Showing posts with label commodification. Show all posts
Showing posts with label commodification. Show all posts

Friday, December 30, 2011

Radical or not?

On another blog I sometimes comment on, I was recently very gently accused of being "radical" and "anti-private property" by someone who surveyed the posts on this blog. I think there's a little more nuance needed here, so let me explain myself.

First, let me say that I embrace the term "radical" in its etymological sense of "going to the root" of something. Yes, I have radical views. I am not satisfied with explanations or solutions that scratch the surface of issues. I also like to look at the historical and cultural contexts of ideas. Relating to this, then, I wouldn't say I'm "anti-private property." I'm not keen on sharing my underwear with anyone else. I am, however, against the commodification of land. I do not think access to land should be determined solely by ability to pay. And I think community ownership and commons should be more widespread.

Historically, the idea of land as private property that was bequeathed upon North America is only a few hundred years old. It was by no means a "natural" progression, even if one does believe in a teleological notion of history. It stems from the British enclosures, a centuries-long process with two thrusts: changing and consolidating open-field systems to enclosed fields owned by individual farmers, and eliminating rural peoples' use rights to common and waste land.

In this process, many farmers were robbed of land – their means of production/reproduction – and the feudal guarantees of security they once had. Enclosure changed land from a life-support system to a commodity to be owned and exploited for private profit. And it did not happen smoothly or easily; generations of people resisted, were killed, were impoverished.

Prior to the enclosures in Britain, there were complicated rights and obligations of various resource users. For example, villagers often had the right to collect fuel from uncultivated land, and pasture animals on common land – all subject to local and frequent negotiations. The enclosures appropriated the commons, and took those various rights and bundled them all together and gave them to the owner of the ground.

This “dominium plenum” (total lordship) way of thinking about property is “common sense” to us today. The owner has a right to use his/her property; it is wrong for all non-owners to interfere with the owner in his/her use of it, and non-owners may use the property of the owner if and only if the owner gives permission. The owner has also transference rights. There are rules in place to punish non-owner interference, regulate cases of damage and liability. (This is more complicated, since rights can variously be permanent, temporary, absolute, exclusive, transferable or nontransferable, etc. One small example: the state retains the right to expropriate land for a highway)

Although private property is dominant in Canada, there are other ways of organizing ownership in natural resources, such as land or water, today. The suggestion that land should not be treated as a commodity is admittedly fairly radical in North America, outside of the land trust movement. But it isn't just an idea relegated to those heathens in the Global South who have not received the enlightenment of capitalism in all its glory. There are two examples from northern Europe - Norway and Scotland - that could teach us a thing or two.

Norway has extensive areas of land owned in common, basically governed by the same legislation since the 12th century. There are three types: farm, community, and state commons. In the case of farm commons, a farm usually holds infields privately and the outer uncultivated lands, for timber, grazing, hunting, fishing etc., are held jointly with other farms. More than 50,000 farms had shares in jointly owned land in 1986. Community commons also exist – their profits (under law) must first be used to secure and improve the commons, then can be used for developing more industry, activities, and community projects such as hydroelectric power generation. Thus, lots of resources go back into the local community.

This type of ownership is possible because property rights are not unified, but more like a “bundle” of rights which may be parcelled out to different owners. This is called resource-specific property rights. For different types of resources there are different rules regulating who has access to the resource, how regulations of use come about, and how it can be transferred to any successors. The ground-owner and the user/owner of a specific resource are often different persons. On joint farmland, for example, one farm may own timber rights to coniferous trees, another a certain percentage of grazing rights. These rights are negotiable between parties and local solutions are more easily arrived at. Note that I said the farm owns: in Norway the right to use the farm commons is attached to a particular property rather than a person. This was intended to keep farmland in the hands of farmers.

Is this possible here in Canada? Or perhaps a form of community ownership, being undertaken in Scotland, is more appealing? I'll go into that example in the next post.
Further reading:

Sevatdal, Hans and Sidsel Grimstad. 2003. Norwegian Commons: History, Status and Challenges. Landscape, Law & Justice: Proceedings from a workshop on old and new commons, Centre for Advanced Study, Oslo, 11-13 March 2003. Available at: http://en.scientificcommons.org/23009437


Berge, Erling. 2002. Varieties of property rights to nature – some observations on landholding and ownership in Norway and England. In Schmithüsen, F.; Iselin, G.; Herbst, P., Eds. Forest Law and Environmental Legislation – Contributions of the IUFRO Research Group. Available at www.gbv.de/dms/goettingen/373216394.pdf 
  
Berge, Erling and Hans Sevatdal. 1993. Some notes on the terminology of Norwegian property rights law in relation to social science concepts about property rights regimes. Revised version of a paper presented to the IV. World Conference of IASCP, Manilla, 15-19 June 1993. 

