Umea University Department of Social and Economic Geography Course: Bachelor’s Thesis Spring 2010 Supervisor: Marcus Ednarsson The Basketball Concept - A hierarchic approach to the food crisis debate - Jonatan Nyvall Abstract The food crisis debate is centered on statistics and locked in a stalemate with no consensus. With phenomena such as global warming and environmental deterioration entering the debate, a new approach is necessary to deal with these issues. This paper offers one such approach by using hierachy theory with the aim of complementing the statistics by examining the arguments of there being a food crisis (Environmentalism) or not (Economic Liberalism) coming in the near future. It does so by ordering the arguments of these two point of views within an agricultural framework, visualized as a basketball, and examining the general trend of the factors capitalism, global warming and population growth and how they affect global food production. The paper concludes that the essential arguments revolves around decreasing marginal returns on effort versus solutions to them, and that environmentalism arguments adhere to this while economic liberalism often do not. As such it proposes a change in agricultural systems towards one that works within ecological limits, less a food crisis emerge. Keywords: Food crisis, System theory, Economic Liberalism, Environmentalism. 2 Index Abstract .................................................................................................... 2 1..............................................................................................................................I ntroduction ..................................................................................... 4 2. ............................................................................................................................T hesis Statement............................................................................... 6 3. ............................................................................................................................G eneral outline of the study .............................................................. 6 4. ............................................................................................................................M ethod ................................................................................................7 5. ............................................................................................................................T he State of the World .....................................................................10 6. ............................................................................................................................E conomic Liberalism ....................................................................... 12 6.1 Economic Growth....................................................................................... 14 6.2 The Importance of Technology .................................................................. 16 6.3 Resource-Planning..................................................................................... 18 7. Environmentalism...........................................................................19 7.1 The Poverty Trap ........................................................................................ 21 7.2 Outsourcing Environmental Stress ............................................................23 8. The stalemate in the empirical evidence ......................................... 25 8.1 Data Selection ............................................................................................26 8.2 The logic of predictions.............................................................................. 27 8.3 Levels of Analysis...................................................................................... 28 8.4 Hierarchy Theory...................................................................................... 30 9. The Basketball framework ............................................................. 31 9.1Limitations and Factors of the framework ..................................................32 10. Capitalism .................................................................................... 34 10.1 The Social maintenance of the olicy ..........................................................36 10.2 The Arguments regarding the Policy ........................................................ 37 11. Global Warming ........................................................................... 40 12. Population Growth ....................................................................... 42 3 13. Ecological Limitations .................................................................. 44 13.1 A Change in Systems .................................................................................... 46 14. Conclusions .................................................................................. 49 References ............................................................................................. 50 1. Introduction The food crisis debate is an age-old topic of discussion, which in its current state could be said to date back as far as 1798 when Malthus wrote his “An essay on the principle of population” highlighting the relationship between the food supply and population growth. In modern times the debate of a food crisis (Environmentalism) or not (Economic Liberalism) coming in the near future is influenced by not just population growth but by global warming, our environmental behaviour and the susceptibility of the fossil-fuel intensive society (Ehrlich 2008 and 1971, Moore, 2008, Pfeiffer, 2006, Korten, 2001, Lomborg, 2001, Strange, 1999, Simon, 1995 and 1986). The debate is important for both camps of the issue; for Environmentalists to prove that the current course of action will lead to dire consequences for human wellbeing, and thus needs to change (Ehrlich, 2008). For Economic Liberalists; that the current course of action is improving human wellbeing over time (Lomborg, 2001). The issue of food is also pressing, as it shares linkages to the inequity of the world’s food distribution, poverty, civic unrest, health, environmental deterioration and national security (Pollan, 2008). The debate as such can help move each of these issues into the light as well as bringing sensible responses to them. Since the days of Malthus much reasoning behind the two fields of thought have centered on reductionistic science in the form of statistics as the main driver for their arguments (Bawden, 1990). These statistics 4 have been much improved upon, yet there have been no consensus as the debate has intensified with the introduction of the degradation of the biophysical, socio-economic and cultural environments (Bawden, 1990). The debate has entered a stalemate. However, it is critical to ask ourselves if the ability to reproduce the same results is not because it is necessarily the truth, but because we have limited the system we look at to such a degree that it cannot behave in any other way. These relatively new phenomena of the connections between the enviroment and the food production may need a different approach, one that is systems oriented (Bawden, 1990) and holistic in nature in order to shed new light into the debate from another angle. Hierarchic theory offers one such approach, by complementing the statistics by looking at the core of the arguments, arguments that have arguably remained since Malthus though feed with different empirical evidence throughout the years. This paper then uses hierachic theory to revisit these arguments, with the purpose of complementing the statisticscentered food crisis debate. 5 2. Thesis Statement I argue that both sides of the food crisis debate, environmentalism and economic liberalism, are correct but working under different levels of analysis. By using a hierarchic theory approach to the system in introducing a framework, it is argued that environmentalism work on a higher structural level and as such there is a food crisis being on the way under current human behavior. 3. General outline of the study This study aims to offer a different viewpoint on the food crisis debate than done by statistics by examining the two points of views of there being a food crisis (Environmentalism) or not (Economic Liberalism) coming in the near future based on hierarchy theory. The study starts off with a general background to the issue and then proceeds by organizing the arguments of these views into a framework based on the agricultural system in the form of a basketball. The study then examines how this framework and the arguments work with factors such as global warming, population growth and the current economic policy, before finishing with a discussion on the impacts of these factors. 