Right now you may be grumbling about the extra bucks you're shelling out at the pump and the grocery store; but, unless policymakers begin to address all three of these trends as one major crisis, it could get a whole lot worse.
by John Feffer
Gas
prices are above $4 a gallon; global food prices surged 39% last year;
and an environmental disaster looms as carbon emissions continue to
spiral upward. The global economy appears on the verge of a TKO, a
triple whammy from energy, agriculture, and climate-change trends.
Right now you may be grumbling about the extra bucks you're shelling
out at the pump and the grocery store; but, unless policymakers begin
to address all three of these trends as one major crisis, it could get
a whole lot worse.
Just ask the North Koreans
In the
1990s, North Korea was the world's canary. The famine that killed as
much as 10% of the North Korean population in those years was, it turns
out, a harbinger of the crisis that now grips the globe -- though few
saw it that way at the time.
That small Northeast Asian land,
one of the last putatively communist countries on the planet, faced the
same three converging factors as we do now -- escalating energy prices,
a reduction in food supplies, and impending environmental catastrophe.
At the time, of course, all the knowing analysts and pundits dismissed
what was happening in that country as the inevitable breakdown of an
archaic economic system presided over by a crackpot dictator.
They
were wrong. The collapse of North Korean agriculture in the 1990s was
not the result of backwardness. In fact, North Korea boasted one of the
most mechanized agricultures in Asia. Despite claims of
self-sufficiency, the North Koreans were actually heavily dependent on
cheap fuel imports. (Does that already ring a bell?) In their case, the
heavily subsidized energy came from Russia and China, and it helped
keep North Korea's battalion of tractors operating. It also meant that
North Korea was able to go through fertilizer, a petroleum product, at
one of the world's highest rates. When the Soviets and Chinese stopped
subsidizing those energy imports in the late 1980s and international
energy rates became the norm for them, too, the North Koreans had a
rude awakening.
Like the globe as a whole, North Korea does
not have a great deal of arable land -- it can grow food on only about
14% of its territory. (The comparable global figure for arable land is
about 13%.) With heavy applications of fertilizer and pesticides, North
Koreans coaxed a lot of food out of a little land. By the 1980s,
however, the soil was exhausted, and agricultural production was
declining. So spiking energy prices hit an economy already in crisis.
Desperate to grow more food, the North Korean government instructed
farmers to cut down trees, stripping hillsides to bring more land into
cultivation.
Big mistake. When heavy rains hit in 1995, this
dragooning of marginal lands into agricultural production only
amplified the national disaster. The resulting flooding damaged more
than 40% of the country's rice paddy fields. Torrential rains washed
away topsoil, while rocks and sand, dislodged from hillsides, ruined
low-lying fields. The rigid economic structures in North Korea were
unable to cope with the triple assault of bad weather, soaring energy,
and declining food production. Nor did dictator Kim Jong Il's political
decisions make things any better.
But the peculiarities of
North Korea's political economy did not cause the devastating famine
that followed. Highly centralized planning and pretensions to
self-reliance only made the country prematurely vulnerable to trends
now affecting the rest of the planet.
As with the North
Koreans, our dependency on relatively cheap energy to run our
industrialized agriculture and our smokestack industries is now mixing
lethally with food shortages and the beginnings of climate overload,
pushing us all toward the precipice. In the short term, we face a food
crisis and an energy crisis. Over the longer term, this is certain to
expand into a much larger climate crisis. No magic wand, whether
biofuels, genetically modified organisms (GMO), or geoengineering, can
make the ogres disappear.
After the attacks of September 11,
2001, "We are all Americans" briefly became a popular expression of
solidarity around the world. If we don't devise policy choices that
address energy, agriculture, and climate, while replacing the idolatry
of unrestrained growth at the heart of both capitalist and communist
economies, the tagline for the 21st century may be: "We are all North
Koreans."
Through a Glass Darkly
For years,
development experts have bemoaned the declining terms of trade that
have kept some developing countries, and most poor farmers, mired in
poverty. With the exception of the first energy crisis era in the
1970s, between the end of World War II and 2006, food prices never
stopped sinking in relation to manufactured goods. Lower food prices
are generally a boon for consumers. But they are devastating for the
subsistence farmers who make up the vast majority of the world's poor.
However,
over the past three years, according to the World Bank, food prices
have increased 83%. That may be only an annoyance for wealthy shoppers,
but for the poor, who often devote more than 50% of their incomes to
feeding their families, such staggering rises can be the difference
between life and death.
