Free Trade vs. Small Farmers

http://www.fpif.org/fpiftxt/4179

April 27, 2007

The 20th century was a terrible blight on small farmers everywhere. In both wealthy capitalist economies and in socialist countries, farmers paid a heavy price for industrialization. In advanced capitalist countries like the United States, a deadly combination of economies of scale, capital-intensive technology, and the market led to large corporations cornering agricultural production and processing. Small and medium farms were relegated to a marginal role in production and a minuscule portion of the work force.

The Soviet Union, meanwhile, took to heart Karl Marx's snide remarks about the “idiocy of rural life” and, through state repression, transformed farmers into workers on collective farms. Expropriation of the peasants' surplus production was meant not only to feed the cities but also to serve as the source of the so-called “primitive accumulation” of capital for industrialization.

Today, perhaps the greatest threat to small farmers is free trade. And the farmers are fighting back. They have helped, for instance, to stalemate the Doha round of negotiations of the World Trade Organization (WTO). This tug of war between farmers and free trade is nowhere more visible than in Asia. ......

In India, tariff liberalization, even in advance of WTO commitments, has translated into a profound crisis in the countryside. Indian economist Utsa Patnaik has described the calamity as “a collapse in rural livelihoods and incomes” owing to the steep fall in the prices of farm products. Along with this has come a rapid decline in consumption of food grains, with the average Indian family of four consuming 76 kg less in 2003 compared to 1998 and 88 kg less than a decade earlier. The state of Andra Pradesh, which has become a byword for agrarian distress owing to trade liberalization, saw a catastrophic rise in farmers' suicides from 233 in 1998 to over 2,600 in 2002. One estimate is that some 100,000 farmers in India have taken their lives owing to collapsing prices stemming from rising imports ...

The suicide of the Korean farmer Lee Kyung Hae at the barricades in Cancun in September 2003 was a milestone in the development of farmers' resistance globally. Committed under a banner that read “WTO Kills Farmers,” Lee's suicide was designed to draw international attention to the number of suicides by farmers in countries subjected to liberalization. He succeeded only too well. The event shocked the WTO delegates, who observed a minute of silence in Lee's memory.......

Many economists, technocrats, policymakers, and urban intellectuals have long viewed small farmers as a doomed class. Once regarded as passive objects to be manipulated by elites, they are now resisting the capitalist, socialist, and developmentalist paradigms that would consign them to ruin. They have become what Karl Marx described as a politically conscious “class-for-itself.” And even as peasants refuse to “go gently into that good night,” to borrow a line from Dylan Thomas, developments in the 21st century are revealing traditional pro-development visions to be deeply flawed. The escalating protests of peasant groups such as Via Campesina, are not a return to the past. As environmental crises multiply and the social dysfunctions of urban-industrial life pile up, the farmers' movement has relevance not only to peasants but to everyone who is threatened by the catastrophic consequences of obsolete modernist paradigms for organizing production, community, and life.