6 4. Method Looking at the two points of view, there is a substantial amount of literature to choose from. I have been mainly interested in the main arguments concerning a food crisis or not, yet it is a complex system to analyze as it is intertwined with many other processes. Difficulties arrive then as most arguments are linked with other issues besides agriculture, and by selecting parts of them we may end up with incomplete arguments. I have chosen, due to time constraints, to handle this by selecting literature from some of the leading scientists in their fields, with complementing information as it is needed to illustrate different ideas, factors and data. Literature where chosen based on two criteria; citations and reprints. If the literature is well cited in scientific circles, or the book in question has been deemed as important enough to be reprinted on several occasions, I judged them to be important in their fields. To this, I read works from both points of views; Julian Simon and Bjorn Lomborg on the economic liberalism side, and Paul Ehrlich and David Korten on the environmentalism side. Their publications and many others used throughout this paper belong in the fields of Economics, Agricultural Sciences, Environment/Ecology and Social Sciences, fields which for all years vary from 4-10 citations on average (THE, 2009). The main works used in this paper from Lomborg, Simon and Korten vary in citations from 1400 to 1900, with Ehrlich’s works having 130 to 600 citations mostly due to the recent publication date. From this, I 7 judged that these scientists represent the main ideas well enough from both points of view, based on their literary contributions. The importance of selecting literature from leading scientists is to add weight to their arguments, since arguments might arguably remain the same if other scientists are chosen. Arguments where selected during the literature studies if they discussed the most prominent factors for the agricultural system; governance (capitalism), climate (global warming) and demand (population growth), and whether or not a food crisis seemed imminent or not. This may be a hard line to draw since there are many subdivisions of thought between the sides of a food crisis or not, yet it is a core question with no middleground. Since this paper takes up a broad holistic approach, this division seemed the best for sheer simplicity rather than discussing several differing opinions within these two fields. To illustrate the agricultural system, and how the selected arguments work within that system, a framework based on hierarchy theory in the form of a spinning basketball, complete with built in positive and negative feedbacks, is used. It is rather simplistic, yet it serves a purpose to simplify the process for the reader and its only major fault would be that is does not include any kind of limits. To correct that, I include a chapter on limits to highlight how the system might work in the long run, since the model merely shows a short-run perspective. This perspective was chosen since I argue that the food crisis debate is often centered on reductionistic evidence in the form of empirical data, data that is often very selective in nature. This has turned the debate into a stalemate, where new viewpoints are needed to complement the statistics. Hierarchy theory offers one such viewpoint, which is used to instead review the arguments circling around in the debate and the factors that affect the agricultural system. As such, it differs from other predictions by 8 discussing trends rather than impact, which is always dificult to access. The arguments where divided up into three fields of observation; Capitalism, Global Warming and Population Growth, based on where most of the weight of the argument centered on. While they are not separate processes, I choose to highlight them individually since I deem it important to see how each factor work within the basketball framework. It also lends my main argument some strength through showing how the processes enforces one another by looking at them separately, rather than just pointing out that they do. A deductive method of reasoning was used in the review of the arguments, basing the conclusions on their impact within the basketball framework used throughout this paper. 9 5. The state of the world Food in addition to water are the most basic supplies necessary for life. For most of the planet’s 7 billion people, food comes mainly from agriculture. The management and production efficiency of that system is critical to our survival. The production output however varies across the world. In particular, the regions with a Mediterranean climate have a high food production while those lying closer to the equator have a lower production due to the photosynthesis effect (Buringh, 1978). These spatial differences are further influenced by the economic world system, by trade policies such as free trade, globalization and economic growth (Korten, 2001). The actual production of food is enough to feed the whole world adequately. However, the distribution of that food is not equal. There are vast differences between regions, countries and even within countries as to the distribution of food. In some parts of the world, people suffer from starvation or malnourishment. For 2009, that number is 1,02 billion people worldwide, which consist most notoriously of Asia and the pacific (642 million), Sub-Saharan Africa (265 million) and Latin America and the Caribbean (42 million) as the most affected (FAO, 2008). At the same time, there are approximately 1 billion people in the world who are overweight in 2009, of which 300 million are obese. The distribution of overweight 10 adults is mainly focused in North America and Europe, but in developing countries like China the prevalence of obesity is rising fast, particularly in cities (WRI, 2010). In other words, there is a clear inequality in the consumption of food worldwide. The world is also experiencing global warming, a trend that affects agriculture negatively by shifting the good climate away from the good soil (Lobell et al, 2007). It also gives rise to environmental deterioration in the form of decreasing biodiversity, a case that is augmented by the global economic system as well as rising income inequality (Korten, 2001:97-99, Strange, 1999). This is important, since income inequality is a significant determinant for health. For example, countries such as Brazil and Turkey have a several times higher child mortality than Costa Rica or Malaysia, even though all of these countries have the same income per capita. The difference is how the wealth in the country is distributed, where Brazil and Turkey have a higher income inequality (Bergström, 2008:56-57). People suffering from starvation and malnourishment show signs of decreasing by relative numbers, yet in absolute terms their numbers increase (FAO, 2008:6). That is a good trend, yet population growth is offsetting some of its gains. The population is steadily growing and is expected to peak around 2050 reaching between 9-12 billion people depending on estimates, most of which will inhabit the poorer parts of the world where food is scarce. A majority of the food production is dependent on oil for fertilizers, transports and cultivation. The oil production in the world may be nearing a peak in which the continued production will either decline or become much more expensive. More expensive oil will be highly visible in food prices and might prove problematic for the poor. The consumption 11 of oil is also contributing to global warming. This state of the world is interpreted in different ways in both public opinion and the scientific literature. While there are many subdivisions of thought on the current state of the world’s agricultural system, it can broadly be categorized into two different groups; those who think the world is on a course towards a food crisis (Godfray et al, 2010, Brown, 2008, Ehrlich, 2008, Pfeiffer, 2006, Korten, 2001) and those who think that the world is only showing signs of improvement (Paarlberg 2008, Parry, 2002, Lomborg, 2001, Radetzki 2001, Simon, 1995). Let us examine both of these points of view in turn. 6. Economic Liberalism Economic liberalism, conservatism or even corporate liberalism, are all terms for a point of view advocating a conservative point of view instead of change in the current capitalistic world policy. In doing so, it also takes a different viewpoint on the environment not as a value in itself, but as a value based on the services the environment can provide for humankind (Simon, 1986:189). It also equates the common good of the community with the good of the consumers, that is, the cheaper the goods and the more available they are to us, the better off the community is. It is a point of view most supported by economists. For the global food supply, this perspective points to empirical data showing that the world is now in a better state than ever (Simon, 1995:2). First, the world is producing more food now than ever before in history, and we are in a state of overproduction (Hudson, 1995:406-407), which is evident in that the world is also getting 12 increasingly more nourished (Poleman, 1995:396-397, Lomborg, 2001:24). Second, access to drinking water and sanitation is improving, particularly in poor countries (Lomborg, 2001:22). Such access helps mitigate and limit the spread of illness and disease, which in turn improves health. Indeed, the death rates of infectious diseases between the years 1970-2000 have gone steadily down (Murray and Lopez, cited in Lomborg, 2001:26). Third, the amount of people suffering from starvation is diminishing in relative terms, which is the only morally correct judgment that matters and shows the world is on the road of improvement. Bjorn Lomborg expresses this in more detail: “For the sake of argument, let us say that there are only two types of people – those who die of starvation and those who survive. We can thus describe society A and society B: A. 500.000 die of starvation out of a population of 1.000.000. B. 750.000 die of starvation out of a population of 2.000.000. In society B, the absolute figure has increased but the relative figure has fallen. To me the obvious choice in this situation is that society B is better than A. My risk of dying in society B is 37,5%, against 50% in society A…one can naturally criticize this choice on moral grounds, and argue that the society with the lowest absolute figure is the best (A is better than B). But a view such as this meets a significant challenge in the form of yet another hypothetical society: C. 499.999 die of starvation out of a population of 500.000. In this situation the absolute point of view has the substantial weakness that it would also prefer society C to society A. Very few people are likely to see this as the right choice.” (2001:64). 