There are a number of reasons for this
recent spike. The price of oil, now near $140 a barrel, has certainly
played a crucial role in this, both by driving inflation generally and
because of its importance to modern, large-scale agriculture. So has
the recent allocation of ever more agricultural land to biofuel
production. U.S. farmers, responsible for 70% of all world corn
exports, now dispatch one-fifth of their corn to ethanol production,
which has had the effect of nearly doubling the price of corn.
Global
warming, too, has had an impact. Drought in Australia and the eastern
United States, severe flooding in China and Bangladesh, rising ocean
levels and fresh water shortages throughout the world are all thought
to be related to climate change, though climate scientists cannot prove
that any given weather anomaly is caused by global warming.
Climate
scientists can be fuzzy this way about causality in the short term.
Paradoxically, however, they often see the future more clearly. For
instance, the top global food policy think-tank, International Food
Policy Research Institute (IFPRI), predicts that global warming will be
responsible for a 16% decrease in agricultural gross domestic product
globally by 2020. The Center for Global Development argues that
developing countries, in particular, will be hit hard by climate
change: By 2080, India, its report argues, will see a staggering 30-40%
drop in agricultural production and Senegal will plummet 50%.
In
the United States, a much-anticipated, Bush-administration-delayed
federal study foresees water shortages, more herbicide-resistant weeds,
and more insect infestations as a result of climbing temperatures. The
present food crisis, concludes Joachim von Braun of the IFPRI,
"foreshadows what climate change will bring us."
The other
major driver of food price increases is certainly rising income levels
in key developing countries. With more income, people can, of course,
eat more, and eat higher off the hog -- or, put another way, they can
eat hog in the first place, rather than the lentils or cassava on which
they were subsisting.
Over a decade ago, Lester Brown, the
founder of World Watch, suggested that just such a crisis was on the
way. He asked whether the world could possibly produce enough grain to
feed a more prosperous China. Now, growing middle classes in China and
India, the world's most populous countries, are, just as he predicted,
changing their eating habits and consuming more meat (and so,
indirectly, a great deal more grain, which is used to feed the animals
they are now cooking).
Lester Brown was ahead of the curve,
but there were ample warning signs of an impending food crisis for
those ready to see them. Oil prices have been steadily increasing since
2004 as a result of rising demand. They have been helped along greatly
by growing chaos in the Middle East, fed by the Bush administration's
foolhardy invasion of Iraq.
Like the North Koreans, we, too,
have been trying to squeeze more food out of a limited amount of land:
arable land per capita is declining at a steady rate. Falling water
tables and dry rivers think climate change again -- have no less
surely pointed to a coming crunch for farmers dependent on irrigation.
And don't forget: Critics of biofuels warned time and again that there
wasn't enough elasticity in the food supply to take food out of the
mouths of people in the Global South in order to fill the gas tanks of
the Global North.
Back in the early 1990s, the North Korean
leadership failed to grasp the correlation between rising oil prices,
declining food stocks, and environmental stresses -- and the political
pundits and politicians of the planet conveniently wrote off the
resulting catastrophe as uniquely the fault of the world's weirdest
country. Instead of taking a timely hint, wealthier governments simply
shrugged off the warnings of scientists, development professionals, and
energy specialists about future crises.
Responding to Riots
There's
nothing like a food riot, however, to get wealthy governments to sit up
and take notice. Humanitarian organizations and aid officials may be
concerned about people quietly starving to death in remote locations,
but only when world security suddenly seems threatened and governments
totter do rising food prices translate into a full-blown crisis.
Washington, for example, woke up when riots broke out in Egypt, Haiti,
and Indonesia, and the military in Pakistan and Thailand intervened
to protect crops and storage facilities.
In response to the
sudden crisis splatting on the global windshield, the United Nations
food aid agency, the World Food Program, called for $755 million in
emergency contributions. Saudi Arabia, its coffers flooded with oil
profits, promptly promised $500 million. The World Bank then announced
that it was increasing its overall support of global agriculture by $2
billion in 2009, while Washington offered $5 billion in food aid over
the next two years.
Such an emergency response may, indeed, be
necessary, but it is also distinctly inadequate. The Director-General
of the U.N.'s Food and Agricultural Organization, Jacques Diouf, has
called for a minimum of $30 billion a year for a global agricultural
restructuring. It's not at all clear who will pony up such sums, which,
in any case, will be too late for countries like Haiti whose
subsistence farmers needed help before their most recent growing
seasons started. Most importantly, though, as an approach, it's too
conventional and, in the long run, bound to fail.
