Capitalist states have started to acquire land outside their borders again.
At the start of capitalism land was grabbed on a large scale by Europeans in the Americas, Africa and Asia – wherever there were useful, desirable, valuable resources. Never mind the indigenous populations, they could be bought off cheaply or cowed into submission militarily. Accumulation was the name of the game, on behalf of powerful states and royal families.
Colonies sprang up worldwide explaining, among other things, the curious spread of different languages from relatively tiny nations to huge continents across oceans – English, Spanish, Portuguese and French – and ultimately to the use of English/American as the global business language.
It is now widely recognised that colonialism was responsible for subjugating local populations, imposing governmental and legal systems and generally exploiting and expropriating whatever natural abundance or rare animal, vegetable or mineral matter happened to be discovered. As time went on the exploitation was taken over by corporations and continues not only unabated but increasingly rapacious, bringing commodities to customers worldwide, degrading environments worldwide and impoverishing populations worldwide whilst enriching a tiny minority.
Now local populations are starting to fight back, to protest against their treatment as second-class or non-citizens, demanding land and water rights. Populations from China to South America and many places in between are in struggles against domestic or transnational mining corporations, against governments over population dispersal for big dams and Special Economic Zones, against food corporations and agribusiness trying to enforce small farmers’ removal from their land in order to grow mono-crops for food and bio-fuels specifically for export.
Against this back-drop of “peasant/worker awakening” is the very latest emergence of a new form of colonialism – of land-grab – by “food insecure” governments fearing for the future of their own populations’ food needs and also by food corporations and private investors looking for new ways to make profits in this current economic crisis. Since March 2008 “high-level officials” from countries such as Saudi Arabia, Japan, China, India, South Korea, Libya and Egypt have been visiting countries with fertile farmland including Uganda, Brazil, Cambodia, Sudan and Pakistan to strike deals which guarantee them sole use of farmland to grow crops for export back to their own lands. The reciprocity is foreign investment or oil or technology deals.
Another angle to this new colonialism – financial returns – is seeing all manner of players getting involved, seeking a new avenue for profit; investment houses, hedge funds, grain traders and others from the finance and food industries, all looking to take control of fertile soil with access to water supply in foreign lands. Whilst governments are largely the ones making the deals for food security it has been made plain that it is the private sector that will control the enterprises. Likewise, the hunt for financial returns is the business of private investors. In both cases foreign private corporations will be taking control of farmland to produce food not for the local communities but for export back to the investor countries. Another form of accumulation by driving more local farmers from their land and stealing their livelihoods.
Here are three examples of deals struck so far (a full report is available from www.grain.org plus an annex in table form of over 100 cases of land-grab for offshore food production; online there is also a notebook of full-text news clippings being added to continuously to which people can contribute by emailing firstname.lastname@example.org).
First, China has sealed 30 agricultural cooperation deals which gives them access to “friendly country” farmland in exchange for Chinese technology, training and infrastructure development funds, in Kazakhstan, Queensland, Mozambique and the Philippines (to mention a few) and to which China flies in its own farmers, scientists and extension workers to grow rice, soya beans and maize as well as sugar cane, cassava and sorghum as bio-fuel crops.
Second, the Gulf States, short of water and productive soil but rich in oil and money, have been hard hit by the simultaneous rise in world food prices and fall in the US dollar to which (most) of their currencies are pegged. Their collective strategy has been to make deals particularly with other Islamic countries to which they will supply oil and capital in exchange for guarantees to farmland from which they can export the crops back home. Deals have been and continue to be made with Sudan, Pakistan and others in SE Asia, Turkey, Kazakhstan, Uganda, Ukraine, Brazil and others. From the millions of hectares of farmland already leased under contract harvests are expected to begin this year, particularly of rice and wheat.
Third, India’s corporate agribusinesses and the government-owned State Trading Corporation are looking to produce oilseed crops, pulses and cotton abroad. One deal with Burma to enable India to have total control of the agricultural process entails providing Burma with funds to upgrade its port infrastructure. They are also doing deals with Indonesia for palm oil plantations, talking to Uruguay, Paraguay and Brazil about land for growing pulses and soya beans for export back home.
How will the indigenous populations react to this latest threat? This aggressive new policy of colonisation of land specifically for export crops and speculation is bound to increase pressure on local populations, more of whom will be struggling to feed their families working for wages, if so lucky, at a pittance level. Populations who don’t need to be bought off cheaply this time because their own governments will willingly sell them out and who can easily be subdued militarily should the need arise, this time by the self-same government’s police and armed forces.