13 The poor and malnourished people of the world also cause environmental problems that push them down a negative spiral. For example, in order to survive, the poor speed up processes such as deforestation, desertification and drain away local resources. They also produce unsanitary water by the matter of waste disposal, but they have little choice in the matter. It is not their fault (Ravenhill, 2008:465). Moreover, poor people have the highest fertility rates, which further causes misery as more people compete for the same resources, which enforces poverty. Sub-Saharan Africa being the poorest area of the planet is a case in point where this is evident. Also, this is reinforced by poor and corrupted political institutions and governments (Bergström, 2008:36), as well as trade imbalances, debt and not enough assistance from other countries (Ravenhill, 2008:465). Dealing with poverty then, becomes critical, as it regards the environment. But how can this be done? 6.1 Economic Growth According to the economic liberalism point of view, the care for the environment, enhancing environmental quality and ending poverty can only be achieved by economic growth (De Janvry et al, 2009). Indeed, this factor is the major contributor to declining fertility rates, child mortality rates, disease rates and much of the improvement seen in the world. This is because economic growth increases the average amount of dollars per person (Simon, 1986: 193), and as such, will help the poor to buy the goods, medical supplies and food that they need for a healthy life. To bring economic growth to poor countries however, there needs to be an efficient market operating under the principle of comparative advantage. This principle was first proposed by David Ricardo in 14 1817 in “Principles of political economy and taxation”, and in short means that countries have distinct advantages in certain kinds of productions compared to other countries. Thus, countries should specialize in producing the goods that they achieve the maximum output in, and then trade the surplus for other goods. In the end, such trade ends up giving each country involved more of these traded goods than they would have if they each focused on producing only for domestic use. To this end, economic libertarians advocates free global trade, as this will create efficient production of goods, and thus secure a surplus that could be spent on dealing with issues such as the environment, poverty and health issues. Indeed, a core cause of our distress is due to governmental restraints on trade. It is generally recognized (Radetzki, 2001, Ravenhill, 2008, Ehrlich et al, 1971, Strange, 1999) that economic growth can cause environmental deterioration, since using more resources means depleting the stock of resources, and new industries will also cause pollution in forms of toxic waste, smog or waste material. However, that is not a continuous truth. In fact, that applies in the beginning of a country’s development, but as it progresses it will reach a peak and then as income per capita increases pollution levels will fall down as people naturally become more aware of their environment and take up means to protect it. It is when income per capita increase that this awareness and political will is made manifest, as poor people are less inclined to care about the environment in their struggle for survival (Radetzki, 2001:66-70). Another contributing factor to the eventual decline in pollution is the tendency for societies to abandon heavy industry in favor for a service industry once income per capita is high enough. This process is called the “Kuznets curve” (Figure 1.). 15 Figure 1. Kuznets curve showing a county’s pollution levels as income per capita increase. 6.2 The importance of technology There is a need to keep economic growth a central issue, as when countries are in financial trouble, the governments and companies of those affected rarely invest in environmentally friendly technologies, just as the poor only care for survival in harsh times. If companies work isolated behind barriers of a country’s legislative system, they will have less competition, and as such, fewer incentives to be environmentally friendly. With free trade however, countries and companies are locked in competition to constantly upgrade to gain access to certain markets. They also bring their new technologies to less developed parts of the world, improving the environmental situation (Ravenhill, 2008:461-462). These technologies and any technological advances can help low-income countries through the higher end of the Kuznets curve, thus limiting the environmental impact on their way towards reducing poverty. The WTO (World trade organization) gives us some insight into this logic: 16 “Every WTO member Government supports open trade because it leads to higher living standards for working families which in turn leads to a cleaner environment” (1999). It is however not enough simply to count on economic growth, there also needs to be equality in agricultural production to reduce poverty (De Janvry, 2009). Nick Eberstadt explains: “Inequality is inextricably linked with production: the only way the nations of the world can become more equal is through making their productivities more equal” (1976:36). For the food supply, this extends to bringing biotechnology to the poor parts of the world to increase their production. Fertilizers, modified seeds and pesticides are all part of modern agriculture, a luxury that the poor parts of the world, in particular Sub-Saharan Africa, desperately needs (Paarlberg, 2008:105). These tools go under the name of the “green revolution”, and although we can question it in regards to its byproducts like exhausted soils, one clear fact remains: It has helped the developing and developed countries to produce more food than they need (Paarlberg, 2008:8). As such, economic libertarians argue that it is only fair that poor countries should get the same means of production. 17 6.3 Resource-planning Resources are ever getting cheaper, a sign that they are in abundance (Simon, 1986:190-197). Even so, oil is a special case because of the heavy dependence on oil and its increasing cost of extraction. However, there is no need to be alarmed. Throughout history, humanity has had a habit of substituting materials once they become too costly on the market. Once resources become harder to acquire, the market, new technology and opportunists will find new cheap alternatives. This rate of substitution primarily affects raw materials, such as minerals, wood and fossil-fuels. Examples of previous substitutions include copper wires in telephones to fiber or coal to oil in 19th century England. Judging from previous experience, there is no reason to believe our oil dependence will not be substituted as well once there are market incentives to do so, thus preventing global warming effects. This production of new knowledge will be greatly aided by population growth: “More people certainly imply increased demand in the short run, and therefore higher costs than otherwise in the short run. But the long run is not just a sequence of short runs in this case, and hence it is fallacious to draw any conclusions from this short-run analysis. In the longer run, technology’s advance comes from people, and technological advance is the sole factor responsible for the long-run declines in material cost” (Simon, 1986:209). The important factor here is that population growth will yield more human minds, which will inevitably come up with more inventions and better technology. This new knowledge will affect welfare positively and thus offset resource demands by population growth (Simon, 1986:203). 