After all,
the wealthiest countries continue to show little or no interest in
altering the policies that have contributed so decisively to the food
crisis in the first place. Take the United States. It "ties" -- places
restrictions on -- about 70% of its aid. That means recipient countries
must use that aid to buy U.S. products, which, of course, will do
little to strengthen local economies. Washington has also cut its
international agricultural research by as much as 75% at a time when
agricultural production is no longer keeping pace with population
increases. Add in the $280 billion farm bill that Congress has just
passed which, unbelievably enough, provides continued subsidies to
"farmers" (read: agribusiness) already benefiting enormously from high
food prices. And the European Union, like the United States, is
refusing to backtrack on its commitment to boost biofuels produced from
grain.
Nor is there much hope for a new Green Revolution.
While the campaign to disseminate modern, industrial agricultural
techniques that began in the 1960s did increase food production, rural
poverty in the developing world remained endemic (which is why the
current food crisis is so devastating to subsistence farmers). Today, a
repetition of that Revolution's combo of hybrid seeds, intensive
irrigation, and the heavy application of petroleum-based fertilizers
holds little promise.
Water is scarcer. Oil (and thus
fertilizer) is considerably more expensive. The promised next stage of
the Green Revolution, the application of biotech advances through
genetically modified organisms to produce new, high-yield,
insect-resistant crops, generally hasn't lived up to its hype in the
developing world.
Yet Western seed companies are taking
advantage of the crisis to tout this particular high-tech solution.
Oddly enough, all this is depressingly reminiscent of the North Korean
leadership's fascination with quick fixes in the 1990s. North Korean
leader Kim Jong-Il, for instance, touted potatoes as a miracle crop,
but the True Potato Seed project sponsored by the U.S. government never
panned out. Giant rabbits produced by a German breeder as a newfangled
North Korean livestock were a dead-end, probably because the animals
themselves consumed as much food as they ultimately yielded. A variety
of high-yield "supercorn" hasn't yet revolutionized North Korean
agriculture. Neither in North Korea nor in the world at large has
anyone yet figured out a technical shortcut to permanent cornucopia.
Markets to the Rescue?
Perhaps
the most conventional approach to the crisis has been to rely on market
mechanisms. Consider the International Food Policy Research Institute,
a product of the Green Revolution and its leading booster, and its
eight-point plan for solving the crisis. Several of the steps are
eminently sensible, such as expanding humanitarian assistance to
food-challenged countries, reversing biofuel policies, and investing in
social programs such as school feeding programs and health care. In the
mix, however, are more of the same old market mantras. IFPRI
recommends, for instance, the elimination of the export bans which 40
countries, including India and Indonesia, recently implemented to keep
food from flowing out of the country through trade. And it has tried to
revive a dead horse by urging further World Trade Organization (WTO)
negotiations to reduce barriers to global trade in agricultural
products.
Pundits and policymakers addressing food problems
have called for the elimination of government regulations and tariffs
ever since England repealed its Corn Laws in the 1840s. In the last
quarter century, the removal of trade restrictions of every sort
facilitated greater agricultural production globally. Free trade helped
large producers grow more and sell it cheaper abroad. But free trade
hasn't helped the rural poor -- or poor countries.
Quite the
opposite. The increased concentration of corporate farming and the
dismantling of state programs that sustained the agricultural sector
have driven small farmers out of business all over the planet, while
making many of those who remain ever more dependent on expensive
chemical pesticides, fertilizer, and seeds. For instance, as a result
of the North American Free Trade Agreement, Mexico lost 1.3 million
agricultural jobs, forcing many desperate small farmers to cross into
the United States as migrant workers. Even more strikingly, the
continent of Africa went from a net exporter of food in the late 1960s
to a net importer today -- thanks to the World Bank and the WTO riding
roughshod through the continent in the same cavalry unit as the four
horsemen of the apocalypse. The Bank's "structural adjustment programs"
and the WTO's "tariff reductions" don't quite have the ring of war,
pestilence, famine, and death, but they have been just as devastating.
The
quest for perfect markets usually conceals a global shell game in which
wealth is redistributed from the many to the few. To even the playing
field that markets constantly tilt in favor of the powerful, and to
direct funds toward environmental sustainability, governments need to
intervene in the economy.
After all, private enterprise is not
going to invest in the large-scale improvement of rural infrastructure
-- the capital costs are high and profit margins far too low. More
controversially, developing countries may need to maintain, or even
reestablish, tariffs and subsidies to protect local producers. Since it
is both sold and consumed, food should be considered a strategic
resource, a matter of national security. It should be left out of trade
negotiations in the same way that the "national security exception"
allows governments to subsidize and protect their military industries
as they please.
