April 2011 - Centre for Civil Society - University of KwaZulu-Natal

April 2011 - Centre for Civil Society - University of KwaZulu-Natal April 2011 - Centre for Civil Society - University of KwaZulu-Natal

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foreign agro-business intrusion in some Latin American and Caribbean countries is enlightening to say the least. In northeastern Brazil, the region was extensively farmed by foreign agricultural interests for centuries. Unfortunately this region has nothing to show for it now. Today the region is the poorest part of the country with the least food security and one of the highest malnutrition rates in Latin America. Contrary to the promises made by companies that farmed Brazil’s fertile soil, the outcome has been very grim. In his famous book ‘Open Veins of Latin America’, Eduardo Galliano, commenting on Brazil’s northeast, says, ‘Naturally fitted to produce food, it became a place of hunger. Where everything had bloomed exuberantly, the destructive and all dominating plantation left sterile rock, washed out soil, and eroded lands.’ Are Ethiopia’s own fertile lands headed for the same fate? What makes the current foreign agricultural adventure in Ethiopia any different? In fact, the environmental destruction of the land has already begun in this initial phase. Around Gambella region, Karuturi, an Indian company, which owns large swaths of the region, is heavily involved in burning forests and grasslands to make way for potential farmland. It would be unfair to single out Karuturi alone. Other foreign companies who have settled in the region are no more saintly. They are also using slash and burn techniques to clear land. There is no doubt the flora and fauna will be lost forever as a result. Pastureland is fast becoming eviscerated, affecting local herders, who depend on their livestock for survival. This process of pastoral land elimination could have negative consequences for currently inflated meat prices in Ethiopia, which will undoubtedly exasperate existent levels of high malnutrition in the country. According to the government, these lands given to foreign investors were idle lands, ready to be gobbled up into the global food system without much disturbance. However, this view depends on one’s definition of ‘idle land’. Pastureland may seem idle, but its usefulness is undeniable. Another key consideration should be about the inevitable damage and cost to future generations. Given the fact that Ethiopia is very much a country of the future, demographically speaking, this should concern us. Intensive farming by foreign agro-business has a history of ravaging the land and turning fertile soil into depleted soil in a short period of time. Other parts of the globe where this has been practiced testifies to the inevitability of environmental destruction. In a land that is potentially the breadbasket of Ethiopia, if not the whole Horn of Africa, such degradation is a real loss for future generations and therefore presents a moral challenge for us today. Employment offered by these farms is purported to be a benefit for local communities. Never mind that the main reason why locals seek this work is primarily because the agro-businesses have forced them to abandon their old pastoralist way of life. Take away this option of survival and people are left with no other choice but to accept slave wages working on foreign farms. In a way the agribusiness creates the labour surplus for itself and manages to keep wages extremely low. The wage paid to workers, on average about $1.50 (25 Birr) for a day’s work, is nowhere near enough to survive without additional food aid. According to a recent documentary, some farm workers in southern Ethiopia complained they were getting paid seven birr per day, instead of the 25 birr initially promised. That is about 50 cents a day in dollar terms. By these estimates the lives of these workers were considerably better before the introduction of foreign agri-business. Instead of food security, food insecurity is created, perhaps even serious malnutrition.

To add insult to injury none of the produce from these farms will be available to local markets. However, there is talk of selling some of the produce to aid agencies. The World Food Program intends to buy some of this grain in order to assist hungry people. Ironically, this group of intended food aid recipients will include those working to produce it in the first place. Ethiopia’s government is calling this sustainable development. In an effort to rush through this controversial issue unimpeded, the government has sought to bypass all transparency. It is fully aware that an open discussion on the issue would expose the absurdities of its claim. Deals with foreign investors were approved backhandedly for this reason. The government expects a few scattered utterances here and there by its officials to be accepted as a national discussion on the matter. The government also knows it has no chance of convincing people because further evaluation of the agreements reveals gaping holes. The people of Ethiopia are being asked to believe absurdities such as ‘we export food in order to import food’ as a viable economic option to guarantee national food security. However, the most basic comprehension of economics tells us this is nearly impossible. Given Ethiopia’s dwindling currency exchange, what sense is there in purchasing grain from the international market, while exporting domestic grain? Can exported grain used as a cash-crop generate enough capital to be able to import food affordably and sustainably? Muddying the waters and diverting the issue under the guise of food security is certainly a cruel way of hoodwinking a hungry population. It is not clear what the benefit will be to Ethiopia. In most instances the harm done is much greater than the gain. Perhaps the EPRDF government views these deals as solidifiers of its international connections, especially with emerging markets. Gifting land can guarantee political support. As a beleaguered party, EPRDF knows its survival depends on bringing some particularly heavy hitters into the fold. What better way to bring them on board than to give them what they most require and what Ethiopia has to offer, namely land and water? It is important to point out that some of these excited shoppers include states with dreadful human rights records. One of these, among several, is Saudi Arabia. Surely if the going gets tough for Ethiopia’s ruling party, the Saudi’s can be counted upon to prop up their friend in need, no matter how badly democracy and human rights are trampled. It seems these two are a match made in heaven. Generally, although the loss is great for Ethiopia, the gain has been significant for the ruling party. Is the EPRDF trying to garner vested interest in the country for its own political existence and at the cost of the nation? Politics aside, there are other alternatives for agricultural development in Ethiopia. If the government was truly interested, Ethiopia’s agricultural output can be developed in a way that is much more sustainable and equitable. For instance, although small, there is a significant amount of capital within the country to boost farming capacity in hitherto unexplored areas of the country. Perhaps a genuinely interested government can enhance and facilitate the efforts of investors within Ethiopia’s borders to import technology and to train domestically run agro-business interests. The aim here is not to blow the bank, but to increase investment in a sustainable way. After all, isn’t this how major agri-businesses got their start in their country of birth? Another option to boost domestic farm output would have been to invite wealthy Ethiopians living abroad, especially those with interest and

