Category Archives: Subsidies

Toward a Living Economy: Cooperative Self-Organization

In the previous post I explored the inherent contradiction between the desire to protect and conserve the environment and the need for development within the current economic system based on a growth economy examining the current political situation in Bolivia as a microcosm of this tension on a macro level. At the end of that post I suggested that the solution was to find a way to transition to a new kind of economy and development. David Korten wrote an article in Yes! Magazine entitled “Living Economies: Learning from the Biosphere” in which he said,

In our species’ immaturity, however, our dominant cultures have forgotten that our individual and collective well-being depends on the well-being of the whole. We must now step to a new level of species maturity, redesign the culture and institutions of our economic system to mimic the structure and dynamics of the biosphere, and learn to live by life’s rules. 1

Korten lists three key ideas that he gleans from the natural world about how we should organize our economic life together: 1) Cooperative Self-Organization, 2) Self-Reliant Local Adaptation and 3) Managed Boundaries. First I want to look at his ideas, along with some others within the idea of a steady-state economy. Then we will have to talk about how to get from here to there.

Toward An Anarchist Economy?
The first rule of “Cooperative Self-Organization” has to do with the principles of biodiversity and cooperation. Korten explains,

Ecosystems have no central control structure. Their health and vitality depend on processes of cooperative self-organization in which each species learns to meet its own needs in ways that simultaneously serve the needs of others. The more diverse and cooperative the bio-community, the greater its capacity to innovate and the greater its resilience in the face of crisis.” 1

The idea of not having central control structures sounds very scary to humans accustomed to all the trappings of civilization with its institutions, organization and hierarchy, but this is an invention of the human intellect and not something inherent in the natural order or observable in natural ecosystems. While many libertarians and advocates of a completely free market profess to believe in such a decentralized state of affairs, I’m not sure they would allow it when the time came to really let go of the control. Most of the more moderate advocates of a free market turn that phrase into a misnomer, because there is incredible attempts to impose central control and regulation on the system. Usually the rules are rigged to the benefit of the rulemakers, which might fit some natural law, but is unsustainable and thus violates the most important natural law: that the system itself must survive.

All of this makes me wonder what an anarchist (which is the leftist version of the libertarian impulse) economy might look like. I don’t hear a lot of discussion about this among Christian Anarchists that I read. But if economy only means how we order our lives together, then in terms of how we exchange goods and services for our own survival, any community of people that is able to sustain itself has some kind of economy. If there is any possibility of a practical anarchism that can be lived out, then there must be some kind of anarchist economics that governs or guides the way that people live together.

Diversity and Cooperation
What creates stability, security and flourishing in ecosystems is diversity and cooperation. Of course there is competition within and among species for sources of food, but this assumes a scarcity that is not the case in stable ecosystems. If you out-compete all the other prey species in an ecosystem for food then your survival will mean that you are now the only target left for whatever predators there are above you on the sacred predator pyramid scheme. There is a delicate web of interdependence in healthy ecosystems that demands both diversity of species and cooperation.

Financial investors already understand this principal somewhat when they diversify stock portfolios to lower the risk and secure a steady rate of return, even if it’s lower than higher risk portfolios. On a broader scale, however, our economy does not support the broadest diversity in terms of the kinds of business and other economic actors that it supports and/or allows to exist. On the contrary the current system heavily favors large corporations. The larger and more multinational the corporation, the more advantages it has in the marketplace.

Everyone gives lip service to small businesses, but no one is serious about taking on the rules that allow Wal-Mart and others to easily put small companies out of business wherever they go. Therefore the rule in a living economy based on the rule of diversity and cooperation would be to give real incentives for small businesses and those that are active in creating a community in which other small businesses can thrive. Korten puts the tension between healthy ecosystems and the privileges of corporations in these terms,

“In a living economy, the rights and interests of living communities of living, breathing people engaged in a living exchange with the natural systems of their bioregion properly take priority over the presumed rights of artificial corporate entities that value life only as a marketable commodity and operate by the moral code of a malignant cancer.”

This puts a further clarification on the practical implications. It cannot simply promote any small business, but small businesses that understand, value and promote the values of diversity and cooperation. They should embody these principles within their own business structures by following worker-owned models in which there is the most possible transparency, openness and sharing of both the rights and responsibilities of honest work. They should encourage other business and the interaction, cooperation and interdependence of businesses of all sizes, from a single person selling produce from their garden to the largest local company in the area.

