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Fueling the Food Crisis
The EU's biofuels policy will push up global food prices. Some at the commission have expressed concern, but will their voices be heard?
Unlike some lefties, I've never regarded Fidel Castro as infallible, mainly because of his uneven record on human rights (exemplary in meeting basic economic needs but execrable in terms of respecting civil liberties).
Nonetheless, a warning he made in early 2007 on biofuels has turned out to be eerily prophetic. In a conversation with Hugo Chavez, Castro warned that using agricultural crops to power cars would push up the price of food and that the consequences would be "tragic".
More than a year later, the words of an ailing pariah are being echoed on a regular basis by pillars of the western establishment. Robert Zoellick, president of the World Bank and a former member of the Bush administration, said recently that everyone should "look closely at the effects of the dash for biofuels".
And yet there is a reluctance at the highest level of EU policymaking to admit that biofuels could be even partly responsible for the misery brought by the increased cost of living from Mexico to Mauritania. José Manuel Barroso, the European commission chief, has tried to pin the blame on every other factor he can think of; Andris Piebalgs, the man responsible for energy policy in Barroso's team, has claimed that biofuels have become a "scapegoat".
True, there have been rumblings of discontent within the EU executive. Louis Michel (pdf) and Stavros Dimas, the commissioners for development aid and the environment, both publicly voiced concerns about Europe's biofuels policy in January. Since then, however, they have remained mum as gormless officials state they are obliged to promote biofuels because of a target set by the union's presidents and prime ministers last year as part of a package of measures designed to tackle climate change. Under it, biofuels would meet 10% of the EU's transport requirements by 2020.
There is no legal requirement that I'm aware of for the commission to behave in an unquestioningly obsequious manner towards EU governments. On the contrary, commissioners theoretically relish a good spat with national capitals, especially over environmental matters.
What makes Barroso's stance all the more baffling, then, is that it disregards the opinions of his own scientific advisers. The commission's in-house research centre believes that the ecological costs of using biofuels will almost certainly outweigh any benefits they will bring. And the European environment agency has urged that the 10% objective should be suspended until a comprehensive study on the likely impact of biofuels is undertaken.
The only plausible explanation I can offer for why the commission is arrogantly spurning such counsel is that it is more receptive to the views of corporate vested interests than independent-minded boffins. The commission's stated policy on biofuels mirrors the papers prepared for it by two "expert groups" it has assembled in recent years: the biofuels research advisory council (pdf) and the European biofuels technology platform.
Neither of these bodies could be considered sensitive to concerns over the environment or food security. Instead, they are dominated by representatives of car-makers, giant oil, chemical and biotechnology firms, industrial farmers and Nestlé, whose head has described the idea that everyone should have the right to clean food and water as "extreme".
When the commission has friends like that, it becomes easier to understand why Barroso can be so callously indifferent towards the plight of the hungry.
David Cronin is the Brussels correspondent of Inter Press Service news agency.
© Guardian News and Media Limited 2008
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6 Comments so far
Show AllWhen you have to decide between fueling your car, or feeding your kids, and it's the fuel companies and agribusiness's fault...
Maybe it's time to pull down the whole house of cars and start over.
The crisis is the result of the deadly combination of 1) corporate welfare for biofuels, and 2) Central Banks (primarily the US Federal Reserve) lowering interest rates based on ignoring or understating the rate of inflation.
Two examples:
1) The US passed an "energy bill" late in 2007 that provides boat loads of corporate welfare to the ethanol industry and provides nothing for renewable energy, and
2) Federal Reserve Chairman Ben Bernanke started a series of interest rate cuts in August 2007, providing the same crooks that brought you the housing bubble with cheap money with which to speculate on energy and food commodities.
It is apparent that the Bush Regime is inflicting more damage per day on the US and the world than it was prior to 2007 when the Republicans controlled congress and W's approval ratings were above 50%.
40 million Americans presently live in "food insecure" households. IOW, 40 million Americans now go hungry regularly. Not counting the other hungry 7-10 million who do not live in what the statisticians consider a "household."
And what they can afford to eat is, basically, crap.
Virtually none of them have medical insurance.
And the numbers are growing.
Whatever happened to the "united" in The United States of America?
I agree with point 1.
The Corporate Welfare (i.e. ethanol subsidies) is the major disaster that is funding (not by market forces mind you but by gov't dole) the ethanol scam.
But I think the 2nd issue isn't the interest rate cuts. Not by a long shot. I think the 2nd issue is the fact that we don't have a free market in energy. We are enslaved to a single energy commodity for transportation...oil. Were we to move to hydrogen or electric drivetrains the oil monopoly would be destroyed.
Mr. Cronin,
I challenge you to interview David Blume.
He has already written the plan for addressing the woes you are writing about, and the media needs to hand him the microphone and put the wise farmer in charge.
If only we heeded the warnings of the 70's. But,alas the big oil lobby's stopped our search for meaningful alternatives to fossil fuels! Oh,the misery that is being caused by the lust for oil is incomprehensible!