On Being Canaries
Any response that
doesn't address all three converging trends -- rising energy costs,
stagnant per-capita agricultural production, and climate change -- will
ultimately fail, just as it did in North Korea in the early 1990s.
Land,
energy, and the biosphere are limited resources. And it's not only a
peak in oil that we may be approaching. The depletion of oil resources
and the urgent need to reduce carbon emissions from their current
levels have at least entered mainstream discussion. Less well known,
however, are the problems of peak land and peak water.
The
last time food prices shot up, in the 1970s, the U.S. response was to
put more land into agricultural production. This was the infamous
"fencerow-to-fencerow" policy of Secretary of Agriculture Earl Butz
that Michael Pollan, author of The Omnivore's Dilemma, has linked to
the glut of corn -- and corn syrup -- that has so profoundly affected
global diets. But re-Butzing American agriculture is no longer an
option. "For the first time in our history, we're pushing up against
the edge in terms of quality land," says Otto Doering, a professor of
agricultural economics at Purdue University. "We're in a somewhat fixed
box."
The same applies to the world at large. Although
rainforests are still being transformed into farming plots and pasture
-- only increasing carbon emissions into the atmosphere -- humanity is
reaching the limits of arable land. Chalk it up to urbanization,
climate change-caused drought, and a loss of soil fertility through the
application of too much fertilizer. Whether forest or farmland, we are
losing productive land at a rate of one hectare every 7.67 seconds.
Sure, there's some wiggle room in Africa and Latin America, but
bringing this additional land into cultivation will buy us only a
little time -- at the expense of the overall environment.
The
water situation is even more precarious. The world is facing a
declining reserve of fresh water with the depletion of underground
reserves in India, China, Africa, and even the United States. (Say
goodbye to the Midwest's mighty Ogallala aquifer, which nourishes
America's breadbasket). Aside from the 1.1 billion people who already
lack safe drinking water, according to the U.N., this crisis threatens
farming, which monopolizes 70% of all fresh water.
Global
temperature increases will only aggravate the situation. Rising oceans
will inflict death-by-salt on increasing amounts of low-lying farmland,
while drought dries up once fertile farming regions. Any
intensification of the Green Revolution, dependent as it is on chemical
fertilizer and irrigation, is only likely to add to the problem. And
don't count on the oceans to offset the food that will no longer be
grown on land. The catch of wild fish has remained pretty much the same
since the mid-1980s, and fish farming, too, requires land, water, and
energy.
In the long run, the only realistic response is a
comprehensive program to address, in tandem, the triple crises of
energy, climate, and land and water resource exhaustion. If
policymakers take into consideration only one, or even two, of the
components of this trinity, they may well end up doing more harm than
good. The making of biofuels from corn, for instance, was an attempt to
address the problems of the cost of energy and the dangers of climate
change, but it neglected to consider the effect on agricultural
production -- hence, the disastrously soaring price of corn. Calls for
the next phase of a Green Revolution, which address agricultural
production, are guaranteed to play havoc with the energy and water
crises.
Such partial approaches don't work largely because
they assume unlimited resources. The original sin of unrestrained
growth can be found in the economic theologies of both communism and
capitalism. In these systems, neither the state nor the market has ever
operated according to ecological principles. Now, we must quickly
explore ways of boosting agricultural production in fundamentally
sustainable ways without, somehow, expanding our carbon footprint.
Certainly
organic farming will play a role here. Although Green Revolution guru
Norman Borlaug has dismissed organic agriculture as incapable of
feeding the world, an important new study published by Cambridge
University Press shows that organic systems in developing countries can
produce 80% more than conventional farms.
Integrated farming
systems that rely on sustainable energy -- solar, wind, tidal -- will
also be critical. No-till agriculture can cut down on energy use and
soil erosion.
While properly wary of snake-oil salesmen,
neither can we afford to be Luddites. New technologies will play a role
as well, as long as they reduce fertilizer and pesticide use, don't
shackle debt-ridden farmers to major seed companies, and meet strict
consumer safety requirements.
Even if global food prices
stabilize this year and projections of a record grain harvest hold, the
underlying problems will remain.
So it was with North Korea.
With emergency assistance, the country pulled back from the brink by
2000. In 2008, however, it is again in a serious food crisis, thanks to
high energy prices, flooding, and a shortfall in last year's grain
harvest. Once again, North Korea is the world's canary. As we sit in
the dark in the deep hole that we've dug for ourselves, will we finally
heed its warning?