Monocultures of any kind, whether agricultural or business, are a direct contradiction to principles that govern natural systems. They will likely fail in the long term for the same reasons that natural systems cannot be supported where biodiversity is lacking. The answer is to learn from science and promote the interdependence of natural system that create flourishing, dynamic, vibrant and healthy systems of diversity and cooperation.

The Ultimate Showdown: Mother Earth vs Globalization

Bolivia is a fascinating place to live right now. It is a bundle of contradictions and paradoxes that are a microcosm of the economic and ecological crises that the rest of the globe faces. Like any other collection of people, organizations, communities and especially nation-states, Bolivia is a complicated mix of history, races, languages, religions, ideologies and these make up the political situation of parties, factions and groups vying for influence, pushing their agenda, marching and blockading streets. Amidst this complex environment two issues in particular arise that frame all others and create contradictions that will eventually have to be overcome. They are environmental protection/conservation and economic development. An article on the Poverty Matters Blog of the Guardian summed this contradiction up nicely,

Rated eighth in the world for its biodiversity, more than half of Bolivia is still covered by pristine forests. But what for some is picturesque remoteness, is for others the curse of underdevelopment…Despite its finger-pointing at the west for causing climate change through the irrational use of raw materials, Bolivia’s economy thrives on the sale of natural gas… So, on one hand, Morales is Bolivia’s first indigenous president and an environmental champion; on the other, he’s a tacit supporter of the industrialised model. 2

Seeds, Security and Sovereignty
I’ve written previously about this contradiction in terms of the Law of Pachamama
(The Law of Mother Earth) that Bolivia passed which gives “rights to life and regeneration, biodiversity, water, clean air, balance, and restoration” and mandates “a fundamental ecological reorientation of Bolivia’s economy and society, requiring all existing and future laws to adapt to the Mother Earth law and accept the ecological limits set by nature.” 1

Bolivia has since proposed other legislation concerning genetically modified seeds and food sovereignty. Carlos Romero, the minister who proposed a draft law for Bolivia to produce its own seeds and fertilizer explains in another Guardian article that “[Seeds] are a major factor in food production. But in recent years we’ve seen an increase in their price across the world, because of a rise in oil prices and the monopoly exercised on seeds by a few corporations. That’s why we want to create state-owned companies that produce seeds.”

In the same article Ciro Kopp, an agricultural engineer at the National Council for Food and Nutrition, puts the concerns about seeds and fertilizer in the broader context of food sovereignty,

“About 20 to 25 years ago, 70 to 80% of what we ate was produced locally in Bolivia,” he said, “but then we embraced the agro-industrial model and now 70 to 80% of what we eat comes from the agro-industry, which makes us dependent on technologies and price controls from abroad. So, in the same way that industrialists received support from the government in the past, now it’s small farmers who need help…Bolivia is a centre of origin of several Andean crops such as potatoes, quinoa, chili and corn,” he said. “It is essential to strengthen the systems of production, natural selection and exchange of seeds that farmers have been doing for centuries. Our focus should be first of all to feed the country. If our priority is to export, what are people going to eat?” 2

There have been serious effects from this shift to agro-industrial production, including abandoning one of the healthiest foods in the world. Also from the Guardian, “Prices of locally-produced indigenous food, such as quinoa, are also at a record highs: some highland communities have taken to eating rice and pasta instead of their traditional – and more nutritious – crops.” 2 Quinoa contains the most complete protein found in any grain in the world. Yet, the very people producing this crop cannot afford it and are forced, instead, to consume the poor substitutes of rice and pasta. For people whose health depends on getting the most nutrition out of the small amounts of food they can afford this places their very lives on the edge of survival.

Biodiversity is nature’s way of both creating a safety net and maintaining equilibrium. If one species goes extinct as they do (though never before at the current rate), then another is available to fill the niche left and other species can evolve from the diversity of the remaining gene pool. The BBC says

“Bolivia is home to thousands of native varieties of crops, including potato and corn. The Morales government wants to improve genetic stock through natural selection. It rejects what it describes as an invasion of genetically-modified seeds, fearing they will contaminate indigenous species, and prove to be too expensive for small farmers to buy.” 3

The reason that these technologies are beyond the reach of small farmers across the world is that companies, such as Monsanto, create a vertically integrated line of products in which their genetically modified seeds (or “viralized transgenics” as the host of Agroinnovations prefers) are dependent on the chemical herbicides, pesticides and fertilizers that the same company produces. This suite of agro-chemical products is very expensive and only becomes more so as more applications are needed year after year, or as new products are introduced. This has led many farmers in India to go into inexorable debt and is the cause of the epidemic of farmer suicides in that country.