18 7. Environmentalism Environmentalism refers to a point of view aimed towards developing a human society within biological limits. With the economic liberalism point of view being dominant in current policies, environmentalists most often take up the role of criticizers of the current world system of organization. In particular they argue against environmental deterioration, social deterioration and capitalism. Biologists most commonly support this point of view (Bergström, 2008:42). At the core, the basic principle is to manage the resources from the ecosystem in a sustainable ecological way. This means not disrupting the way the ecosystem works, but merely to let it run its course and then collect the surplus or the subsidy of that system (Allen et al, 1999). By disrupting the system, as in over extracting key resources, it gets damaged and will not function with maximum effect. This is not to say that humans should not alter the system in any way, it merely states that it should do so within the functions of the system to reach stability, not work against it. When damaging the system initially output will increase as more resources are harvested, but the long-term stability of the system will deteriorate towards collapse. A sign of that deterioration is decreasing marginal returns, which incidentally, has caused previous great civilizations to collapse as well (Tainter, 1990). Decreasing marginal returns is a state that can be seen in the matter of oil, which already have reached a peak says environmentalists (Pfeiffer, 2006:31-33). Oil represents some key issues. The earth’s 19 biological system is essentially fuelled by sunlight, which is limited in the quantity that reaches the planet. That sunlight sustains plants through photosynthesis, which in turn sustains different forms of life, including humans. Earlier societies built upon this supply of sunlight, with agriculture and burning biomass such as wood to get energy. This changed with the industrial revolution and the eventual use of coal, gas and oil, otherwise known as fossil fuels. These substances are essentially stored sunlight energy dating back millions of years. As such, when tapping into this new form of energy, societies get the benefit of both regular sunlight and stored sunlight, which creates a surplus of energy and thus enabled the industrial revolution to get going. This is a process still under progress, and as of 2006, we are more addicted to oil than ever. The situation is so dire that if food transports run by vehicles using oil where to stop tomorrow, a majority of people would be without food (Pfeiffer, 2006:24-27). Yet fossil fuels, environmentalists argue, are so addictive to the modern society that transports are not the most troubling effect of diminishing supplies. Rather, agriculture and food production may prove to be just that (Ehrlich et al, 2008:227). The reason is that agribusiness corporations have forcefully spread the “green revolution”, with the effect that most of the food produced now come directly from oil in the form of fertilizers, pesticides and modified seeds (Pfeiffer, 2006:7-8). In doing so, the world’s food production has stepped out of the ecosystem function to directly inject it with oil to increase production, with long-term devastating consequences such as erosion, global warming and decreasing biodiversity. As remains of these products are carried away by water flows into the ocean, they cause algae growth and the Co2 released acidifies the ocean which kills plankton and severely disrupts aquatic food chains (Ehrlich et al, 2008:239). The agribusiness corporations have also 20 paved the way for monocultures of crops, that is genetically identical crops that produces the maximum amount of food per plant known to humanity. This increases production no doubt, but it also increases food insecurity by making the food susceptible to diseases. Just three food staples, wheat, rice and maize represents as much as 60 % of the calories and 56 % of the protein the world consumes (WRI, 2010), and a disease or virus affecting either one of these crops will have a higher chance of worldwide devastating effects due to being monocultures with less natural genetical resistance than otherwise. The reason is simple; with diversity in genetics a virus will kill some plants while others will have a natural resistance and thus survive. With genetic similarity, a virus killing one such plant, will also kill all of them if spread far enough by winds or insects. The difference matters for the long-term sustainability of agriculture. 7.1 The poverty trap Income inequality and the inequality in the distribution of food is a sign that the current world system is not working properly (Strange, 1999). If food production is more than enough, why is it not spread relatively equally? It has to do with production distribution, yet even then, for thousands of years humans have lived in various parts of the world, all of them being able to provide for themselves. The reason that they cannot do so now, lies with the inherent problems of the economic system and with globalization (Korten, 2001:257259). Agricultural subsidies in rich countries to farmers hide the real costs of production by artificially making it lower than it would otherwise be. These cheap food products are then mass-produced, and with globalization they enter the world market outcompeting more expensive products in other countries. The result is that people will buy the cheaper products, with devastating effects to local farmers who go out of business (Korten, 2001:197-204). This is 21 especially so when the surplus of food created in rich countries are exported under the production value, a situation called “dumping”. It means that to avoid storing food that is not needed agribusiness corporations sell the surplus away for a much cheaper cost than it cost making the products in the first place (Ravenhill, 2008:461464). It is similar to buying a last minute airplane ticket. Instead of departing with empty seats, the airline often tries to fill the plane up even if each individual ticket in reality costs more. It cuts losses for the company itself, with the side effect that is makes local farmers obsolete. Dumping is prohibited today through international laws (WTO, 2010), yet the damage is already done, having eliminated some of the domestic production resulting in the poor countries getting dependent on food imports. A larger factor however concerns debt. Every year the least developed countries, African countries especially, pay four times more in debt repayment than they do on healthcare, and more money than they receive in international aid (Korten, 2001:298). These repayments are increasingly becoming a higher share of the governments’ budget, for example, between 1980-1987 debt payments increased from 7,7% to 12,5% for African countries in general (Stewart, 1991:5). Basically this means that the government spends less and less money on its own citizens, thus enforcing poverty levels. Environmentalists points out that this process is largely at fault due to the Structural Adjustment Programs (SAP’s) of the 1980’s, where the World Bank and the International Monetary Fund (IMF) imposed these programs in an effort to move the countries resources towards debt repayment. This was basically done in a free trade fashion, reducing trade barriers and granting subsidies to any foreign investors (Korten, 2001:163). This resulted in shifting away domestic food production in favor of cash crops, such as coffee, tea and sugar, in an effort to get a higher price for its 22 products. Unfortunately, this also meant that these countries lost their own food production, and became dependent upon richer countries for their food supply. As basic resources have been getting cheaper throughout the decades, value-added products such as medicine and technological products have been getting increasingly more expensive (Johnson et al, 2009). For countries then that produce little more than coffee, they have to sell a higher quantity to afford value-added goods (Johnson et al, 2009.). To do that countries basically expand production by taking new lands into cultivation, thus cutting down forests and draining marshes with the result of decreasing biodiversity. 7.2 Outsourcing environmental stress According to the Kuznets curve (Fig. 1.), richer countries gradually move from an industrial society towards a service industry, which diminishes pollution and improves the environment. This is only half the truth environmentalists say, since these industries are often then relocated to the poorer countries (Ravenhill, 2008:464). The effect is that these poor countries draw from their own natural resources to produce goods that they themselves do not consume, based on an international pressure to repay debt. Environmental decay is then naturally outsourced from richer countries to poorer ones (Ehrlich et al, 2008:336). As our welfare increase, largely by consuming more, this serves to increase environmental destruction in poor countries. For example, while worldwide consumption has almost doubled in the years 1973-1998, per capita consumption for African countries has instead been declining since the 1980’s (Ravenhill, 2008:465). This has no apparent negative effect on rich countries, which instead might preserve their own nature and see environmental scenery as improving. The result then is that the real cost of consumption in environmental and social terms are hidden 23 from those that consume the most. It is a tragedy where those that want environmental improvement do not have the means (the poor who see the cost), while those that do have the means have no need for improvement (the rich who do not see the cost). It is then this unequal consumption that is the cause of environmental decay, not poverty in itself (Ravenhill, 2008:464). Richer countries consume above their means, poorer ones below their means, while the total consumption environmentalists argue, are beyond the means of the planet. The result of that equation is phenomenons like global warming, soil degradation and decreased biodiversity (Ehrlich et al, 2008:358). This situation is unsustainable since globalization, and the competition for investors, often leads countries to devalue their environmental laws in order to attract businesses, further increasing environmental harm (Korten, 2001:131-132). Also, more people added to the planet will increase consumption, which may further speed this process up (Ehrlich et al, 2008:210). 