To add insult to injury none <strong>of</strong> the produce from these farms will be<br />

available to local markets. However, there is talk <strong>of</strong> selling some <strong>of</strong> the<br />

produce to aid agencies. The World Food Program intends to buy some <strong>of</strong><br />

this grain in order to assist hungry people. Ironically, this group <strong>of</strong><br />

intended food aid recipients will include those working to produce it in the<br />

first place. Ethiopia’s government is calling this sustainable development.<br />

In an ef<strong>for</strong>t to rush through this controversial issue unimpeded, the<br />

government has sought to bypass all transparency. It is fully aware that an<br />

open discussion on the issue would expose the absurdities <strong>of</strong> its claim.<br />

Deals with <strong>for</strong>eign investors were approved backhandedly <strong>for</strong> this reason.<br />

The government expects a few scattered utterances here and there by its<br />

<strong>of</strong>ficials to be accepted as a national discussion on the matter. The<br />

government also knows it has no chance <strong>of</strong> convincing people because<br />

further evaluation <strong>of</strong> the agreements reveals gaping holes. The people <strong>of</strong><br />

Ethiopia are being asked to believe absurdities such as ‘we export food in<br />

order to import food’ as a viable economic option to guarantee national<br />

food security. However, the most basic comprehension <strong>of</strong> economics tells<br />

us this is nearly impossible. Given Ethiopia’s dwindling currency exchange,<br />

what sense is there in purchasing grain from the international market,<br />

while exporting domestic grain? Can exported grain used as a cash-crop<br />

generate enough capital to be able to import food af<strong>for</strong>dably and<br />

sustainably? Muddying the waters and diverting the issue under the guise <strong>of</strong><br />

food security is certainly a cruel way <strong>of</strong> hoodwinking a hungry population.<br />

It is not clear what the benefit will be to Ethiopia. In most instances the<br />

harm done is much greater than the gain.<br />

Perhaps the EPRDF government views these deals as solidifiers <strong>of</strong> its<br />

international connections, especially with emerging markets. Gifting land<br />

can guarantee political support. As a beleaguered party, EPRDF knows its<br />

survival depends on bringing some particularly heavy hitters into the fold.<br />

What better way to bring them on board than to give them what they most<br />

require and what Ethiopia has to <strong>of</strong>fer, namely land and water?<br />

It is important to point out that some <strong>of</strong> these excited shoppers include<br />

states with dreadful human rights records. One <strong>of</strong> these, among several, is<br />

Saudi Arabia. Surely if the going gets tough <strong>for</strong> Ethiopia’s ruling party, the<br />

Saudi’s can be counted upon to prop up their friend in need, no matter<br />

how badly democracy and human rights are trampled. It seems these two<br />

are a match made in heaven. Generally, although the loss is great <strong>for</strong><br />

Ethiopia, the gain has been significant <strong>for</strong> the ruling party. Is the EPRDF<br />

trying to garner vested interest in the country <strong>for</strong> its own political<br />

existence and at the cost <strong>of</strong> the nation?<br />

Politics aside, there are other alternatives <strong>for</strong> agricultural development in<br />

Ethiopia. If the government was truly interested, Ethiopia’s agricultural<br />

output can be developed in a way that is much more sustainable and<br />

equitable. For instance, although small, there is a significant amount <strong>of</strong><br />

capital within the country to boost farming capacity in hitherto unexplored<br />

areas <strong>of</strong> the country.<br />

Perhaps a genuinely interested government can enhance and facilitate the<br />

ef<strong>for</strong>ts <strong>of</strong> investors within Ethiopia’s borders to import technology and to<br />

train domestically run agro-business interests. The aim here is not to blow<br />

the bank, but to increase investment in a sustainable way. After all, isn’t<br />

this how major agri-businesses got their start in their country <strong>of</strong> birth?<br />

Another option to boost domestic farm output would have been to invite<br />

wealthy Ethiopians living abroad, especially those with interest and

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