The Guardian article, “Will Bolivia make the breakthrough on food security and the environment?”, concludes on an upbeat note about the prospects for Bolivia’s future, “For now, however, the general consensus is that if the new law is applied well, Bolivia could succeed in guaranteeing food security with sovereignty for its people – as well as keep its biodiversity intact.” 2 Yet, we have already hinted at some of the obstacles facing the application of environmental and food sovereignty legislation.

The Rising Tide of Globalization Is a Tsunami
An Associated Press article pointed out some of these difficulties concerning the current agro-industrial producers in Bolivia.

“In Bolivia’s eastern lowlands, soybeans that would ordinarily have been exported languished in their silos because they could not find local buyers. We were already being battered by the climate when the government came out with these decrees prohibiting exports,” said Demetrio Perez, a soy farmer who is president of the National Association of Oil Seed Producers. “With the restrictions, an incentive to plant more was lost.…”We can’t fight the ravages of nature, but what’s doing the most harm are inappropriate policies that discourage production,” said Gary Rodriguez of the National Institute of Foreign Commerce, a leading business group. “Farmers already have plenty to deal with coping with the climate.” 1

You see, there is currently only one possibility for development and that is the industrial, growth economy. On the one hand, I feel bad for any farmer affected by bad policies, but in this case it might be a case of good policies badly implemented, at least so far. Crops such as soy or corn are not produced in order to feed anybody until they have gone through a long chain of processing and turned into all kinds of products. These crops are damaging to the food security and sovereignty of nations like Bolivia, because they are primarily export commodities. The reason they don’t have much of a local market is because no one can eat them or turn them into edible products without massive infrastructure. This hurts the farmers producing such crops, because they have no incentives to plant something else and many don’t yet have the skills for alternative agricultural production.

How To Have It Both Ways…Or Not
The biggest battle currently raging in Bolivia is over the governments intention to build a road through the middle of the Isiboro Secure Indigenous Territory and National Park (TIPNIS) which is home to thousands of species of birds, mammals and plants, three indigenous groups and a lot of natural gas deposits. “With its 2.5m acres, the TIPNIS (from its initials in Spanish) is doubly protected, as a park and as the territory of the Moxeños, Yurakarés and Chimanes indigenous people.” 4 The conflict over the proposed road between indigenous groups and the government (with an indigenous leader as its president) has been going on for months. The government claims that the road will help to connect and unite the indigenous groups in the area, while the residents claim that the road will bring more trucks and extractive industry than unity or benefits to them. This particular issue has made the paradox of the Morales administration’s situation crystal clear in my mind. It has to deal with indigenous groups and its own agenda for environmental protection and rights, but at the same time has to do something about a country with the worst economy and highest poverty in South America.

This contradiction between economic development and ecological sustainability is the primary question facing our planet. The problem facing the Bolivian government is that you can only have it both ways for so long before the contradictions inherent in these two issues will come to a head. It’s not enough to pass good laws about the rights of the earth, food sovereignty and security. If there is not a strategy for transitioning to a new kind of development and economy, then Bolivia, and indeed the rest of the planet, will remain caught in this most costly of contradictions.

In the next post I will explore some ideas about this transition and what an economy based on the kinds of legislation Bolivia is working on might look like.

Articles cited:
1 AP “Climate, government controls hit Bolivia’s farmers”
2 Guardian “Will Bolivia make the breakthrough on food security and the environment?”
3 BBC “Bolivia moves to end dependence on foreign seed firms”
4 Guardian “Evo Morales plays a double game on Bolivia’s environment”
5 Yes! Law of Mother Earth

Food Racism

Colorful food_pw.JPGWhy do we subsidize white foods, but not foods of color? Are we food racists? Once again the archives of the Food Chain have come up gold with Show #552: Foods of Color. Michael Olson never finishes his analogy, but I couldn’t help myself. White foods are those refined über-processed food-like substances composed mainly of corn.

Foods of color are the blessed variety of plants that God intended for us to eat. How many fruits or vegetables can you think of that are purple? Orange? Red? Yellow? Green? For some people thinking of foods this color that are not candy or cereal is really hard. So c’mon people… don’t discriminate! Down with food racism! Power to the Plants!