24 8. The stalemate in the empirical evidence As seen in the previous chapters, Economic liberalism and environmentalism differ in a wide range of important subjects. The difference concerns the arguments but also the empirical evidence framed for those arguments. Let us turn to a concrete example: Lester R. Brown argues that global wheat yields are stabilizing and about to enter a decline, if it has not already. He attributes this to population growth, water and oil shortages and the use of food for ethanol in cars, which limit the supplies of food available. He notes: “And for the first time, harvests in large countries like China are reduced due to water shortages. This is most evident with wheat…where water tables are falling and wells are going dry. China’s wheat harvest peaked in 1997 at 123 million tons and has now dropped to scarcely 100 tons, a fall of nearly 20 percent.” (2008:38). Bjorn Lomborg on the other hand, argues that wheat yields are constantly rising because of improved technology. He in turn notes: “In the industrialized countries production of grain steadily increased from the 1950’s to the 1980’s, stabilizing around 650 kg per inhabitant, essentially because we just cannot eat any more…In the developing countries, production has kept growing, from 157 kg in 1961 to 211 kg in 2000. An astounding 34 percent.” (2001:94). 25 Notice the contradiction, where Brown argues for a decline, while Lomborg argues for a rise. Different places for the statistics, different years and even different measurements are chosen to get their point of view across. Naturally, both points of view criticize each other on selecting specific data. Is anyone of them right? This example is but one of the many subjects in which there is no consensus over the true state of the world. 8.1 Data selection A serious consideration then concerns the selective measures of both economic libertarians and environmentalists alike. This makes every statistical fact contested, be it about inequality, the effect of global warming and our agricultural future and so on. For one, why are data chosen between these specific years, at that specific location? How is it gathered? There are multiple difficulties in gathering data. In poor countries, finding out real disposable incomes is difficult as they lack institutions from which to draw the data from. In the worst cases, data are compiled by knocking doors, asking, and then extrapolating those statistics to apply for a generally larger area. Even in developed countries, certain data is fraught with difficulties on honesty of respondents, but most of all about redundancy. In statistical evidence, there is a tendency towards reductionism to get a clear view of the problem. For example, Julian Simon (1986:190197) mentions that resources are getting ever cheaper by providing long-term empirical evidence. Of course, that does not take into account governmental subsidies, agricultural oligopolies or merely that we are harvesting more of said resources than before, therefore the abundance lowers prices without considering true environmental or social cost. Including these factors makes for messy statistics hence it is avoided. 26 8.2 The logic of predictions The reason a question like a future food crisis or not has not been resolved may be due to the uncertainty of the data and that the issue is very complex. It is a state of logic that merely providing a point of view cannot readily be accepted until there is evidence. Logic demands that anyone who states one thing to be true, also hold the burden of proving that statement. The distribution of power is uneven between the economic liberalism point of view and environmentalism, which is natural on global issues. At the one hand, we will have the current policy (economic liberalism) which by tradition holds the majority of power. It holds a logical thinking similar to the age old saying: “If it is not broken, do not fix it”. On the other hand, we will have the critics of that policy (environmentalism). If anyone then would wish to criticize the current policy, proof of its wrong-doing and solutions to its immediate fix will be necessary. Since environmentalists are the critics, they have readily tried to provide for such evidence. However, there is a need for consequences as well. Without consequences, evidence falls short. To that, environmentalists have the last decades on grounds of uncertain data made several predictions about the future, balancing extrapolated facts with what they perceive to be a need for change before the situation goes out of hand. Not surprisingly then, a fair share of these predictions have in retrospect proved to be false (Lomborg, 2001:4-5), which unfortunately have enabled economic libertarians to dismiss the critics entirely without closer examination. For example, in 1968, Paul Ehrlich wrote the “Population bomb” which predicted mass starvation in the 1980’s due to population growth. This was a prediction that in retrospect turned out to be false thanks to the green revolution. When environmentalists criticize the current 27 policy, they are calling for action due to the perceived consequences of not acting. However, there is a need to realize that the current policy in itself is also action. Both have consequences, one cannot simply dismiss one call for action without examining the other. What we are left with then is a stalemate in the food crisis debate. Whatever statistical evidence is brought forward, it will be biased and heavily criticized by the opposition. However, the causes of the predictions, the arguments, are still valid as they persist throughout the centuries. It follows then that we need to take a closer look on how to make sense of them. 8.3 Levels of analysis A basic problem when looking at worldwide issues is the level of observation we take. By ordering science in different narrow fields, we essentially handicap ourselves by looking at the complexity of the whole in small pieces (Korten, 2001:21), be it only economy, biology or social science. A whole-systems approach is necessary, and in taking up such an approach, we can look at which arguments are small or large pieces. Imagine having a children’s puzzle in front of you, with pieces of different sizes available. As any child would know, if we want to see the complete picture of that puzzle (the “truth” of the whole), we would naturally be more interested in the larger pieces than the smaller ones because they show us more of that picture. This is not to say that the smaller pieces do not contain vital information, it merely says that some pieces are of a generally bigger importance. Some arguments then, matter more than others. 28 We say that arguments operate at different levels of analysis. Some arguments work on a short-term basis (small pieces), others hold true for a longer time, and are thus long-term in nature (larger pieces). Let us turn to a simple example. Today much discussion revolves around global warming, its cause and its effects. Back in the 1970’s however, climate discussion was just as hotly debated (Damon et al, 1976, Lockwood, 1978, Laffin, 1971) as it is today, yet with a crucial difference. It discussed global cooling. How do we make any sense of that? One difference lies with the observations. Global warming does not effectively just increase the temperature; it also causes climate fluctuation. This means that any global warming is likely to make some parts of the world hotter, some colder, some indifferent, while in total the result is a warmer trend. Most statistical evidence in the 1970’s where gathered in the Northern Hemisphere (Damon et al, 1976), were there was a cooling trend due to aerosol particles in the air. As such, the natural inclination is to point towards a cooling trend, hence global cooling. As gathering of statistics became more global, this trend turned towards global warming (Damon et al, 1976) which today is almost irrefutable. The aerosol particles would have been densely concentrated in heavy industry areas, which coincide with the Northern Hemisphere and the western countries at the time, a fact that together with the concentration of gathered statistics from this area resulted in the call for global cooling. So in this simplified instance, the climate change debate worked like a puzzle, where we picked up a small piece that was easily accessible, looked at it and guessed the picture of the whole puzzle. As more pieces where gathered, a more complete picture emerged. The very 29 first piece (global cooling) is accurate. Some places are experiencing colder climates for limited times of the year. But we cannot say it applies to all places, nor can we say that there is global warming until bigger pieces are found. Once more pieces are found however, we see that both global cooling and global warming are accurate. They are both true. In this case, global warming is a bigger piece of the puzzle, and hence more true. That there is a global cooling piece of the puzzle does not detract from there being many more global warming pieces. Overall, the whole picture is regional cooling in one place and global warming everywhere else. The different levels of analysis matter. The whole picture matters more than a single piece. 8.4 Hierarchy theory We are about to look at that bigger picture now, concerning the global food production. With us, we carry arguments from both the environmentalism and economic libertarian point of view. We also carry with us a knowledge that some of these arguments matter more than others once we look at a bigger picture. None of these arguments are necessarily false; they simply operate under different levels of analysis. We also acknowledge that the empirical evidence is locked in a stalemate. More empirical evidence as such may not help. By that, we turn to hierarchy theory for answers: “Hierarchy theory is a theory of observation whose function is to clarify those arguments in science where collecting more data will not help” (Ahl et al, 1996:50). 