  
Goodale, Mark and Per Sky. 2001. A comparative study of land tenure, property boundaries, and dispute resolution: Examples from Bolivia and Norway. Journal of Rural Studies, Volume 17, Issue 2, 183-200



Wednesday, June 22, 2011

More than Speculation on Speculation

Sent to the Minister of Finance:

Dear Mr. Flaherty,

I was absolutely appalled to read your comments to Reuters Insider TV on Wednesday June 15 in regards to France's proposal to tighten controls on commodity speculation. You are quoted as saying, "We try not to interfere in markets, including the food market...Markets will find their price levels. We know that's sometimes difficult in the oil situation and so on ... it's discomforting, but in the long run it's the best policy and we maintain our belief in open markets."

In essence, you are saying that the hunger and starvation caused by food shortages and high prices as markets "find their price levels" - in turn influenced by speculation - is "discomforting"! This apparent lack of sympathy with hungry people in Canada and abroad is both arrogant and cruel. If, indeed, you did not mean to say this, I urge you to clarify your remarks.

As for the speculation, which Agriculture Minister Ritz believes does not effect prices, you may wish to educate yourself on the effect that it does, indeed have. I recommend the following:

FAO (2010) ‘Final Report of the Committee on Commodity Problems: Extraordinary Joint Intersessional Meeting of the Intergovernmental Group (IGG) on Grains and the Intergovernmental Group on Rice’

O. de Schutter (UN Special Rapporteur on the Right to Food) (2010) ‘Food Commodities Speculation and Food Price Crises: Regulation to Reduce the Risks of Financial Volatility

C. Gilbert (2010) ‘How to Understand High Food Prices’, Journal of Agricultural Economics

World Bank (2010) ‘Placing the 2006/2008 Commodity Price Boom into Perspective’.

*I know there are people out there who disagree with my opinion. Please educate me in the comments!

Friday, June 17, 2011

Speculation about speculation

Can anyone help me? I recently read an article that quantified the increase in speculation on food commodities, and now I can't find that information. Does anyone have some good sources about speculation and food?

Thursday, April 14, 2011

Ugliness.


Folks, I have to do it. It's not going to be pretty, but I feel that it's time to get to the ugly heart of it all. I know that some of you will be shocked, others disgusted, and many will turn their eyes away, perhaps for good. But there is a cry arising in the land, a cry that must be answered:


    “Please – won't someone think of The Economy!”
The Economy, that giant demi-god infant threatening to throw a tantrum that we, the fearful permissive parents, must court, pacify, but never, ever restrict. That volatile baby whose motivations we can only guess at with baffled dimness, or the guidance of experts who study the demanding creature in a controlled environment instead of in our messy, complex everyday lives. Instead of something that serves us, that is embedded in our social relations, The Economy is our foremost concern and society a mere adjunct to the market. The Economy has a life of its own, and in that it controls all of ours; the economic sphere is depoliticised, naturalized, privatised, and thus "rendered democratically unaccountable".*

What does this have to do with food?

It is my firm belief that food, and the other essentials of life such as water and air should not be commodities. They should not be ruled by economic considerations, and indeed, have not been for long in humanity's history. In most other times and places, they have been regulated by considerations such as equality, redistribution, status, religion - not accumulation of wealth.

When food is sold and traded for profit, it is pretty obvious, if you look at how any other commodity functions in our society, that the results are not in the best interests of the population. It will be scarce at times; overabundant and devalued at others; speculated upon; hoarded; shoddily and mass-produced under the guise of efficiency; underregulated as far as safety, and overregulated as far as trying to fit it into one nice, neat, industrial box; increasingly homogenized; overpackaged and overmarketed; increasingly unsatisfying of our deeper hungers.

This results in injustice. Unequal distribution. Unequal access. Bad tasting food that is nutritionally marginal. Haiti having been self-sufficient in rice now dependent on imports from the US. Kenyans working in greenhouses to produce 7 tons of perfectly straight beans to send to France and 6 tons to rot in the fields**. One Earth Farms intending to own one million acres of land in Saskatchewan and employ seasonal wage-labourers in neo-serfdom.

The costs of externalities such as the eventual costs of declining soil fertility and tilth, water pollution from factory farm sewage and crop overfertilization, and climate change exacerbation from oil-dependent agriculture, are not borne by those who have defined the system, commodified the food, and profited from its turning into a commodity – the retailers, wholesalers, marketers, shippers, processors, speculators, and input manufacturers.

I'll discuss some possible answers to "what can be done about this?" in future posts. For the present, attempting to provision oneself outside the capitalist industrial agri-food system is a good start. And I think Canadians, in particular, at this moment, need to think about what is being sacrificed, and what is being gained, in the name of The Economy, in the short and long terms. (Here's a link to the food policies in the platforms of each of the federal parties.)

* borrowing an idea and phrase from Rupert, Mark. (2003). Globalising common sense – a Marxian-Gramscian (re-) vision of governance/resistance. Review of International Studies 29, 181-198.
**Roberts, Paul. (2008). The End of Food. Boston: Houghton Mifflin.