women in the protection of the environment, and the conservation of soil and forest.” 20

Speaking from a stage in Charlemagne Péralte plaza, named for the Hinche-born leader of an armed movement against the 1915-1934 US occupation of Haiti, Jean-Baptise symbolically set Monsanto seed on fire, while others began to distribute packets of native seed maize to the cheering crowd. "We have to fight for our local seed," Jean-Baptiste told them. "We have to defend our food sovereignty." 21

Via News – June 15 2010



1 PR Newswire. “Monsanto Company Donates Conventional Maizeand Vegetable Seed to Haitian Farmers to Help Address Food Security Needs.” May 13 2010. http://www.prnewswire.com/news-releases/monsanto-company-donates-conventional-corn-and-vegetable-seed-to-haitian-farmers-to-help-address-food-security-needs-93713444.html.

2 Monsanto Company. “Monsanto donates maizeand vegetable seed to Haiti.” Monsanto Blog May 13 2010. http://www.monsantoblog.com/2010/05/13/monsanto-donates-seed-to-haiti/. Accessed June 7 2010.

3 Urfie, Fr. Jean-Yves. “A new earthquake hits Haiti: Monsanto’s deadly gift of 475 tons of genetically-modified seed to Haitian farmers.” Global Research. Canada. May 11, 2010.

4 Monsanto Company. “Haiti seed donation timeline.” http://www.monsanto.com/features/helping_haitian_farmers_timeline.asp. Accessed June 15 2010 @ 10:46 EST.

5 Email exchange dated April 1st between Elizabeth Vancil and Emmanuel Prophete, in which Jean Robert Estimé is included at a Project Winner email domain.

6 project winner.

7 Katz, Jonathan M. “Monsanto gives Haiti $4 million in hybrid seed.” Associated Press. May 14, 2010. http://www.politicalfriendster.com/showConnection.php?id1=6093&id2=238.

8 Monsanto Company. “Five answers on Monsanto’s Haiti seed donation. Monsanto blog May 20 2010. http://www.monsantoblog.com/2010/05/20/five-answers-monsanto-haiti/.

9 Katz, Jonathan M. “Monsanto gives Haiti $4 million in hybrid seed.” Associated Press. May 14, 2010. http://www.politicalfriendster.com/showConnection.php?id1=6093&id2=238.

10 Monsanto Company. “Monsanto donates maizeand vegetable seed to Haiti.” Monsanto Blog May 13 2010. http://www.monsantoblog.com/2010/05/13/monsanto-donates-seed-to-haiti/.

11 Monsanto Company. “Five answers on Monsanto’s Haiti seed donation. Monsanto blog May 20 2010. http://www.monsantoblog.com/2010/05/20/five-answers-monsanto-haiti/.

12 Holt-Gimenez, Eric. “Haiti: roots of liberty, roots of disaster.” Huffington Post, January 21 2010. http://www.huffingtonpost.com/eric-holt-gimenez/haiti-roots-of-liberty--r_b_431724.html.

13 Haitian Minister of Agriculture. Letter to Mr. Jerry Steiner, Executive Vice President for Sustainability and Corporate Affairs, Monsanto Company. March 26 2010.

14 Kenfield, Isabella. “Monsanto’s seed of corruption in Brazil.” North American Congress on Latin America. October 16 2010. https://nacla.org/node/1417 .

15 Bell, Beverly. “Haitian farmers commit to burning Monsanto hybrid seed.” Huffington Post. May 17 2010. http://www.huffingtonpost.com/beverly-bell/haitian-farmers-commit-to_b_578807.html.

16 Portnoff, Marc. “Prospects for solid and liquid biofuels in Haiti.” United States Agency for International Development. April 2007.

17 Inter-American Development Bank. “Country strategy with Haiti: 2007-2011.” November 2007. http://enet.iadb.org/idbdocswebservices/idbdocsInternet/IADBPublicDoc.aspx?docnum=1309702 .

18 Clapp, Stephen. “State Department official pledges to confront global biotech critics naysayers.” Informa.com. May 10 2010; Volume: 52, Issue: 09. Received via email on May 7 2010.