30 9. The Basketball Framework To illustrate the global food production, imagine a spinning basketball (See Figure 2.). It has three characteristics; the speed at which the basketball spins which represents our food production. The faster the ball spins the more food is produced. The weight of the basketball represents the amount of land used to grow food and also how that land is managed. Finally, the input represents factors that we need to get that land under production, which are labor, capital and technology. Figur 2. The Basketball framework showing the three laws that govern it; speed, input and weight. Let us turn to an example to see how it works: We imagine the basketball is spinning, producing food. In order to get more food, to spin the basketball faster, we would need to hit the ball harder, i.e. to increase input. So to get more food, we increase input, be it capital, labor or technology. Imagine a farm with only workers for example, 31 producing food. Now add a few horses for animal power (capital), and we are likely to see that food production increase. We could also add pesticides (technology), which kills some bugs eating the crops, thus increasing production. Weight on the other hand, deals with land and land management. Imagine the same farm with the workers. Now, we increase the amount of land under cultivation, which makes the ball lighter, thereby increasing production (within certain limits, or the opposite becomes true) since a lighter ball will have less friction and thus utilize the input more efficiently. We could also manage the land differently, by introducing irrigation or sow grain and beans every other year (beans work as a natural fertilizer to the grain), making the ball lighter by increasing production. The same example works the other way around too. If the soil becomes salty due to faulty irrigation methods, thereby making the ball heavier, we will see a decrease in production since a heavier basketball is harder to spin. Input works the same way. If we reduce input, i.e. we take some workers off the farm then we are likely to see a production decrease as well. 9.1 Limitations and factors of the framework This framework operates under the presumption of ceteris paribus (all else being equal), and as such has limitations. The main use of it is to look at outlying factors, and how they affect the speed, weight and input of the model for the worse or better. Yet, these limitations will then assume that nothing changes. In a real-world agricultural system we know this to be false, as things change all the time. New technologies, new viruses, new methods of farming, erosion and climate etc. will all change the basics of the agricultural system. The 32 emergence of the green revolution, the introduction of pesticides, modified seeds and fertilizers, are an example of that which cannot be predicted. The factors put into the framework for testing will need to be commonly accepted and distinctly different from the empirical evidence it is separating itself from. Since the world is constantly changing, and the model is trying to get a glimpse of the future, it will be imperative to look at future trends linked with the agricultural system. The most pressing trends in agriculture then, are three factors. One, the current policy of economic thought will affect agriculture, as it is an action unto itself. Higher economic growth share linkages not only to weight (land management), but also to the input (technology and capital mainly) we introduce to the system. Second, global warming will affect agriculture, although the real outcome is debated. Climate is linked to the heat sensitivity of the crops, but also of changing patterns of precipitation and new ideal locations for production. Third, population growth will affect agriculture since more people on the planet will demand a higher supply of food (speed), at least under current consumption patterns. The three factors, the current policy, global warming and population growth are what we will examine next. 33 10. Capitalism The current policy is without doubt the largest factor of the framework, since it governs most things. This policy is capitalistic in nature, and can be seen as a system of how we behave and organize ourselves in relation to nature. The way that we do behave is critical for how our agricultural system will work. Think of it like the person whose hands are spinning the basketball. This person decides the speed of the basketball, and consciously or not, also decides the weight and input as well. One thing the economic liberalism policy does very well is to produce more food, as seen by cheaper prices. This essentially means that the system is making the basketball spin faster than before, which it does by increasing input in the form of technology (fertilizers, modified seeds, pesticides) mostly made from fossil fuels. It also increases capital input in the form of heavy duty machines that are increasingly more efficient, or land management policies such as monocultures that increase the speed of production. Before monocultures, farms alternated between which crops where grown to achieve a balance of nitrogen in the soil, or let parts of the land in fallow during some years. Thus, there was a nitrogen balance in the soil. With the green revolution providing artificial nitrogen in fertilizers, such practices could be avoided. It was now possible to produce the same crops every year, and thus production increased (speed increased). However, this naturally produces a decline in soil content which eventually causes erosion, leaving lands infertile. The extra input from fertilizer into the system then causes the land to erode, making our basketball heavier (Pfeiffer, 2006:11-13). To keep up the same speed of production, input is constantly increased 34 under the current policy by adding more fertilizers and modified seeds in trying to achieve balance, a policy which may be short-term in nature. This is because the agricultural system is also a major contributor to environmental deterioration. The systems dependence on fossil fuels contributes widely to global warming, which reduce biodiversity (Ehrlich, 2001:240). By clearing forests or marshes for crops or applying excess amounts of pesticides that run off into the ocean, biodiversity is further reduced. Such practices serve to increase the weight of the basketball as it increases erosion and food insecurity. This is evident in monocultures since the natural resistance towards pests is reduced, which forces the production into a dependence on pesticides to get rid of the pests. Chances of widespread devastation are then higher with monocultures than otherwise, unless technology can keep up. Thus in this system we are forced to use pesticides to protect the fragile monocultures, with the effect that since the bugs constantly adapt to the pesticides new ones have to be developed frequently. This is done in order to increase food production, that is, to increase its speed, since monocultures produce more food. What remains then is a system that increases the speed of the basketball, but also increases the weight of the basketball. Both effects require higher input, input that is mostly derived from fossil fuels that may face increasing costs or even decreasing marginal returns, making it unsustainable. Even the input of technology may face decreasing marginal returns, as costs may increase to constantly stay ahead of the bug’s natural ability to adapt. 35 10.1 The social maintenance of the policy The policy of economic liberalism promotes reduced trade barriers, increased production and growth. In many ways, reducing barriers between countries is what we mean by the term globalization. When we look at consumption patterns and trade, we should note that the consumption of natural resources is not equal between countries. Some countries consume more products than what can be produced within that country, while that imbalance in countered by some countries producing more than is consumed within that same country. The result is an economic system where material goods flow from the periphery (overproducers) towards the center (overconsumers), creating inequality (Wallerstein, 1976:230-234). This division of a center and a periphery faces increased world-wide homogenization from globalization, which creates a system of inequality where each entity winning is followed by several losing. For example, we heard that food prices are constantly going down according to economic liberalists, which is a net gain for consumers. Yet, it is a loss to producers. When agribusiness corporations control markets, they outsource production to reduce risk and increase profits. Small farmers get contracted to produce a certain amount each year, which is then sold to agribusiness corporations for transport, processing and distribution. However, should the farmer have a bad harvest due to that years ’ weather, he alone bears the cost and is likely to go out of business. Furthermore, such corporations will dictate the price of the goods, production methods and more importantly, the price of getting those production methods active (purchasing fertilizers for example). The result is a steady decline in the share of actual profits by the farmers that are doing the real work (Korten, 2001:214). Consumers also pay a higher price since the low prices are artificial and subsidized through factors such as taxes, 36 transports and land practices contributing to global warming, lesser nutritional values and damaging health effects due to chemical compounds that are not factored into the price. In the end, producers receive a lower price, consumers pay a higher price and the net gain is profit for the middle-man, the agribusiness corporation. What we get is a social deterioration where a dependence exists between the core and the periphery, and elements put in place to keep that inequality. Patents for important and needed medicines are one such example, forcing fossil fuel products upon the producers for a maximum yield of return another. The system advocates a need to increase food production (speed) to keep growth, and it does so by increasingly spreading the practices of fossil-fuel input, which makes the basketball heavier. The social deterioration of making producers worse off than before is in itself an input in this system as it makes products cheaper. 