The Great Tin Crash. Bolivia and the World Tin Market by John Crabtree, Gavan Duffy, Jenny Pearce. (Latin American Bureau, London, 1987)
1985 saw the collapse of the world tin market with the price of tin falling from over £8.000 a tonne to less than £4,000 in October alone. A market surplus of tin had been occurring for some years but changes in dollar and sterling exchange rates exacerbated the market collapse. The repercussions were felt in areas as wide apart as Cornwall and Bolivia, where tin miners lost their jobs.
But capitalism takes no account of the human misery it causes as this book makes clear. It quotes Eduardo Galeano as saying that:
Bolivians die with rotten lungs so that the world may consume cheap tin. Tinplate is made from tin and the tin is worth nothing: a half dozen people fix its global price.
Seventy per cent of workers in Bolivia’s state mining company, Comibol, lost their jobs and this in a country where poverty is second only to that in Haiti in the Western hemisphere. Bolivia is a country in debt. It has been estimated that as many as 50 per cent of the population may be unemployed. It is also a country unable to compete effectively — a victim of new technology, of changes in consumption patterns and of economic recession. But the authors of this book also point out that Bolivia is a victim of capitalism, a "system [which] is fundamentally wasteful of the resource which lies at its very foundation: human beings".
But the human tragedies created by poverty are not the concern of the London Metal Exchange which dominates the world metal market. It ensures that consumers are not dependent on a single producer and guarantees a single price for metal of a given type and quality, regardless of source. But the metals market has been subject to the economic recession that has affected all aspects of the world economy. Demand for tin has fallen and so only low-cost tin producers could survive. The International Tin Association attempted to maintain the price of tin by the operation of a stockpile: during periods of shortage tin was released onto the market and during periods when demand was low tin was purchased for the stockpile.
Bolivia is a high cost tin producer and its position has been worsened by competition from Brazil — a major low cost producer — and a fall in the amount of tin sold on the world market due to substitution, technological change and the use of alternative materials for packaging. In addition. Bolivia was more vulnerable because of its dependence on tin production — in 1980 tin made up about 40 per cent of Bolivia's exports — and its generally weak economy. In 1985 the inflation rate was 8,163.5 per cent. The exchange rate fell from 25 peso to the dollar in 1980 to over one million peso in September 1985. In an attempt to stabilise the economy the government froze wages (but not those for members of parliament or the military). It is little wonder that many Bolivians turned to coca cultivation where money could be made preparing cocaine paste for export to USA. The tin miners' response to the wage freeze and the removal of subsidies on food was to organise mass underground hunger strikes. The response of the management at Comibol was to be grateful to be freed from their contractual responsibility to pay wages.
Bolivia's future looks bleak. It will perhaps be able to weather the present crisis because of the informal economy — one estimate suggests that the production of coca has risen to 160.000 tonnes in 1985, enough to produce 437 tonnes of cocaine. But, as with other exports, it is the American sellers who make the profits. Nevertheless it does provide employment, with as many as one in six families engaged in coca production. Meanwhile the Bolivian miners' union. FSTMB. still argues that losses at Comibol have been exaggerated by the government and they reject "the closure of any mine without a prior technical and economic survey", a rearguard campaign not unlike that waged by the NUM in Britain over pit closures. But increasingly the role of the FSTMB has been one of negotiating compensation for redundant miners.
The precarious situation of tin miners in Bolivia is typical of workers in any industrial nation. The FSTMB has long been a thorn in the flesh of the Bolivian government and the present administration of Paz Estenssoro has been happy to see a weakening of the miners' influence. At the same time the competition for employment has turned miner against miner within Bolivia and. internationally, the insecure future of tin mining divides workers between countries.
This book claims that the failure of the rich nations to maintain stable exchange rates and to support the International Tin Council means that they must "bear the considerable responsibility for this hardship". The use of tin is undergoing a profound change and the management of that change is harsh because capitalism permits change to occur regardless of human cost.
Under capitalism, however, not only are the benefits not shared but the very process of change itself generates losses and hardships to its victims. National agreements in the third world do not have the resources to compensate their citizens for changes in the international division of labour. The tin crash has shown the importance of sharing the costs of a crisis of this dimension equitably, with wealthy consumer nations assuming more of the burden.
Benevolent capitalism, as suggested here, is a pious hope. The authors call for "a more humane and democratic world order" and "a genuine transfer of economic power and wealth". Neither are possible without the abolition of the capitalist system which, they recognise, takes no account of the needs of human beings.
Philip Bentley
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