19 University of Michigan. “SNRE Professor Perfecto co-authors PNAS paper on family farms, biodiversity and food production.” ANN ARBOR, MI, February 22, 2010. http://www.snre.umich.edu/newsroom/2010-02-22/snre_professor_perfecto_co_authors_pnas_paper_on_family_farms_biodiversity_and_f

20 Final declaration of Haitian movements against Monsanto, June 4 2010.

21 Weekly News Update. “Haiti: Thousands of farmers reject Monsanto’s seeds.” http://weeklynewsupdate.blogspot.com/2010/06/wnu-1036-haitian-farmers-reject.html . June 7 201

Tuesday, July 13, 2010

Gunnar Tómasson letter to members of the Althing in Iceland

Distinguished members of Althing.

The envisaged reconstruction of the Icelandic economy is behind schedule, to put it mildly.

Gross national product (GDP) in constant IKR prices contracted by 6.5% in 2009 (original forecast was 9.5%) but its FX/dollar value fell by 28% (original forecast was 20%). As detailed further in my attached letter of last April 26 to Poul M. Thomsen, the IMF official in charge of Iceland issues, the IMF projects GDP in 2013 to be 4.3% higher in constant IKR prices than in 2008 but 25% lower in FX/dollar terms. I made certain related comments in the letter on Iceland's debt servicing capacity in light of the Brussels Icesave guidelines to which Mr. Thomsen has not responded. Therefore, it is timely for Iceland's Althing to undertake a detailed review of the economic program agreed with the IMF so that, absent change of course, further damage to the economy may be avoided.

In this connection I believe that the increased income and consumption taxes (and related increase of indexed loan principals) recommended by the IMF would make a bad situation worse and serve to postpone difficult actions to strike at the roots of financial disequilibrium in the economy. Iceland's Supreme Court has taken the first step in that direction with its decision ruling the FX-indexation of IKR loans illegal, but Althing must take the initiative to abolish the price-indexation of IKR loans. FX- and price-indexation of IKR loans have not only stood in the way of professional and effective monetary management over the years, but they are also weapons of choice for ruthless promotion of their self-interest by financial market parties which contributed greatly to - with some benefiting from - the collapse of the króna and the entire economy in October 2008.

The economic program agreed with the IMF was partly based on ideas in the field of mainstream monetary economics on which Alan Greenspan, former US Fed Chairman, commented before a congressional committee on 23 October 2008. "Those of us [who considered those ideas sound] are in a state of shocked disbelief [because] the whole intellectual edifice collapsed in the summer of [2007]," Greenspan said. For the past "40 years or more [he had been going] with very considerable evidence that that they were working exceptionally well." The IMF Executive Board has been of the same view for just as long but it has not re-examined its own modus operandi, cf. the monetary aspects of the AGS economic program which reflects an old and collapsed world-view.

The same is true of the Central Bank of Iceland, but its most recent statistics suggest that in the first half of 2010 the CBI provided 50 billion IKR in interest income on an annual basis to financial institutions for deposits with the CBI whose national economic value is hard to discern. Absent evidence to the contrary, here is about 50 billion IKR in government sector outlays which could be cut without any adverse effects - and might encourage financial institutions to search out profitable loan opportunities in the economy. But the main problem in government sector finance in the period ahead is how to create financial space for the Treasury to address urgent tasks following the Supreme Court's ruling on FX-indexation of IKR loans and, if Althing rises to the occasion, the abolition of IKR loan price-indexation.

According to CBI economic statistics deposits with deposit institutions were about 1640 bn. IKR at end-March 2010. Chances are that a large portion of deposits in excess of 5-10 million IKR are the product of opportunities for wealth accumulation present in the bubble economy which burst in October 2008, leaving a heavy debt burden for Iceland and its people. Information is not at hand on the distribution of deposits by amount, but if deposits in excess of 5-10 million IKR as of 30 June were about 1500 bn. IKR, then 10-20% taxation of such deposits would yield about 150-300 bn. IKR to the Treasury. Icelanders are not all equally able to lend support to Iceland's economic independence, but it cannot be truthfully said that wage-earners in general, the elderly and the disabled have not shouldered their responsibilities in this hour of urgent need.

Respectfully,

Gunnar Tómasson, economist

Monday, July 12, 2010