10.2 The arguments regarding the policy The current policy is a system locked in decreasing marginal returns on effort versus technological adaptation. This is where we find the big pieces of the puzzle, since they concern speed, input and weight at the same time. Smaller arguments will concern things irrelevant of where the system is heading, in effect just one or two parts of the model. One such example is the argument that resources are getting cheaper, which only tells us that the basketball is spinning faster, not 37 what is happening to either weight or input. As such, it is irrelevant as it only concerns speed. It is a small piece. Other examples are more intriguing. Economic liberalists for example state that to reduce environmental problems and poverty we need economic growth. This essentially means that to deal with an increasingly heavier basketball, economic liberalists wish to increase input. In the Kuznets curve, the argument is even more complex, as it states that although the basketball is getting heavier, if we increase input long enough, it will get lighter. Naturally, this cannot be true on a global scale, because the shift from heavy industry to a service industry is not a complete one, and the idea that a basketball gets lighter by spinning it is false since these factors do not correlate. Western countries still use heavy industry resources in an increasing rate, production that have been outsourced to other countries (Ravenhill, 2008:464). Therefore, the Kuznets curve is essentially a small piece of our puzzle. It applies to some countries in isolation, western countries, but not to the global whole. The argument basically unfolds to say that to save the environment we need to destroy some of it to get economic means to save the rest. Along those lines, we lose parts of the environment, which means that the basketball will be heavier. Environmentalist arguments can also be categorized as small of big pieces. For example, the statement of our addiction to oil and that a majority of people will be without food if transports stop, is a small piece. This is because if we do not have any input into the system, then the basketball will stop spinning, but the real issue is not the speculation about if we stop, but rather the effects behind it. Essentially, that is the argument carried forward with the argument for peak oil to show diminishing returns on input, environmental decay being outsourced to poorer countries to show increasing weight or the rising consumption trend and population growth 38 which point towards there being a need to increase speed at the same time as the world finds itself more strained to do so. These are the big pieces up for debate. The essential question is then, now that the agricultural system is facing decreasing marginal returns, if it can be remedied as economic libertarians claim, or if it cannot and we need to change the system, as environmentalists claim. 39 11. Global Warming Human caused global warming is a byproduct of the current economic system. It derives from the use of fossil fuels first and foremost, which for agriculture extends to fertilizers and pesticides along with oil-based machines. The classification of agriculture as an economic system in the current policy has also lead to transports, processing and packaging being a major part of the food industry, and as such, the impact on global warming by agriculture is fairly large. Not all agricultural land is equal, which is based on the richness of the soil. An area with good soil will be better for agricultural production. This land also needs to coincide with climate. Crops are heat and cold sensitive and grow best in areas with a Mediterranean climate (Buringh, 1978). Unsurprisingly, the majority of the world’s food production is grown in areas where both the soil and climate favor agriculture. The effect that a warmer climate has on agriculture is twofold. In some parts of the world, the soil is good but the climate is too cold. A warmer climate here will increase food production. In other parts of the world, most importantly those that have the perfect climate and a good soil, a warmer climate will reduce food production simply because the crops cannot survive the heat (Lobell et al, 2007). The important question here is if the places that could benefit from global warming can produce the surplus needed to cancel out the deficits of decreasing yields elsewhere. In the short-run, a decline is likely as global warming affects current major production sites. In the long-run there might be adaptation, but is the soil good enough to cover the deficit? That is a question of decreasing marginal returns versus technology yet again. In other 40 words, global warming decreases the speed of the basketball system, which begs the question; is there enough input to remedy the decrease in speed? Given that most forms of input today comes from fossil-fuel products, which increases the weight of the model, even more input will be needed. This in turn creates a positive feedback; an infinite loop where fossil fuels is put into the system, demanding more fossil fuels or it will crash, more fossil fuels are added, demanding yet more fossil fuels. The underlying reason is quite simple; the soil has degraded enough to the extent that if crops are planted without fertilizers, little nutrition remains in the soil to produce much food. Or in the case of pesticides, a certain amount of bugs is prevented from eating the crops when they are killed, dead bugs that would be alive and eating up substantial amounts of the harvest if pesticides went away. Global warming is also worrying since marginal agricultural lands currently under production by small farmers are the ones most likely to find their subsistence harder to maintain (Parry, 2002). In effect this means that the dependence on food imports by poorer countries, most of all Sub-Saharan Africa, will increase, further escalating food insecurity. With a trend of decreasing amounts of nutrients in harvested crops and fruits since the 1950’s, and with little ability to check imports, this may also have effects on human health levels in the region (Ravenhill, 2008:462-466). 41 12. Population growth As the population rises in the world, there will inevitably be a need to provide more amounts of food if the current economic liberalism policy stays put. This is because even with an abundance of food, the distribution of that food is not equal, and thus there are people starving and being malnourished as well as overweight people living in the same world. Also, economic growth in developing countries will increase the demand for food, most in the form of meat (Godfray et al, 2010). Meat is an important issue, since it takes nearly 1000 kg of grain to produce 100 kg of meat, a factor of 10 (Ehrlich, 2008:184). That grain needs to be grown somewhere, which will mean an expansion of production (decreased biodiversity) or increased efficiency (higher levels of erosion) in the current production, both which increases the weight of the basketball. In effect then, population growth will demand a higher speed of the basketball, while at the same time economic growth will increase the weight of the basketball. The solution to this, according to economic libertarians, is once again to increase input, as the argument falls on introducing pesticides and fertilizers to Sub-Saharan Africa. Patents, gene modified seeds and fossil fuel products implementation to poorer countries reinforce the negative dependence on imports (Korten, 2001:17) yet Economic Libertarians argue that there is no other choice in the matter (Lomborg, 2001:66). Another interesting argument regards Julian Simon’s idea that population and technology is correlated, which means that they keep an even pace. As the basketball needs to spin faster due to population growth Julian Simon argues the population growth in itself will create technological solutions (more input) to offset the 42 greater speed needed. Both arguments are large pieces of our puzzle as they deal with several factors at once, and for the third time, we see the debate as decreasing marginal returns versus an increase in input (technology). Environmentalists however argue that we need to limit population growth, even population numbers, under the argument that current consumption levels are higher than what can be available in a sustainable context. By limiting the population, a higher level of food security can be achieved (Brown et al, 2008:190) by limiting the amount of food needed to keep hunger levels down. This is an argument that criticizes the current system of decreasing marginal returns and favors another system by limiting the population factor. 