Global Food System: Bretton Woods, Corporate Influence, and Land Grabs
Understanding the Global Food System
Bretton Woods Institutions and Their Significance
The three Bretton Woods Institutions (BWI) are the World Trade Organization (WTO), the International Monetary Fund (IMF), and the World Bank (WB). These institutions are significant because they helped reduce trade barriers through exchange rate stability. The IMF and WB implemented Structural Adjustment Programs (SAPs), which facilitated neoliberal globalization throughout the global south. Although free trade and non-discrimination were the goals, some countries still share freer bilateral trades with other countries. (Pg. 104-105)
Generic vs. Corporate Globalization
The difference between “generic” and “corporate” globalization is:
- Generic: A technological framework that enables connectivity.
- Corporate: A form of globalization driven by corporate interests using neo-liberal economic ideologies that have been hegemonic since the 1980s.
This distinction helps us understand and differentiate globalization in different countries, where corporate globalization mainly benefited companies in western developed countries. (Pg. 99)
Federal Subsidies: Impact on Farmers and Obesity
Very high subsidies exist in the US and EU. Developing nations that have been required to eliminate their agricultural support systems are now flooded with cheap, subsidized US/EU agricultural goods – “dumping.” These trade policies devastate small farming in the developing world because they can’t compete with the low prices of these below-cost goods. (Pg. 113-114)
Cheap US/EU subsidized corn leads to high fructose corn syrup, while cheap soy leads to hydrogenated vegetable oils. If they are not directly in the food we eat, they are consumed by the animals we eat. (pg. 116)
Seed and Pesticide Sales Concentration
According to Young, the top 10 seed corporations are responsible for 67% of global seed sales, and the top 10 pesticide corporations are responsible for 82% of all commercial pesticide sales. Four companies are on both lists. (Pg. 120)
Global Grain Trade Control
Together, two US corporations (Cargill and Archer Daniels Midland) control a significant percentage of global grain trade:
- Cargill – 45%
- Archer Daniels Midland – 30% (Pg. 121-122)
Land Grabs and Food Insecurity
The global land grab has increased food insecurity in the global south. According to the Observer, up to 125 million acres of land – an area more than double the size of the UK – has been acquired in the last few years. (See pages 129-139 including Box 4.6).
The contemporary global land grab reflects the convergence of financial, environmental, energy, and food crises that causes land, especially in the global south, to become attractive to diverse investors.
Historical Legacies and International Institutions
Conflict situations often create novel forms of entitlements for some members of a community. Sustained by violence or illegality, these may be worth the risk for “otherwise” impoverished populations. Sustainable alternative entitlements must be provided before the conflict can be resolved. *Lord’s Resistance Army (Pg. 320)