43 13. Ecological Limitations The current policy introduces several effects into the basketball framework. Economic growth wishes the basketball to spin faster, by increasing input. That input (fossil fuels) increases weight, which further increases the need for more input. Global warming decreases the speed, while population growth demands that the speed is increased. These two factors then reinforce the need for input as well. Faced with these demands, an escalating increase in input is constantly needed merely to keep the basketball spinning. The system then faces diminishing marginal returns. That the agricultural system faces diminishing marginal returns is not a problem if input is limitless. But what if it is not? The demands placed on the framework to constantly increase input is a positive feedback. In a world of limits, a positive feedback will sooner or later encounter a negative feedback to bring the system back to equilibrium. To visualize it, merely picture yourself spinning the basketball, trying to spin it faster and faster. The harder you hit the basketball, the harder it spins. This is a positive feedback. However, there will be a time when your arm becomes tired, or the basketball cannot be hit harder than it already is. At that point a maximum occurs, and what follows is a negative feedback aimed at lowering the speed to a level where it can keep going indefinitely. This negative feedback reflects environmental restraints, a limit to the resources available. This is illustrated in Figure 3., in which we have a stable system in State A where it would require a lot of power to hit the ball (an analogy for the sustainability of society) over the edge, i.e. large-scale events. Every sort of behavior linked towards using more of our resources beyond the means of regeneration, will 44 increase insecurity, and facilitate a move from state A to state B where the power necessary to hit the ball over the edge is far less. In the agricultural system this includes monocultures and the decrease in biodiversity, as it makes it more likely for a particular pest or virus to affect a larger percentage of the crops if they emerge. Essentially, monocultures adhere to the concept of “putting all eggs in one basket” for short-term profit. Similarly it also affects other sorts of homogenization, as the heavy dependence on fossil fuels in modern agriculture, spread by the process of globalization. Figure 3. A step by step model of the result of ecological insecurity in a world with limits. Eventually a limit will be reached where there are no longer any options left to deal with the flaws of our behavior, such as taking new non-eroded lands into cultivation, in which case the system moves to State C and a new equilibrium. A move from State A to State B is exactly what the concept of decreasing marginal returns, the big pieces of our puzzle, is all about. A move from state B to state C is a state of collapse of the current system. While State C may be a colossal tragedy for human life quality, it is not something that has not happened before. Previous civilizations, the Roman Empire, the Byzantine Empire and the Abbasid Caliphate among others, faced off with diminishing returns until the system became so vulnerable that a small event (merely nudging the ball in figure 3.) was enough for the society to collapse into State C (Allen et al, 2003:101-164). The 45 inherent danger with the current economic policy is both that we see these decreasing marginal returns yet again, and that the homogenization and globalization of today’s society means that the world is effectively becoming one society. As such, should the system crash again it will be with world-wide effects, as countries dependencies are highly interlinked. Those dependencies are often felt through financial crises. There has always been a certain degree of ecological limits, which David Korten compares to the limits of a pie (2001:47), there is only so much to go around. Instead of discussing the best distribution of that pie in a world of scarcity (there is only one pie!), the economic liberalism point of view instead turns to a policy aimed at increasing the size of the pie itself. Unfortunately the growth of that pie often comes at the expense of the environment, especially so for agriculture, and a neglect for equal distribution of resources worldwide. 13.1 A change in systems Will the solutions to a system of decreasing marginal returns be enough? The proposed economical solution is to increase input, often in the form of technology. For all its merits, technology still requires energy based on fossil fuels. Also, the belief in technology as the savior of the day may prove erroneous, it is readily untested. Previous solutions to decreasing marginal returns where solved by spatial fixing through conquest or outsourcing (Allen et al, 2003:101-164) yet in the end it was not enough for former civilizations. These are solutions that are not available anymore, because we are running out of space (Moore, 2008:56). The green revolution, the latest true technological input, has solved a problem (need more speed) but at the same time created a problem 46 (increased weight and decreased input stability) due to the reliance on fossil fuels and subsequent erosion and environmental damage. Even if we disregard the debate on peak oil and assume the resources are limitless (as especially land area is not), another problem surfaces in population growth. If technology is truly correlated with population growth in that technology will continue to progress as long as human numbers do, what happens once population growth stabilizes at around 2050? This suggests a decline in input. Even other more sensible forms of input, like adding more labor to the agricultural system as the Chinese (Barks, 2007:206) or Cubans have successfully done (Pfeiffer, 2006:60) is often temporary, and shifting towards other sources of energy besides fossil-fuels may not work. First, in the current policy there are few incentives to do so as long as fossil fuels do not run out, despite the environmental damage, since those responsible for the damage do not see or feel the damage themselves. Second, other sources of energy such as bio-fuels are less energy intensive and use up parts of the food supply. Even Solar power will require parts of our food supply simply because it needs the space currently taken up by agriculture (Pfeiffer, 2006:13). Moreover, the most important part is ethics. With the current system, even if fossil-fuels are switched out, it will not improve the poorest people’s quality of life to an equal standard with current widening wealth gaps. If problems arise, the distribution of power enables the rich to outsource their problems to the poor to the greatest extent possible. Global warming is one such problem, as it is likely to hit the poor the most, yet they did not cause it. Food shortages in any form will affect the poor the most, yet they are not responsible for the production methods, because they often import food, a global economic system enforced on them. If there will be less food in the world, those who are producing it will keep most of what is grown, which will be devastating for those that import food. 47 This dependency serves to make the poor economic slaves with few chances of improvement. The alternative is a step away from the system of decreasing marginal returns, and the flow of resources from the periphery of the poor world towards the center of the rich world. To increase food security. A stable agricultural system would be one where returns on effort are constant, in which humans take the surplus of what nature can provide without over-extraction and keeping within ecological limits. A point can be made that we do not know the degree of those limits, that is, the amount may be so vast that for human purposes it could be limitless, or that we cannot see a timeframe on the increasing insecurity of the agricultural system. However, if we are to believe that human life everywhere is equal, we ought to think along the lines of a world with limits, where the economy is interlinked with nature and not the other way around. Once we find the system to be flawed, we could either try patching it up, which this paper suggests may not work, or change the system completely. Quite naturally those arguing for the current policy will say that the costs of switching systems will be great (Lomborg, 2001:66), yet one can also wonder at what choice we have. In many ways, the reluctance towards change may ultimately be about self-preservation: “It follows, as libertarians sometimes maintain, that it is the most rational for those who have the financial means to continue to enjoy the party for as long as it lasts. If they sacrifice these pleasures and the environmentalists are ultimately proven wrong, they will have sacrificed their reason for living to no end. If the environmentalists are proved right and the party ends in selfdestruction, then at least they enjoyed it while it lasted.” (Korten, 2001:236). 48 14. Conclusions To deal with the new challenges of environmental deterioration and the future food production capacities, a new approach to the issue is needed. This paper used hierarchy theory to organize the arguments of Environmentalism and Economic Liberalism to find that the argicultural system faces diminishing marginal returns on effort due to the factors of capitalism, global warming and population growth. 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